Residential Flooring - US - October 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Consumer research methodology
• Executive Summary
• Slowing housing market drives down flooring sales in 2006-07
• Repairs and renovation drive flooring sales
• Market trends--consumers buying high-end, easy to install and green products
• The development and promotion of eco-friendly products and practices
• Residential segment dominates market; soft surfaces losing market share
• Manufacturer consolidation and strong growth in imports
• Multi-faceted advertising and marketing campaigns
• Independent flooring specialty stores comprise dominant retail channel
• Age and income determine consumer flooring purchases
• Use of professional installation determined by (older) age and (higher) income
• Consumers turn to multiple sources when making flooring purchase decisions
• Future trends: aging Boomers and young multi-ethnic consumers will help shape market through 2012
• Market Drivers
• Home ownership drives flooring sales
  • Figure 1: Purchasing of flooring in the past 12 months, on the basis of ownership and type of residence, 2006
• In 2006 and 2007, slowing home sales place downward pressure on flooring sales
  • Figure 2: Sales of new and existing homes, 2002-07
• Replacement and repair of flooring remains a positive driver
• Repair key for flooring market
  • Figure 3: Expenditures for residential repairs and maintenance, and improvements, 2001-06
• Continued investment in renovation bolsters flooring sales
• Upper income consumers fuel demand for high-end products
• Media spurs DIY interest in flooring
• Green living trends fuel environmentally-friendly flooring products and practices
• Demographic drivers: younger homeowners and Baby Boomers
  • Figure 4: U.S. population by age, 2002-12
• Demographic driver: an increasingly multi-ethnic population
  • Figure 5: U.S. population by race and Hispanic origin, 2002-12
• Market Size and Trends
• Market size
  • Figure 6: Total U.S. wholesale sales of floor covering products, at current and constant prices, 2002-07
  • Figure 7: Total U.S. retail sales of installed floor covering products, including labor costs, at current and constant prices, 2002-07
• Market trends
• High-end products growing at above average rates
• Mid-income consumers also seek stylish flooring options
• Ceramic tiles show strong growth
• Carpet tiles likely to expand reach into residential market
• Fiberglass-backed resilient products important trend in the vinyl segment
• Growth in bamboo, cork and other eco-friendly products
• Market Segmentation
• Segmentation of the wholesale market for floor covering products
  • Figure 8: Wholesale sales of floor covering products, segmented by end user market, 2006
  • Figure 9: Wholesale sales of floor covering products, segmented by type, 2005 and 2007
• Carpets and area rugs
  • Figure 10: Wholesale sales of carpet and area rugs, at current and constant prices, 2002-07
• Ceramic floor and wall tile
  • Figure 11: Wholesale sales of ceramic floor and wall tile, at current and constant prices, 2002-07
• Hardwood
  • Figure 12: Wholesale sales of hardwood, at current and constant prices, 2002-07
• Vinyl sheet and floor tile
  • Figure 13: Wholesale sales of vinyl sheet and floor tile, at current and constant prices, 2002-07
• Laminate
  • Figure 14: Wholesale sales of laminate flooring, at current and constant prices, 2002-07
• Rubber
  • Figure 15: Wholesale sales of rubber flooring, at current and constant prices, 2002-07
• Segmentation of the retail market for installed floor covering products
  • Figure 16: Installed sales of floor covering products, segmented by end user, 2006
  • Figure 17: Installed sales of floor covering products, segmented by type, including product and labor, 2006
• Supply Structure
• U.S. domestic manufacturing leaders
  • Figure 18: Manufacturer sales of floor covering products and share of wholesale market, 2004 and 2006
• Foreign trade
  • Figure 19: U.S. floor covering imports, at current and constant prices, 2001-06
  • Figure 20: U.S. floor covering exports, at current and constant prices, 2001-06
• Advertising and Promotion
• Overview
  • Figure 21: TV spot: Bellawood Floors
  • Figure 22: TV spot: Lumber Liquidators
• Mohawk
• Shaw
• Armstrong
• Pergo
• Retail Distribution
• Introduction
  • Figure 23: U.S. retail sales of floor covering products, by channel, 2005 and 2007
• Floor covering stores
  • Figure 24: U.S. floor covering store retail sales of floor covering products, at current and constant prices, 2002-07
  • Figure 25: Top independent floor covering retailers, by sales for 2005 and 2006 and number of units for 2006
• Home centers
  • Figure 26: U.S. home center retail sales of floor covering products, at current and constant prices, 2002-07
  • Figure 27: Top home centers, by sales for 2005 and 2006, number of units and flooring sales for 2006
• Building material dealers and contractors
  • Figure 28: U.S. building material/contractor retail sales of floor covering products, at current and constant prices, 2002-07
• Furniture stores
  • Figure 29: U.S. furniture store retail sales of floor covering products, at current and constant prices, 2002-07
• Department stores/mass merchandisers
  • Figure 30: U.S. department store/mass merchandiser retail sales of floor covering products, at current and constant prices, 2002-07
• Other retailers
  • Figure 31: U.S. "other retailer" retail sales of floor covering products, at current and constant prices, 2002-07
• The Consumer--Purchasing, Installation and Retailers
• Summary
• Purchasing of flooring in the past 12 months
  • Figure 32: Purchasing of flooring products in the past 12 months, November 2006
  • Figure 33: Purchasing of flooring products in the past 12 months, trended, 2002-06
  • Figure 34: Purchasing of flooring products in the past 12 months, by ownership of home, November 2006
  • Figure 35: Purchasing of flooring products in the past 12 months, by age, November 2006
  • Figure 36: Purchasing of flooring products in the past 12 months, by household income, November 2006
  • Figure 37: Purchasing of flooring products in the past 12 months, by race/ethnicity, November 2006
  • Figure 38: Purchasing of flooring products in the past 12 months, by cohorts, November 2006
• Amount spent on flooring purchased in the past 12 months
  • Figure 39: Amount spent on flooring products purchased in the past 12 months, November 2006
  • Figure 40: Amount spent on flooring products purchased in the past 12 months, by ownership of home, November 2006
  • Figure 41: Amount spent on flooring products purchased in the past 12 months, by age, November 2006
  • Figure 42: Amount spent on flooring products purchased in the past 12 months, by household income, November 2006
  • Figure 43: Amount spent on flooring products purchased in the past 12 months, by race/ethnicity, November 2006
• Who installed flooring products purchased in the past 12 months
  • Figure 44: Flooring products purchased in the past 12 months installed by self or by other household member, November 2006
  • Figure 45: Flooring products purchased in the past 12 months installed by self or by other household member, by age, November 2006
  • Figure 46: Flooring products purchased in the past 12 months installed by self or by other household member, by household income, November 2006
  • Figure 47: Flooring products purchased in the past 12 months installed by self or by other household member, by race/ethnicity, November 2006
• Who installed new flooring
  • Figure 48: Purchased flooring in the last 12 months, August 2007
• Most recent flooring purchase
  • Figure 49: Purchased flooring in the last 12 months, August 2007
  • Figure 50: Most recent flooring product purchased, August 2007
  • Figure 51: Other types of flooring purchased in the past 12 months, August 2007
• Retailer used for most recent flooring purchase
  • Figure 52: Most recent flooring product purchased, August 2007
  • Figure 53: Most recent flooring product purchased, by gender, August 2007
  • Figure 54: Purchasing of flooring products in the past 12 months, by age, November 2006
  • Figure 55: purchasing of flooring products in the past 12 months, by household income, November 2006
• The Consumer--Preferences and Attitudes
• Introduction
• Where new flooring was installed
  • Figure 56: Where in home flooring product was installed, August 2007
  • Figure 57: Where in home flooring product was installed, by age, August 2007
  • Figure 58: Where in home flooring product was installed, by household income, August 2007
• Reasons for purchasing flooring product
  • Figure 59: Most recent flooring product purchased, August 2007
  • Figure 60: Purchasing of flooring products in the past 12 months, by age, November 2006
  • Figure 61: Purchasing of flooring products in the past 12 months, by household income, November 2006
• Source of information used when making most recent purchase
  • Figure 62: Source of information for most recent flooring purchase, by gender, August 2007
  • Figure 63: Source of information for most recent flooring purchase, by age, August 2007
  • Figure 64: Source of information for most recent flooring purchase, by household income, August 2007
• Most important consideration when making most recent flooring purchase
  • Figure 65: Most important consideration when making most recent flooring purchase, August 2007
  • Figure 66: Most important consideration when making most recent flooring purchase, by age, August 2007
• Future and Forecast
• Future trends
• Slowing housing market drives down market in short term--in longer term, growth in housing market should again propel flooring market
• Importance of Baby Boomers through 2012 and of multi-ethnic consumers for long term growth
• Environmentally-friendly products and practices
• Market forecast
• Floor covering products
  • Figure 67: Forecast of total U.S. wholesale sales of floor covering products, at current and constant prices, 2007-12
• Carpet and area rugs
  • Figure 68: Forecast of U.S. wholesale sales of carpet and area rugs, at current and constant prices, 2007-12
• Ceramic floor and wall tile
  • Figure 69: Forecast of U.S. wholesale sales of ceramic floor and wall tile, at current and constant prices, 2007-12
• Hardwood floor covering products
  • Figure 70: Forecast of U.S. wholesale sales of hardwood floor covering products, at current and constant prices, 2007-12
• Vinyl sheet and floor tile
  • Figure 71: Forecast of U.S. wholesale sales of vinyl sheet and floor tile, at current and constant prices, 2007-12
• Laminate flooring
  • Figure 72: Forecast of U.S. wholesale sales of laminate flooring, at current and constant prices, 2007-12
• Rubber flooring
  • Figure 73: Forecast of U.S. wholesale sales of rubber flooring, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Trade Associations