The rate of growth in home improvement retail current value sales accelerated to a four-year high during 2020. With consumers spending much more time at home during the year, they were better positioned to do maintenance work and take on DIY projects.
Even before the onset of the pandemic, consumers had been very price sensitive with regard to home improvement, and COVID-19 exacerbated this tendency during 2020, putting downward pressure on pricing. Leader Kansai Plascon (Pty) Ltd and Prominent Paints – which ranked first and fourth in decorative paint, respectively, during 2020 – are particularly active in terms of promotional activities, special offers and discounts.
E-commerce grew in importance as a distribution channel for home improvement over the course of the forecast period, with websites like Takealot.com growing in popularity.
The rate of growth of home improvement retail current value sales will remain robust during both 2021 and the forecast period as a whole. In spite of an anticipated post-pandemic economic rebound, the economic environment is likely to remain difficult in South Africa, which will encourage more local consumers to do home maintenance work themselves, rather than hiring professionals.
Most local consumers will remain very price sensitive, with affordability remaining the most important factor when it comes to choosing home improvement products, particularly for those on lower incomes. As a result, promotional offerings and discounting will remain commonplace, as manufacturers fight for retail value share.
E-commerce will continue to grow in prominence as a distribution channel for home improvement during the forecast period. High-speed 5G internet access will become more accessible to local consumers, making e-commerce more convenient than ever, helping them to become ever-more comfortable with online shopping.
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Understand the latest market trends and future growth opportunities for the Home Improvement industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Home Improvement industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Home Improvement research and analysis database.
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