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Carpets and Floorcoverings - UK - January 2016

Carpets and Floorcoverings - UK - January 2016

“At last retailers are trying to escape from always relying on discounting to generate interest and are shifting their emphasis to home-making and style. This comes at a time when the market has gained momentum, with new energy because of stronger consumer confidence and a pick-up in the housing market.”

Jane Westgarth, Senior Market Analyst

This report answers the following questions:

How can retailers move away from the focus on discounting and create more added value?

When people buy flooring and carpets how much does service matter?

Are people buying as part of a whole room makeover?


OVERVIEW
What you need to know
Products covered in this report
Carpets and rugs
Smooth flooring
EXECUTIVE SUMMARY
Growth of 17.5% expected by 2020
Figure 1: Consumer spending on carpets and floorcoverings, 2010-20
Long-term trend towards smooth flooring
Figure 2: Consumer spending on carpets and floorcoverings, by segment, 2011-15
Market factors
Figure 3: Housing tenure, UK, 2012-15
One million more homes in five years
Figure 4: UK households, by size, 2009-19
Consumers are feeling confident
Figure 5: How respondents would describe their financial situation, October 2015
Companies, brands and innovation
Carpetright is the dominant specialist
Figure 6: Distribution of carpets and floorcoverings, 2015 (est)
The consumer
Figure 7: Rooms for which carpets and floorcoverings purchased in the last three years, October 2015
Figure 8: Rooms for which carpets and floorcoverings purchased in the last three years, most recent, October 2015
Figure 9: Types of flooring purchased in the last three years, October 2015
Figure 10: Types of flooring purchased in the last three years, most recent, October 2015
Figure 11: Spend on most recent flooring purchase, October 2015
Figure 12: Source of the most recent purchase of carpets and floorcoverings, October 2015
Figure 13: Why they decided to buy new flooring, October 2015
Figure 14: Attitudes about shopping for carpets and flooring, October 2015
Figure 15: Target groups for carpets and flooring, October 2015
Quality Fitting (22%)
Engagers (28%)
Self-servers (20%)
Onliners (30%)
What we think
ISSUES AND INSIGHTS
How can retailers move away from the focus on discounting and create more added value?
The facts
The implications
When people buy flooring and carpets how much does service matter?
The facts
The implications
Are people buying as part of a whole room makeover?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
17.5% growth by 2020 forecast for carpets and floorcoverings
Average transactions will fall
People refit 2-4 years after moving
Private renters swell demand for rugs
25% have healthy finances
Extending the home
Carpetright (13%) is the dominant specialist
Large number of carpet independents
Online browsing more important than online shopping
MARKET SIZE AND FORECAST
Growth of 17.5% expected by 2020
Figure 16: Consumer spending on carpets and floorcoverings, 2010-20
Figure 17: Consumer spending on carpets and floorcoverings, 2010-20
Market segmentation
Figure 18: Consumer spending on carpets and floorcoverings, by segment, 2011-15
Elements of carpet spending
Figure 19: Consumer spending on carpets, by segment, 2015
Synthetic carpets now dominate
High volumes of rugs
MARKET DRIVERS
Home owners in the majority
Growth in housing transactions
Figure 20: Residential property transactions, UK, 2011-15
Rapid changes in housing status
Figure 21: Housing tenure, UK, 2012- 15
Rising household numbers
More single and two-person households
Figure 22: UK households, by size, 2009-19
Improved consumer confidence
Figure 23: Trends in current financial situation compared a year ago, measured at October, 2011-15
25% have healthy finances
Figure 24: How respondents would describe their financial situation, October 2015
Refurbishing rooms
Figure 25: Trends in activities done and consider to do, spend money on my home (new kitchen, redecorate, new furniture etc), July 2012-September 2015
Cheaper to extend than move
Disruptive influences including floods
CHANNELS OF DISTRIBUTION
Carpetright is the dominant specialist
Figure 26: Distribution of carpets and floorcoverings, 2015 (est)
Complex purchase
Large informal carpet retail industry
Large number of carpet independents
Intensifying competition
Retailers expanding ‘home’ chains
Have we fallen out with DIY?
Online specialists
Smooth flooring specialists
Investigation into reference pricing
KEY PLAYERS – WHAT YOU NEED TO KNOW
Major players in manufacturing
High level of range refreshment
Environmental awareness
Technical developments
SUPPLIERS OF CARPETS AND FLOORCOVERINGS
Figure 27: Leading manufacturers of carpets and floorcoverings, 2015
LAUNCH ACTIVITY AND INNOVATION
New colours and ranges
Designer collaborations
Figure 28: Design collaboration, forbo flooring, 2015
Recycling schemes
Personalising carpets
Figure 29: Personalised rugs,Axminster,2015
‘Dry’ fibre for carpets
Natural shaping for floor boards
Figure 30: Naturally shaped floor boards, bolefloor, 2015
New Unilyn ranges
Topps Tiles committed to innovation
Tapi differentiates
ADVERTISING AND MARKETING ACTIVITY
£21.7 million spent in 2014
Figure 31: Recorded above-the-line, online display and direct mail total advertising expenditure on carpets and floorcoverings, 2011-14 and 2015 Jan-Nov
Carpetright tops the advertising league
Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure on carpets and floorcoverings, by advertiser, 2014
Figure 33: Recorded above-the-line, online display and direct mail total advertising expenditure on carpets and floorcoverings, by advertiser, 2011-14
Press takes half of all spending
Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure on carpets and floorcoverings, by media type, 2014
A note on adspend
THE CONSUMER – WHAT YOU NEED TO KNOW
One in five bought for the living room
Lowest purchasing by private renters
Moving house has the greatest influence on demand
Fitted carpets are the most popular purchase
Smooth flooring popular with ABs
Older shoppers are the highest spenders
Significant opportunity for growth for multiples
Replacement is the biggest driver of demand
Expert advice, not pushy selling
People highly aware of discounts
44% want to browse online first
PURCHASES OF CARPETS AND FLOORCOVERINGS BY ROOM
Living room flooring purchased most often
Figure 35: Rooms for which carpets and floorcoverings purchased in the last three years, October 2015
How many rooms have they bought for?
Figure 36: Rooms for which carpets and floorcoverings purchased in the last three years, repertoire, October 2015
Least purchasing by private renters
Figure 37: Any carpets and floorcoverings purchased in the last three years, by housing tenure, October 2015
Recent movers are more likely to buy carpets and flooring
Figure 38: Rooms for which carpets and floorcoverings purchased in the last three years, by length of time in current home, October 2015
34% have bought for the living room most recently
Figure 39: Rooms for which carpets and floorcoverings purchased in the last three years, most recent, October 2015
TYPES OF FLOORING PURCHASED IN THE LAST THREE YEARS
Carpets and rugs purchased more regularly than smooths
Figure 40: Types of flooring purchased in the last three years, October 2015
Fitted carpets are the most popular purchase
A quarter of those in rented property bought rugs
Smooth flooring popular with ABs
Figure 41: Types of flooring purchased in the last three years, October 2015
Fitted carpets bought most recently
Figure 42: Types of flooring purchased in the last three years, most recent, October 2015
SPEND ON MOST RECENT FLOORING PURCHASE
Figure 43: Spend on most recent flooring purchase, October 2015
WHERE THEY BOUGHT CARPETS AND FLOORCOVERINGS
Figure 44: Source of the most recent purchase of carpets and floorcoverings, October 2015
Independents capture high spenders
Figure 45: Spend on most recent purchase of carpets and floorcoverings, by selected retailer, October 2015
WHY THEY DECIDED TO BUY NEW FLOORING
Figure 46: Why they decided to buy new flooring, October 2015
Figure 47: Why they decided to buy new flooring, repertoire, October 2015
ATTITUDES TOWARDS SHOPPING FOR CARPETS AND FLOORING
Advice but only when they want it
Important to have a good fitting service
People are aware of discounts
Figure 48: Attitudes about shopping for carpets and flooring, October 2015
Four main target groups
Figure 49: Target groups for carpets and flooring, October 2015
About the target groups
Quality Fitting (22%)
Figure 50: Attitudes towards buying carpets and flooring, by target group, Quality Fitting, October 2015
Figure 51: Why they decided to buy new flooring, by target group, Quality Fitting, October 2015
Engagers (28%)
Figure 52: Attitudes towards buying carpets and flooring, by target group, Engagers, October 2015
Figure 53: Why they decided to buy new flooring, by target group, Engagers, October 2015
Self-servers (20%)
Figure 54: Attitudes towards buying carpets and flooring, by target group, Self-servers, October 2015
Figure 55: Why they decided to buy new flooring, by target group, Self-servers, October 2015
Onliners (30%)
Figure 56: Attitudes towards buying carpets and flooring, by target group, Onliners, October 2015
Figure 57: Why they decided to buy new flooring, by target group, Onliners, October 2015
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Market sizing and segment performance
Fan chart forecast
Abbreviations

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