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Consumer Trends, Attitudes and Spending Habits for the Home - UK - March 2017

Published By :

Mintel

Published Date : Mar 2017

Category :

Housewares

No. of Pages : N/A

Decorating, buying new furniture and flooring top the wish list for 2017. Owner-occupiers are the most engaged with spending on the home. Consumers are seamlessly using a range of channels when shopping, although their desire to judge for themselves remains a major reason why they will continue to visit physical stores when choosing goods for the home.

Table of Content

OVERVIEW
What you need to know
Products covered in this Report

EXECUTIVE SUMMARY
The market
Market to grow by 14.8%, 2016-21
Figure 1: Consumer spending on products for the home, 2011-21
Living and dining is the largest market segment
Figure 2: Consumer spend on the home, by segment, 2016
Growth in numbers of homes will boost spending on the home
23% of private renters moved in the last year
Complex housing market in 2016
Surplus space at home creates opportunities for a wider range of interiors and usage
Figure 3: Usable floor area, by tenure, England, 2015
Change to private renting will reduce demand for garden goods
Improved consumer confidence
Intentions to spend on the home slightly down in 2016
Figure 4: Trends in activities done and considering to do, June 2012-December 2016
Launch activity and innovation
Retailers ready for the connected home
DIY retailers are repositioning to overcome lacklustre performance
Investment in online developments
Technology to help visualise products/plans
The consumer
Enthusiastic intentions for spending on the home
Figure 5: Purchases and home improvement in the last three years; intentions to spend on the home in the next twelve months, November 2016
Enjoying the home life
Figure 6: Reasons for spending on the home, November 2016
Enthusiasm for connected homes
Figure 7: Interest in the smart home, November 2016
Multi-channel shopping and browsing
Figure 8: Shopping preferences for the home: browsing in-store or online, November 2016
Speaking to sales people is a key reason for a store visit
Figure 9: Shopping preferences for the home: speaking to staff, November 2016
Peer group reviews influence shoppers
Figure 10: Shopping preferences for the home, looking at catalogues, reading reviews, November 2016
Home is a centre for leisure time
Figure 11: Attitudes regarding the home, November 2016
What we think

ISSUES AND INSIGHTS
What is the impact of private renting on spending on the home?
The facts
The implications
Is the smart home of interest to the British consumer?
The facts
The implications
Will internet shopping take the place of visiting stores for homewares?
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
2016 was a strong year for spending on the home
Consumers’ spending will grow by 14.8% from 2016-21
Diverse market with many elements
High growth for beds and bedroom
Growth in numbers of homes will boost spend on the home
Shift in structure of household tenure
Spending on the home is closely linked to the housing market
Confident consumers will spend on the home
Future trends include more use of technology
Retailers adapting for the future

MARKET SIZE AND FORECAST
2016 was a strong year for spending on the home
Figure 12: Consumer spend on the home, 2011-21
Forecast methodology
Figure 13: Consumer spend on the home, 2011-21
The impact of the EU referendum vote
Spending on the home has been dented by previous slowdowns

MARKET SEGMENTATION
Market segmentation
Figure 14: Consumer spend on the home, by segment, 2016 (est)
High growth for beds and bedroom furniture
Figure 15: Consumer spend on the home, 2011-16

MARKET DRIVERS
Number of UK homes will grow 4.7% between 2016-21
Figure 16: UK households, by size, 2011-21
High growth of the private rented housing sector
Figure 17: Housing by tenure, 2004-15, London and the reminder of England, 2004-15
Profile of private renters is young
Figure 18: Age group, by tenure, November 2016
23% of private renters moved in the last year
Figure 19: Length of time in current home, by tenure, November 2016
Housing transactions remained strong in 2016
Figure 20: UK Housing transactions, 2012-16
2016 stamp duty changes disturbed buying patterns
Figure 21: UK Housing transactions, 2015-16 – 2016-17
Close link between buying furniture and moving house
Figure 22: Bought any furniture, by length of time in current home, June 2016
Opportunities for alternatives to buying new homewares
Surplus space at home creates opportunities for a wider range of interiors and usage
Figure 23: Usable floor area, by tenure, England, 2015
Owner-occupiers most likely to have gardens
Figure 24: Presence of gardens and allotments, by household tenure, April 2016
Improved consumer confidence
Figure 25: How consumers describe their financial situation, February 2009-December 2016
Intentions to spend on the home slightly down in 2016
Figure 26: Trends in activities done and considering to do, June 2012-December 2016
Consumer credit continues to rise
Scope to extend
Floods and storm damage

LAUNCH ACTIVITY AND INNOVATION
Getting ready for the connected home
Figure 27: Part of the smart home department, John Lewis Oxford Street, 2016
DIY retailers repositioning to overcome lacklustre performance
Bunnings begins its UK conversion from Homebase
Figure 28: Bunnings St Albans, February 2017
B&Q’s new superstore formula
Figure 29: B&Q, Cribbs Causeway, July 2016
B&Q introduces scaled back format
Wickes focuses on projects
Figure 30: Wickes, new store, 2016
Voice of the customer
IKEA rolls out user generated content
Online developments
Dunelm’s takeover of WorldStores doubles its online business
B&Q ramps up analysis of online behaviour
Visualising/3D software
Wayfair develops 3D visualiser
Retailers adapting to the multi-channel environment
Figure 31: IKEA, Order and Collection Point, 2016
Rise of the home store
Figure 32: Next Home and Garden, 2016
Adapting to the compact home
Catering for the ageing population
Faster deliveries

THE CONSUMER – WHAT YOU NEED TO KNOW
Decorating is the most popular home improvement
Positive intentions to spend on the home
Replacement influences 46%
48% are interested in using smart meters which measure energy use
Customer journey for the home is multi-channel
Home is a centre for leisure time

PURCHASES AND HOME IMPROVEMENT
Decorating is the most common home improvement activity
Figure 33: Purchases and home improvement in the last three years and intention to spend in the next 12 months, November 2016
45% of consumers have decorated in the last three years
Figure 34: Purchases and home improvement in the last three years, November 2016
Impact of rising numbers renting privately
Figure 35: Purchases and home improvement in the last three years, by household tenure, November 2016
Owner-occupiers are key

INTENTIONS TO SPEND ON THE HOME
59% plan to spend on the home in the next twelve months
Plenty of redecorating
Positive momentum for carpets
Infrequent projects
Figure 36: Intentions to spend on the home in the next twelve months, November 2016

REASONS FOR SPENDING ON THE HOME
Replacement drives spending on the home
Figure 37: Reasons for spending on the home, November 2016

INTEREST IN THE SMART HOME
High level of interest in the smart home
Figure 38: Interest in the smart home, November 2016

SHOPPING PREFERENCES FOR THE HOME
Shopping for the home is a multi-channel activity
Figure 39: Shopping preferences for the home, browsing in-store or online, November 2016
Shoppers engage with staff in-stores
Figure 40: Shopping preferences for the home, speaking to staff, November 2016
9% turn to customer reviews when judging quality
Figure 41: Shopping preferences for the home, looking at catalogues, reading reviews, November 2016

ATTITUDES REGARDING THE HOME
Wide range of activities in the home
Relaxing at home and sharing family time
Home acts as a social space
Cooking is a leisure pastime
75% of homes with a mortgage take pride in their homes
Younger consumers engage in practical hobbies at home
Self-employed and urban dwellers want a space for home working
Figure 42: Attitudes regarding the home, November 2016
Entertainers represent the most commercial target group
Figure 43: Attitudes regarding the home, target groups, November 2016
Typical characteristics of the target groups
Figure 44: Target groups for the home, by attitudes, November 2016
Entertainers are the highest spending target group
Figure 45: Purchases for the home, by cluster groups, November 2016

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

APPENDIX – MARKET SIZE AND FORECAST
Forecast Methodology

List of Table

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