Kitchen Market Sales to Grow in 2014

CHELTENHAM, U.K. - Nov. 1, 2013 - PRLog -- Based on financial data from more than 90% of UK distributors, the research uncovered rising sales across most kitchen, shower and bathroom markets in late 2013, with greater optimism emanating from the independent bathroom & kitchen retailers in particular.  The contract market is also growing sales in late 2013 according to MTW, with housebuilding activity underpinning volume growth and demand from merchants also rising.

Despite this encouraging news, the research also uncovered 60% of distributors experiencing declining sales in the last 12 months, with the gap widening between successful and less fortunate distributors.  MTW’s director Mark Waddy pointed to “…A step change in the sophistication of successful distributors, leaving others trailing in their wake.  It is no longer simply about selling products and delivering them on time, a whole host of core competences are vital.  Successful distributors focus on all aspects of customers’ needs, they also recognise their integral role in the supply chain and can uniquely influence and assist suppliers and customers to develop cohesive, effective marketing strategies to grow sales.”  The industry is clearly still in recovery mode, though with 20% of distributors reporting 10% growth or more, some are certainly driving sales in 2013.  The research examined why these companies are outperforming the market with the report identifying some clear opportunities for manufacturers, retailers and distributors to exploit and grow sales in 2014.

The report also analyses the product mix and trends within the bathroom, shower and kitchen markets, finding that the age of austerity is coming to an end, albeit rather slowly.  Product trends in favour of opulence and more luxurious designs appear to be growing in favour, with the over 50 age group identified by MTW as one growth sector for higher value suppliers.  The recent economic doldrums led to a ‘flight to price’ though this trend is now apparently reversing.  However, a 6 year focus on value has taught consumers how to achieve maximum impact for minimum spend which, according to MTW, is something that much of the K&B market is now addressing.  One example given of how the industry is moving in this direction is the focus on consumer relaxation and wellness in the bathroom which is driving sales in late 2013.

Since their last review, MTW found some 20 distributors have exited the bathroom and kitchen distribution channel, either by closing down due to declining sales, or having moved into direct selling via the internet.   The report discusses the issue of direct internet selling, with the findings suggesting that this tactic does not typically feature in successful distributors’ policies and is unlikely to flourish as a long term business strategy.  However, MTW highlight the continued market pressure with 20% of distributors making a loss on every employee, up to £19,000 in some cases – perhaps one reason why some are seeking quick wins through direct internet selling in 2013.

The full 150 page report provides a comprehensive review of the distributors market, product trends, threats and opportunities and is available from £565 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324.