Residential Flooring - US

 Published On: Apr, 2013 |    No of Pages: 128 |  Published By: Mintel Group | Format: PDF

The pace of home sales and home renovations started to quicken in 2012, giving the residential flooring market a much-needed boost. Now it’s up to flooring manufacturers and retailers to maintain the momentum with marketing programs that emphasize both the practical and emotional benefits of new flooring.

Some questions answered in this report include:

Can consumers be motivated to purchase flooring for reasons other than necessary replacement?
Can sustainability be further leveraged as a flooring sales driver?
What challenges and opportunities do Millennials hold for the residential flooring market?

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms

EXECUTIVE SUMMARY
The market
Figure 1: Total U.S. retail sales and fan chart forecast of flooring, at current prices, 2007-17
Market factors
Housing market boosts flooring sales
Figure 2: Single-family existing home sales, 2010-13
Residential remodeling building permits gain momentum
Figure 3: BuildFax Remodeling Index, 2008-13
Segments
Hard surface flooring continues to outpace wall-to-wall carpet
Figure 4: Total U.S. retail sales of flooring, by segment, at current prices, 2011 and 2012
The consumer
Carpeting most widely owned, but purchase intent higher for hard surfaces
Figure 5: Types of flooring currently owned or planned to buy in next year, December 2012
Replacement of old or worn flooring a common denominator in purchases
Figure 6: Reasons for purchasing or planning to purchase new flooring, December 2012
Practical matters edge out aesthetics in flooring selection
Figure 7: Factors important in flooring selection, December 2012
Added features have the potential to drive trade-up sales
Figure 8: Consumers would be willing to pay more for flooring features, December 2012
Flooring attitudes
Figure 9: Flooring attitudes, strongly agree, December 2012
What we think

ISSUES IN THE MARKET
Can consumers be motivated to purchase flooring for reasons other than necessary replacement?
Can sustainability be further leveraged as a flooring sales driver?
What challenges and opportunities do Millennials hold for the residential flooring market?

INSIGHTS AND OPPORTUNITIES
Star power
Functional flooring
Make eco-friendly tangible and personal

TREND APPLICATIONS
Trend: Guiding Choice
Trend: Make it Mine
Mintel Futures: Old Gold

MARKET SIZE AND FORECAST
Key points
Strengthening housing market gives residential flooring a boost
Rising prices for wood, other flooring materials may bolster value sales
Figure 10: Total U.S. retail sales and forecast of flooring, at current prices, 2007-17
Figure 11: Total U.S. retail sales and forecast of flooring, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 12: Total U.S. retail sales and fan chart forecast of flooring, at current prices, 2007-17

MARKET DRIVERS
Flooring market reflects broader economic picture
Household income stabilizes but remains weak
Figure 13: Median household income, in inflation-adjusted dollars, 2001-11
Consumer confidence rising but still fragile
Figure 14: Thomson Reuters/University of Michigan Index of Consumer Sentiment, 2007-13
Single-family home sales turn positive, giving a boost to flooring
Figure 15: Single-family existing home sales, 2010-13
Homeownership levels down, especially among young adults
Figure 16: Fourth quarter homeownership rate*, by age of head of household, 2007-12
Residential remodeling building permits gain momentum
Figure 17: BuildFax Remodeling Index, 2008-13

SEGMENT PERFORMANCE
Key points
Hard surface flooring continues to outpace wall-to-wall carpet
Purchase plans point to further gains for hard surface flooring
Within hard surface segment, engineered wood, bamboo, and laminate gain momentum
Wall-to-wall carpeting market goes ‘soft’
Figure 18: Total U.S. retail sales of flooring, by segment, at current prices, 2011 and 2012

RETAIL CHANNELS
Key points
Home centers attract more than half of flooring shoppers
Lumber Liquidators sets pace for specialty retailers

LEADING COMPANIES
Key points
Mohawk expands in hard surface segment through acquisitions
Shaw reports $4 billion annual sales, innovates in softness
Armstrong wood and resilient sales slip, underperforms market
Figure 19: Manufacturer sales* of floor covering products, 2011-12

INNOVATIONS AND INNOVATORS
GREEN/ECO-FRIENDLY
Recycling wood
Innovative eco-friendly hard surface flooring options
Bio-degradable carpeting

MAJOR MANUFACTURERS BOLSTERING RESILIENCE, LASTING TECHNOLOGY
Hard surface flooring

HEALTH AND WELLNESS
Carpet
BABY BOOMERS

MARKETING STRATEGIES
Shaw partnership with HGTV
Figure 20: HGTV by Shaw “Perfect Home Flooring” TV ad, 2012
Mohawk makes messes to promote SmartStrand
Follows up with Silk
Figure 21: Mohawk “And Drop it, Too” print ad, 2012
Pergo connects with pet owners
Figure 22: Pergo “Pergo vs. Claws” TV ad, 2013
Figure 23: Pergo “Great Dane” print ad, 2013

FLOORING OWNERSHIP AND PURCHASE INTENT
Key points
Carpeting most widely owned, but purchase intent higher for hard surfaces
Figure 24: Types of flooring currently owned or planned to buy in next year, December 2012
Older adults own a wider variety of floors
Figure 25: Types of flooring currently owned, by gender and age, December 2012
Higher-income consumers more likely to own hardwood, tile
Figure 26: Types of flooring currently owned, by household income, December 2012
Ownership by type and future purchase interest vary by region
Figure 27: Types of flooring currently owned, by region, December 2012
Bamboo, engineered wood, and carpet tiles likely to be recent purchases
Figure 28: Types of flooring bought in the last year, December 2012
Young adults more likely to plan purchase in next year
Minimal income skew in purchase interest
Figure 29: Types of flooring planned to buy in next year, by gender and age, December 2012
Likelihood of plans to purchase new flooring increases with household size
Figure 30: Types of flooring planned to buy in next year, by household size, December 2012

REASONS FOR PURCHASING FLOORING
Key points
Replacement of old or worn flooring a common denominator in purchases
Many reasons for new flooring purchases
Figure 31: Reasons for purchasing or planning to purchase new flooring, by gender and age, December 2012

FACTORS IMPORTANT IN FLOORING SELECTION
Key points
Practical matters edge out aesthetics, especially among older adults
Energy efficiency and environment unlikely to be primary motivations
Figure 32: Factors important in flooring selection, by gender and age, December 2012
Flooring priorities shift modestly with household income
Figure 33: Factors important in flooring selection, by household income, December 2012

INTEREST IN FLOORING FEATURES
Key points
Added features have the potential to drive trade-up sales
Figure 34: Interest in flooring features, December 2012
Young adults more willing to pay more for added features
Figure 35: Consumers would be willing to pay more for flooring features, by household size, December 2012
Trade-up opportunities at all price points
Figure 36: Consumers would be willing to pay more for flooring features, by household income, December 2012

FLOORING ATTITUDES
Key points
Flooring is both an investment and an element of design
Germs and allergens trapped in carpeting are a concern
Moderate interest in eco-friendly flooring
Figure 37: Flooring attitudes, December 2012
Flooring gender gap may be shrinking
Figure 38: Strong agreement with flooring attitudes, by gender and age, December 2012

IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Distinctions in race/ethnicity point to diverse flooring market
Figure 39: Types of flooring currently owned, by race/Hispanic origin, December 2012
Hispanics particularly likely to plan flooring purchases in coming year
Figure 40: Types of flooring planned to buy in next year, by race/Hispanic origin, December 2012
Hispanics an active, young market for flooring
Figure 41: Reasons for purchasing or planning to purchase new flooring, by race/Hispanic origin, December 2012
For black consumers, flooring is an investment and an element of style
Hispanic and black consumers concerned about germs and allergens
Figure 42: Strong agreement with flooring attitudes, by race/Hispanic origin, December 2012

CLUSTER ANALYSIS
Figure 43: Target clusters, December 2012
Practicals
Demographics
Characteristics
Opportunity
Disengageds
Demographics
Characteristics
Opportunity
Flooring Pros
Demographics
Characteristics
Opportunity
Stylists
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 44: Types of flooring currently owned, by target clusters, December 2012
Figure 45: Types of flooring planned to buy in next year, by target clusters, December 2012
Figure 46: Reasons for purchasing or planning to purchase new flooring, by target clusters, December 2012
Figure 47: Factors important in flooring selection, by target clusters, December 2012
Figure 48: Consumers would be willing to pay more for flooring features, by target clusters, December 2012
Figure 49: Strong agreement with flooring attitudes, by target clusters, December 2012
Cluster demographic tables
Figure 50: Target clusters, by demographic, December 2012
Cluster methodology

CUSTOM CONSUMER GROUPS
BY FLOORING TYPE RECENTLY PURCHASED OR PLANNED TO PURCHASE
Carpeting replacers likely to be motivated by claims of duration
Wood flooring purchases more likely to be motivated by style
Figure 51: Reasons for purchasing or planning to purchase new flooring, by next year and last year flooring purchasers, December 2012
Protection against stains and soiling a key added-value benefit for carpet
Laminate and vinyl may be well-suited to regular color or style changes
Figure 52: Consumers would be willing to pay more for flooring features, by next year and last year flooring purchasers, December 2012

RENTERS VERSUS OWNERS
A potential renters’ market for nonpermanent flooring
Figure 53: Reasons for purchasing or planning to purchase new flooring, by primary residence, December 2012
Durability and ease of care especially important to home owners
Figure 54: Factors important in flooring selection, by primary residence, December 2012

APPENDIX – OTHER USEFUL CONSUMER TABLES
Figure 55: Types of flooring currently owned, by household size, December 2012
Figure 56: Types of flooring planned to buy in next year, by household income, December 2012
Figure 57: Types of flooring planned to buy in next year, by region, December 2012
Figure 58: Reasons for purchasing or planning to purchase new flooring, by household income, December 2012
Figure 59: Reasons for purchasing or planning to purchase new flooring, by household size, December 2012
Figure 60: Factors important in flooring selection, by household income, December 2012
Figure 61: Factors important in flooring selection, by household size, December 2012
Figure 62: Consumers would be willing to pay more for flooring features, by household size, December 2012
Figure 63: Strong agreement with flooring attitudes, by household income, December 2012
Figure 64: Strong agreement with flooring attitudes, by household size, December 2012

APPENDIX – TRADE ASSOCIATIONS

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