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The household textiles market was estimated to be worth just over
£1.3 billion in 2007, representing an increase of 3% on the previous
year.
The market has shown consistent growth in recent years but, due to
lower levels of consumer confidence, a weakening economic climate
and a slowdown in the housing market, sales are expected to fall in
the short-term before recovering in the medium term.
The household textiles market is a mature market dominated by
replacement purchases. The market remains highly fragmented with
increasing competition from imports. In 2007, the market performed
well, benefiting from a more buoyant economic climate, but
indications are for a decline in 2008-09 as a result of the current
uncertainty surrounding key drivers such as the housing market and
consumer confidence levels. However, the longer-term prospects for
the market are more optimistic with moderate gains forecast from
2010-2012 when the market is expected to reach just over £1.3
billion, though the current uncertainty and volatility of the
short-term economic climate makes it extremely difficult to forecast
in the medium term.
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The product
mix has changed little in the last decade, but performance of the
different sectors is expected to vary in tough economic conditions. Filled
products now account for around 30% of the market and have performed well
recently and are expected to out-perform the other sectors in the short
term. Also, some sectors of the bed linen market, such as duvet covers
(now worth over £200million), are expected to fare better than others
reflecting changing trends – particularly in the non-domestic sector.
Imports of
household textiles are likely to increase their rate of penetration into
the UK market resulting in greater pressures for UK based manufacturers,
particularly those targeting the lower market sectors. The market
experienced a trade deficit of over £650 million in 2007 as Far East
imports continue to rise.
Recent years
have seen a growing polarisation of the market with demand for quality and
innovative products at the upper end and cheaper products at the lower end
of the market. In the upper sectors of the market, design and quality
factors have grown in influence on the back of rising disposable income
levels, helping to underpin these sectors of the market, although price
always remains a feature.
The wider
range of retail distribution outlets for household textiles has been a
feature of the market in recent years and is expected to continue. The
Grocery and DIY multiples have gained share and price competition between
the multiple retailers is a major threat to value growth of the market.
Equally, the internet will continue to be a growing channel for household
textiles at the expense of more traditional mail order channels and
independent stores.
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