Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
DIY; Gardening
Executive summary
High Demand for Cement Outstrips Manufacturing Capacity
The country is going through a major construction phase and the cement
business became attractive and lucrative. The government invested huge amounts
of money in upgrading infrastructure and building stadiums in preparation for
the hosting of the 2010 soccer world cup. As these projects take off, in an
environment where there is also a surge in housing and property development,
the result was double-digit growth in demand for cement, which overwhelmed
local production capacity. The country will have to import supplies of cement
to meet demand.
Increased Home Ownership Develops DIY Habit
The government undertook an accelerated programme to provide housing to its
citizens. At the same time there was growth in new home ownership by private
individuals due to positive economic growth and wealth redistribution. This
resulted in changes in the lifestyles of consumers. More individuals are
taking up DIY as they develop interest in improving their homes.
Massive Inflow of Cheap Imports Drives Retail Sales
The strength of the rand made imports manufactured in China very competitive.
There was a steady influx of cheap imported branded DIY tools, especially
power tools. Generally low prices and the availability of increasing
disposable incomes drove up sales of branded DIY tools. Most major DIY and
hardware retailers stock a wide range of top international brands at low
prices and advertise heavily in print media.
New Product Development Spurs Home Improvement Activities
The high level of competition in the market resulted in companies investing in
research and development. The net result was the continuous development of new
technologically enhanced products. The availability of these products at low
prices gave the impetus for home improvement as consumers tried to equip their
homes with the latest product innovations, like the latest shower heads, as
increasingly affluent consumers seek the most luxurious options.
Accelerated Electrification Programme Impacts Electrical Supplies
The government' s implementation of the electrification programme resulted in
rising sales of electrical supplies as people began to equip their homes for
electricity consumption. The availability of increasing disposable incomes to
lower income groups also contributed to sales growth.
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