Making the timber industry more customer-focused and responsive to changing needs is one of our biggest challenges. The timber industry remains very conservative in comparison with many other consumer product markets and it’s essential that manufacturers and merchants become more dynamic and attuned to market trends and customer requirements.
Throughout the recession, customers who continued to purchase home improvement products demanded quality and it was noticeable that demand declined for lower-priced lines, rather than the premium product segment.
We believe that the upper end of the market will continue to perform strongly, with price-conscious customers adopting a more cautious approach to committing to significant home improvement projects. This shift in demand means that quality becomes even more important, as customers purchasing premium timber products have higher expectations of design, finish and durability, as well as service and after-sales support.
DFY products
Customers within this market segment who have higher levels of disposable income have been relatively unaffected by the recession, which means demand for “done for you” (DFY) timber products is continuing to grow. This customer group remains relatively cash rich, time poor and will either turn to a trade professional to carry out home improvements or will do the work themselves, using products that have been pre-prepared to make installation quicker and easier. In addition, the reduction in housebuilding means that trade professionals are more available and affordable compared with a few years ago, which is helping to sustain the DFY market.
As a result, customers are demanding pre-finished or pre-cut timber products that will save time on site, which they are often prepared to pay a premium for.
It’s also important that the timber industry pays more attention to wider interiors and design trends. There has been a clear move away from intricate, ornamental styles towards simpler, classic designs that will not fall out of fashion so quickly over time. The design of timber products must reflect this and ranges need to include simpler, pared back styles that will have wide appeal long term.
Perhaps the biggest challenge for the timber industry as a whole is to position the material as complementary to modern homes, where alternative materials such as metal and glass are now commonplace within shelves, storage units, tables, chairs and other furniture.
Customers are including a whole range of different materials, finishes and textures within their homes, and timber manufacturers and merchants need to innovate to either integrate these materials within their ranges or design timber products to complement them.
In terms of timber types, the overwhelming preference amongst today’s customers is for oak and pine. Pine remains popular as an accessible and affordable timber option, but customers are also asking for greater timber choice to co-ordinate with flooring and furniture, which is creating opportunities for merchants to trade customers up to higher-value timbers, such as white oak.
Sustainability debate
Finally, there continues to be much debate around sustainability and customer expectations. B&Q is setting the pace by moving to 100% certified timber and this will undoubtedly change the market dynamic, as it will look to maximise the benefit this brings, which will in turn place pressure on other retailers and suppliers of timber products.
In the longer term, the European Parliament’s banning of illegal timber from March 2013 will place the emphasis on proving that timber is legally sourced and the easiest way to do this is through certification.
The sustainability debate is driven by industry and government, and our research to date has identified no discernable change in consumers’ attitudes towards certified timber. However, the decisions of B&Q and the European Parliament will influence customers’ expectations and there is no question that certified timber will become even more important for retailers, merchants and suppliers in future.
Customers’ expectations are rising – they are demanding higher levels of quality, greater choice of innovative designs and timber types, DFY products that save installation time and products manufactured from certified timber with strong sustainability credentials. The timber industry must understand and respond to these changing needs if it is to grow and compete with other consumer product suppliers.
