Kitchen furniture market in Germany...and more

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28 WF - March 2015 www.worldfurnitureonline.com FOCUS MARKETS KITCHEN & BATHROOM itchen furniture consumption in Germany is recording a small growth of about 1-2 percentage points. Trend is different among compa- nies, with some players performing +5% growth or more (Ballerina, Brigitte, Sachsenküchen, others) and some big and mid-sized players registering a loss. Low end of the market is pretty flat, mid- low is suffering, while upper end is per- forming well. Building permits in Germany witness a rise of 3% in the construction of detached and semi-detached houses. This can be a driver for kitchen furniture consumption growth. Average price of kitchens in Germany is around Eur 6300 (+2% on the previous year). Price is higher (Eur 7000-10000) for kitchens offered by kitchen specialists. For exam- ple Küchen Treff sales are mostly in the range of Eur 5000-11000, with frequent promotions (when purchasing, you receive a discounted high end appliance or a worktop). Kitchens bought in furni- ture chains are usually priced at Eur 2300. Price is Eur 6700 for kitchens sold in traditional furniture stores. Most of German mid-sized kitchen furniture manufacturers offer a price range including seven different levels. WHERE TO EXPORT? German export of kitchen furniture is growing towards France, Belgium, the K Netherlands and China. Export growth in 2014 was only +1%, because some traditional markets for German export such as Austria, Italy, Spain, East Europe and Russia are not performing well. Brigitte is well established in France in the mid end of the market. Nobilia regis- tered a record Eur 180 million in France last year, and it became the third brand on the French market after Schmidt- SALM and Mobalpa-Fournier (Fournier is now negotiating with Nobia group to by Aurelio Volpe CSIL International Market Research KITCHEN FURNITURE MARKET IN GERMANY... AND MORE buy its Hygena stores in France). Nobia signed on October 30th 2014 an agree- ment for the sale of Hygena Cuisines SAS to the French kitchen company Fournier Group. The Hygena brand is a well-known kitchen chain in France that offers complete flat-pack kitchen solu- tions at attractive prices. Installation services are sold as part of the total offering. Hygena kitchens were previ- ously manufactured in Germany but Ballerina

Transcript of Kitchen furniture market in Germany...and more

Page 1: Kitchen furniture market in Germany...and more

28 WF - March 2015 www.worldfurnitureonline.com

FOCUSMARKETS

KITCHEN & BATHROOM

itchen furniture consumption in

Germany is recording a small

growth of about 1-2 percentage

points. Trend is different among compa-

nies, with some players performing +5%

growth or more (Ballerina, Brigitte,

Sachsenküchen, others) and some big

and mid-sized players registering a loss.

Low end of the market is pretty flat, mid-

low is suffering, while upper end is per-

forming well.

Building permits in Germany witness a

rise of 3% in the construction of

detached and semi-detached houses.

This can be a driver for kitchen furniture

consumption growth. Average price of

kitchens in Germany is around Eur

6300 (+2% on the previous year). Price

is higher (Eur 7000-10000) for kitchens

offered by kitchen specialists. For exam-

ple Küchen Treff sales are mostly in the

range of Eur 5000-11000, with frequent

promotions (when purchasing, you

receive a discounted high end appliance

or a worktop). Kitchens bought in furni-

ture chains are usually priced at Eur

2300. Price is Eur 6700 for kitchens

sold in traditional furniture stores. Most

of German mid-sized kitchen furniture

manufacturers offer a price range

including seven different levels.

WHERE TO EXPORT?

German export of kitchen furniture is

growing towards France, Belgium, the

K Netherlands and China. Export growth

in 2014 was only +1%, because some

traditional markets for German export

such as Austria, Italy, Spain, East

Europe and Russia are not performing

well.

Brigitte is well established in France in

the mid end of the market. Nobilia regis-

tered a record Eur 180 million in France

last year, and it became the third brand

on the French market after Schmidt-

SALM and Mobalpa-Fournier (Fournier

is now negotiating with Nobia group to

by Aurelio Volpe

CSIL International Market Research

KITCHEN FURNITURE MARKET

IN GERMANY... AND MORE

buy its Hygena stores in France). Nobia

signed on October 30th 2014 an agree-

ment for the sale of Hygena Cuisines

SAS to the French kitchen company

Fournier Group. The Hygena brand is a

well-known kitchen chain in France that

offers complete flat-pack kitchen solu-

tions at attractive prices. Installation

services are sold as part of the total

offering. Hygena kitchens were previ-

ously manufactured in Germany but

Ballerina

Page 2: Kitchen furniture market in Germany...and more

since 2013 they have been produced in

the UK. Companies well established in

the Chinese market include Nobilia in

the retail market and Allmilmö in the con-

tract market.

KoelnMesse is partnered with China

National Hardware Association in organ-

izing CIKB – China International Kitchen

and Bathroom Expo. The fair’s third edi-

tion will take place from 21 to 23

October 2015 at the Shanghai World

Expo Center. An agreement has been

signed among Warendorfer Küchen

(CoBe Capital group) and World View

Kitchen (Xiamen), that with its 400 out-

lets is among the leading players in the

Chinese kitchen furniture market.

Signals of growth are registered also in

Switzerland, United Kingdom (from local

manufacturers, while imports are suffer-

ing), and Turkey. Market is decreasing in

Italy, France and, at least in the first

semester, in Spain. The Dutch market is

stable (even growing during the last

months of year, according to some

sources), after years of strong

decrease.

Concentration is growing in most of the

markets: Mandemaakers and Ikea alto-

gether are rising their market share in

Netherlands (Mandeemakers sells a lot

of German manufactured kitchens), as

well as Howdens Joinery in UK (where

Italians and Germans are lowering their

shares), Scavolini, Lube and Veneta

Cucine in Italy.

MORE BRANDS FOR KITCHENS

German kitchen furniture market has

always been ruled by purchasing

groups, and nowadays they are trying to

diversify their proposal through new

brands: Reddy for MHK, “Eligo” for

Küchen Treff, Liva for

Garant’s Küchen

Areal. Also kitchen fur-

niture manufacturers

are increasingly fight-

ing in the market with

more brands: Ewe

(Austrian branch of the

Nobia group) intro-

duced the Intuo brand few years ago for

the mid upper, design oriented market.

In Italy, Lube launched the Creo brand

last year for the lower end of the market.

Big players (Nobilia, but also Alno,

Nolte, Schüller…) frequently allow to do

more business, but it seems (source:

Markt Intern survey, January 2015) that

mid sized players are “best friends of

kitchen specialists”, according to 11 cri-

teria of trade satisfaction: Ballerina,

Rempp, Zeyko, Bauformat Rank are top

positioned.

WORKTOPS

Most of worktops sold in the German

market are laminate, especially when

delivered directly by the kitchen furniture

manufacturer. Solid surface worktops

hardly increase in the German market,

while engineered stone is growing, at

least for kitchens priced over Eur 8000

up to Eur 10000. New ceramic work-

tops are made from Juma and Lechner

and address a luxury market (in a Eur

20000 kitchen, ceramic worktops

weight around 15% of total price).

MORE COLOURS IN THE KITCHEN

Although with different hues (white grey,

ice white….), some 50% of German

kitchens sold are “white”. Neverthless

German manufacturers are introducing

new palettes of colours. In sinks, there

is a trend for ceramics as well as steel

and solid surfaces, just like for work-

tops, with steel and solid surface sinks

still enjoying great popularity.

Sinks are frequently coloured today.

“Subway” by Villeroy & Boch is available

in 12 colours, and the flat variant for

flush-mounted installation is available in

ten colours. Alongside with classic

wooden tones and white hues, bright

plain colours are on offer again. Blue

and its hues, emerging from a decade-

long ban, is once again available, as it is

warm red. For kitchen fronts, grey is

popular, with a spectrum ranging from

“concrete” to dark anthracite to “greige”

- a blend of beige and grey. Black will be

a new trend. Wood is still on demand but

almost only veneered (exceptions:

Oster, Team 7, Kornmüller).

Trendsetter colours include Magnolia

(Sachsenküchen), Ivory, Satin Grey

(Nobilia). New woods: Eucalyptus

(Störmer Küchen) but oak is still number

one.

FOCUS

www.worldfurnitureonline.com 29March 2015 - WF

Zeyko

Rempp Küchen