News

According to Property Wire* (on the day of authorship, 12.11.08) the outlook for the UK property market is grim and the cut in interest rates will not be enough to stimulate growth in the housing market. A gloomy outlook for estate agents, but does this present a new opportunity for the KBB industry to stimulate growth of its own?

We’ve all seen the “For Sale” signs standing like a dormant army in front of gardens up and down the country - ready for attack, but the truth of the matter is that no one is buying. The figures speak for themselves; with house prices dropping by 15% (nearly £30,000) in 2008, the market is in trouble and this has created a ripple effect that has impacted so many markets, including the KBB. For example, as less people buy new property, the desire (or need) to replace unwanted or old-fashioned kitchens and bathrooms has quite literary gone down the plughole.

So people aren’t moving, they’re improving – and improving their homes for themselves to live in. The increased cost of dinning/drinking out, the smoking ban and adverse publicity of violent street crime are all contributory factors to keeping people in-doors, socialising at home and ultimately affecting the trend for home improvement. It’s evident even by flicking through the TV Times; gone are the shows like House Doctor where every room is painted mandatory magnolia and de-personalised, gearing up for a successful sale. These have been replaced with shows such as Grand Designs and Channel 4’s new The Home Show, showing people how to make the most of their home, adapting it to suit their changing lifestyles.

Traditionally it’s the kitchen that consumers spend money on, as it’s seen as adding most value for sale. But it seems that these turbulent financial times have fuelled escalating interest in the bedroom and we are seeing increasing sales in the bedroom furniture market. Daval itself has seen growth in bedroom sales since last year. Possibly people are hoping that investing in their bedrooms will help them sleep easier at night during the recession – who knows...

To reinvigorate the KBB industry as a whole, innovation and NPD are a necessity. The modern home is changing, rooms are becoming multipurpose and several generations are living under the same roof. Over the last 15 years the number of rooms in the home has decreased, as open-plan living lends itself more successfully to relaxed room usage. We are now starting to see furniture that is performing in other ways than solely for usability and design, for example furniture now has in-built multimedia capabilities and can provide easier ergonomic storage options that suit the aging population. But the key for manufacturers and retailers alike is to offer something unique and personal to each individual consumer.

The famous advertising slogan, “chuck out that chintz” should now be modified for neutral décor – “ditch the magnolia” - and as homeowners are making improvements for their own, personal enjoyment, there has been a proliferation of companies offering more personalised services and products. For example kitchen work surfaces that feature any design behind them, even a family photo. This trend has also filtered down to the high street and (or should that be Retail Park?) the Swedish king of flat-pack, IKEA is selling wall art stickers, enabling budding artistic DIY-ers to personalise their Swedish-inspired rooms.

Personalisation comes with a substantial price tag – and this offers significant opportunity for the KBB industry. From soups to cars, consumers are prepared to pay a premium for quality. By examining the wider macro trends (and not just those within the KBB industry) there is an obvious opportunity for companies providing a more bespoke offering to widen their appeal and target this new found market that’s hungry for individuality. By taking advantage of the increased legislation and red tape that now surrounds home-improvement, offering additional and almost a “one stop shop” of services to accommodate could be the saving of the industry.

So, as property developing hits a brick wall, it could actually be the act of making a house a home fit for an individual that could build up the KBB industry once again.

* According to a report written by Professor Michael Ball of the University of Reading’s Department of Real Estate and Planning.