Bathroom Market Recovery Led by Retailers in 2011

July 14, 2011 - PRLog -- The 180 page research report suggests that the recession resulted in a loss of £250 million for bathroom retailers, reflecting a cost of around £7 million per month over the last 3 years.  MTW assert that without the recession, the market would now be worth around £1 billion – 35% more than the current market value, underscoring the impact of the economic downturn.  

According to the report, pricing pressures remain intense due to rising imports and the threat of competitive distribution channels such as the Internet, DIY multiples and supermarkets.  In addition, MTW point to the growing trend of consumers being increasingly forceful in negotiating discounts as well as having a clearer concept of their requirements, design and budgets.  These issues, coupled with other market influences such as the threat of substitutes and lower volume demand overall, have continued to drive pricing pressure in the majority of sectors for bathroom retailers during the last 12 months.  

Despite these factors, the report suggests that the demand for higher quality bathrooms is now growing and is indicative of likely future prospects in the market in the near-medium term.  The shift toward higher quality products is also increasingly supported by installers seeking to enhance their reputation by specifying, procuring and installing higher quality bathrooms.  The report suggests that that the number of problems which arise during installation is directly linked to the quality of the product and as such installers generally prefer to promote higher value products in order to protect margins.  

The bathroom retailers market is somewhat polarised at present in terms of design according to MTW.   Minimalist, ‘pure’ design cues in white and lighter shades remain the most popular choice though consumers are becoming increasingly bold in their choice of opulent and rich dark colours.  The ‘retro’ trend toward flower patterns and glamorous décor may be a short term fad, though is driving added value opportunities for retailers seeking to offer a more ‘decadent’ bathroom design option.

Bathroom manufacturers point to a need for enhanced communication to consumers of the benefits of sustainable products and this is likely to result in the closer collaboration of manufacturers, distributors, retailers and installers according to MTW.  The report adds that sustainability should offer opportunities for growth in the future, though environmentally friendly features are likely to become pre-requisite in the longer term, potentially diminishing opportunities in the longer term.  MTW also point to consumers’ negative perceptions relating to reduced flow rates which may reduce opportunities for water saving products, with some installers being asked to remove flow regulators to improve performance.  

However, MTW identify a number of opportunities for bathroom retailers able to design, supply and install intelligent & comprehensive environmentally friendly bathroom solutions.  The development of comprehensive solutions, rather than the supply and fit of a bathroom, is indicated to hold significant opportunity for the future in the higher value bathroom retail market.  The report is available now for GBP 565 from MTW Research at www.marketresearchreports.co.uk or by calling 08456 524324

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MTW Research are a leading publisher of UK market research reports, databases and competitor analysis reports for a wide range of sectors including DIY, housebuilding market, environmental, construction, building, manufacturing and other industries.