GfK: optimism for decorative power tools and floorcare
Published: 26 September 2012
Bad weather over the summer drove consumers to spend more inside, helping to offset the impact of the declining housing market on the decorative and indoor power tools categories, according to market analyst GfK.
While the analyst revealed a slight decline in the larger sectors in power tools, it revealed that multi tools are proving increasingly popular, up 62% in volume year-to-date (YTD) 2012. GfK accredited the surge to the item's versatility and convenience.
Glue guns saw a surge in sales, up 12% in sales value YTD 2012 period, an increase of 13% sales volume. Spray guns were also up, 6% for sales value and 5% in volume during the same period. Paint strippers and wallpaper strippers remained flat YTD 2012, according to GfK.
GfK pointed out that the government's recent proposal for the relaxation of planning laws, meaning people may be able to build larger extensions on houses without council permission, could provide "a positive knock-on effect for the power tools market."
In terms of decorative products, GfK revealed a decrease in market volume of 25% for paint and varnish remover during the first eight months of 2012. While fillers sales were shown to be "relatively robust" during the period, the market was still -8% YTD in volume. Primer and undercoats declined by 15% in volume.
Performing better over the 12 months to August 2012 were floorcare products, with vacuum cleaner sales values increasing 4% to around £556m. GfK said: "This value uplift was driven by a rise in average prices and a greater demand for more premium, niche sectors. Whilst the value picture remains positive, volume sales have seen a slowdown over the same period, falling by -2%."
The primary source of value growth, according to the analyst, came from the handstick sector, which recorded triple digit growth over the last 12 months. Sales now total over £15m, although still only account for 3% of overall sales.
Wet and dry carpet cleaners also enjoyed a boost this year, up 25% in value year-on-year, with the category now worth almost £40m.
Uprights and cylinder appliances continue to make up the bulk of value sales, accounting for 45% and 40% respectively, driven by bagless technology. Nearly 95% of all upright vacuum cleaner sales are now bagless, due to the bagged models being "seen by many as outdated," according to GfK. A quarter of the entire vacuum cleaner market is made up of bagless cylinders.
The August figures showed a rise in value of 23% for the entire sector, according to GfK, who said "it looks set to be a positive conclusion to 2012."