Conservatories - UK - January 2004

Contents

Introduction and Abbreviations

• Definition
• Consumer research
• ACORN

Abbreviations

Executive Summary

• Economy is key to conservatory sales
• Moves towards owner-occupation
• Home improvement more than just a fad
• Value and volume of retail sales rising
• PVC-u and hardwood frames dominate the market
• Wickes remains the market leader
• Portland Conservatories consistently the highest-spending advertiser
• Direct sales the most prevalent distribution route
• Younger consumers keener on conservatories
• Sales in luxury conservatories set to rise

Market Drivers

• A strong housing market...
• Figure 1: Average completion price and number of transactions, 1991-2003
• ...and a trend towards owner-occupation
• Figure 2: Total dwellings and proportion owner-occupied in the UK, 1998-2007
• Remortgages rising rapidly
• Figure 3: Gross mortgage lending, by type of loan, 1998-2003
• 21% of homes in the UK are detached
• Figure 4: Types of accommodation in the UK, selected years, 1971-2001
• 84% of households have a garden
• Figure 5: UK conservatory versus garden ownership, 1998-2003
• Over 50% of adults enjoy their garden
• Figure 6: Agreement/disagreement with the statement: 'I get a good deal of pleasure from my garden', 1998-2003
• Home improvement is a popular pastime
• Figure 7: Consumer responses to the statement: 'I am always looking for ideas to improve my home', 1998-2003
• Confidence in the economy prompts spending
• Figure 8: Trends in PDI and consumer expenditure, at constant 1998 prices, 1998-2007
• A more affluent population
• Figure 9: Trends and projections in the UK population aged 15+, by socio-economic status, 1998-2007
• Population
• Figure 10: Trends and projections in the UK population, by age group, 1998-2007
• The British climate

Market Size and Trends

• Value of the market continues to rise
• Figure 11: UK retail sales of conservatories, at current and constant prices, 1998-2003
• Average cost of a conservatory continues to rise
• Figure 12: UK retail sales of conservatories, by volume, value and average price, 1998-2003
• Figure 13: Indexed retail sales of conservatories (volume and value) and average price paid, 1998-2003
• Crystal clear benefits

Market Segmentation

• PVC-u and hardwood models dominate the market
• Figure 14: UK retail sales of conservatories, by frame material, 1999, 2001 and 2003
• Counting the cost

The Supply Structure

• Manufacturer share
• Figure 15: Estimated manufacturers' shares of the UK conservatories market (excluding new build), 1999, 2001 and 2003

Companies and brands

• Amdega
• Anglian
• Everest
• Portland Conservatories
• Wickes
• Significant others
• The Conservatory Association

Advertising and Promotion

• Figure 16: Main monitored media advertising expenditure on conservatories and glass extensions, 1998-2003
• Portland Conservatories - a consistently high spender above-the-line
• Figure 17: Above-the-line advertising expenditure on conservatories, 2000, 2001 and 2002
• Press is the favoured medium
• Figure 18: Main monitored media advewrtising expenditure on conservatories, by media channel, 1998-2002
• National newspapers attract significant adspend

Distribution

• All four routes to market have grown in value
• Figure 19: UK retail sales of conservatories, by type of outlet and value, 1999, 2001 and 2003
• Providers have a high Internet presence

The Consumer - Ownership and Attitudes

• Proportion of GB conservatory owners is growing
• Figure 20: Ownership of a conservatory/sunlounge, 1998-2003
• Level of new purchases higher in 2002 and 2003
• Figure 21: Conservatory/sunlounge bought new in the last 12 months, 1998-2003
• Space and affordability
• Figure 22: Attitudes towards conservatory ownership, 1999, 2001 and 2003
• Ownership skewed towards over-54s and ABs
• Figure 23: Attitudes towards ownership of conservatories, by gender, age and socio-economic status, November 2003
• Parents keen to purchase conservatories
• Figure 24: Attitudes towards ownership of conservatories, by presence of children, lifestage and Special Groups, November 2003
• The enjoyment of a conservatory in later life
• Figure 25: Attitudes towards ownership of conservatories, by marital and working status, household size and tenure, November 2003
• Ownership higher in the West
• Figure 26: Attitudes towards ownership of conservatories, by region and ACORN category, November 2003
• One in five mid-market tabloid readers have a conservatory
• Figure 27: Attitudes towards ownership of conservatories, by media usage and hours per day spent watching commercial TV, November 2003
• Quarter of all homes built between 1965-1985
• Figure 28: When current home was built, November 2003
• Over-64s most likely to live in homes built 1945-1964
• Figure 29: Age of own property, by gender, age and socio-economic status, November 2003
• One-person households under 65 seek older properties
• Figure 30: Age of own property, by presence of children, lifestage and Special Groups, November 2003
• Two persons and house built between 1945 and 1985
• Figure 31: Age of own property, by marital and working status, household size and tenure, November 2003
• 7% of Londoners own new homes
• Figure 32: Age of own property, by region and ACORN category, November 2003
• The importance of the broadsheets
• Figure 33: Age of own property, by media usage and hours per day spent watching commercial TV, November 2003
• Those in properties built 1965-85 a key target
• Figure 34: Attitudes towards conservatory ownership and age of property owned, 2003

The Future

• Consolidation afoot?
• Hardwood conservatories increasingly popular
• More aggressive marketing likely
• Conservatories remain popular among many consumers
• A positive outlook

Forecast

• Growth forecast to continue
• Figure 35: Forecast of the conservatories market, by value, 2003-07
• Figure 36: Forecast of the conservatories market, by volume and average price, 2003-07
• Cost will remain a barrier
• Factors used in the forecast