The
UK domestic window coverings market has shown overall growth of 15% between
2013 and 2017, but lower growth rates of around 2-3% are currently forecast for
2018. The market has benefited from increased consumer spending in recent years
as well as returning confidence in the housing market and the trend of trading
up to more premium products for replacement purchases. Window coverings are
considered a fashion item, reflecting the latest styles and tastes, therefore
encouraging more frequent updates; consumer demand for convenience, has also
led to rapid growth in online sales.
Whilst
the window coverings market can be considered mature, the sector is highly
innovative, with frequent product introductions. These include new materials,
contemporary designs and the uptake of motorised options; the latter are
becoming more affordable and mainstream. The shutters sector is also continuing
to grow faster than other areas of the market with impressive annual growth
rates. The market does however remain highly competitive, with greater
transparency of prices on the internet enabling consumers to easily compare
product offers and with widespread discounting taking place between suppliers
and retailers.
Curtains account for
the largest share of the product mix in 2017-18, but given the significant
growth in online sales, the sector has been subject to widespread price
competition which has constrained overall value growth. In order to
differentiate and maintain margins some suppliers have expanded their custom
made services. The blinds sector has seen overall growth of 16% between 2013
and 2017 but again has experienced significant price competition from the
growth of online sales. However, the advances in fabric and controls
technologies have helped to underpin market value as consumers increasingly
trade up to more premium products for replacement purchases.
Both the shutters and
curtain suspension sectors have benefitted from the current interior design
trends that favour controllable shading options as well as highly decorative
elements. The shutters sector continues to benefit from the aspirational nature
of the product as well as the range of colour options and increasingly
attractive prices. Ease of use as well as focus on decorative elements have
underpinned modest, but consistent, annual value growth for the curtain
suspension systems sector.
The supply of window coverings is fragmented
but has been subject to some consolidation amongst major players. Most significant
was Hunter Douglas’s acquisition of Hillarys in 2017. The distribution sector is highly diverse and subject to
continued growth in online sales by both generalists and specialists in window
coverings. Most suppliers with physical stores now have an omni-channel
presence, although consumers are becoming more confident in ordering even
custom-made products online.
Jane Tarver of AMA Research said:
“The domestic window
coverings market is forecast to grow by 11% overall from 2018-2022 underpinned
by the replacement market but with intense price competition continuing to be
an overriding characteristic. However, although considered to be mature, the
market remains highly innovative with new products, designs and features, such
as automation, likely to underpin the trend for trading-up to premium priced
products into the medium-term.”
There is likely to be further consolidation
within the market place as labour and distribution costs continue to increase
and organisations seek to achieve additional economies of scale. The distribution channel structure is also
likely to be affected by the overall structural changes in the retail sector as
online shopping continues to gain share. Whilst a blended approach of both
online and offline channels is likely to be offered by larger players in the
marketplace, price competition will continue to abound online in the lower to
mid end of the market.
The
‘Domestic
Window Coverings Report – UK 2018-2022’ is available now and can be
ordered online at www.amaresearch.co.uk or by
calling 01242 235724
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