ARCTIC DIMENSIONDesign – LifestyleCross-sector Business Opportunities Business Opportunities Quick Check UK
Consists of: England Scotland Wales Northern Ireland Capital: London Population:60 million Government:constitutional monarchy Legal system: common law UNITED KINGDOM (UK)
Population Age structure: 14 years: 17.7% (male 5,490,592 / female 5,229,691) 15-64 years: 66.5% (male 20,329,272 / female 19,855,862) 65 years and over: 15.8% (male 4,063,357 / female 5,472,683) Population:60 million
Households • 24.4 million households in UK in 2002 -> 30 % (6.5 million) one-person households -> more and more people are living alone • average household income in UK £29,374
GDP Growth: Per capita: $29,600 (2004 est.)
Major cities & most populated areas London, West Midlands, Manchester, West Yorkshire, Tyneside • Higher income concentrated around London and near by areas in South West where 10% of households have income over £100,000 • Lowest income in UK in Middlesbrough, Leicester, Glasgow, Liverpool
Educational level - Occupation Managers and Senior Officials 14.7% Professional Occupations 11.1% Associate Professionals and Technical 13.8% Administrative and secretarial 13.3% Skilled trade Occupants 11.8% Sales and customer service 7.7 % Others 12.6%
Everyday lifestyle • Married couples, and cohabiting couples WITHOUT children have the most buying power in UK • Wealthy people work longer hours, over 49 hrs/pw (16% of population), 41% of population works between 38-48 hrs/pw • Wealthy people live in converted flats (not in purpose build housing) • Women are more likely than men to work part time, particularly if they have dependent children. Nearly 40 per cent of women with dependent children work part time compared with 23 per cent of those without. • Both men and women working full time spent just over six and a half hours a day with their children at the weekend. Women spent around two hours on housework while with their children, compared with 1 hour and 20 minutes spent by men. In contrast, men spent around 1 hour and 20 minutes watching TV in the company of their children, compared with around 50 minutes by women.
Everyday lifestyle – Leisure & Hobbies & Fitness Time spent on selected free time activities of full-time workers (2000/01):
Everyday lifestyle – Leisure & Hobbies & Fitness • Walking/hiking & swimming were the two sporting activities with the highest participation rates in 2000/01 • The most popular holiday destinations in 2001 continued to be Spain and France • Middle age couples tend to do more cultural activities in UK, domestic travelling, fairs, exhibitions
Overview of UK retailing market • UK’s top service industry employing just over 3 million people (1/10 of the UK workforce) • £250 billion in sales in 2003 (third of total consumer spending) • Total number of outlets in 2002 was 310,991 (317,812 five years earlier); the number has been falling and shop numbers are lower relative to population than in the immediate EU neighbours (France had 5.4 outlets per 1000 population, Germany 5.7, and Spain 15.0 but the UK 4.5 in 1999) • A large proportion of UK retail trade (45%) is conducted in non-specialised stores (that is superstores, department stores, variety stores etc), and in this category the top five companies accounted for over 50% of turnover • A particular characteristic of UK retailing is the significance of ‘variety stores’. Almost 20% of non-food retail trade is carried out in these stores.
Overview of UK retailing market continues • Some of the UK’s world-class companies have seen considerable success in overseas markets • The retail sector is a major user of new business to business, and business to consumer technologies and a pioneer of e-commerce • According to several sources (UK National Statistics, CBI) the UK retail sales are slowing down, although in certain sectors there is restrained growth. Despite occasional peaks (May 2005 sales highest since November 2004), the annual growth in sales volumes is the lowest in six years, adding to fears of a consumer slowdown. The highest growth has been seen in the clothing market and in food sales.
Characteristics of the UK retail market • UK retail market is characterized by consolidation of big players. Retail chains are increasing their power and many of them are expanding their supply to new areas. Life-style concepts are mainly seen in department stores (as shop in shop) and in small single shops. However, traditional chains have also started to create new kind of life-style departments together with new partners (e.g.MFI/Conran). • Marks & Spencer opened a new life-style –concept shop outside London for some time ago with their own brands.
Trends • British media is paying very much attention to development of homes and investments in estates and holiday homes abroad. There are daily programs around that theme. DIY is popular. • Retail business reacts swiftly to these trends by offering complete solutions for home owners to decorate their houses and gardens. • Cooking, healthy food and beautiful environments theme has become increasingly popular in the UK. Number of celebrity chefs, for example Jamie Oliver in cooperation with Sainsbury chain is one of the leading characters
There are many retail shops creating life-style concepts around gardening and country life in the UK. • All in all concepts around outdoor-living are increasing rapidly and retail chains are actively seeking for new integrated products that could be sold for individuals interested in different life-styles or hobbies. • Healthcare and wellbeing are areas, where new concepts are booming such as bathroom concepts and wellbeing centers with additional wellbeing products and textiles.
Organic food and healthy living is one of the quickest increasing trend in the UK. Fresh food and handmade image important • People are willing to pay higher prices for food and care products which they consider more healthy for themselves (M&S Food only stores) • Environmental issues are not yet too important for British consumers, people are not yet ready to spend extra money for environmental friendly products • More money spend on technology and home entertainment (i.e. ipods, home theatre, personal gadgets)
Label consciousness and money spend on designer goods and clothing (discount designer shops popular) • Conscious decision to belong to a group that describes the lifestyle (country, chav/football, bling, posh) (pink/white/blue collar). The same applies to home decoration, choice of car etc • Location of home important as it is reflecting social status
TV is very influential and brainwashing the nation: - reality tvs: Big Brother, “I’m a celeb, get me out of here”, wife swap - programs on personal makeovers (whole lifestyle including body&appearance and house), dieting&healthy living - design and property programs - money matters; personal debt problem • Magazine industry booming, several specialist magazines on lifestyle; biking, fashion, food, health, property, decorating. Men’s own lifestyle magazine range growing; Q, FMH, Men’s Health, specialist interest groups i.e. fishing, motors, building
Trade shows in UK Housewares 2006 NEC Birmingham 3 - 6 September 2006 Spring Fair Birmingham 2006 NEC Birmingham 5 - 9 February 2006 Autumn Fair Birmingham NEC Birmingham 3 - 6 September 2006 Design Interiors 2006 NEC Birmingham 22 - 25 January 2006 Country Homes & Gardens Show Sandown Exhibition Cent. Esher 18 - 19 February 2006 VITALITY 2006 - Healthy Living Show Olympia, London 30 March 2006 - 2 April 2006 BBC Good Homes Live It! NEC Birmingham 18 - 21 May 2006 Lot of more sports and specialist shows; Link for more: http://www.exhibitions.co.uk