Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Abbreviations
Future Opportunities
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- What do over-45s want?
- How to cross the high street gender divide?
- Men Shopping Badly? (from Mintel’s Inspire)
- That’s Home Entertainment (from Mintel’s Inspire)
Market in Brief
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- Buying home goods online now a mass market phenomenon
- Online spending grows rapidly despite downturn
- Widening internet access boosts market
- Extended ranges attract customers
- Broadband and other positive factors
- Housing decline a negative influence
- Consumer spending hit by recovery in saving
- More retirees but family lifestagers see no growth
- Retail price deflation and sourcing inflation
- Online gender differences copy the high street
- Argos and other non-specialists take the lead
- Convenience and price biggest draw to home goods online
- Still some problems online
- Delivery and security still pose problems
- Medium and long-term prospects extremely good
Internal Market Environment
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- Key points
- Internet reaches 55-64s, C2s and DEs
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- Figure 1: Internet penetration, by age group, 2003, 2006 and 2009
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- Figure 2: Internet penetration, by socio-economic group, 2003, 2006 and 2009
- Online purchasing patterns
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- Figure 3: Purchasing of various product categories online, January 2008-January 2009
- Broadband takes over
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- Figure 4: Type of connection to the internet, 2004-08
- Growth of mobile internet
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- Figure 5: How people access the internet, 2004-08
- Improvements to customer experience and range availability
Broader Market Environment
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- Key points
- Housing market will hit larger home goods
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- Figure 6: Household transactions, 2004-14
- Inflation fall and pound’s decline will hit margins
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- Figure 7: UK actual and projected price inflation – all items, white goods and household goods, 2004-14
- Consumers to rein back spending
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- Figure 8: UK real personal disposable income growth, consumer expenditure growth, bank base rate and savings ratio, actual and projected, 2004-14
- Housing equity withdrawal goes into reverse
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- Figure 9: Housing equity withdrawal, 2006 Q1-2008 Q4
- More upmarket population
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- Figure 10: UK adult population 15+, by socio-economic group, 2004-09 and 2009-14
- Rise in retirees a challenge
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- Figure 11: UK adult population 15+, by lifestage, percentage change, 2004-09 and 2009-14
Market in Context
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- Key points
- Home goods sales
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- Figure 12: Total consumer spending on home goods, 2004-09
- Online becomes significant home goods distribution channel
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- Figure 13: Consumer spending on home goods online, total home goods and total consumer spending, 2004-09
Strengths and Weaknesses in the Market
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- Strengths
- Increasing internet penetration
- Widening product ranges online
- More ABC1 consumers
- Improving customer service
- More consumers have broadband access
- Weaknesses
- Decline in the housing market
- Rising unemployment
- Selling price deflation
- Sourcing prices rising
- Rising numbers of retirees
Who’s Innovating?
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- Mydeco.com cashes in on MFI’s demise
- John Lewis offers consumers even faster delivery
- Making sure the customer is waiting for you
- Delivery to home, to store and now to box
Market Size and Forecast
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- Key points
- Rapid growth but slowing
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- Figure 14: Online market for home goods, 2004-14
- Main factors for the future
- Product price deflation
- Import cost rises
- The housing market and mortgage finance
- Price sensitivity
- Breadth of offer
- Rising access to broadband
- Factors used in the forecast
Purchasing of Products for the Home Online
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- Key points
- Electricals lead buying for the home
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- Figure 15: Products for the home purchased using the internet for browsing or buying, February 2009
- How they browse and buy: Demographic analysis
- Women keener on furniture online
- Men buy lighting
- Buying in-store dominates for carpets
- Tableware female-led but cookware more unisex
- DIY retailers failing to convince key age groups to buy online
- DIY tools remain a male domain
- Gardening favoured by the over-45s
- 35-44s key for white goods
- Non-specialists far ahead of specialists
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- Figure 16: Websites used for buying products for the home, February 2009
- Where they buy: Demographic analysis
- Ikea appeals to the young
- Argos has classless appeal
- B&Q could attract more women
- Homebase
- Comet male-focused
- John Lewis middle class but not middle-aged
- Debenhams peaks among 25-34s
- M&S very female-led
- Next’s regional coverage patchy
- Tesco ‘stealing’ Asda customers
- Repertoire analysis
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- Figure 17: Number of home goods categories browsed or bought online, February 2009
The Consumer – Buying Behaviour and Preferences
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- Key points
- Convenience the main driver of online purchasing
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- Figure 18: Buying behaviour and preferences when buying products for the home online, February 2009
- Men are more price driven
- Choice-led consumers are young and affluent
- Parents like to save time
- Women keen on multichannel
- Over-35s check stock first
- Under-35s are lazy searchers and shoppers
- 35-44s keen on customer reviews
The Consumer – Attitudes
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- Key points
- Online: Good on price, but has limitations
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- Figure 19: Attitudes towards buying for the home online, February 2009
- Internet pricing appeals to men
- More teenagers prefer the high street
- Men and under-25s hate waiting for deliveries
- Women cautious about who they buy from
- Teens are impatient
- Delivery charge puts women off small items
The Consumer – Typologies
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- Key points
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- Figure 20: Consumer typologies for buying goods for the home online, February 2009
- Online savvy (20%)
- Time motivated (19%)
- Combination shoppers (18%)
- Online avoiders (14%)
- Unconcerned (28%)
Retail Competitor Analysis
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- Key points
- The competitive line-up
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- Figure 21: Leading home goods online retailers, 2009
Retailer Profiles
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- Furniture/housewares specialists
- Ikea
- DFS
- Nobia/Magnet
- Carpetright
- Dreams
- Habitat
- Lakeland
- DIY stores
- B&Q
- Homebase
- Electrical stores
- Currys/Dixons.co.uk
- Comet
- Department/variety stores
- John Lewis
- Debenhams
- Argos
- Marks & Spencer
- Next
- Grocers
- Tesco
- Asda
- Pureplayers
- Amazon
- Others
Appendix – Internal Market Environment
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- Figure 22: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age and region, April 2002-Jan 2009
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Appendix – Broader Market Environment
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- Figure 23: Number of housing transactions, 2004-14
- Figure 24: UK actual and projected price inflation – all items, white goods and household goods, 2004-14
- Figure 25: UK real personal disposable income growth, consumer expenditure growth, bank base rate and savings ratio, actual and projected, 2004-14
- Figure 26: Housing equity withdrawal, 2006 Q1-2008 Q4
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- Figure 27: UK adult population 15+, by lifestage, percentage change, 2004, 2009 and 2014
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Appendix – Purchasing of Products for the Home Online
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- Figure 28: Browsing and buying furniture using the internet, by detailed demographics**, February 2009
- Figure 29: Browsing and buying lighting using the internet, by detailed demographics**, February 2009
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- Figure 30: Browsing and buying carpets/other flooring using the internet, by detailed demographics**, February 2009
- Figure 31: Browsing and buying china/glassware/cutlery using the internet, by detailed demographics**, February 2009
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- Figure 32: Browsing and buying kitchenware/cookware using the internet, by detailed demographics**, February 2009
- Figure 33: Browsing and buying household textiles using the internet, by detailed demographics**, February 2009
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- Figure 34: Browsing and buying decorative items using the internet, by detailed demographics**, February 2009
- Figure 35: Browsing and buying DIY materials using the internet, by detailed demographics**, February 2009
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- Figure 36: Browsing and buying DIY tools and equipment using the internet, by detailed demographics**, February 2009
- Figure 37: Browsing and buying garden products using the internet, by detailed demographics**, February 2009
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- Figure 38: Browsing and buying large domestic appliances using the internet, by detailed demographics**, February 2009
- Figure 39: Browsing and buying small domestic appliances using the internet, by detailed demographics**, February 2009
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- Figure 40: Websites used for buying products for the home, by detailed demographics**, February 2009
- Figure 41: Websites used for buying products for the home, by detailed demographics**, February 2009
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- Figure 42: Websites used for buying products for the home, by detailed demographics**, February 2009
- Figure 43: Websites used for buying products for the home, by detailed demographics**, February 2009
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- Figure 44: Repertoire of any browsing online, by detailed demographics**, February 2009
- Figure 45: Repertoire of any buying online, by detailed demographics**, February 2009
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- Figure 46: Websites used for buying online, by repertoire of any browsing online, February 2009
- Figure 47: Websites used for buying online, by repertoire of any buying online, February 2009
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- Figure 48: Repertoire of number of websites used, by detailed demographics**, February 2009
- Figure 49: Repertoire of any browsing online, by repertoire of number of websites used, February 2009
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- Figure 50: Repertoire of any buying online, by repertoire of number of websites used, February 2009
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Appendix – Buying Behaviour and Preferences
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- Figure 51: Buying behaviour and preferences when buying products for the home online, by detailed demographics**, February 2009
- Figure 52: Buying behaviour and preferences when buying products for the home online, by detailed demographics**, February 2009
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- Figure 53: Buying behaviour and preferences when buying products for the home online, by websites used for buying, February 2009
- Figure 54: Buying behaviour and preferences when buying products for the home online, by websites used for buying, February 2009
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- Figure 55: Buying behaviour and preferences when buying products for the home online, by websites used for buying, February 2009
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Appendix – Attitudes
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- Figure 56: Attitudes towards buying for the home online, by detailed demographics, February 2009
- Figure 57: Attitudes towards buying for the home online, by detailed demographics**, February 2009
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- Figure 58: Attitudes towards buying for the home online, by websites used for buying, February 2009
- Figure 59: Attitudes towards buying for the home online, by websites used for buying, February 2009
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- Figure 60: Attitudes towards buying for the home online, by websites used for buying, February 2009
- Figure 61: Buying behaviour and preferences when buying products for the home online, by consumer typologies, February 2009
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- Figure 62: Attitudes towards buying for the home online, by consumer typologies, February 2009
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Appendix – Typologies
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- Figure 63: Consumer typologies for buying goods for the home online, by detailed demographics**, February 2009
- Figure 64: Repertoire of any browsing online, by consumer typologies, February 2009
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- Figure 65: Repertoire of any buying online, by consumer typologies, February 2009
- Figure 66: Websites used for buying online, by consumer typologies, February 2009
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- Figure 67: Repertoire of websites used for buying online, by consumer typologies, February 2009
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