The Internet plumbing market has shown exceptional levels of growth over the last five years. A growing number of UK households have Internet access and more consumers have the confidence and knowledge to buy online. In 2009, 70% (18.3 million) of households in the UK have Internet access. This represents an increase of 28% when compared to 2006. In addition, there is increased consumer access to high speed broadband Internet services. Of all UK households, 63% have a broadband connection in 2009, up from 40% in 2006.

The Internet plumbing market is estimated at £103 million at Manufacturers Selling Prices (MSP) in 2008, a 12% increase on the previous year. 2009 estimates indicate a lower level of growth at 5%, reflecting the impact of the current UK economic recession on consumer confidence and spending levels.

Forecasts indicate that in the short term the Internet plumbing market will continue to grow, albeit at a more constrained pace. This growth reflects the impact of the current economic recession balanced by the fact that consumers will look to the Internet to find the best prices for their particular plumbing requirements. The number of new Internet ‘start-ups’ in the plumbing market is likely to show an increase, as more companies realise the benefits of trading online. The number of established plumbing suppliers that also offer an online presence will continue to grow.

In the medium to longer term, the Internet plumbing market is expected to experience a return to strong growth, and by 2013, the market value is forecast to be £172 million at MSP.

It is estimated in 2008 that around 45% of plumbing products sold on the Internet through e-tailers are own label products.

The Internet has removed barriers to entry previously enjoyed by traditional store-based retailers and other suppliers. This has allowed small and medium size e-tailers to enter the plumbing market, creating a new competitive dynamic. It has also encouraged other suppliers such as store-based bathroom retailers and catalogue companies to enter the online e-retail sector.

The future performance of the Internet plumbing market is likely to be driven by overall trends in online E-retail shopping and levels of consumer confidence and expenditure. New technology and new IT products will expand choice and availability. For example, the trend to shop ‘on the move’ using mobile phone technology is likely to increase. Advancements in the development of 3G and mobile phone technology in general, are likely to support this trend.

However, traditional retailers and plumbing e-tailers with showrooms will still play a big part in the future of retail. There are a significant number of people who will always prefer to see the product in situ and to feel the quality of the materials before choosing to buy.