INTERIORS BUYING CENSUS

London ExCeL17 - 19 May 2015

ESSENTIAL INSIGHT INTO THE 2015 INTERIORS CONSUMER

Contents Foreword

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6

4 - 5

7 - 10

11 - 12

13

14

Foreword

Consumer Profile

Consumer Buying Habits

Consumer Influences

A Look To The Future

Conclusion

Best wishes,

Kali NicholsonMarketing Director

2 | 3maydesignseries.com

The aim of this inaugural May Design Series Interiors BuyingCensus is to provide a greater degree of purchasing insight,uncovering UK consumer ts, priorities andconsiderations for 2015.

What are people’s priority-buys for 2015? What is thefrequency with which we update our home interiors? Whatinfluences these decisions and what inspires us to change orrefresh our interior style? Who holds the reins in the interiorsdecision making? And how do we expect our homes to differ inthe future?

This report examines some of the economic, social, cultural andpsychological factors that affect consumers in their interactionwith the interiors marketplace, whilst also providing retailers andindustry professionals with a greater sense of the nation’sinteriors desires and priorities for the year ahead.

Our report uncovers the various influences that will drive their nextpurchase, and looks further into the future, detailing the ultimatewish-list of products that could transform the home interiorsmarket in the next two decades.

I hope that you find this report insightful and look forward to welcoming you to May Design Series.

May Design Series is the UK’s definitive international interiors trade event, taking place from 17-19 May at ExCeL London.

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Purchase Priorities

s’ changing habi

Consumer Profile

Purchase Priorities

More than two thirds of consumers plan to make purchases for their homes in 2015 — and they’re making changes from the ground up, with new flooring at the top of their shopping lists. They are also in the market for new curtains, blinds, sofas and armchairs, with a budget of £101-£500 per item.

Interestingly...

• Those who have a mortgage or earn £25,001 - £35,000 are 10% more likely to purchase for their homes than the more affluent consumers who own their home outright or earn over £200,000

• Two thirds of people who live in rented accommodation plan to buy home interior products

71%

71%70%

69%

69%

68%

66% 64%

63%

Northern Ireland

Scotland

North East

Yorkshire

83%

Midlands

London

Wales

South WestSouth East

North West

Different demographic groups have distinct priorities when shopping for home interiors. Those aged 16-24, who are presumably setting up home for the first time, want to buy armchairs and sofas, curtains and flooring. They are also the most motivated to keep up with current interior design trends.

Durability matters less to this demographic because their purchases are quickly replaced as their tastes evolve; those aged 25-34 tend to buy because their tastes have changed, or because they now have the money to replace items that they no longer like.

Home Interior Priorities

Out with the Old

Consumer Profile

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Female

Aged25-34

From London

Salary£25k-£35k

Lives in terraced house with partner...

...and children

MORTGAGE

MOST PROLIFIC

BUYER

=

LIKELIHOOD OFPURCHASE BY

REGION

READY TO

SHOP

Women are more likely to update their home interiors simply because they fancy a change: close to a fifth of women have made purchases to replace items they didn’t like, com-pared to just one in 10 men.

When shopping for the home, women are more impulsive: one in seven women have bought on a whim, compared to less than one in 10 men.

A house move is a common motivation for hitting the shops: twice as many women buy products for their new house than men.

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6 | 7

Consumer Buying Habits

The hot products for 2015 – flooring, sofas, curtains - are carefully considered purchases, with the majority of people taking a week or two to make their decision. People aged 25-34 are the most likely to buy sofas in the coming year, with the majority of potential customers earning £50,001-£100,000. Those snapping up flooring and curtains are most likely to be aged 16-24, or with a typical income of £50,001-£100,000.

Flooring

21%

19%

18%

17%15%

14% 14% 13%13% 13%

THE NATION’S TOP 10 HOME PURCHASES IN 2015

Purchase Priorities

British Ceramic TileUK’s largest manufacturer of ceramic & glass tiles - www.britishceramictile.com

Mark Rigby, Business Development Manager

maydesignseries.com

Most likely to shop online

Sometimes shoppers take a more relaxed approach, only taking a day to decide whether to purchase wall art, throws, rugs and lighting.

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Flooring has become a design statement, it is the fifth wall. You can completely transform a room with a statement floor.

Floor tiles have seen significant growth, fuelled by the needs of a modern family.

Flooring is being used to cleverly createzones and rug effects, rather than soft furnishings in moremodern schemes.

The East of England occupies the top spot for high street shopping in the last 12 months.

In store experience is clearly key to swaying a purchase decision with almost half of consumers

shopping in department stores and a third choosing

independent stores. Those earning more than £100,000 are most keen to shop in-store, the over 55s favour traditional showrooms and independent stores and the 45-54 age group are regular online shoppers. Given the increasing power of the ‘grey pound’, it’s wise to court this demographic, who have more spending power than their children and grandchildren combined. Surprisingly it’s men who prefer a social shopping experience, alongside those who earn £15,001-£25,000. It seems that those in the capital prefer their independence, almost always shopping alone.

Curtains/

Blinds

Sofas/

Armch

airs

Cushions

Kitchen

Applia

nces

Wall

paper

Kitchen

ware

Decora

tive C

arpet

s/Rugs

Lighting

Beds

Online shopping is still in its infancy for kitchens, there are so many factors that can go wrong. A good website and 3D kitchen planner, also available on iPad, will give the customer options for their space.

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Purchase Timeline

Consumer Buying Habits

1-2 WEEKS

Sofas & Armchairs

Lighting

Curtains

Flooring

Bob Marsden, National Retail Sales Manager, Nolte

German bespoke kitchen manufacturer t .www.nol e-kitchens com

Where? When?

Consumer Buying Habits

How?

1. 2.

3.

4.

5.

6.

7. 8.

What?

1. Queues2. Crowded stores and aisles3. Long delivery times4. Merchandise out of stock5. Having to ask for prices

Customers prefer to shop…

•

•

•

•

Typically consumers deliberate for one to three months before choosing a new kitchen.

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Kitchen Cabinets

Top places customers shopped for home items in the last 12 months…

Top ways customers made their purchases…

Top things customers like least about shopping for home interiors…

By shopping at a retail park By checking the online price before buying in store By checking the price in store before buying online Using a Click and Collect service (buying online, collecting in store) By shopping online and picking it up in the store the same day By buying something online and specifying the delivery time Using a shopping app By employing an interior designer

1. On the high street • 51% are aged 55+ • 54% earn £50,001-£100,0002. In a retail park • 44% are aged 55+ • 46% earn £15,001-£25,0003. Checked price online before shopping in-store • 25% are aged 55+ • 45% earn £50,001-£100,0004. Checked price in-store before purchasing online • 28% are aged 35-44 • 27% earn £15,001-£25,0005. Bought something to pick up at store • 23% are aged 25-34 • 29% earn £5 0,001 - £100,000

Most people shop at the weekends, when they have more time to browseShopping after work and at the last minute appeals most to Londoners – likely as a direct result of later shop-ping hours in the West EndYounger generations are the most likely to hit the shops after work, but this becomes a less appealing option with agePeople in Wales and Scotland areleast likely to shop at the weekend

LinenWall Art

1-3 MONTHS

10 | 11

Consumer Buying Habits

Consumer Typologies

The Sensible Shopper

The Savvy Shopper

Consumer Influences

88%

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Heart Over Pocket?

Home Comforts

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The Touchy-Feely Shopper

The Lingering Shopper

A third of women say that they shop more carefully for interiors than they do for clothes. Men are more likely than women to take this approach and we become more considered with age: almost two fifths of those aged 55+ shop in this way, compared to less than a quarter of those aged 16-24.

‘Savvy shoppers’ always search for a better deal online. Those earning more than £200,000 are most inclined to shop around, which proves that, post-recession, even high earners insist on good value for money. Men and shoppers hailing from the South West are the savviest. Almost one in four people earning £25,001-£35,000 favour this shopping style. This is the income bracket of 2015’s most prolific interiors shoppers, which underlines the importance of competitive pricing.

‘Lingerers’ insist on taking their time when making a decision. Female shoppers and those north of the border in Scotland are most likely to describe themselves as ‘lingerers.’ Half of those earning more than £200,000 feel this way, suggesting that those with the most generous budgets can take the longest to make a decision.

These consumers need to see, touch and experience the product before they buy it — but once they pick it up, they’ll usually want to take it home. Those in the top income bracket are most likely to describe themselves as ‘touchy-feely’ shoppers, but more than one in three of all customers say that they dislike not being able touch an item — this can be a deal breaker for women and those aged 55+.

32%

27%

15%

33%

In 2015, shoppers for furniture and homeware fall into different typologies, each with different priorities and preferences – although some people admit to fitting into more than one category.

When it comes to making decisions for the home, women call the shots. They want their homes to feel like a comfortable retreat from their busy lives, and are focused on creating a calm and relaxing environment. Although over half of men take their partner’s opinion into account when making purchases, only a third of women do the same. Shoppers are least likely to consider their partners’ taste when they’re aged 35-44, with two fifths not consulting anyone else, while those aged 25-34, along with those who live in the South West and the Midlands are most willing to compromise.

of those aged 55+ say price is the main consideration when purchasing home items

When purchasing items for their home almost nine in 10 Britons say that in theory, price should be their main consideration. Getting the right price becomes more important with age: 77% of those aged 16-24 say that it’s a factor compared to 88% of those aged 55+, the price tag matters least to those living in London, but is more likely to be a sticking point for those from Northern Ireland and Wales.

In reality, more than a third of Britons admit that

they are driven by their emotions and rarely stick

to their pre-determined

budget.

Comfort and durability also play a part and qualityreally counts especially to those aged 55+. Ecologicalconcerns are also at play: almost a quarter ofshoppers favour sustainable products and one in 10make their decisions based on environmental impact.One in 20 customers say that provenance matters tothem and 18% prefer to buy British

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Consumer Influences

The Influence Index

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10

Glossy home interiors magazines inspire couples with a mortgage and those earning £50,000+, but the highest earners prefer to lift ideas from fashion and lifestyle magazines and newspapers as well as social media.

More than one in five 16-24 year-olds say that they are inspired by Pinterest

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A Look To The Future

Home Hopes

When asked what design innovations they think will be widely available within the next 20 years, more than three quarters of Britons agree that there are huge changes to come.

The majority of consumers anticipate (and encourage!) the development of practical home solutions that will help them to keep their homes clean and comfortable.

The top home interior products that Britons hope will be available by 2035 include:

1.

2.

3.

4.

5.

Television shows

Showrooms

Home/interior magazines

Lifestyle magazines/newspapers

Thrift stores /vintage stores/antique stores/markets

Hotel rooms – people in the East and London are the most likely to be influenced by hotel rooms

Interior design websites

Wendy Griffiths, Executive Director,CEDIA EMEA

Self-cleaning windows

Baths that keep the water hot for as long as you want to soak

3D printers enabling shoppers

furnishings directly into their homes

A button to change the colour of

Outdoor furniture which automaticallycovers itself in poor weather

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What sways us to purchase?

interior walls

to purchase online and print

Constant

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Seeing products in-store

The homes of friends and family

Visiting open or show homes

Almost half of Britons agree that it’s important to follow current interior design trends, although men admit that they often do so just to please their partner. This is less of a priority for people in the South West. The younger generation, however, are the most trend-led, with almost a quarter saying that they feel proud to be at the cutting edge.

The future is not about new gadgetsbut the overhaul of home automationsystems with greater energyefficiency benefits.

Current devices and services areadopted into the homeowner’s livesfor three main reasons: efficiency, productivity and enjoyment.

But people are looking for home technology systems to enhance their lifestyle without compromising ontheir interior. Wireless technologyoffers this.

Cedia - internationaltrade associationof companies thatspecialise in designingand installing electronicsysterms for the homewww.cedia.org

Clay Rigler, Director,Clifton LightingUK distributors of high end lightingwww.cliftonlighting.co.uk

Timeless lighting ensures that it doesn’t need change when a person’s style and tastes do.2015 will see the risein popularity to of LED lighting as well as a shift to classicdesigns as people are moving less and want to fit qualityand timeless products

Lighting is anaesthetic decisionthat links allfurniture and decor.The design has tobe one that all thehousehold agree on.

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Conclusion

The majority of Britons are planning to make purchases for their homes in 2015.

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With nearly seven in 10 consumers planning to make a purchase in the coming year, there is every reason for positivity amongst manufacturers and retailers alike.

Findings demonstrate that the High Street is not necessarily doomed to decline. In addition to the valuable grey pound, those earning upwards of £50,000 a year prefer to visit shops than purchase online. Those earning the highest annual salaries of over £200,000 prefer to touch and feel a product prior to purchasing - demonstrating the value of placing mid-to-high value items in showrooms or on exhibition floors.

That said, it is impossible to ignore the popularity of online retailing. Retailers would be wise to echo their in-store experience through their online channels, and consider how they can encourage online shoppers to visit their store where they are more likely to part with their money.

How often consumers make purchases will vary by age, with the younger generation making faster buying decisions. Lead time will vary according to what the consumer is buying - the nation’s most sought after purchase, flooring, will see customers deliberate for one to two weeks, accessories and artwork are bought on impulse, and it takes up to three months for consumers to choose a new kitchen. The Census also reveals a high demand for international products, with only 18% of consumers opting to purchase British furniture.

The results of the 2015 Interiors Buying Census allows UBM to respond to market needs in

The content of this report may not be used, reproduced or repurposed by third parties without prior consent of UBM Live Built Environment.

order to create an interiors trade event that is truly curated for business. We look forward to welcoming you to ExCeL from 17-19 May.