Largely accessible, both in terms of price points and distribution, homewares is a category of necessity where developments are mainly influenced by social change. While the might of China and Chinese-style cooking will continue to direct the largest volumes of trade, innovation and added value will be driven by health and environmental concerns, as well as the modern trends towards cocooning, single-person households and males in the kitchen.
Homewares maintains positive growth trend
In 2013, homewares experienced market growth, with a year-on-year increase of 1%, outperforming total home and garden.
Environmental issues restructure the market for the long term
Increasing need for recycling will change both emerging and developing world demand for homewares. Energy efficiency and safety of usage will drive interest in new technologies such as induction, which are compatible only with certain types of homewares.
Convenience drives innovation
Multi-usage, all-purpose items are on the rise in households with chronic lack of space and time.
Asian-style cooking driving demand for stove top cookware
Stove top cookware will continue to be a particularly dynamic category within homewares, offering quick and easy food preparation. *Reference: Euromonitor, Feb. 2015
According to Korea Bank and Heungkuk Securities Research center, the domestic houseware market size in Korea was about 10.5 trillion KRW (about 139billion USD) in 2014, and it is forecasted to continuously increase and to reach about 17.9 trillion KRW (about 165billion USD) in 2023. One of researcher from Heungkuk Securities Research center said, “Considering the fact that the corporates didn’t actively enter into market until this point, the possibility of market growth in the future is very high.”
The increasing number of single-person house hold’ is considered as the main reason behind this growth of houseware market. Data from Statistics Korea(KOSTAT) shows that proportion of domestic ‘single person-household’ is been rapidly increased from 23.9% in 2010 to 26.5%(assumption) in 2014, follow this trend, the proportion will be 32.7% in 2030 and 34.3% in 2035.
By watching this trend, the formulation of following paradigm can be assumed;
‘Increase of number of ‘single person-household’ -> ‘number of total household increase’ -> growth of houseware market’
Research also shows that people’s consumption tendency has been changed to spend more money on home decoration due to the increase of income level and trends of real estate market. All those reasons support the prospect of the constant increase on houseware market.
*Reference: article on viva100.com, written in Mar. 25, 2015
DIY culture a prerequisite
In many emerging countries, DIY is not seen as positively as in the West, where it is linked to the idea of pride and achievement.
Fuelled by the internet and social media, power tool sharing is a new paradigm for the industry. While it is seen as a threat to sales of new equipment, it can spread the DIY culture among young and tech-savvy users, which could eventually make them want to own tools themselves.
Female population increasingly targeted
Women are increasingly targeted by manufacturers and retailers thanks to changing lifestyles and a reduction in income inequality. Single mothers, as well as women seeking independence, represent key growth segments.
Many developed markets will be faced with the ageing of their populations, which will create opportunities for age-related home improvement projects (easier access, safety in bathrooms, monitoring systems, etc).
*Reference: Euromonitor, Feb. 2015
A key trend in home improvement is the increasing popularity of DIY among the South Korean population, along with a greater preference for environmentally-friendly products or eco-products. Do-It-Yourself (DIY) trends are now prevalent among South Korean consumers, as they have picked up skills and knowledge by watching various online channels. Additionally, in blogs or internet café’s, for example, consumers share information on how to repair or make products themselves. Under this favourable DIY trend, retailers are selling small products for repair and maintenance purposes, such as decorative paint and power tools, more frequently, especially in internet retailing. As such, consumers can purchase any required products for their DIY more easily than before.
*Reference: Euromonitor, Oct. 2014