The UK
Bedroom Furniture market was estimated to be worth approximately
£575m (MSP) in 2011, representing approximately 12% of the overall
Domestic Furniture market. Following substantial growth in the
early 2000’s, the market became more difficult and as the decade
progressed experienced significant declines in 2008 (4%) and 2009
(6%). As a result the share of the overall furniture market has
declined since 2002.
The
onset of the housing crisis towards the end of 2007 and the impact
of the global credit crunch, resulting in the world economic
recession, reduced levels of consumer confidence. Other pressures
within the domestic furniture market have included the rapid
penetration of low cost imports from the Far East and Eastern
Europe, which has driven down prices and margins.
Other
constraints include increased competition from a number of high
profile players, including IKEA, Argos, Shop Direct, together with
threats from newcomers, such as Tesco and Asda. Growing
competition in a declining market is also reflected in the
increasing number of liquidations in the sector, both at
manufacturer and retail level, although no major retailer has
failed, since MFI, a market leader in this sector, went into
liquidation.
Many of
the UK fitted furniture suppliers are vertically integrated
companies, involved in the design, manufacture and installation of
their own furniture and often marketed through their own retail
outlets or via concessions in other stores
Whilst
imports have increased significantly in the last decade and
currently account for around 69% of the bedroom furniture market,
most fitted furniture is manufactured in the UK. However, not all
imports are in the budget sector, since Germany, Italy and Denmark
accounted for 13% of imports in 2011. This compares with China,
whose exports of bedroom furniture to the UK were increasing
annually until 2011 and reached £136.4m in that year, representing
34.3% of UK total imports in this category.
Modular
furniture continues to be popular and the trend towards smaller
houses and households will sustain this trend, as demand for
clever storage solutions continues to grow. Solid wood furniture
or finishes remain in high demand in the medium to upper sector of
the market, however, the variety and range of contemporary styles
in alternative woods is also increasing, as is the demand for
painted finishes.
Most of
any future growth within the bedroom furniture sector is expected
to come from the lower end of the market and in the short term
this sector may gain at the expense of the medium to higher priced
end, driven by companies such as IKEA, Argos and Tesco, with their
ranges of affordable and innovative products, together with the
expanding variety of cheap imports available in other outlets.
Internet and catalogue retailers will increase their share of
overall sales, and most types of outlet will increase the
proportion of their products sold via the Internet.
In
general, it appears that short term prospects for the next 5 years
are likely to prove relatively difficult for the overall furniture
industry, with forecasts showing little or very modest volume
growth. The bedroom furniture market is forecast to show slow but
increasing growth in the next few years, reaching a value of £650m
in 2016, compared to an estimated £575m in 2011.
