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UK Home Office Furniture Market 2005 - 2012
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Forming part of the overall domestic
furniture market, home office furniture was estimated to account
for around 4% value share of this market in 2007. In terms of
value, home office furniture was estimated at £221m in 2007,
representing a 2% increase on the previous year. Market size
figures for home office furniture and forecasts of future market
performance to 2012 are shown in the chart, left.
The home office furniture market has experienced
steady growth between 2000 and 2007 due to a number of underlying
factors, including the increasing number of households owning
computers and continued changes in working practices, leading to
more people working from home.
Home working is one of the key factors
stimulating the demand for home office furniture and the number of
people actually working at home is still relatively low at just
under 10% of the UK population. This percentage is expected to rise
in the long term future as developments in technology make home
working far more practical and companies begin to see the benefits
that this can bring to their businesses.
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However, the main factor influencing the future performance of the market
is the current uncertainty and volatility of the short-term economic
climate that makes it extremely difficult to forecast into the medium
term. Consumer confidence and spending levels are declining in 2008 as
the effects of the credit crunch, high food and fuel bills all impact on
disposable household incomes, with non-essential purchases increasingly
deferred. Short term prospects for the home office furniture market
therefore remain uncertain with current indications of a downturn in
2008-09, followed by moderate gains to 2012 when the market is expected
to reach around £198 million.
In
terms of the product mix, desking is the largest sector, accounting for
around 52% of the market in value terms in 2007. Sales of seating
products have also grown in volume terms, but in value terms their share
of the market has remained steady at around 28%. A key area of growth is
the design of specialised children’s and teenagers’ furniture, due to the
increase in multiple PC ownership and the increasing number located in
children’s bedrooms.
International trade remains a significant feature of the home office
furniture market and imports accounted for around 60% of the market in
2007. Imports of home office furniture 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
supply structure for home office furniture is very fragmented. The major
suppliers hold a share of around 49% of the market and most of these are
manufacturers supplying the large retail chains such as MFI, IKEA and
Argos.
In terms of distribution channels, the furniture multiples
are likely to remain the dominant sales channel for home office
furniture. Catalogue retailers are also likely to remain a prominent
channel of distribution. In addition, a more significant change to the
distribution mix is that grocery multiples are likely to extend their
share following their recent manoeuvres into the furniture market.
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