DIY Global Summit 2015 - Euromonitor Insights

M. CRUZ DEL BARRIO

HEAD OF HOME AND GARDEN RESEARCH

12 June 2015

HOME IMPROVEMENT: TRENDS AND OPPORTUNITIES IN WESTERN EUROPE AND BEYOND

© Euromonitor International

2

Our Services Syndicated Market Research Custom Research and Consulting Expansive Network On the ground researchers in 80 countries Cross-comparable data across every market Our Expertise Consumer Trends & Lifestyles Product Categories & Distribution channels Economics & Forecasting

Who Is Euromonitor International?

INTRODUCTION

http://www.euromonitor.com/


3

Euromonitor International‟s Network and Coverage

INTRODUCTION


HOME IMPROVEMENT: MARKET OVERVIEW

HOME IMPROVEMENT: SOCIO-ECONOMIC DRIVERS

FUTURE CHALLENGES AND OPPORTUNITIES

KEY TAKEAWAYS


5

The Building Blocks of the Global Home Improvement Industry

Home Improvement F

loo

r C

ov

eri

ng

Ha

nd

To

ols

Po

we

r To

ols

Ho

me

Pa

int

Wa

ll C

ov

eri

ng

Oth

er

Ho

me

Imp

rove

me

nt

Introduction



US$271bn GLOBAL RETAIL SALES OF

HOME IMPROVEMENT (2014)

24%

GLOBAL GROWTH

(ANNUAL AVERAGE 2009-2014)

4.3%

OF TOTAL SALES

COME FROM THE US (2014)


7

-40

-30

-20

-10

0

10

20

30

40

Curr

ent

valu

e %

Gro

wth

Home Improvement Value Growth 2014 in Key Countries in Local Currency vs US$

Current Prices – Y-o-Y Exchange Rates

Local Currency US$

Category overview: Currency fluctuations weighs on global performance




8

Western Europe (25%)

Australasia (1%) MEA (4%)

Asia Pacific (32%)

Eastern Europe (5%)

North America (26%)

Latin America (6%)

Category overview: Home Improvement value sales by region in 2014


Half total world sales Per household expenditure

high vs emerging markets



9

DIY culture versus Do-It-For-Me culture

HOME IMPROVEMENT MARKET OVERVIEW

DIY popularity related to labour costs

Self-employment high in emerging markets

Higher expenditure per household in developed markets



10

Market drivers: Housing market recovery in largest economies


60

70

80

90

100

110

120

2006 2007 2008 2009 2010 2011 2012 2013 2014

Index 2

010 =

100

House Price Index in the Four Largest Home Improvement Markets (2006-14)

China US Germany France



11

-30 -25 -20 -15 -10 -5 0 5 10 15 20

Spain

Mexico

US

France

Brazil

Turkey

S. Korea

Russia

China

New Housing Completions Growth: Top and Bottom Countries, 2012-2014 % CAGR

2012-2014 % CAGR

Market drivers: Homes = Home Improvement


Housing

construction

growing

fastest

Housing

construction yet

to recover to

pre-recession

levels



12

Environmental issues (VOC levels)

Energy efficiency

Battery recycling

Legislation Socio-demographics

Mobile apps

Online tutorials

Growth of Millennials

Online media

Market drivers: Legislation, new media, socio-demographics

HOME IMPROVEMENT MARKET OVERVIEW

Household size

Household types

Grey tide

„Digital natives‟

Rising female consumers


http://postmediavancouversun.files.wordpress.com/2011/04/0880.color_smart_app.jpg

http://www.google.co.uk/url?sa=i&rct=j&q=ripolin+eco&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://base.5facades.com/4DCGI/Newsedha_affich?origine=edha&support=5f&News=30412409&ei=3r92Vd6INIiU7AbI2IOADA&bvm=bv.95039771,d.ZGU&psig=AFQjCNEy0JbqpnRj1hMlQM7otubQlaLpuw&ust=1433932099753156




KEY TAKEAWAYS


14

Rising female empowerment: From Old Maids to „Singlelistas‟


>50% of households

in US, Russia, Ukraine are

headed by women

US$9k average

global female disposable

income (compared to

US$14k for men)

23.2 years average age of woman at

first childbirth (global)



15

The female dynamic: “DIY joshi” - Japanese women get into DIY


500Y (US$4)

X

6-hour workshops



16

The Millennials – Their squeezed new world


67% of millenials

agree they can find a

YouTube video on anything

they want to learn*

64% US rate of home-

ownership in 2014, lowest

rate in 20 years

28sqm living spaces,

spawning the “Tiny Housing”

movement - making a virtue

out of necessity

*Source: Google Consumer Survey, April 2015,

U.S. Online population aged 18-34



17

Mobile access: Leads the way for connected consumers


2004 2014 2004 2014

Broadband

Enabled Computer

4% 36% 37% 78%

Mobile Phone

41% 89% 76% 97%

Satellite TV

3% 19% 21% 29%

Latin America North America

Possession of Selected Durables in Households 2004 vs 2014





KEY TAKEAWAYS


19

Looking to the future: Attracting the digital natives


1.2 billion youth

population (15-24 year

olds) globally by 2030

US$13k average

gross income for 15-24 year

olds in 2030

<15% of the world‟s

total population will be 15-

24 year olds by 2030



20

Looking to the future: The rising grey tide


1.5 billion global

population of 60+ year olds

by 2030

“Grey pound” accounts for almost 50% of

consumer spending in UK”

54.3% old age

dependency ratio in

Japan in 2030



21

0

2

4

6

0

50

100

150

200

WesternEurope

Australasia North America Eastern Europe Latin America Asia Pacific Middle Eastand Africa

20

14

-19

CA

GR

%

US

$ p

er

capita (

2014

)

Home Improvement:

2014 US$ per capita expenditure 2014-19 CAGR%

Looking to the future: Growth will come from (some) emerging economies




22

Retailers

Sharing economy

Consumers

Market economy

New alternatives emerge in the power tools universe


Retail service: tutorials, forums,

personal accounts

C-to-C platforms: where owners of

unused power tools

can resell them..

Tool-sharing libraries: free or through membership

fees; trialled in NA cities:

Toronto, Vancouver, Seattle.

Inspired by sharing

economy: Leroy Merlin

(FR) in partnership with

Techshop (US) = FabLabs


http://www.google.co.uk/url?sa=i&rct=j&q=leroy+merlin+fab+lab&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNLYi66JiMYCFYoX2wodBrcAPw&url=http://digital-grenoble.com/fr/2014/06/fablab-casemate-digigre/&ei=6bh5VZLABoqv7AaG7oL4Aw&psig=AFQjCNFJrRyy0I7tOI2ZMeoM4ErYlGTs7Q&ust=1434126936606202


23

Strong growth forecast

Buoyant housing market

Strong social mobility

Young population

Strong growth in

multiple retailers

Contrasting Factors Shaping the Future of the Regions

Weak growth forecast

Struggling property market

Uncertain economic situation

Ageing population

Distribution networks saturated but good

growth in online sales • Asia Pacific

• Latin America

• Middle East and Africa

• North America

• Australasia

• Western

Europe




24

Key Takeaways

Markets

• Emerging vs Developed

Retailing Landscape

• Omni-channel

Consumers

• Attracting:

• Young

• Women

Industry

• From DIY to Home Improvement




25

THANK YOU FOR LISTENING

M. Cruz del Barrio

Head of Home and Garden Research

[email protected]

Euromonitor International

60-61 Britton Street

London EC1M 5UX

www.euromonitor.com


mailto:[email protected]


DIY Global Summit 2015 - Euromonitor Insights

Documents

Transcript of DIY Global Summit 2015 - Euromonitor Insights