Living Room Furniture - UK - March 2008

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Abbreviations
• Market in Brief
• Market decline
• Growth inhibitors
• Positive developments
• Future trends
• Internal Market Environment
• Key points
• Ownership and spend declines
  • Figure 1: Living room furniture ownership and purchase, 2003-07
• Polarisation in spend
  • Figure 2: Living room furniture spend over the past 12 months, 2003-07
• Has interest in extending living space peaked?
  • Figure 3: Home conversions, 2003-07
• Let me entertain you
  • Figure 4: Lifestyle statements towards homes, 2003-07
• Changing rooms
• Future of furniture retailing
• Cheap imports impact on market
• UK and European manufacturers fight back
• The Internet embraces interior décor
• Broader Market Environment
• Key points
• Housing market slows
  • Figure 5: House prices, transactions and average number of years between moves, 2002, 2007 and 2012
• Opportunities for living room furniture
• An ageing population -- will pay for comfort
  • Figure 6: UK population, by age, 2002-12
• Budget products appeal to the young
• AB socio-economic status growing
  • Figure 7: Adult population trends, by socio-economic group, 2002-12
• ABs -- strong views on living room furniture
• C1s -- a more flexible approach
• Smaller households on the rise
  • Figure 8: Number of UK households, by number of persons in household, 2002-12
• Demand for more flexible living space
• Eco living
• Competitive Context
• Key points
• Furniture -- not exciting enough
  • Figure 9: Expenditure priorities, 2006-08
• Mixed fortunes for furniture
  • Figure 10: UK RETAIL SALES VALUE OF FURNITURE, BY TYPE, 2003, 2005 AND 2007
• Future outlook
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Value and Forecast
• Key points
• Uncomfortable position for living room furniture
  • Figure 11: Forecast of UK retail sales of living room furniture by value, at current and constant prices, 2007-12
• Factors used in the forecast
• The future living room -- a flexible space
• Segment Performance
• Key points
• Sofas -- not such a soft option
  • Figure 12: UK retail sales of living room furniture, by type and value, 2005 and 2007
• Recliners rise to the challenge
• Leather losing its sheen
  • Figure 13: UK retail sales of upholstered living room furniture, by type and value, 2005 and 2007
• Reappraising ready-assembled furniture
  • Figure 14: UK retail sales of cabinet and occasional furniture, by method of assembly and value, 2005 and 2007
• Flatpack -- a flatter future?
• Market Share
• Key points
• Relatively poor brand recognition
• Vertical integration aids growth
• Companies and Products
• Sofa Brands International
• DFS
• Ekornes Ltd
• The Innovators of Comfort Ercol Furniture Ltd
• IKEA
• MFI Retail Ltd
• New Heights (with the Sofa Workshop)
• Sofa Workshop
• Vale Bridgecraft
• JDP Furniture Group
• Thankyou for choosing JDP Wade Furniture (with Multiyork Furniture Ltd)
• Master Furniture Makers La-Z-Boy Incorporated
• SofaSofa
• Others
• Brand Communication and Promotion
• Key points
• Investing more, achieving less
  • Figure 15: Main media advertising expenditure on living/dining room furniture*, 2003-07
• DFS -- hey big spender
  • Figure 16: Main media advertising expenditure on living/dining room furniture, by top 8 manufacturers and manufacturer/retailers, 2003-07
• Power of the press
  • Figure 17: Main media advertising expenditure on living/dining room furniture, by media type, 2007
• UK manufacturers fighting back
• Channels to Market
• Key points
• Changing pattern of distribution
  • Figure 18: UK retail sales of living room furniture, by outlet type, 2005 and 2007
• Specialists under threat
• Established non-specialists -- mixed fortunes
• Grocery multiples muscling in
• New distribution channels doing well
• Homebase -- a lone star
• The Consumer -- Reasons for Buying
• Key points
• Main reasons for buying
  • Figure 19: Main reasons for buying upholstered living room furniture, October 2007
• Wear and tear
  • Figure 20: Wear and tear and moving house/setting up home as reasons for buying, by age, October 2007
• Changing rooms, not address
• Changing family structure -- new look, new sofa
  • Figure 21: Wanting a new look/style and redecoration as reasons for buying, by Mintel' s Special Groups, October 2007
• Attracting first-time buyers
• Appendix -- Reasons for Buying
  • Figure 28: Main reasons for buying upholstered living room furniture, by demographic sub-group, October 2007