House furnishings UK

3/17/2014 Homewares - UK - January 2014 - Introduction

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Homewares - UK - January 2014This report is supplied in accordance with Mintel's terms and conditions. Mintel Group Ltd.

In the homewares market, there has been growth at the value end of the market through a wide range of retailers.These span the excellent value chains like Home Bargains and The Range, strong high street retailers such asWilkinson, the vast supermarket chains and the iconic and stylish Ikea. This report examines peoples attitudes towhat they pay for their homewares and considers some of the factors that differentiate the higher-priced shoppers fromthe value-driven.

Demand was certainly dented by the recession that followed the credit crunch. There was a perfect storm fewerhouse moves, squeezed incomes and uncertainty about the future. But things have perked up, thanks to moremovement within the housing market. And the outlook is looking better still as the key shoppers for homewares, the25-34s and ABs, grow in numbers.

Homewares enjoy broad availability of products through a wide range of different retailers, both online and offline. Withsuch fragmented distribution we take a look at what motivates people, where they go to shop and how much of thisshopping is done online these days.

Definitions

This excludes electrical goods, with the exception of lamps/light fittings. So we do not cover small kitchen appliances,digital photo frames, or home electrical appliances such as vacuum cleaners.

The following definitions give examples of the products within each category but are not fully comprehensive.

Home accessories

Vases/bowls

Candles and candle holders

Pictures/prints, mirrors, photo frames and clocks

Bathroom accessories (eg soap holders).

Tableware

Drinkware (eg glasses, jugs and decanters)

Crockery and china eg plates, dessert bowls, serving bowls, platters, mugs, cups and saucers)

Oven-to-tableware

Table accessories eg salt/pepper sets

Cutlery (flatware).

Kitchenware and bakeware

Pans, frying pans

Utensils

Baking tins, oven tins etc



Kitchen accessories eg storage jars, chopping boards.

Lighting

Light fittings

Lamp shades

(excludes light bulbs).

Household linens and textiles

Filled products duvets, pillows, mattress toppers (regardless of filling)

Mattress covers

Duvet covers (including sets comprising duvet covers and pillowcases)

Sheets, valances, pillowcases

Blankets, bedspreads, comforters, throws, bed runners

Bolsters, neckrolls, cushions positioned for bed accessorising.

Bathroom textiles:

Towels (including beach towels)

Bathmats.

Other household linen:

Tablecloths, napkins, place mats (individually and in sets)

Tea towels and kitchen towels.

Curtains and blinds

Ready-made curtains

Other curtains

Ready-made blinds

Other blinds.

Broader definitions

For the broader definitions of homewares we have used that contained in the governments consumer spending data,but added our own estimates for the market spend on lighting as lighting is classed within furniture in the government



definitions.

Household textiles

Furnishing fabrics, curtain material, curtains, double curtains, awnings, door curtains and fabric blinds

Bedding such as futons, pillows, bolsters and hammocks

Bed linen such as sheets, pillowcases, blankets, travelling rugs, plaids, eiderdowns, counterpanes andmosquito nets

Table linen and bathroom linen such as tablecloths, table napkins, towels and face cloths

Cloth bought by the piece; oilcloth; bathroom mats, rush mats and doormats

Other household textiles such as shopping bags, laundry bags, shoe bags, covers for clothes and furniture,flags, sunshades, etc

Repair of such articles.

Glassware, tableware and other homewares

Glassware, crystal ware, ceramic ware and china ware of the kind used for table, kitchen, bathroom, toilet,office and indoor decoration

Cutlery, flatware and silverware

Non-electric kitchen utensils of all materials such as saucepans, stewpots, pressure cookers, frying pans,coffee mills, pure makers, mincers, hotplates, household scales and other such mechanical devices

Non-electric household articles of all materials such as containers for bread, coffee, spices, etc., waste bins,waste-paper baskets, laundry baskets, portable money boxes and strongboxes, towel rails, bottle racks, ironsand ironing boards, letter boxes, feeding bottles, vacuum flasks and iceboxes

Repair of such articles.

Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queens Printer forScotland.

Value figures throughout this report are at retail selling prices unless otherwise stated. Market sizes at 2013 pricesare calculated using Mintels Household Goods deflator.

Abbreviations

B&M Bargain Madness

CML Council of Mortgage Lenders

DIY Do it Yourself

GDP Gross Domestic Product

GMI Global Market Insite

HMSO Her Majestys Stationery Office

LED Light emitting diode



ONS Office for National Statistics

PC Personal Computer

PDI Personal Disposable Income

TV Television

UK United Kingdom

VAT Value Added Tax

WWRD Waterford Wedgwood Royal Doulton

If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S.or +44 (0)20-7606-6000 in the UK and the rest of the world, or email them to [email protected].

3/17/2014 Homewares - UK - January 2014 - Executive Summary



The market for homewares is dominated by high volume, low-priced goods and many of these offer sufficient style and qualityfor what people want. So for the future we expect value retailers to develop more sophisticated range and pricing tiers toencourage people to move up from the cheapest basics. But there is a thriving market for higher-priced goods and in this partof the market brands, strong retailer own-labels and designer or celebrity endorsement plays a role. More home moves,together with rising consumer confidence, will encourage people to use homewares to create a better ambience with theirhomes. We predict a bright future for homewares.

Jane Westgarth, Senior Market Analyst

The market

The market for homewares will perform strongly in the next five years helped by growth in the number of homes in the UK, expandingnumbers of 25-34s, improving consumer confidence and by more people opting to trade up for better quality.

FIGURE 1: Consumer spend on homewares, 2008-18

Source: Mintel

In 2013 consumers spent 11.79 billion on homewares (the broad definition), up 4.5% on the previous year. By 2013 sales were 12.3%higher than in 2008. And, as the economy and housing market improves, we forecast that spending will rise by 19.2% from 2013-18 to reach14.04 billion.

In 2013 demand was helped by growing levels of consumer confidence and an upturn in the housing market, and people were prepared tospend a little more on buying things for their homes.

The trend for home baking and cooking created a surge in demand for cookware and bakeware, with people showing willingness to trade upfor better brands and quality.

FIGURE 2: The market for homewares (broader definition) by main segment, 2013 (est)



Source: Mintel

The market is dominated by high volumes of low-priced goods. Even so, there is a range of factors encouraging people to trade up for betterquality and style. People want to recreate restaurant experiences at home and innovative gadgets are helping them achieve this. Celebritytie-ups remain important in homewares. Companies are adding innovative design touches, even to the most mundane of products. Plusretailers are continuing to innovate in areas spanning branding, multi-channel retailing, extra services and format evolution.

Market factors

Staying in, not eating out

People, especially those with tighter finances, are cutting back on eating out and this is helping stimulate sales of cookware and otherhomewares. The less well-off are core customers for value goods and so this will help to stimulate sales through supermarkets and valuemixed goods retailers like Argos, B&M, Home Bargains and Wilkinson.

Cooking and baking from scratch

In the UK, 40% of adults cook from scratch most days and 35% claim to bake from scratch at least once a week. This drives demand for

cookware. TV cookery is very popular and there is plenty of airtime dedicated to cookery programmes. This is helping to create interest in

cooking, baking and entertaining at home and creating additional stimulus to market growth.

A brighter housing market

The housing market has picked up. In 2013 we estimate that there were 1.045 million housing transactions, +12.1% compared with 2012.More housing transactions helps to stimulate home refurbishment activity and this in turn will help to create more demand for homeaccessories and homewares. Some 49% of people have plans for small home improvements in the next year and another 10% plan to carryout major home improvements. People who are buying their homes on a mortgage or own their homes outright are the most likely to beplanning home improvements. This is good for all homewares but especially important for sales of window dressings and lighting.

The connected consumer

More people than ever have internet access and, because of smartphones and tablets, can access the internet conveniently wherever theyare. This has helped fuel a boom in using the internet to browse, find information, search for deals and to buy goods. Mintels Digital Trends UK December 2013 shows that 58% of people said they had accessed the internet from a smartphone in 2013, an increase of 13percentage points compared with the same month a year earlier. Indeed, 81% of smartphone owners now connect to the internet using theirhandsets.



Underlying growth

There are plenty of positive indicators that should help to contribute to growing demand for housewares. There will be 1.3 million morehouseholds in 2018 than in 2013, +4.9%. Also, by 2018 the ABs will be the largest socio-economic group and these are the highestspenders on homewares. Demand for homewares for first homes will see a boost as the pre-no family lifestage expands by 7.2% over 2013-18. Plus personal disposable income will rise by 31.8% over the same years helping to generate growth in consumer spending.

Companies, brands and innovation

Supply of homewares is fragmented, spread across a wide range of manufacturers, most of which specialise in one segment of the market.The Spring and Autumn Shows in the UK are the key UK trade fairs and each has a vast array of exhibitors with products ranging fromkitchen and tableware through to ornaments and lighting.

FIGURE 3: Channels to market, 2013

Online and offline sales are included within each sector

Supermarkets includes Tesco, Asda, Sainsburys, Aldi and others.

Department stores includes John Lewis, House of Fraser, Debenhams, Marks & Spencer, Next and BHS

General mixed goods includes Argos, Wilkinson, The Range, Dunelm, B&M and other value mixed goods retailers

Home shopping includes pureplay online sellers (Amazon, eBay and others) as well as conventional home shopping companies such as



Home shopping includes pureplay online sellers (Amazon, eBay and others) as well as conventional home shopping companies such asShop Direct

Furniture stores includes Ikea, Laura Ashley, Cargo and others

Specialists includes Lakeland, Steamer Trading, Hillarys Blinds and other specialists including independents

Other includes market stalls, gift shops and others

DIY specialists includes B&Q, Homebase, other DIY stores, hardware shops.

Source: Mintel

Amazon has become a destination for shopping and sells a wide range of merchandise. We include Amazon within home shoppingspecialists.

Department/variety stores (39%) have the highest share by value and within this the largest player is John Lewis. It has been gaining sharethrough a combination of range and brand development, multi-channel selling and the addition of new selling space including new departmentstore space and the John Lewis at Home outlets.

General value mixed goods retailers (33%) are dominated by Argos a destination retailer for many shoppers. Wilkinson is a major valuechain and there are several strong and growing mixed goods businesses including B&M and The Range. Dunelm stands out as a highgrowth business (sales up 60% in five years) with particular strengths in textile products including bedding, towels and window furnishings.

Specialists are relatively small players, although within the cookshop sector Lakeland is a leading player and Steamer Trading is growing itspresence, although from a much smaller base. Hillarys Blinds is a large direct seller of window blinds and Montgomery a leading concessionoperator for made to measure curtains.

The consumer

What they bought

FIGURE 4: Homewares purchased in the last 12 months, November 2013

Base: 2,000 internet users aged 16+



Source: GMI/Mintel

Seven in ten people and 77% of ABs bought homewares in the last 12 months. The people with the widest repertoire of purchases are 16-34s. The categories with the highest rate of purchases are household linens (43%), cookware and/or bakeware (37%), lighting (33%) andsoft furnishings (33%).

Over a quarter of people (26%) bought homewares as a gift.

Where they bought homewares

FIGURE 5: Where homewares were purchased, November 2013

Base: 1,421 internet users aged 16+ who purchased any homewares in the last 12 months



Source: GMI/Mintel

Value retailers such as discount shops (41%), supermarkets (41%) and Argos (34%) top the list of outlets used by people shopping in-storefor homewares. All of these players are popular with C2s, reflecting their focus on good value products aimed at the mass market.

ABs (38%) favour department stores and variety stores (including John Lewis, Next, Marks & Spencer and Debenhams) and 25-34s (37%)are also important shoppers at this group of retail outlets. We are seeing more innovative own-label development at these retailers, helpingthem to add value and differentiate themselves.

Ikea is doing a remarkable job of attracting the young homemaker. Despite running a chain of just 18 superstores in the UK, one in five 16-44s bought homewares from Ikea and the chain is particularly strong in London, where 21% shopped in-store and 12% online.

What they think about buying soft furnishings

FIGURE 6: Attitudes towards buying soft furnishings, November 2013

Base: 1,090 internet users aged 16+ who bought soft furnishings/textiles in the last 12 months



Note: Abbreviated statements

Source: GMI/Mintel

Many shoppers are price-conscious. A third wait for the sales and more people say they generally buy cheap items (30%) than agree theybuy high quality (25%). People want to touch and feel soft furnishings and textiles, indicating that they are likely to visit a shop to experiencethe products first hand. So shops face the challenge of converting browsers into purchasers and discouraging them from looking for a dealonline. Co-ordination is very important to people when deciding what to buy and ranks second in the list of factors. So illustrations of thebest ways to mix and match colours and patterns will be helpful to shoppers and we see plenty of examples of style guides including in-store displays, catalogues and websites.

What they think about buying for kitchen and dining

FIGURE 7: Attitudes towards buying kitchen and dining wares, November 2013

Base: 1,070 internet users aged 16+ who have bought any kitchen and dining wares in the last 12 months




Source: GMI/Mintel

Functionality is very important in the choice of cookware people want good results from their cooking. Many consumers have tablewareand dining ware for special occasions (34%), indicating that themes of parties or entertaining will encourage people to trade up.

What qualities they look for in homewares

FIGURE 8: Qualities affecting choice of homewares, November 2013





Source: GMI/Mintel

People are highly conscious of stylish appearance when thinking about lighting, ornaments and curtains. However, functional design at thelowest prices dominates decisions about crockery, glasses and cookware but for these goods people also demand a quality finish.Uniqueness affects choice for ornaments. For household linens people want a high quality finish and feel, but also drive a hard bargain,

indicating that they will hunt around for the best prices.

What we think

This market is coming out of the doldrums. After several years where things for the home took a back seat in terms of spending priorities, weare seeing the green shoots of recovery. Curtains and lighting went through a particularly tough time while people held back on buying fortheir homes. But, as the economy begins to strengthen and housing sales pick up, there are signs that people will spend a little more freelyon home dcor. Smaller ticket items have fared better over the lean years and the trends to spend more leisure time at home, as well as anew enthusiasm for cooking and baking, helps encourage people to buy things for their kitchens and living areas. We feel more positiveabout the future than at any time over the last five years and those retailers that have invested in style, branding and presentation are wellplaced to take advantage of this upturn.

If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in the UK and the rest of the world, or email them to [email protected].

3/17/2014 Homewares - UK - January 2014 - Issues in the Market



In a market flooded with low-priced goods, retailers face a steep challenge to encourage people to tradeup and spend more. We expect to see more investment in exclusive brands and designs as retailersstrive to differentiate themselves from competitors including online discounters. And retailers willcontinue to make more efforts to inspire customers to assemble a coordinated look, using displays,catalogues and online technology to help improve the design literacy of todays home makers.

Jane Westgarth, Senior Market Analyst

What is the future for specialist retailers of homewares?

It is quite remarkable that, even though homewares are widely available through many generalist retailers, we areseeing specialist retailers thrive and grow. Some goods, like made to measure curtains and blinds, need the attentionof specialists which understand how to get the best look for the job in hand. And this is a factor behind the growth ofcompanies like Hillarys Blinds. But look at the success of Lakeland in creating a strong corporate image and aposition of expertise that has allowed it to grow and justify higher than average pricing, despite the intensecompetition. And following in its wake, the excellent Steamer Trading is poised for expansion. In a different sectorDunelm, which has a strong presence in textiles and homewares, has enjoyed growth far outrunning most in themarketplace, thanks to its depth of choice and competitive prices. So there is a bright future for specialists,particularly those that find a true point of differentiation over their competitors.

The market is dominated by low-priced mass market retailers, so how can retailers add value?

There are a few excellent examples of retailers that are adding value in homewares and the key lies with branding. Theresearch for this report shows that brands come behind lowest prices for most shoppers, but they do respond well toclear signs created by brands that highlight differentiation such as styling, quality or functionality. We see thatHomebase (part of Home Retail Group) has outpaced its rival B&Q by creating a sophisticated multi-layered brandingstrategy for homewares that encompasses some familiar labels, now exclusive to this retailer and Homebase hasbeen growing market share. The latest addition to its brand stable, Habitat, is seeing a rollout of shop-in-shops as wellas some Habitat-labelled goods appearing throughout its homewares ranges. Dunelm has bought Dorma, a leadinglinens brand, to create added value and to encourage trading up, and this company has seen sales growth far outpacethe market. And John Lewis has successfully launched House by John Lewis to cement its own identity in this sectorand is one of the most successful retailers in Britain today.

How influential is online retailing in the market for homewares?

Amazon, the leading pureplay retailer, has been a high growth phenomenon and in the survey for this report we foundthat 34% of people had bought homewares from pureplay online sellers. To put this in perspective this is the samepercentage of people who has bought from Argoss stores. Online shopping has arrived and is here to stay. It is alsodeveloping fast with retailers making strenuous efforts to make the experience as convenient and pleasurable aspossible. Mobile commerce is growing rapidly and we see many retailers making improvements to their multi-channel(click & collect) services including same-day pick-up. Yet, many items of homewares are low-ticket goods, bought onconvenience while out shopping and this kind of trade is least likely to be mopped up by online sellers. And somegoods are tactile and people want the experience of touching and feeling before they buy them. So for the futurepeople will want the options to buy at a store or online and we believe that online selling is not the death knell ofconventional shopping.

A lot of celebrities endorse homewares but does it influence consumers?

Our research shows that 20% of people say they generally buy the stores own brand. But far fewer agree that theybuy branded items (7%). For kitchenware 7% of shoppers agree with the statement, I tend to buy kitchen homewaresthat are endorsed by a celebrity chef (eg Jamie Oliver, Raymond Blanc, Delia Smith) but actually more than this(12%) agree with being often inspired to buy kitchen homewares that I have seen on television (eg MasterChef, TheGreat British Bake Off). This shows that they are responding to stimulus from television programmes but this may notlead them on to actually seeking an endorsed product. We believe that, for some, the power of a celebrityendorsement is important in helping to build a brand and that it does add value, helping to give assurances about the

3/17/2014 Homewares - UK - January 2014 - Issues in the Market


design and the quality but that a celebrity name alone is not a magic dust.

What role does style play in shaping demand for homewares?

A lot of homewares products are there to enhance the room, so styling is hugely important. When we spoke to peopleabout how much it influenced them we found that stylish appearance tops the list for three of the homewares groups lighting (52%), decorative accessories (56%) and curtains/blinds (44%). These are all homewares that form a centralpart of home dcor and can really make a huge difference to the way a room looks. Co-ordination also counts formany shoppers (45% say it influences their soft furnishings choices) so retailers that inspire by presenting interestingways to create a co-ordinated look will perform well. Examples include Nexts directory pages, the Ideas and HomesIkea magazine and John Lewiss Top ten picks for Home.


3/17/2014 Homewares - UK - January 2014 - Trend Application



Mintels approach in this section goes beyond merely identifying trends. We apply trends from Mintels trend tool,Inspire, to understand the wider implications of cultural changes, gaining insight into how companies and brands cantranslate these into on-the-ground opportunities relevant to the market for homewares.

Trend: Many Mes

Consumers are diverse individuals, with multiple identities and niche interests. Todays consumer is more like amultiplex than a single screen cinema, with many different films on show. Marketing and advertising used to be aboutaligning products and messaging strategies to neatly defined targets. Today, consumers have become far moredifficult, if not impossible, to pigeonhole. Individuals are being encouraged to explore and express their inner diversity.This trend means that marketers and retailers are speaking not to one consumer, or one target group, but toindividuals who feel nuanced, complex, and individually diverse.

When we spoke to people about tableware 34% said I have some tableware items (eg plates, bowls, glasses, cutlery)that I use only for special occasions. So they appear to have a special collection which come out for celebrations,entertaining friends or for big events like Christmas. Retailers could engage theme-based marketing, putting togetherdifferent collections to appeal to these special days. So instead of a smart dinner table ranges could be themed intobirthday dining or romantic dining. People could be encouraged to build up their special collections in the future withloyalty offers on subsequent items such as co-ordinating serving plates or celebration drinks coasters. These could becreated for key events like Easter and Valentines day as well as family occasions such as birthdays.

Trend: Make it Mine

People these days see personalisation as a right, not a privilege. One-size-fits-all is dead. In certain categories, theassembly line approach no longer applies for example, its hard to remember when you couldnt customise your car.Indeed, the ability for a consumer to have some sort of input into what they buy has crossed every industry and nearlyevery part of the globe. And its the very pervasiveness of customisation that makes the trend what it is today: anexpectation. And one that consumers simply wont do without. This poses a challenge for brands if they are to givepeople exactly what they want, when and how they want it. Another emerging expectation is to be able tocontinuously customise goods. Watch for consumers seeking products that can be modified over time.

In this research we find that 42% of people said they want something unique when choosing decorative items for thehome. So there is an opportunity to offer them something unique by allowing people to customise a product, embellishthings with their own designs or select the exact colour they want. We arent talking about photo-mugs or school teatowels. Imagine a duvet cover with your choice of embroidery, a teapot featuring your choice of pattern or a set ofstorage jars carrying exactly the words you want to go with the contents. Retailers could offer hands-on creativesessions where people could work with a design leader to take ideas to new heights. And the website could offer theoption to upload images.

Trend: Generation Next

Teens are struggling to rebel and progress and they need and expect more from companies. Many of todaysteens are growing up in an era of intense economic hardship and many are deciding to remain living with their parentsin a bid to save money as well as nurture their disposable income. This generation may share the homes of theirparents and grandparents but that does not mean they necessarily share their values. Todays teens have heightenedawareness of sustainable sourcing, gender equality and greater corporate accountability so expect to see moredemand for homewares with eco and sustainable claims. The stay-at-home teenager needs a place of their own withinthe home where they can retreat from the rest of the family and enjoy some personal independence. So they want tocreate their own identity within the home environment. Expect to see more demand for household textiles designed toenhance a teenage bedroom and bathroom, ornaments aimed at the teenage den and casual-dining crockery all of

their own, ideal for when friends come along for a big night in.


3/17/2014 Homewares - UK - January 2014 - Internal Market Environment



Key points

Consumers are changing their eating patterns and 32% agree they are cooking at home more insteadof eating out. So demand for kitchen accessories and tablewares will grow.

Some 11% say they are trying to recreate restaurant meals at home instead of eating out. So theywill want to recreate the restaurant experience with attractively set tables and better home dcor. Atthe same time there is a general trend towards casual dining at home and this in turn creates a morerelaxed feel for crockery and other tablewares.

The British are a nation of cooks. Some 40% say they cook from scratch most days and 27% spendmore time cooking when they can at weekends. So the homewares that surround the kitchen andeating areas will be important.

2012 (+5.3%) and 2013 (+12.1%) saw an uplift in the number of housing transactions in the UK. Thetime surrounding a house move, particularly for people with mortgages, is one of higher demand forhomewares so this more buoyant housing market will help to boost sales of homewares.

Intentions to undertake home improvement projects were high in 2013 as 49% were planning smallhome improvements and 10% had major projects in mind for the next year. These projects are likelyto be finished off with new homewares such as curtains, soft furnishings, linens and ornaments.

Entertaining at home

Mintels Eating Out Review UK June 2013 looks how often people are eating out and their attitude towards whatthey spend. A key finding is that 32% of people who have eaten in a restaurant in the last three months say Imcooking at home more instead of eating out and 11% agree that they are trying to recreate restaurant meals at homeinstead of eating out.

FIGURE 9: Attitudes towards eating out, by age and financial situation, April 2013

Base: 1,575 internet users aged 16+ who have eaten in a restaurant in the last three months



Source: GMI/Mintel

People who feel that their finances are healthy are least likely to agree that they are cooking more at home instead ofeating out, but even these consumers appear to be behaving cautiously. And those whose finances are tight orstruggling, who are core customers for the value chains, are very likely to eat out less.

Key analysis: People are eating more often at home as a way of being cautious about how much they spend,and this will make them more aware of their homes and homewares, particularly if they are more inclined toinvite guests into their homes more often. So marketing themes that compare investing in tablewares to whatyou might have spent on a restaurant meal or comparing the price of wine glasses to what you might havespent on a bottle of wine while eating out could chime with them.

A nation that cooks

FIGURE 10: Cooking and eating habits, October 2013


%

I enjoy spicy food 46

I usually eat with my family/partner 44

I prefer to cook from scratch so I can control the contents (eg salt, fat, sugar, etc) 41



I use leftovers to avoid food waste 41

I cook from scratch most days (eg using raw vegetables, meat) 40

I enjoy experimenting with flavours and recipes 38

I stick to familiar dishes 30

I spend more time cooking when I can (eg at weekends) 27

I often cook larger batches of food and freeze them to eat later 23

I often eat dinner on my own 19

I find I am eating more homemade sandwiches than I did a year ago 17

I do very little cooking and prefer to use prepared dishes 12

None of these 3

Source: GMI/Mintel

Some 40% of people cook from scratch most days and a significant 27% say they spend more time cooking whenthey can at weekends. People who cook from scratch show a bias towards older age bands (55+, 54%) and peoplewho spend more time cooking at weekends shows a bias to those with the highest household incomes (50,000+,35%). This means spending time in the kitchen is a key driver behind creating demand for a wide range of tablewaresand kitchen accessories.

Casual dining

The snacking phenomenon has led to more casual dining, in and out of the home and this is affecting where people sitto eat their meals and is one of the factors behind lacklustre demand for dining tables and chairs according to MintelsLiving and Dining Furniture UK January 2013. This ongoing trend affects tastes for homewares and has been afactor behind the trend away from formally set tables to a more relaxed look for plates and other tablewares.

House sales/mortgages

FIGURE 11: Residential property transactions, 2008-15

Source: Off ice for National Statistics/Council of Mortgage Lenders



In 2007, before the recession, the UK was experiencing a debt-fuelled housing boom. But, as mortgage finance driedup, housing sales fell abruptly. This set the scene for the next four years as restricted lending by the mortgageproviders, as well as weak customer confidence, led to flat conditions. There was a small revival in 2012, with 3.6%more transactions compared with the previous year. And 2013 looks to be better still (forecasts based on the year toNovember). The Council of Mortgage Lenders forecasts a further recovery in 2014 and 2015 although it remains fairlycautious as household finances are stretched and interest rates may rise.

An increase in housing transactions is positive news for the furniture and housewares markets including refittingkitchens. Home refurbishment activity also gets a boost when people have bought a house and this in turn will helpcreate more demand for home accessories and homewares.

DIY intentions

Mintels DIY Retailing UK May 2013 finds that 49% of people have plans for small home improvements in the nextyear and 10% plan to carry out major home improvements. People who are buying their homes on a mortgage (55%)or own their homes outright (56%) are most likely to be planning small home improvements. And home owners/buyersare very likely to plan major projects (26% of people with a mortgage are planning major projects on their homes in thenext year). So, as home ownership grows and more people buy homes, the market for home improvements will grow.

And in turn we expect this to generate more interest in home accessories and homewares.


3/17/2014 Homewares - UK - January 2014 - Broader Market Environment



Key points

Some 69% of adults in the UK have a smartphone (September 2013), 23% more than in January 2012.This is a key factor in assisting growth in online shopping and browsing.

Ownership of tablet computers has grown from 19% in January 2012 to 42% in September 2013. Thismakes access to the internet convenient and is also aiding the growth of shopping and researchingwhat to buy online.

There will be 3.3% more adults in the UK by 2018 than in 2013 and the number of households iscontinuing to grow at similar pace. This will help to grow demand for homewares.

Total consumer expenditure will grow by 34.2% from 2013-18, helped by a better economy andstronger consumer confidence.

Seven in ten now own a smartphone

FIGURE 12: Personal ownership of mobile phones, January 2012 September 2013


Source: GMI/Mintel

The smartphone has been a huge phenomenon in the UK and by September 2013, some 69% of adults aged 16+have a smartphone. This makes internet access very quick and convenient and in turn this has helped to changebrowsing and shopping habits. Mintels Digital Trends UK December 2013 shows that 58% of people said they



had accessed the internet from a smartphone in 2013, up 13 percentage points compared with the same month a yearearlier. Indeed, 81% of smartphone owners now connect to the internet using their handsets.

Mintels Buying for the Home Online - UK, February 2013 forecasts that shopping online for the home will rise by 79%over 2012-17 to reach 7.1 billion. This growth is being driven by demand from consumers, but is also being helped asconsumers are becoming more confident shopping online and retailers have sorted out alot of the early problemsassociated with purchasing via the internet, such as ease of navigation of websites, security and delivery.

Key analysis: Todays smartphone owner has more power as a consumer, being able to look for the cheapestdeal, to find out more about a product and to look for online reviews. Retailers have already respondedrapidly, investing in mobile friendly websites and sophisticated internet communications. They must be goodat providing people with the online information they need as well as the services they demand in todaysdigital environment. There is no doubt that shopping is becoming ever more interactive and we predict thatonline shopping and multi-channel shopping for homewares will continue to grow.

Tablets take off

FIGURE 13: Household ownership of portable computers January 2012-September 2013


Source: GMI/ Mintel

Laptops have maintained their high level of ownership in the UK and more than eight in ten households have one. Butthe phenomenal growth of tablet computers illustrates our hunger for staying connected. Tablet computers offer theadvantage of a bigger screen than most mobile phones, making it easier to browse through detailed websites. Again,tablets are behind the growth in shopping online.

More households, smaller households

FIGURE 14: UK households, by size, 2008-18



2008 2013 2018 % change % change

m % m % m % 2008-13 2013-18

1-person households 7.48 29.1 7.70 29.0 8.01 29.0 +2.9 +4.1

2-people households 9.03 35.1 9.31 35.1 9.64 34.9 +3.2 +3.5



5 or more people 1.66 6.5 1.67 6.3 1.69 6.1 +0.3 +1.4

Total households 25.69 100.0 26.55 100.0 27.60 100.0 +3.3 +4.0

Average household size 2.35 - 2.34 - 2.34 - -0.5 -0.2

Source: Off ice for National Statistics/Council of Mortgage Lenders/Mintel

The number of households in the UK is growing and by 2018 we expect there to be 7.4% more than in 2008. Thisgrowth is helping to create more demand for homewares. More homes means an increase in demand for kitchen,bathroom, bedroom and living room furniture, so this will provide growth in demand for homewares.

The population will grow

FIGURE 15: Forecast adult population trends, by socio-economic group, 2008-18

2008 2012 2013 2017 2018 (proj) % change % change

000s 000s 000s 000s 000s 2008-13 2013-18

AB 13,526 13,682 13,860 13,981 13,941 +2.5 +0.6

C1 14,563 14,368 14,377 13,880 13,672 -1.3 -4.9

C2 10,618 11,456 11,688 12,594 12,749 +10.1 +9.1

D 7,846 8,121 8,048 8,338 8,335 +2.6 +3.6

E 4,095 4,551 4,598 5,115 5,210 +12.3 +13.3

Total 50,647 52,178 52,571 53,907 53,907 +3.8 +2.5

Source: Off ice for National Statistics/Mintel

ABs will be the largest socio-economic group by 2018 and these people are important consumers of homewares.Their higher than average wealth means that they can afford to buy more goods and often that they are prepared topay extra to get the style or quality that they seek. This is a key shopper group for department stores and specialistretailers such as John Lewis or Lakeland.

The consumer research for this report shows the importance of C2s for discounters, supermarkets and Argos. Sogrowth in this socio-economic group will play into the hands of these mass market retailers.

Shifting lifestages

FIGURE 16: Forecast adult population trends, by lifestage, 2008-18

2008 2013 (est) 2018 (proj) % change % change

000s 000s 000s 2008-18 2013-18

Pre-/no family 13,826 14,529 15,141 +5.1 +4.2



Families 14,002 13,723 13,305 -2.0 -3.0

Third age 12,904 13,179 13,571 +2.1 +3.0

Retired 9,916 11,140 12,217 +12.3 +9.7

Total 50,647 52,571 54,233 +3.8 +3.2

Source: Off ice for National Statistics/Mintel

The population is growing and within this different lifestages are experiencing very different rates of growth or decline.By 2018 we expect 4.2% more adults in the pre-/no family category, fuelling demand for homewares to suit firsthomes or for the boomerang generation who have returned to the family home after university to create their own stylein their corner of the house.

Families will see a decline, with numbers dropping by 3% between 2013-18. So this will reduce demand for childrenshomewares including linens and textiles for kids bedrooms.

The retired consumers are the least active group of shoppers in this marketplace but they do buy things, especiallycookware and linens. There are many opportunities to tap into the particular desires of these older shoppers,particularly catering for the needs of people as they lose dexterity or as their eyesight fades.

Personal disposable income will grow

FIGURE 17: GDP, PDI, consumer expenditure and savings, at current prices, 2008-18

GDP PDI Consumer expenditure Savings Savings ratio

bn bn bn bn %

2008 1,441 921 893 29 2.2

2009 1,402 954 877 78 7.0

2010 1,467 1,000 921 79 7.3

2011 1,516 1,027 954 73 6.7

2012 1,541 1,068 991 77 6.7

2013 (est) 1,581 1,178 1,029 148 7.1

2014 (proj) 1,641 1,237 1,084 154 8.0

2015 (proj) 1,710 1,308 1,150 158 9.0

2016 (proj) 1,786 1,382 1,221 162 9.8

2017 (proj) 1,867 1,382 1,299 166 10.6

2018 (proj) 1,949 1,552 1,381 170 11.1

% change 2008-13 +9.7 +27.8 +15.3 +416.1 +4.9

% change 2013-18 +23.3 +31.8 +34.2 +14.7 +3.9

* %-point change

Source: Off ice for National Statistics/HM Treasury/Mintel

Consumers will spend 34.2% more in 2018 than in 2013 according to Mintels forecasts. This will be helped byimprovements in the economy, increased levels of employment and rising consumer confidence.

3/17/2014 Homewares - UK - January 2014 - Competitive Context



Key points

Between 2009-13 it is clear that spending on glassware, tableware and cookware performed well bycomparison to household textiles and lighting, while sales of furniture were very slow over the sameperiod.

Demand for carpets was also weak, although 2012 saw a sudden jump in activity, helped by morehouse moves.

Homewares for the kitchen and table have kept pace with growth in spending on food and drink, butall other homewares have lagged behind.

FIGURE 18: Household spend on selected categories, 2009-12

Householdtextiles

Glassware,tableware and

hardware

Lighting Furnitureand

furnishings

Carpets andother floorcoverings

Foodand

drink

Electricity, Gasand other

domestic fuel

m m m m m m m

2009 5,713 4,269 615 12,288 3,356 79,851 29,361

2010 6,308 4,155 608 11,824 3,856 82,917 30,591

2011 5,559 4,657 625 12,453 3,808 86,599 29,068

2012 5,799 4,841 638 12,787 4,409 90,456 32,415

2013(est)

6,043 5,083 660 13,107 4,420 93,600 35,006

%change2009-13

+5.8 +19.1 +7.3 +6.7 +31.7 +17.2 +19.2

Source: Off ice for National Statistics Consumer Trends / Mintel

People have been holding back on buying big ticket items for their homes. When we take a view of consumer spendover 2009-13 it is clear that spending on glassware, tableware and cookware performed well by comparison tohousehold textiles and lighting, while sales of furniture were very slow over the same period. Demand for carpets wasalso weak, although 2012 saw a sudden jump in activity, helped by more house moves.

Homewares for the kitchen and table have kept pace with growth in spending on food and drink, but all otherhomewares have lagged behind. And rising pressure to pay inflating domestic energy bills is also squeezinghousehold budgets.


3/17/2014 Homewares - UK - January 2014 - Strengths and Weaknesses in the Market



Strengths

Choice. There is a wide choice of homewares at a wide variety of price points.

Distribution. Homewares are broadly distributed and are available across a vast array of retailers as well asonline.

Fashion. Style and fashion play an increasing role in the market for homewares. There is a wide choice ofstyling across the retailers.

Basics. Shoppers can select from a huge range of basics goods and low prices. So homewares are withinreach of a broad range of people.

Disposable. Many homewares are at such low prices people can be encouraged to replace them when theyfeel like a change rather than waiting until things wear out.

Treats. Many homewares are bought as gifts for other people and so can also be thought of as a treat for theshopper something that they enjoy buying for their homes.

Celebrity branding. Plenty of opportunities to use high profile celebrities from television to endorse productsor create their own ranges.

Eating habits. Tablewares benefit from growing enthusiasm for eating in.

Weaknesses

Deferrable. Some homewares are deferrable purchases and so people may decide to wait, especially if theyhave other demands on their wallets.

Brands. Own-label goods are taking precedence over branded ones.

Cheap imports. The proliferation of low priced imports makes it difficult for conventional brands to justify theirhigher price points.

Price sensitivity. Many consumers wait for sales or special deals before they buy.

Incomes squeezed. Homewares take low priority compared with essential living costs such as paying utilitybills, rent/mortgage payments and buying fuel. So rising prices in other areas of the economy leaves lessdiscretionary income to spend on things for the home.


3/17/2014 Homewares - UK - January 2014 - Whos Innovating?



Key points

People want to recreate restaurant experiences at home and innovative gadgets such as the RiceCube from Dexam is an example of this kind of innovation.

Celebrity tie-ups remain important in homewares.

Designers like Joseph Joseph are taking a fresh look at home goods and even mundanekitchenwares like a washing up bowl are getting a touch of innovation.

Retailers are continuing to innovate in areas spanning branding, multi-channel retailing, extraservices and format evolution.

Dexam helps make Sushi

FIGURE 19: The Rice Cube, Dexam, 2013

Source: Company w ebsite

Dexams rice cube is a piece of equipment that helps make sushi dishes. It can make sushi from plain rice and sohelps cut down on calories. The gadget makes bite-sized sushi cubes from a mixture of rice and other sushiingredients.

Key analysis: This is an example of consumers wanting to bring the restaurant experience into the home.People are experiencing more variety of foods in restaurants and supermarkets and want to recreate the dishesfor themselves. This is linked to cooking as entertainment and the importance of food as an experience.

Celebrity tie-ups

There is nothing especially innovative about celebrity tie-ups in the homewares industry. Television exposure has givenus a long list of celebrity chefs, many of whom have formed alliances with homewares brands.

FIGURE 20: Sophie Conran for Portmeirion, 2013




The Sophie Conran range for Portmeirion won an award for Excellence in design in cookware at the industrysExcellence in Housewares awards in 2013. The range taps into modern design, is hard-wearing and practical, andcombines style with practicality. There is a wide range of dishes and many items can be used for a variety of things.The range can be formal enough to look smart and casual enough to appear at a relaxed meal. For Portmeirion, famedfor its heavily ornamented Botanical Gardens range, it is also a daring new direction.

Key analysis: Mintel Inspire trend Life, An Informal Affair notices how a less formal atmosphere has invadedeverything from the office to the restaurant and even the wedding reception. There has been a growing trendfor familiar and unfussy dining, even on occasions we used to think of as formal (think barbecues for awedding reception) and this trend has bubbled through to many things for the home. So in the same way thatfancy occasions have had a casual makeover, so too has the posh dinner at home. Things are less formal, anda less formal dinner setting is an obvious extension of this trend.

Wow, a new take on doing the dishes

FIGURE 21: Wash & Drain washing up bowl, Joseph Joseph, 2013




Washing up bowls need not be basics. Joseph Joseph has given the washing up bowl a makeover which is stylish andpractical. It has an integrated plug which means water can be quickly drained away, and so the bowl does not need tobe lifted or tipped to be emptied. This has applications for people who are less mobile as well as being moreconvenient for the mainstream market (see the Mintel Inspire trends Old Gold and Without a Care). The bowl featuresother thoughtful touches. The plughole can filter out food particles, allowing them to be easily disposed of and helpingto prevent sink blockages. Its large carry handles mean it can be easily carried, if required. So as well as being usefularound the house, this bowl could be ideal for campers or for carrying into the garden at a barbecue.

Key analysis: Mintel Inspire trend Life Hacking sees how there never seem to be enough hours in the day andthat things that can shave a few seconds off tasks are popping up all around us. Of course digital products areoften tapping into this trend, but we are increasingly seeing things in homewares that can save peopleprecious seconds. We expect to see more and more innovation in homewares that tap into this trend.

Iconic designs

FIGURE 22: Cooks Measure, Tala, 2013




The Tala Cooks Measure is an example of an iconic piece of kitchen equipment that has survived the decades andcontinues to be as practical as ever. For cooks who choose not to use scales, or people without space for scales,this measures liquids and dry ingredients like flour, sugar and lentils quickly and accurately, and creates a minimumof mess.

Key analysis: The Mintel Inspire trend Never Say Die looks at the fashion for adopting heritage styles andsometimes using the things your granny may have had; If you werent there the first time round, never mind.The past is a place to occupy. Objects are thought iconic because of their age, by people too young to haveexperienced them when they first appeared. The rise of eBay has popularised the availability of vintage goods.And the internet offers up an entire centurys worth of images. People are falling in love with retro things fortheir craftsmanship, durability and individuality. The past truly is our oyster and its products, songs, films andfashions variously appeal because of their tangibility, their individuality or simply because, like the TalaCooks Measure, they were great ideas in the first place.

Retail innovation

As well as new products hitting the market, there are innovations among retailers that make it easier for people tobrowse, get inspiration and to buy the products they want. Retail innovation is a journey, not a destination, but here



we highlight some of the key themes that are moving the retailing of homewares forwards.

Multi-channel retailing is a hugely influential trend. It creates opportunities for people to be able to mix andmatch the way they wish to browse, choose, pay, take delivery or collect their goods. As more people havemobile internet access, this trend is becoming ever-more influential, changing the way we shop. The retailers atthe forefront of this trend include Argos, Next and John Lewis. Argoss same day collection service is hard forothers to match, while John Lewis continues to expand its collection points via Waitrose shops to capitalise onthis growing trend. Multi-channel experience is the future and homewares retailers need to invest now, or facelosing market share.

Custom-makes. We are a diverse nation of shoppers. While some people look for something instant (such asready-made curtains), for others the attraction of having things made for them and made to measure counts fora lot. We have seen Dunelm commit to expanding its home visit service for made-to-measure curtains, whileJohn Lewis and Next offer an interior design service. Even Tesco offers the option to have curtains made tomeasure within seven days (although it hasnt gone as far as interior designers just yet).

Right-sizing. As the internet alters the way we shop, retailers are beginning to alter their attitude to thegeographical coverage and the size of shops that they occupy. In other words they think people will travel alittle further to get to a shop, especially if those people have clued themselves up about what they might buybefore they make their journey. So we are seeing Argos trimming its store numbers and John Lewis opening itsfirst mid-sized department store.

Digital evolution. Digital innovation is now becoming commonplace within retailers. Argos is trialling sixconcept stores with voice-activated computer systems, iPads, free Wi-Fi and digital screens flashing upadverts. The laminated in-store catalogues, paper slips and tiny pencils have given way in the new digital formatwhich aims to be modern and to give faster service. In April 2013, Marks & Spencer followed House of Fraser inopening a small dotcom store: M&Ss e-boutique in Amsterdam is equipped with screens showing virtualclothing rails and online order points. And John Lewis has equipped sales staff with i-Pads that can be used totake payments.


3/17/2014 Homewares - UK - January 2014 - Market Size and Segmentation



Key points

In 2013 consumers spent 11.79 billion on homewares, +4.5% on the previous year. In 2012 demand had been buoyant,helped by growing levels of consumer confidence and more house moves.

In the 5 years from 2013-18 we forecast that consumer spending will grow by 19.2% to reach 14.04 billion. The strongperformance will be helped by growth in the number of homes in the UK, expanding numbers of 25-34s, improvingconsumer confidence and be more people opting to trade up for better quality.

There is a massive choice of hard homewares, with huge volumes being sold at budget prices through a range of valueretailers as well as Ikea and the supermarkets. Countering this trend we see many initiatives from retailers and brandsencouraging some discerning shoppers to opt for higher-priced goods.

Similarly there is a vast choice of curtains and linens spanning a wide range of prices.

The trend for home baking and cooking has created a surge in demand for cookware and bakeware, with peopleshowing willingness to trade up for better brands and quality.

Forecast

FIGURE 23: Consumer spend on homewares, 2008-18

Source: Mintel

Mintel has produced this forecasts based on an advanced statistical technique known as multivariate time series auto-regression using thestatistical software package SPSS. The model, based on historical market size data taken from Mintels own market size database andsupplemented by macro- and socio-economic data sourced from credible organisations (eg Office for National Statistics, HM Treasury, Bankof England), searches for relationships between actual market sizes and a selection of key economic and demographic determinants(independent variables) in order to identify those predictors having the most influence on the market.

For the homewares market the number of 25-34s was identified to have the most influence on the market volume, as these people are usuallysetting up home and our research shows that they buy more homewares than other age bands. The second factor used was personal



setting up home and our research shows that they buy more homewares than other age bands. The second factor used was personaldisposable income as people who feel better off are freer with their spending on goods for the home.

Next to historical market sizes and a current year estimate, the fan chart illustrates the probability of various outcomes for the market valueof homewares over the next five years.

The future uncertainty within this market is illustrated by the coloured bands around the five year forecast. The widening bands successivelyshow the developments that occur within 95%, 90%, 70% and 50% probability intervals. Statistical processes predict the central forecast tofall within the darker shaded area which illustrates 50% probability ie a 5 in 10 chance.

At a 95% confidence interval, we are saying that 95 out of 100 times, the forecast will fall within these outer limits, which we call the best andworst case forecast as these, based on the statistically driven forecast, are the highest (best case) and lowest (worst case) market sizes themarket is expected to achieve.

The best and worst case forecasts take the value of homewares from an expected 11,786 million in 2013 to 17,191 m best case and10,897m worst case. Based on our best judgment however, Mintel expects the market to grow to a total of 14,044m in 2018.

A positive big picture

FIGURE 24: Total retail value sales of home accessories (broader definition), at current and constant prices, 2008-18

Total Index % m at Index %

m annual change 2013 prices annual change

2008 10,494 89 na 13,183 112 na

2009 10,597 90 1.0 12,731 108 -3.4

2010 11,071 94 4.5 12,743 108 0.1

2011 10,841 92 -2.1 11,802 100 -7.4

2012 11,278 96 4.0 11,820 100 0.2

2013 (est) 11,786 100 4.5 11,786 100 -0.3

2014 (fore) 12,238 104 3.8 11,729 100 -0.5

2015 (fore) 12,603 107 3.0 11,551 98 -1.5

2016 (fore) 13,140 111 4.3 11,529 98 -0.2

2017 (fore) 13,626 116 3.7 11,439 97 -0.8

2018 (fore) 14,044 119 3.1 11,284 96 -1.4

% change

2008-13 +12.3 -10.6

2013-18 +19.2 -4.3

Source: ONS Consumer trends/Mintel

The governments report on consumer spending tracks various categories of spend on the home. Although these include a wider spread ofcategories than our core definitions it is useful to see an overview of spending patterns. As consumer confidence recovered and the housingmarket picked up, 2012 and 2013 saw growth in spending on homewares. By 2013 sales were 12.3% higher than in 2008.

Market segmentation

FIGURE 25: The market for homewares (broader definition) by main segment, 2013 (est)



Source: Mintel

FIGURE 26: The market for homewares (broader definition) by main segment, 2008-13

Source: Consumer trends /Mintel

Homewares have seen mixed fortunes during the last five years. People have been reluctant or unable to move house and this has affectedsales of big ticket goods for the home, including room makeovers. So demand for curtains and window blinds has been weak. But, theinfluence of more home baking and cooking has created a surge in demand for cookware and bakeware, with people showing willingness totrade up for better brands and quality.



trade up for better brands and quality.

Household textiles

FIGURE 27: Household textiles by category, 2013

Source: Mintel

Almost a quarter of the textiles category is accounted for by ready-made window furnishings, most usually curtains and blinds. Othertextiles, including table linens, bags made of fabric, made-to-measure window furnishings as well as fabrics sold by the meter account forjust over half of all spend. Household linens which includes sheets, duvet covers and towels as well as bedding (duvets, pillows etc) accountsfor 20% of spending.

Glassware and tableware

FIGURE 28: Glassware, tableware and other homewares, by category, 2013



Source: Mintel

Decorative home accessories are the largest category within this part of the market. This includes ornaments, picture frames, bathroomaccessories and other decorative goods for the home. Kitchenwares include goods for cooking and baking and account for 11%, while glassand tableware make up 17%.

There is a wide range of other hard goods that fall into home accessories. These include kitchen hardware items such as buckets and bins,home storage items as well as miscellaneous feeding bottles, ironing boards, strong boxes, laundry airers and laundry baskets.

Household linens and textiles

FIGURE 29: Consumer spend on window, linens and other textiles, 2008-18

Window furnishings andaccessories (ready-made)

Householdlinens

Other household textiles (includingmade-to-measure)

Total householdtextiles

m m m m

2008 1,402 1,199 2,898 5,499

2009 1,318 1,128 3,267 5,713

2010 1,376 1,129 3,803 6,308

2011 1,402 1,146 3,011 5,559

2012 1,425 1,175 3,199 5,799

2013(est)

1,461 1,176 3,406 6,043

2014 1,499 1,223 3,496 6,218



2014(fore)

1,499 1,223 3,496 6,218

2015(fore)

1,543 1,257 3,618 6,418

2016(fore)

1,591 1,306 3,747 6,644

2017(fore)

1,643 1,355 3,901 6,899

2018(fore)

1,699 1,420 4,023 7,142

Source: Mintel

The slow housing market has meant fewer house moves as well as a reluctance to undertake room makeovers. And by 2012, as the numberof homes being sold in the UK began to recover, sales of curtains and window furnishings followed. Even so, people are not especiallyconfident and disposable incomes are being squeezed because of rising utility bills, food and fuel costs.

Consumers have more choice than ever of low-cost options rom a wide range of retailers from discounters to value chains and supermarkets.As a result average spending has been under pressure and more people are placing value and price high on their list of factors to take intoaccount when choosing curtains and blinds.

Buying new covers for the bed is a great way to change the look of a room at an affordable price. So we see people willing to jazz up abedroom with new sheets and duvet covers. Plus the fashion for making a bed more sumptuous with layers of covers and extra cushions ishelping to drive demand for other covers and soft furnishings. The uptick in house moves will encourage more bedroom revamps and in turnthis will be good for sales of bed linens.

Recession makes people cautious and Mintels trackers show that cautious consumers are spending more time at home. Also, we see thetrend for young people to remain in the family homes for longer. So people want comfort and warmth in their homes and this is helping tostimulate sales of bedding such as duvets and pillows. Although times have been tough and the scene is competitive, there are signs thatdemand for household linens is picking up and we believe that people will invest a little more in the future for better quality and comfort.

Domestic lighting

FIGURE 30: Consumer spend on Lighting, 2008-18

Lighting

m

2008 654

2009 615

2010 605

2011 625

2012 638

2013 (est) 660

2014 (fore) 675

2015 (fore) 698

2016 (fore) 719

2017 (fore) 743

2018 (fore) 768

Source: Mintel

Demand for lighting in the home is closely linked to the property market and house moves. The market has been making a weak recoveryand the upturn in housing sales in 2012 should be sustained into 2013. Retro trends have encouraged people to spend a little more to get thelook they want and there has been a revival in sales of chandelier style light fittings. Meanwhile the trend for creating more in-home nests,where people can feel comfortable is helping create demand for sales of table lamps and other free-standing lights.

This, like other homewares, is a competitive market place and there is plenty of choice of stylish fittings at cheap prices so that people can



This, like other homewares, is a competitive market place and there is plenty of choice of stylish fittings at cheap prices so that people cancreate the kind of look they want without a major investment.

In the future we expect to see more LED lighting moving into mainstream home fittings. And more lighting being built in as people refitkitchens and bathrooms.

Cookware and tableware

FIGURE 31: Consumer spend on Glassware, tableware and other homewares, 2007-13

Glassware and tableware Kitchenware Decorative homewares Other homewares Total

m m m m m

2008 807 482 891 2,161 4,341

2009 817 476 868 2,108 4,269

2010 826 482 898 1,949 4,155

2011 840 501 913 2,403 4,657

2012 853 526 940 2,522 4,841

2013 (est) 867 558 1,132 2,526 5,083

2014 (fore) 889 570 1,113 2,773 5,345

2015 (fore) 910 577 1,156 2,846 5,849

2016 (fore) 935 582 1,207 3,053 5,777

2017 (fore) 962 586 1,253 3,182 5,983

2018 (fore) 992 582 1,212 3,349 6,135

Source: Mintel

As the recession set in, people indulged themselves in cooking and baking at home. Traditional crafts like baking a cake becamefashionable, helped by television exposure on the Great British Bake Off and other television programmes. Mintels Small KitchenAppliances UK December 2013 notes how this trend stimulated sales of high end food mixers and food preparation appliances. And atthe same time demand for bakewares and good quality pans has been growing. This is accompanied by a general uplift in sales of gadgets.

But, this, as with most products in homewares, is a market which is polarising. There is a plethora of goods at cheap prices in a range ofdifferent outlets from supermarkets to discounters. So people can opt for goods at throwaway prices if they choose to. For the future thechallenge for retailers and brands is to add value and justify their higher prices through style, quality and better functionality.

Other home accessories

Consumers are adding finishing touches to their homes, using ornaments and accessories such as cushions to add colour, createpersonality and interest in their homes. The lounge and dining areas are clearly a focus for living and here the emphasis will increasingly be

on nesting, making the home comfortable and homely. People spend the bulk of their leisure time at home and so enhancing this

environment will give them pleasure. We predict that accessories will be used more and throughout more spaces in the home, so ornamentsfor the kitchen, bathroom and bedrooms will become more commonplace. And we foresee that people will want to change the look of roomsmore regularly, using accessories as a low-cost way to generate a new look for their homes. So people will buy homewares on impulse,keep them for a while and then replace them with something new.

People see bathroom accessories as a low cost way of improving the ambience in their rooms. This is a niche market within other homeaccessories but Mintels Bathrooms and Bathroom Accessories UK August 2013 sees that it has performed strongly. As morebathrooms include fitted or modular furniture in the future we expect to see more demand for ornaments in the bathroom as well as decorativeitems with functional uses such as toothbrush tidies and holders for soap.

If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in the UK and the rest of the world, or email them to [email protected].

3/17/2014 Homewares - UK - January 2014 - Companies and Products



Key points

Supply of homewares is very fragmented and spread across a wide range of manufacturers, most ofwhich specialise in one segment of the market.

The Spring and Autumn Shows in the UK are the key trade fairs and each has a vast array ofexhibitors, with products ranging from kitchen and tableware through to ornaments and lighting.

Curtains and blinds

Hillarys Blinds is a leading specialist in the market for blinds. The company sells direct and provides a made-to-measure service. Turnover was 98 million in the year to September 2012.

Montgomery Tomlinson is a curtain and furnishings business based in North Wales that runs retailconcessions including in Debenhams and House of Fraser. The company went into administration in August2013 but was bought by a Manchester-based venture capitalist, with a view to revitalising the business andcontinuing to trade.

Plumbs is a direct seller of loose covers, made to measure upholstery and curtains. In 2010, the companycelebrated its 50th anniversary.

Thomas Sanderson sells blinds, conservatory blinds and shutters and sells direct in the UK. The companymanufactures its products in the UK and has a turnover in excess of 35 million.

Others include Hunter Douglas Group (Luxaflex and Sunway Blinds), Faber (blinds) and Velux (window specialist thatsupplies blinds for its sloping roof windows).

Household textiles and linens

Bedeck supplies its own bed and bath linens as well as making Sanderson, Harlequin, Designer Guild andother brands under licence.

Chortex supplies high quality towels under its own as well as the Horrockses and Osman brands.

Christy is a leading brand for towels and the company also supplies bed linens and cushions. As well asenjoying wide distribution the company sells through its own website and also has ten factory outlet shops.

Dorma is a leading name in bed linens and was bought by Dunelm in 2008.

John Cotton is a major maker of pillows, duvets and mattress protectors. The company makes a wide range ofproducts from basics through to luxury products. The company supplies own-label goods for many retailers aswell as its own Snuggledown and Norway brands.

Sharief Group owns a range of brands including Carlton Luggage. Its flagship linens brand is Fogarty, a makerof high quality pillows and duvets. Other linens brands in the group include Westone (bed linens), Canningvale,Pierre Cardin (linens) and Christian Fischbacher.

Tableware and glass



Arc International is an international glassware company. Brands include Crystal DArques Paris (classicdrinking glasses), Luminarc (tableware), Pyrex (glass cookware) and Chef & Sommelier (stylish moderndrinking glasses).

Arthur Price grew from its foundations as a Sheffield-based maker of cutlery, adding tableware, silver gifts andphoto frames. The company has had a successful tie up with TV designer Laurence Llewelyn-Bowen.

Churchill China is a supplier of tableware to the hospitality and catering industries as well as sellingconsumer products through retail channels. It provides many retailers with own-label ranges. The companyworks with many leading names including Cath Kidston, Jamie Oliver, Alex Clark, Julie Dodsworth and DeeHardwicke.

Dartington makes crystal glassware. The ranges include drinking glasses and gifts. The company claims tobe the only maker of crystal manufacturing in the UK.

Denby is a British manufacturer of stoneware, with a broad range of dinnerware and other crockery. In additionthere is a small selection of glassware and the company launched a range of cookware in 2010. The companyhas created ranges endorsed by James Martin and has also created a Monsoon range of dinnerware.

Emma Bridgewater makes hand decorated pottery. The family-run company is based in Stoke-on-Trent. Themerchandise is widely distributed and the company makes the most of its British heritage.

Oneidas ranges encompass cutlery (flatware), dinnerware and cookware. Other brands include Viners(cutlery, cookware, kitchenware and dinnerware), George Wilkinson (home baking, kitchenware and cookware),Samuel Groves (Mermaid Bakeware as well as bakeware for the commercial trade) and Anchor Hocking(comprehensive range of kitchen storage and serving dishes). Mermaid products are endorsed by Delia Smith.

Portmeirion (Portmeirion, Spode, Royal Worcester and Pimpernel). This Stoke-on-Trent-based company is amarket leader in high quality and innovatively designed tableware, cookware, giftware and tabletopaccessories. Portmeirions Botanic Garden range launched in 1972 and is an iconic design. The company alsohas newer award winning collections including Sophie Conran for Portmeirion. The company acquired theclassic Spode and Royal Worcester ceramics brands in 2009. The companys Pimpernel brand is a marketleader in coasters and placemats.

Villeroy & Boch is a Germany-based company that makes and sells products for the home. Its divisionsinclude Bathroom & Wellness, Tableware and Tile, and it has 15 production facilities in Europe, Mexico andThailand. The company makes tableware and a wide range of ornamental products for the home. Two of itsranges were highly rated in the 2013 Red Dot Design awards.

WWRD Holdings is a maker of luxury china and glassware under the Waterford Crystal, Wedgwood, RoyalAlbert, Royal Doulton and Johnson Brothers brands. Waterford Wedgwood was bought out of receivership in2009 by a US-based private equity firm, KPS Capital Partners. Parts of the business re-entered receivership in2011. But today the group is still trading and in 2012 announced plans to invest in its site at Stoke-on-Trent,including an improved visitor centre. There are designer collaborations with Vera Wang, Jasper Conran,Monique Lhuillier, John Rocha, Gordon Ramsay and Donna Hay. The company sells through a wide range ofstockists as well as its own outlet shops.

Lighting

At the Interiors UK exhibition in January 2014 there are 50 different lighting suppliers showcasing their products andservices. These include:

dr lighting sells a wide range of lighting for residential and corporate customers. Its ranges include its ownDavid Hunt brand, which focuses on high quality, hand-made lighting items.



Micromark (owned by Micart LLP) has a comprehensive catalogue of lighting fixtures and fittings and suppliesmajor chains in the UK including B&Q, Argos and Homebase.

Kitchenware and cookware

This is a very fragmented sector with a wide range of suppliers and brands. Some brands including George Wilkinson,Mermaid, Viners, Pyrex and Denby, are mentioned as part of other supplier profiles above. Other brands include:

Amefa is a Dutch manufacturer and distributor of table cutlery and kitchen knives under the Amefa, Couzonand Richardson Sheffield brands. While the company specialises in cutlery, it also has a presence in thecookware market through a range of branded kitchen knives.

Horwood Homewares is a manufacturer and importer of homewares, including cookware, cutlery, knives,bakeware, kitchenware and small electricals. Horwood is owned by Portuguese cookware manufacturer,Silampos SA. The companys products are sold under the Stellar, Judge and Horwood brands, but some alsocarry the name of celebrity chef James Martin.

Joseph Joseph is a manufacturer of stylish modern kitchenware. Most products include an element ofinnovation, improving their functionality.

Le Creuset is a French manufacturer best known for its enamelled cast iron cookware, and also now sellsstainless steel and toughened non-stick pans, stoneware and ceramics. It has an iconic orange range, but alsosells an assortment of other coloured wares.

Metalrax Group was a specialist steel manufacturing company which included a bakeware division. Thecookware is sold via retail and commercial markets in the UK and abroad. Metalrax has a number ofsubsidiaries in its Consumer Durables division, including GW International and Samuel Groves. The companywent into administration in April 2013 with the divisions sold to different companies. Metalrax Homewares wasacquired by Cable Capital Partners and continues to trade.

Meyer Group manufactures and markets gourmet cookware and kitchenware across the globe. The companyclaims to be the UKs largest supplier of kitchenware. The company has built up a reputation for quality,innovative cookware and is a leading player in hard-anodised non-stick cookware. Its brands include Anolon,Circulon, SilverStone and Prestige.

Russell Hobbs is an appliance supplier selling small domestic appliances, large appliances and hair andbeauty appliances. In addition the company has cookware range, including one endorsed by celebrity chefMarco Pierre White and others under the Tower and Russell Hobbs brands.

Tefal is a global cookware manufacturer and was a pioneer in non-stick pans. Through a mix of organic andinorganic growth over the years Tefal has added pressure cookers, electrical cooking appliances, food andbeverage preparation, irons and scales. The company is owned French appliances company Groupe SEB,which also owns the All Cad and Lagostina (pressure cookers) brands in the cookware market, as well as theRowenta, Moulinex and Krups brands in small electrical. It produces a range endorsed by Jamie Oliver.


3/17/2014 Homewares - UK - January 2014 - Channels to Market



Key points

Homewares are sold by a wide range of types of retailer, including many general retailers, online sellers andsupermarkets.

Department stores (39%) have the highest share by value and within this the largest player is John Lewis. It hasbeen gaining share through a combination of range and brand development, multi-channel selling and theaddition of new selling space.

General mixed goods retailers (33%) are very important within the sector and are dominated by Argos adestination retailer for many shoppers. Wilkinson is a major value chain and there are several strong andgrowing mixed goods businesses including B&M and The Range.

Dunelm stands out as a high growth business, which we have classed as a value mixed goods retailer becauseof its breadth of range, although its particular strengths lie in textile products including bedding, towels andwindow furnishings.

Lakeland is a leading specialist within the cookshop sector and Steamer Trading is growing its presence,although from a much smaller base.

Fragmented distribution

FIGURE 32: Channels to market, 2012

Online and offline sales are included within each sector

Supermarkets includes Tesco, Asda, Sainsburys, Aldi and others.

Department stores includes John Lewis, House of Fraser, Debenhams, Marks & Spencer, Next and BHS

General mixed goods includes Argos, Wilkinson, the Range, Dunelm, B&M and other value mixed goods retailers

Home shopping includes pureplay online sellers (Amazon, eBay and others) as well as conventional home shopping companies

such as Shop Direct

3/17/2014 Homewares - UK - January 2014 - Channels to Market


Furniture stores includes Ikea, Laura Ashley, Cargo and others

Specialists includes Lakeland, Steamer Trading, Hillarys Blinds and other specialists including independents

Other includes market stalls, gift shops, garden centres and others

DIY specialists includes B&Q, Homebase, other DIY stores, hardware shops

Source: Mintel

Winners and losers

FIGURE 33: Channels to market, 2010 and 2012

2010 2012 % point change 2010-12

% %

Department stores 36.9 38.6 +1.7

General value mixed goods 31.8 33.5 +1.7

Supermarkets 6.1 5.9 -0.2

Home shopping 4.7 5.7 +1.0

DIY specialists 5.8 5.5 -0.3

Specialists 4.5 4.8 +0.3

All furniture stores 4.2 4.3 +0.1

Other 6.0 1.8 -4.2

Total 100.0 100.0

Source: Mintel

Department stores (39% market share)

Mintel examines the department store sector in detail in Department Store Retailing UK May 2013.

John Lewis is the key player for homewares within

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