Tuesday, 22 July 2014

Report says KBB distributors' market will be worth more than £1bn within 4 years

Great news for the KBB distributors’ market according to a report by AMA Research. The market is expected to be worth £1.1bn by 2018 signalling a return to pre-recession levels.

The report is dedicated to the sector as it incorporates original input and represents a comprehensive, informed and unique review of this market. It contains information collated using a wide range of sources and is specific and relevant to the distributors market and not simply a broad collection of government statistics/fiscal data.

The market was estimated to be worth £840m at the end of 2013 and is set to continue improving over the next year. This sustained increase is driven by improved housing sales and the dramatic increase in housebuilding we have seen in 2014.

Sales to kitchen and bathroom specialists dominated the distributors' market, the report shows that these account for 40%, whereas builders' merchants made up 29%.

If you are looking to recruit or looking for a sales job in the KBB sector, we can help. Call us on 01480 405225 or visit our KBB sales website.

The AMA report also stated that distributors had focused on logistics to reduce transport costs and also by offering differentiated product offerings along with their own brand product ranges. This strategy helped to provide higher margins.  

One of the main factors impacting margins in the last couple of years has been the increasing raw material costs and higher transport costs. This has affected manufacturers and distributors throughout the construction and building industry.

Direct supply channels, such as the internet – worth around £378m of the bathroom and kitchen products sector in 2013, together with mail order distribution – was also continuing to influence the market and has increased the level of competition for distributors and a need to adapt their sales and marketing approach. Online retailers have become more important as consumers increasingly use the internet to source the best deals on price and delivery.

Online trading, widening product portfolios, value-added services – including kitchen design – own branding, and improved point of sale, packaging and general marketing, were identified as opportunities for growth for the distributors.

As an overview, the report contains detailed information on:
  • Supply infrastructure - market size of K&B industry, distribution phases, value by channel, distributors' value share, overview of key merchants and retailers.
  • Distributor assessment - market size and development of the distributors' channel, national and regional companies, key companies, recent trends, future prospects, customer analysis.
  • Analysis by product group - market sizes, distributor shares, key trends relating to: Kitchen Furniture, Kitchen Appliances, Bathroom Products, Shower Controls/Enclosures/Screens/Trays.
If you would like to read our feature on how KBB manufacturers and distributors can support the independent bathroom showrooms, you can do so here.

To purchase 'Kitchen and Bathroom Supply Chain – Focus on Distributors – UK 2014-2018 Analysis' market report visit www.amaresearch.co.uk or call 01242 235724.

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