home textiles: global drivers of demand and future outlook · 2010-2015 % growth +us$ 5,491 +us$...
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HOME TEXTILES: GLOBAL DRIVERS OF DEMAND AND FUTURE OUTLOOKJORGE MARTIN – EUROMONITOR INTERNATIONAL
NOVEMBER 2016
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GLOBAL DRIVERS OF DEMAND
IMPACT ON HOME TEXTILES
INDIA
FUTURE OUTLOOK
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5GLOBAL DRIVERS OF DEMAND
Three key growth drivers
Income levels
Housing market
Retailing landscape
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Growing wealth boosts discretionary spending GLOBAL DRIVERS OF DEMAND
0 50 100
Ukraine
Mexico
Hong Kong,China
Turkey
Romania
Brazil
Thailand
India
Indonesia
China
Top 10 Markets Home Textiles Retail Value
Growth 2010-2015
% Growth
+US$ 5,491
+US$ 2,967
+US$ 5,491
+US$ 909
+US$ 6,489
+US$ 2,894
+US$ 8,221
+US$ 27,486
+US$ 5,146
+US$ 1,809
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Global urbanisationGLOBAL DRIVERS OF DEMAND
177…Million new households created over the review period between 2010 and 2015.
…Of these nearly 90% were Urban
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2000 2010 2020 2030
Urban vs. Rural Households 2000-2030
Urban Households Rural Households-20 0 20 40 60 80
Hong Kong, China
India
Thailand
Ukraine
China
Brazil
Turkey
Housing Completions Growth2010-2015
Mexico Romania
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Low wage
growth
Rising property
prices
Renting
“Generation rent” GLOBAL DRIVERS OF DEMAND
0 20 40 60
Sweden
Australia
United Kingdom
Switzerland
Czech Republic
Belgium
USA
Netherlands
South Korea
Finland
New Zealand
France
Hong Kong, China
Austria
China
United Arab Emirates
Denmark
Egypt
Germany
Saudi Arabia
Top 20 markets with highest proportion of renting
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Retail consolidation GLOBAL DRIVERS OF DEMAND
11% VS. 7%
20% VS. 4%
228% VS. 164%0
20
40
60
80
100
120
140
160
0
5
10
15
20
25
30
35
40
45
50
Home andGarden
SpecialistRetailers
GroceryRetailers
InternetRetailing
Key Distribution Channels Globally 2015
Period Growth Channel
Fast-fashion’s love affair with home textiles GLOBAL DRIVERS OF DEMAND
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Cheaper, trendier and widely available GLOBAL DRIVERS OF DEMAND
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015
Home Textiles, Ikea and Zara Home Growth 2010-2015
Home Textiles Ikea Zara Home
Over 500outlets in
53 different
markets
Over 368stores in
23different
markets
GLOBAL DRIVERS OF DEMAND
IMPACT ON HOME TEXTILES
INDIA
FUTURE OUTLOOK
Key facts and figures IMPACT ON HOME TEXTILES
US$101bnGlobal Retail Value Sales
in 2015
3%Global Retail Value
Growth in 2015
ChinaContributed with 27% of
global value sales
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Bed textiles remain the heavy weight IMPACT ON HOME TEXTILES
Home Textiles by Type in 2015
Bath Textiles Bed Textiles Kitchen and Dining Textiles Living Room Textiles Rugs
11%US$11 Bn
10%US$10
Bn
13%US$13
Bn
20%US$20
Bn
46%US$47
Bn
GLOBAL DRIVERS OF DEMAND
IMPACT ON HOME TEXTILES
INDIA
FUTURE OUTLOOK
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India illustrates huge potential centred on mega-cities INDIA
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The path to growth in India: From unbranded to branded INDIA
Opportunities
• Growing purchasing power
• Greater demand
• Transition to smaller households
• Modern retail expansion
• E-commerce
Challenges
• Poor infrastructure for retail expansion
• Income disparity
• Legislation
• Informal retailing
• Unbranded
Informal Retail
Formal Retail
US$2 BnHome Textiles Retail Value Sales 2015
7% Home Textiles Retail Value Growth in 2015
8%Home Textiles Retail Value Growth to 2020
INDIA
GLOBAL DRIVERS OF DEMAND
IMPACT ON HOME TEXTILES
INDIA
FUTURE OUTLOOK
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Emerging markets will continue driving growth FUTURE OUTLOOK
-4
-2
0
2
4
6
8
10
12
14
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00
% G
row
th o
f N
o. o
f H
ou
se
ho
lds
Disposable income growth
Top 10 Fastest Growing Home Textiles Markets to 2020
China Romania Indonesia Malaysia
United Arab Emirates Spain Thailand Argentina
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Contrasting factors shaping the future of the regionsKEY TAKEAWAYS
Strong growth forecast
Buoyant housing market
Strong social mobility
Young population
Home textiles =
Staple products
Weak growth forecast
Struggling property market
Uncertain economic situation
Ageing population
Home Textiles = Discretionary
products
• Asia Pacific
• Middle East
• Africa
• North America
• Australasia
• Western and Eastern Europe
THANK YOU FOR LISTENINGJorge Martin | Project Manager - Research
Euromonitor International