The internet is the fastest growing channel of the
overall UK plumbing and heating products market and has experienced strong
growth levels in the last 5-7 years. In 2017 alone, the UK internet plumbing
market is estimated to have increased by 17% in value terms. However, forecasts
indicate that the pace of growth is gradually slowing down over the course of the
review period. This change of pace can be partly attributed to market
saturation of internet users and fewer new suppliers entering the market.
Despite the current uncertain economic climate with the
UK’s departure from the EU, the UK internet plumbing and heating distribution market
has continued to grow. With strong demand driven by lower prices and added
convenience, internet retailers have been able to capitalise on changing
consumer cross-channel shopping habits with a notable shift towards online
purchases. Own-label products sold on the internet are performing particularly
well.
Shower controls and bathroom taps represent the largest
sector of the internet plumbing market with a share of around 23%, followed by
bathroom furniture and accessories, baths and sanitaryware, heating products
such as boilers and standard radiators and shower enclosures, screens, trays
and wetroom products. Towel warmers and decorative radiators account for a much
smaller share of the total market.
Key factors that have influenced growth in this market
over the past few years include the growing number of UK households with
internet access – estimates indicate that around 90% of households have access
in 2017 – and significant growth in the level of online e-retail sales over the
past 7 years. The usage of mobile internet technology has also increased
substantially, with a growing number of purchases being made through mobile
handsets or tablets.
The majority of plumbing products sold on the internet
are through specialist online plumbing retailers, of which around 65% are
pure-play retailers that do not have a showroom and only trade online.
Non-specialists account for around a quarter of the total internet plumbing
market and include merchant/trade outlets, DIY multiples, marketplace websites
such as Amazon and eBay, and other general retailers. Non-specialists also
include plumbing manufacturers that may make specific products available for
consumers to buy online.
“Factors such as
improved delivery/collection options, the growing range of products available
online, along with technological improvements should drive Internet sales of plumbing
products.”
said Hayley Thornley, Market Research Manager at AMA Research.
“By 2022, it is
estimated that the UK internet plumbing market will have increased by around
43% compared to 2018. However, it is likely that the pace of growth will start
to slow as this market matures.”
There is still scope for growth – there are still around
2.8 million UK households which do not have an internet connection, and the use
of mobile internet technology is also likely to grow significantly. Although in
the medium term, the number of UK households with internet access is likely to
reach saturation, with the majority also likely to have a faster broadband
connection, the trade/installer channel is less mature in terms of online
purchasing and it is estimated that, despite growth slowing down, the market
will continue to grow by 10-15% per year for the remainder of the forecast
period.
The ‘Internet
Plumbing and Heating Market Report – UK 2018-2022’ report is available
now and can be ordered online at www.amaresearch.co.uk or by calling 01242
235724.
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