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Additional Information
The market has shown consistent growth in recent years but, due to lower levels of consumer confidence, a weakening economic climate and a slowdown in the housing market, sales are expected to fall in the short-term before recovering in the medium term.The household textiles market is a mature market dominated by replacement purchases. The market remains highly fragmented with increasing competition from imports. In 2007, the market performed well, benefiting from a more buoyant economic climate, but indications are for a decline in 2008-09 as a result of the current uncertainty surrounding key drivers such as the housing market and consumer confidence levels. However, the longer-term prospects for the market are more optimistic with moderate gains forecast from 2010-2012 when the market is expected to reach just over £1.3 billion, though the current uncertainty and volatility of the short-term economic climate makes it extremely difficult to forecast in the medium term.
The product mix has changed little in the last decade, but performance of the different sectors is expected to vary in tough economic conditions. Filled products now account for around 30% of the market and have performed well recently and are expected to out-perform the other sectors in the short term. Also, some sectors of the bed linen market, such as duvet covers (now worth over £200million), are expected to fare better than others reflecting changing trends - particularly in the non-domestic sector.
Imports of household textiles 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 market experienced a trade deficit of over £650 million in 2007 as Far East imports continue to rise.
Recent years have seen a growing polarisation of the market with demand for quality and innovative products at the upper end and cheaper products at the lower end of the market. In the upper sectors of the market, design and quality factors have grown in influence on the back of rising disposable income levels, helping to underpin these sectors of the market, although price always remains a feature.
The wider range of retail distribution outlets for household textiles has been a feature of the market in recent years and is expected to continue. The Grocery and DIY multiples have gained share and price competition between the multiple retailers is a major threat to value growth of the market. Equally, the internet will continue to be a growing channel for household textiles at the expense of more traditional mail order channels and independent stores.
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