The internet is the fastest growing distribution
channel of the overall UK plumbing and heating products market and has
experienced strong growth levels in the last 5 years. In 2015, the internet
distribution market for plumbing products increased by 28% on the previous
year. Shower controls and bathroom taps represent the largest sector of the
internet plumbing market, followed by bathroom furniture and accessories, baths
& sanitaryware, heating products such as boilers and standard radiators,
shower enclosures and screens & trays.
It is estimated that in 2015 around 80% of
plumbing products transacted on the internet are through specialist online
plumbing retailers, of which a majority are pure-play retailers that do not
have a showroom and only trade online. There are now some very large online
specialist distributors that account for significant shares. Non-specialists
account for around 20% of the total internet plumbing market and include
merchant/trade outlets, DIY multiples, marketplace websites such as Amazon and
eBay, and other retail outlets. Non-specialists also include plumbing
manufacturers that may make specific products available for consumers to buy
online.
Key drivers include the increasing
availability of internet access, increasing usage of mobile internet using
smartphones and tablets, and the rise of online review sites and blogs, which
is now considered the most trusted form of advertising among potential buyers. The
UK is Europe’s leading e-retail economy and now has around 39 million adult
users accessing the internet every day, and trade sources report that around
one third of UK shoppers also now regularly check their mobiles devices for
better prices whilst in a physical store. Other trends include an increase in
‘Click and Collect’ purchases, and an expectance of shorter delivery times with
next day delivery often required, free shipping and free returns.
Own-label products sold on the internet are
performing particularly well, and some leading specialist online plumbing
retailers are exploiting this opportunity by exclusively supplying own-label
lines. Other online retailers, however, have expanded the number of plumbing
brands they offer in order to capture a wider audience. It is likely that the number
of specialist internet plumbing suppliers will continue to consolidate as this
market sector matures. An increasing number of pure-play online retailers may
also offer a showroom facility in order to grow and compete with store-based
specialist plumbing suppliers and non-specialists.
“While the level of
internet access in households is likely to reach saturation point in the near
future, online purchasing of heating and plumbing products is far from mature” said Keith Taylor,
Director of AMA Research. “Consumers are
already using the internet for purchases of individual items, in particular
replacement products, but future growth is largely dependent on the uptake of
online purchasing among plumbers and installers. This is likely to grow
significantly as a result of the increasing use of mobile internet, improving
quality of suppliers’ mobile websites or apps as well as the ability of installers’
existing supply chain to adapt to this behaviour and offer services such as
Click and Collect.”
Even though the internet plumbing market has
continued to increase as a result of an improving UK economy and housebuilding
levels and the added convenience and low prices offered by online purchasing,
forecasts indicate that the pace of growth will gradually start to slow down as
this market matures. The timing of this change of pace is difficult to
estimate, with ongoing technological developments influencing buyer behaviour,
however, it is estimated that the UK internet plumbing and heating market will
increase by over 52% between 2016 and 2020.
The ‘Internet
Plumbing and Heating Market Report – 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.
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