Professional Documents
Culture Documents
August 2017
INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
INTRODUCTION
Scope
Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies opinions, reader
discretion is advised.
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INTRODUCTION
Key findings
Asia Pacific drives global Asia Pacifics strong fundamentals, including large population, rising middle
growth classes and rapid urbanisation, spurred housing market growth, subsequently
boosting demand for home improvement products.
DIY failed to move from Novel concepts such as makerspaces and self-interior nurtured the
niche to mainstream development of the DIY community in developed countries. However, DIY
remained a niche segment outside the mainstream, with local preferences still
weighing in favour of do-it-for-me.
Manufacturers pursue Pursuing innovation strategies was a major method used by manufacturers to
innovation strategies to overcome competition and develop brand identity.
boost margins
Retailers embrace Internet retailing sales grew in 2016, however, store-based home improvement
omnichannel strategy and gardening stores continued to dominate home improvement in Asia Pacific.
Consequently, retailers adopted an omnichannel strategy, providing showrooms
to allow consumers to touch and see products, as well as the functionality of
online shopping.
Customer centricity is the Adapting to the prevalent do-it-for-me culture will be key to fully realising market
key to success in the potential in Asia Pacific over the forecast period. Retailers should consider
future offering one-stop solutions, including installation services and in-house design
services to attract consumers to visit stores.
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
With strong GDP growth, large population size, rapid urbanisation and technological development, China is
clearly the most promising market for home improvement in Asia. The country is on the growth agenda for
many leading home improvement manufacturers. In 2016, Nippon Paint Holdings announced a JPY30
billion investment plan to increase production capacity in China. The company noted that its sales network
is expected to increase to 65,000 stores in 2018, up 50% from 2015.
For kitchen and bathroom fittings manufacturers, India and developing countries in Southeast Asia offer
equally attractive growth opportunities. By the end of 2016, Kohler Co invested USD200 million in India to
transform its Jhagadia plant into the manufacturing and distribution hub for the Asia Pacific market. As part
of its FY2017 plan, Toto Ltd will set up a second plant in Thailand, which will increase production capacity
of sanitaryware to 420,000 units per year to meet the rising demand in Southeast Asias frontier markets.
In Japan, declining sales in home improvement essentials were offset by the growth in tools. However,
Taiwan saw a major slump in home improvement sales as the deteriorating economic climate during 2015-
2016 slowed house renovation and construction activities. As GDP growth is not expected to return to the
pre-downturn level in the near future, hope for industry growth will mainly rest on the need to remodel old
housing units, particularly among single households and young families.
In other developed markets such as South Korea, Hong Kong, and Singapore, the home improvement
industry showed more encouraging results thanks to continuing demand for home paint and wall covering.
In South Korea, growing demand for home improvement is partly attributed to the emerging self-interior
trend, which took off in 2016 as the house renovation TV show Jipbang went viral online. Self-interior is an
affordable solution for newlyweds and young professionals who cannot afford to hire professional interior
designers, and yet long for a beautiful personalised living space.
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REGIONAL OVERVIEW
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REGIONAL OVERVIEW
A young population, growing connectivity and payment flexibility made Asia Pacific an internet retailing
hotbed. Between 2011 and 2016, online sales saw a fivefold increase to USD622 billion, led by developed
markets. In home improvement, the share of internet retailing hit over 10% in South Korea. Japan also saw
substantial sales of home improvement products via online channels. In China, the success of Hangzhou
Nabel Group Co Ltd, a floor covering manufacturer, during the 11.11 Global Shopping Festival in 2016 also
painted an optimistic picture of e-commerce in home improvement in Asia Pacific.
However, the fact that brick-and-mortar retailers dominated distribution in most Asian countries
underscored the importance of the in-store experience. At physical outlets and showrooms, consumers are
not only able to see, smell and touch products, but also receive expert advice from interior designers and
sales consultants. Such tangible benefits cannot be gained by visiting online shopping websites. The
relevance of physical stores also explains why manufacturers and retailers such as HomePro and
Boonthavorn Ceramics in Thailand are still expanding their physical presence despite their forays into e-
commerce.
In the near future, virtural reality that involves all five senses or smart stores featuring robots and interactive
shelves is not likely to enter the mainstream, even in developed countries. What is more likely to prevail is
omnichannel, the retailing approach that not only allows companies to stay relevant in the e-commerce
boom but also lets retailers provide a seamless experience for customers.
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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LEADING COMPANIES AND BRANDS
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
FORECAST PROJECTIONS
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FORECAST PROJECTIONS
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FORECAST PROJECTIONS
Home improvement in Asia Pacific is set to grow by 4% per annum at constant 2016 prices over 2016-
2021. India, Indonesia, and frontier markets, propelled by economic growth and robust construction activity,
are expected to be rising stars in the region with period growth exceeding 25%. At category level, home
paint is expected to see the fastest growth as consumption shifts towards premium, non-toxic paint ranges.
The ageing population in certain Asian countries is becoming problematic. In Japan, 8% of the population
was aged 80 years or over in 2015, compared with a global average of 2%. In China and India, the number
of people aged 60+ surpassed 300 million in 2015. To capitalise on this demographic shift, product
innovation and affordability will be key to winning over senior consumers. Manufacturers should also
explore potential partnerships with government bodies to tap into new sources of revenue. For example, the
Housing Development Board in Singapore offers a subsidy programme for households with elderly
members to install elderly-friendly home improvement products in their flats/apartments.
During the review period, home improvement manufacturers and retailers in some countries such as
Japan, India and Indonesia have started to turn their attention to female customers. They launched
marketing communication programmes on channels that are popular among women and offered home
improvement services exclusively for female customers. Going forward, as gender stereotypes are de-
emphasised, such activities are likely to continue as part of an integrated segmentation approach, rather
than as novelties.
The long-standing attitude towards DIY is not likely to be changed over the foreseeable future.
Makerspaces represent an interesting experiential strategy but such initiatives might not work for time-poor
consumers who long for convenience and ease. Thus, adapting to local do-it-for-me preferences will be the
deciding factor for success. Offering one-stop solutions and providing installation services for homeowners
are only considered the first step. Manufacturers and retailers should also embrace new e-commerce
models such as social commerce and omnichannel, as well as advancements in technology to build
engagement throughout the path to purchase.
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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
COUNTRY SNAPSHOTS
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COUNTRY SNAPSHOTS
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FOR FURTHER INSIGHT PLEASE CONTACT
Jane Nguyen
Senior Analyst - Home & Tech
jane.nguyen@euromonitor.com
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