DIY in Europe: Key market research findings
- Highly organized retail fuels market growth
- Increasing popularity of home improvement spurs rise in demand from DIY
- Key vendors – Adeo, Bauhaus, Home Retail Group, Kingfisher, and OBI
Technavio’s market research analysts predict the DIY market in Europe to grow at a CAGR of around 2% between 2016 and 2020. The growth of the market is driven fundamentally by the increased penetration of highly organized retail sector in the region. With the fast-paced hectic lifestyles and work schedules of consumers, the need for convenience and comfort is gaining utmost importance. As such the consumers are purchasing DIY products from large organized retail stores, which stock many brands and a variety of DIY products under one roof, thereby providing more options and convenience to consumers.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the major factors contributing to the growth of the DIY market in Europe is the thriving home improvement segment in the region. With an improved standard of living and the increased demand for a better home space, the home improvement segment has successfully positioned itself as a top priority among consumers. With rising globalization, major manufacturers are expanding their presence globally to meet the needs of the diverse population,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
DIY is considered as an affordable alternative for do-it-for-me (DIFM). Fully assembled products, like furniture, are more expensive due to the high production cost, owing to high raw material prices, assembling costs, and labor costs. As most of these products are bulky, their high shipping charges are passed on to consumers. The option of DIY eliminates these excessive costs, making it more economical. Selection of raw materials and designs can also be scrutinized by consumers themselves to ensure low costs. DIY allows the flexibility of customization in terms of raw materials and pricing of products, which is not possible with the standard ready-made products.
The key vendors in the DIY market in Europe include Adeo, Bauhaus, Home Retail Group, Kingfisher, and OBI. The DIY market in Europe is highly fragmented due to the presence of both major and private players. With the intensified competition, manufacturers are focusing on new innovations to meet the varying buying trends of consumers. The competition is expected to increase during the forecast period, with many product launches, price wars, and mergers and acquisitions. However, the DIFM culture is a threat to the major players in the market. The stiff competition among the top players continues to pose a challenge, thereby affecting the market’s profitability.
A more detailed analysis is available in the Technavio report, DIY Market in Europe 2016-2020.
We can customize reports by other regions and specific segments upon request.
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