Online Trading Predicted To Boost Flooring Sales
THE flooring sector is expected to benefit from the sharp growth in e-commerce and online services over the next five years, says a new market survey.
The carpets and floorcoverings update from business intelligence specialist Key Note, points to a recent prediction that total online sales in the UK will rise by 47.6% between 2013 and 2017 from £44.06bn to £65.05bn.
This will see e-commerce accounting for around 16% of total retail sales by 2017.
The data compiled by eMarketer anticipates that m-commerce (i.e. online shopping via mobile devices) will soar over the next few years from 15% of total e-commerce sales in the UK, worth around £6.61bn, currently
The Key Note survey says that over half (51%) of UK adults are believed to own a smartphone; along with 24% who own a tablet computer.
A number of flooring businesses, particularly those in retail, are reported to be investing significant amounts of money in developing their online presence and services.
The increased popularity of purchasing online has also led to the expansion of a number of online-only carpet and flooring retailers.
The next few years are likely to see consumers’ move onto digital selling platforms accelerate, driving online sales further.
As such, investment in online platforms and services by carpet and flooring retailers is likely to continue to expand, with mobile channels and social media expected to represent major growth areas.
Sustainable options: Rising concerns about the impact of manufacturing processes on the environment is forecast to see sales of sustainable flooring options continue to grow, according to Key Note.
Its report predicts that bamboo, one of the fastest-growing plants in the world, will continue to gain in importance as a sustainable flooring solution.
It highlights the Ethiopia-based manufacturer, Africa Bamboo PLC, which plans to invest €10m (£8.2m) over the next five years to supply 500,000sq m of competitively priced bamboo flooring products to Europe and the US markets by 2016.
It also forecasts the influx over the next few years of other types of renewable and recycled materials, including rubber, recycled glass, cork, linoleum, concrete, wool carpets, polyester (PET) berber, leather and reclaimed hardwood.
Forecasts: The UK carpets and floorcoverings market is expected to strengthen further over the next five years, with Key Note estimating growth of 8.7% between 2014 and 2018, with market value rising from £6.35bn to £6.9bn.
Annual growth is expected to accelerate in line with economic recovery, while improving business confidence boosts consumer spending.
Growth in the property market with increased home-buying is likely to drive demand for home interior products, such as carpets and floorcoverings.
Key Note expects growth in all sectors of the carpets and floorcoverings market over the next five years, with sales of wood and laminate flooring forecast to enjoy the most significant growth, up 14.1% between 2014 and 2018.
Floor tiles are predicted to grow 12.6% during the same period, with sales up from £555m in 2014 to £625m in 2018.
Elsewhere, vinyl flooring is estimated to increase by 10.3%. Low maintenance, high durability and cheaper price are plus points for vinyl, according to Key Note. Carpets, meanwhile, are forecast to grow 5.5% between 2014 and 2018.
l Key Note’s 2014 market report, Carpets & Floorcoverings, is available to purchase, priced £575. n T: 0845 504 0452
This article has been reproduced from the Contract Flooring Journal website. You can find them at www.contractflooringjournal.co.uk.