Textiles & Soft Furnishing Market Optimism for 2012

May 14, 2012 - PRLog -- Domestic demand for household textiles such as childrens bedding, higher value dining room textiles and cushions and duvets should offer some stimulus for value growth in the textiles and soft furnishings market in 2012, according to the new report, with the market set to increase by 3% in 2012.  Commenting on the research, director of MTW Research Mark Waddy stated, “Clearly, macro-economic conditions are not conducive to particularly bullish growth forecasts at present, although the research has uncovered a number of opportunities for UK manufacturers and distributors to exploit which is prompting some optimism across the soft furnishings and textiles market.  

The 200 page report identifies a number of positive influences which are set to offer some growth for textile and furnishing suppliers in the near term, with a polarisation of the market in terms of price suggesting that there is a growing preference by some consumers for higher quality, rather than value-led products.  Whilst the majority of the market remains dominated by imports, MTW assert that value growth in 2012 will be driven by consumers’ growing appetite for higher value, design led textiles and furnishings which offer enhanced features and benefits.  The opportunities for UK manufacturers and retailers to exploit this trend is identified as just one amongst many by MTW, with growth prospects apparently more healthy than was the case in recent years.  

The report also quantifies and reviews the commercial textiles market, suggesting that the growth in ‘budget’ end use sectors such as hotels & restaurants has had a negative impact on the market in recent years.  In 2012, non-domestic soft furnishing & textile sales account for around 32% of the total market and whilst the leisure and health sectors may offer some impetus in the near term, non-domestic applications are unlikely to offer any real term growth in the immediate future.  Nevertheless, MTW’s longer term forecasts are more positive for non-domestic textile and soft furnishing sales, with private sector growth prompting healthier forecasts from 2014 onwards.  

The report also reviews the key routes to market for textiles and soft furnishings, with 34% of soft furnishing & textile retailers having experienced healthy growth in turnover in the last 12 months and a further 28% of companies reporting some growth during the same period.  Following a lacklustre 2009 and 2010, profitability levels in the soft furnishing & textile retailer market returned slowly in 2011, with overall industry profitability rising by 1%.  This growth is forecast to continue in 2012 as a result of steadily rising optimism for further volume growth in the industry.

The soft furnishings and household textiles market has primarily relied on the domestic sector for growth in the last three to four years and this sector is likely to continue to generate most opportunity for growth in the medium term according to MTW.  Some of the key positive factors identified include a rising UK population, growing number of pensioners with higher disposable incomes, rising number of UK households and a growing focus on higher value innovation and product development.  MTW believe that these and other issues will result in the UK household textiles and soft furnishings market experiencing more positive turnover and profitability in the medium term, prompting greater optimism throughout the industry.  The report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.