The kitchen and bathroom distributor market has increased by around 7% in 2015 compared to the market size in 2014, according to a newly released report by AMA Research. This reflects the continued steady improvement in the UK economy and in the building and home improvement markets. Bathroom products represents the largest sector of the kitchen and bathroom distributor market, followed by kitchen furniture, worktops and sinks, showering products and kitchen appliances.
Sales to kitchen and bathroom specialists dominate the distributors’ market, accounting for 40% share by value in 2015, with builders’ merchants also a key customer sector. Other customers include DIY stores and retail outlets such as department stores, electrical independents, online retailers etc. Housebuilders also use distributors as their nominated supplier of kitchen and bathroom products.
The role of the distributor is changing, with a need to differentiate products and services and add value. As well as efficiencies of scale, stock holding and additional services, the key to the distributors’ continued wellbeing is the increasing reliance on market intelligence. Distributors are ideally situated to understand the market and anticipate changes and new trends, helping them to match suppliers’ products to market demands.
With the Internet becoming such an important growth area in recent years, there are more opportunities for kitchen and bathroom distributors to grow and strengthen their position. A significant number of the smaller online retailers are virtual retailers, hold little or no stock, but have structured deals with distributors to supply the product as required. As the growth in Internet purchases continues, so the opportunities for the distributors grow.
Overall, distributor profit margins have increased moderately since 2012 and this trend is expected to continue through to 2020, reflecting the more positive market conditions in the market. Market prospects for the kitchen and bathroom distributors market continue to look reasonably positive with increased confidence in the growth of the UK economy and a positive outlook in home improvement generally.
“Over the last 2 years the market for kitchen and bathroom products has seen a steady increase, with demand improving as the economy improves” said Keith Taylor, Director of AMA Research. “As the housing market is gradually recovering and consumer confidence levels are increasing, the outlook for the UK kitchen and bathroom products market in 2016 looks positive, with further steady growth anticipated into the medium and longer term.”
The ‘Kitchen and Bathroom Supply Chain Market Report – Focus on Distributors – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.