Review of the UK domestic furniture industry

1. INTRODUCTION 7
1.1 Background to the research 7
1.2 Terms of reference 7
1.3 Methodology 8
1.4 Research parameters 9

2. SUMMARY OF FINDINGS 10

3. THE UK ECONOMY 13
3.1 General economic appraisal 13
3.2 Consumers� expenditure on household goods 14

4. MARKET SIZE AND STRUCTURE 17
4.1 Introduction 17
4.2 Past and present market size 19
4.3 The market by product type 24
4.4 Geographical distribution of the market 28
4.5 The market by distribution outlet 29

5. THE THREAT FROM IMPORTED FURNITURE 35
5.1 Analysis of import penetration 35

6. ADVERTISING AND SALES PROMOTION 40
6.1 Direct advertising 40
6.2 Exhibitions and display 46
6.3 Sales promotion 50

7. MAJOR MANUFACTURERS AND SUPPLIERS 53
7.1 The market leaders 53
7.2 Other important manufacturers 59

8. THE FUTURE FOR DOMESTIC FURNITURE 61
8.1 The outlook for the UK economy 61
8.2 Market forecasts 63

APPENDICES
I Boundaries of the Standard Regions
II Summary of interviews carried out
III Definitions of product groups within the domestic furniture industry.

DETAILS OF TABLES AND CHARTS PRESENTED IN THIS REPORT

Chart 1 - Share of total sales by product group 22
Chart 2 - Total sales of domestic furniture by distribution outlet 33
Chart 3 - Total imports and exports of domestic furniture 39

Table 1 - Total gross disposable income in the UK and the personal
savings ratio 13
Table 2 - Total household final expenditure in the UK 14
Table 3 - Total sales through retail outlets in Great Britain 15
Table 4 - Comparison of furniture sales in terms of Retail and
Manufacturers� Selling Prices 18
Table 5 - Total sales of domestic furniture by product group 19
Table 6 - Share of total sales of domestic furniture held by product
group 21
Table 7 - Indices of domestic furniture sales and producer prices for
selected product groups 23
Table 8 - Indices of domestic furniture sales and producer prices for
selected product groups 23
Table 9 - Indices of domestic furniture sales volume by product
group 24
Table 10 - Total sales of domestic furniture by selected product type 25
Table 11 - Total sales of domestic furniture by selected product type 27
Table 12 - Geographical location of dwellings in the UK and the location
of sales of domestic furniture 28
Table 13 - Total sales of kitchen furniture by distribution outlet 29
Table 14 - Total sales of upholstered furniture by distribution
outlet 31
Table 15 - Total sales of domestic furniture by distribution outlet 32
Table 16 - Total imports and exports of domestic furniture 36
Table 17 - Total imports and exports of domestic furniture by product
group 37
Table 18 - Rate of import penetration by furniture sector 38
Table 19 - Total direct advertising expenditure by manufacturers in
the domestic furniture industry 40
Table 20 - Direct advertising expenditure by manufacturers compared
with total sales of domestic furniture 41
Table 21 - Proportion of total direct advertising expenditure allocated
to individual product groups 42
Table 22 - Gross Domestic Product in the UK 61
Table 23 - Forecasts for the UK economy 62
Table 24 - Forecast by the Treasury 63
Table 25 - Estimated future size of the UK domestic furniture market 64
Table 26 - Estimated future size of the UK domestic furniture market by
product group 65