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It's an interesting fact that exports from China in February saw their biggest drop in a decade and trade between China and the EU, the country's largest partner, was 19.3% down in the same month compared to the previous year. Included in this are products such as sanitaryware, taps, lighting and kitchen components bringing some crumbs of comfort to beleagured British companies who strive to produce high quality products and are committed to their workforce.
Anecdotal evidence suggests that consumers are showing stronger allegiance to British products during the recession. They understand that UK manufacturing is still some of the best in the world, providing high quality products backed up by strong service and rapid supply. With less shipping from China longer waiting times can, in some situations, help home based manufacturers who now offer excellent delivery dates.
Added to all of this the bathroom and kitchen industries are inextricably linked to the housing market and, in a country where property ownership is close to a national religion, it seems to offer a safer home for savings than the bank.
So, have we reached the bottom of the property crisis? Well, a recent report from Rightmove provided positive evidence of a Spring bounce which they suggest may well be sustained.
They comment "April saw the third consecutive monthly increase which may be more than a seasonal bounce and in April new sellers raised the average asking prices by 1.8% (£3,996) - the largest rise for 14 months."
Their report shows that 22,000 new sellers per week were tempted into the market - up 13% on the previous month - A signal of growing confidence that it's a good time to trade up and there are deals to be done.
With estate agents reporting an increase in sales levels beyond the 19% uplift in mortgage approvals reported by the Bank of England for February, all the indications are that the trend of improving transaction volumes could continue. Those parts of the country that have adjusted to the credit famine have found that prices have stabilised, giving substantial leeway for sales activity to increase if credit restrictions were to be relaxed.
As if to back up Rightmove's comments, Mereway Kitchens and Bathrooms are reporting high levels of sales. Ginnette Crowther, Marketing Director at Mereway comments: " In the words of that legendary 80's singer Billy Ocean "when the going gets tough, the tough get going!" and that's certainly the approach we're taking at Mereway Kitchens. The belief is that smart companies treat a downturn as an opportunity for innovation, and so having just spent over half a million pounds on new production equipment, painting and polishing facilities, and launching our largest range of doors to date in both our Wentworth and Cucina Colore ranges, we are already seeing a huge demand for samples and displays as well as some really good orders coming through. Now, more than ever, is it key that we stay focused and committed to giving our customers the very best products possible to help us both to trade through."
Ben Burbidge, Managing Director of kitchens manufacturer Burbidge, talks about the benefits of buying British.
"With the economic climate affecting virtually all businesses throughout the UK, it is no surprise that the current downturn has had a significant impact on the KBB marketplace. However, there are still positives to be found as result of the current economy.
"For example, one of the major changes is that, with consumers having less disposal income, when they do decide to spend on their home they are no longer favouring once popular lower cost imports but instead opting for quality, British made products which will pass the test of time. The added benefit is that by buying British not only do they have the assurance of a certain standard of manufacture but are also helping to support the UK economy.
"Another repercussion of the changing marketplace is that manufacturers and retailers are working more closely together than ever, to ensure they take full advantage of the opportunities available. At Burbidge, for example, we have introduced a number of seasonal promotions on our best selling ranges, in a bid to help retailers to be extra competitive during this tough trading period."
Graham Hackett - Marketing Director of Manhattan Showers based in Nelson, Lancashire bears out market improvements believing that all too often in trading climates of this nature advice can sound as though it's been taken from a textbook. "However, hitting the basics first of all and focussing on the core needs of all your customers is paramount. Speak to them and listen! Remember the strength of your manufacturing skillbase, and supported with dedicated service initiatives and with all your staff focussed on the ‘customer', working your way though this period will strengthen your company. At Manhattan we've managed our product offering and cater for all segments of the market across a host of different price levels. Get your ‘menu' right, manage and support the customer and the end user will also buy in to the offer."
Associated idustries like tiling are reporting better than expected sales as BCT's Sales Operations Director Tom McMurtrie points out: "The housing market has been hit hard with the current recession , however with our extensive product range offering great value solutions from entry level products to designer ranges, and excellent customer service , here at British Ceramic Tile we have seen and experienced growth in this area."
In a country where many British manufacturers feel they are frequently hampered by government its refreshing to note Lord Mandelson's views that Britain has the skills, resources and knowledge base to succeed. Government needs to create the best possible conditions in which UK businesses can thrive; removing barriers to success and offering targeted support to unlock new potential
But perhaps Joe Cavani, Managing Director of Edwin Loxley, a leading furniture maker, sums up the situation when he says
"The current economic environment underlines the need, more than ever, for companies to be marketing orientated. You need to clearly identify the markets that you are seeking to penetrate as well as developing and clearly identifying key features, benefits and USP's over your perceived competition.......its simply not enough just to make 'nice' furniture or to rely on the strength of a brand alone to sell furniture - or any other product for that matter!"
Roz Rustell May 2009
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