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[February 2001]
Key Note publishes China & Earthenware 2001 Market Report
Key Note estimates that retail sales of china and earthenware tableware, kitchenware and ornamental ware were worth some £1.27bn in 2000, having increased by less than 1% from the previous year. It is a highly competitive market, particularly the tableware sector, and one in which manufacturers have had to cut margins and retailers have had to discount.
While the most noticeable trend of recent years has been the move away from formal to casual dining, tableware and kitchenware is much more fashion-led than previously, encouraging consumers to change more frequently. The bridal market, important to the premium end of the market, may be diminishing, but the increase in the number of households in the UK offers the potential to grow market volume.
Figures for UK manufacturing production in its entirety, relating to October 2000, paint a dire picture - although a survey from the Chartered Institute of Purchasing and Supply suggests that manufacturing output rose at its fastest rate for 9 months in December 2000. Nevertheless, the Trade Union Congress (TUC) estimates that between 10,000 and 15,000 manufacturing jobs could be lost each month without cuts in borrowing costs, and manufacturers will be hoping for a cut in interest rates - particularly following such a cut in the US in January 2001. However, with household expenditure and borrowing at record levels, the Bank of England is unlikely to want to stimulate spending in such a way.
At any rate, it would be too late for some china and earthenware manufacturers. Staffordshire Potteries is the latest casualty, being put into receivership in January 2001 and following in the wake of Hornsea Pottery and the John Tams Group. Others have fared better and have achieved improved profitability on limited sales growth, but all too frequently at the expense of jobs. The severity of the situation, however, has been acknowledged and financial assistance has been made available to the Ceramics Industry Forum, a body set up to revitalise the industry. Continuing discounting and a diminishing trade surplus will not help the UK’s china and earthenware industry to achieve much in the way of value growth in the immediate future. However, the British Retail Consortium (BRC) has described High Street business as brisk in early 2001. While the price-sensitive consumer will always exist, it is felt that the UK industry would be best advised to concentrate on the premium end of the market - utilising the flair and innovation for which it is renowned worldwide - and on embracing new technology, improving marketing and opening up new export markets.
Availability:
Key Note Ltd - Tel. +44 (0)20 8481 8757
Price £375.00
ENDS