Report and analysis by: Laura Spingola, Trade Resources Ltd.
The United Kingdom represents a special market for U.S. housewares exporters. Ranking third among global markets for U.S. housewares exporters, many IHA members are active in the UK, yet many more new-to-export and experienced exporters should make “go/no-go” decisions about this important and inviting single market area. As you know, the IHA is planning a Trade Mission to the UK from November 9-14.
Current export data shown below illustrates steady demand that grew 1.1% in the past year to nearly $122 million. Bakeware, cookware and personal care segments increased between 7.5% and 43.9% while household electrics, space organizers and tabletop dipped 7.3% to 27.7% from 2012. The UK ranked near the top of global markets in all categories.
The actual trends for one and two-years follow respectively: Bakeware +7.5% and +17.2%; Cookware +13.5% and +24.6%; Household Electrics -27.7% and -14.6%; Personal Care +43.9% and +24.7%; Space Organizers -8.8% and -23.9%; and Tabletop -7.3% and +10.8%. These results are anticipated to improve as consumers continue to recover from the recession and the pound strengthens.
As previously mentioned in a global context, UK ranks third behind only Canada and Mexico in importing U.S. housewares. Thus, the UK is the largest export market in Western Europe. It represents nearly 3% of the U.S.’ export market share.
Some relevant market characteristics are: 1) The UK is a friendly, receptive market that is English-speaking and appreciates U.S. innovation and branding. 2) With a population of nearly 64 million dispersed across a small and highly developed geographic area; it is relatively easy to plan distribution. 3) British consumers appreciate unique U.S. goods and have ample spending power of over $37,000 in terms of GDP per capita. 4) Nearly 20 retailers account for over 60% of sales in the UK. 5) Being savvy and having a good range of retail options from which to choose, purchase decisions maybe made based on price sensitivity. 6) Increased internet usage ranks 7th attests to consumer sophistication.
And, as pertains to international markets in general, there are distinctions to be recognized and adapted to. For example, use of special occasion china and tendency to barbecue may not be as prevalent as in the U.S.
What are qualified opportunities in the market? In 2013, demand in the UK was highest in the following export classifications by product category:
Bakeware
HS 3924100002 – Tableware and Kitchenware of Plastics
HS 7323930010 – Stainless Steel Cooking and Kitchenware
HS 7013490000 – Other Table or Kitchen Glassware nesoi
Cookware
HS 7323930010 – Stainless Steel Cooking and Kitchenware
HS 7013490000 – Other Table or Kitchen Glassware nesoi
HS 7323990000 – Household Articles/Parts nesoi, Not Enameled, Not Cast Steel, Not Stainless
Household Electrics
HS 8509400020 – Electric Food Mixers including Blenders, Domestic
HS 8516604000 – Electric Cooking Stoves, Ranges & Ovens, Domestic
HS 8509805091 – Electromechanical Domestic Appliances, nesoi
Personal Care
HS 9019102000 – Mechano-Therapy Appliances & Massage Apparatus, Parts
HS 8510200000 – Electric Hair Clippers
HS 8516320000 – Electrothermic Hair Dressing Apparatus, nesoi
Space Organizers
HS 3924100002 – Tableware and Kitchenware of Plastics
HS 3924905500 – Household Articles & Toilet Articles of Plastics, nesoi
HS 4202927000 – Containers nesoi with Outer Surface Plastic/Textile Materials
Tabletop
HS 3924100002 – Tableware and Kitchenware of Plastics
HS 7013490000 – Other Table or Kitchen Glassware nesoi
HS 8205510000 – Household Tools and Parts Thereof, Base Metal
The UK is often the starting point for new exporters to become engaged in international markets, and a launch into other European markets on the continent. Data confirms the UK as a viable and vibrant market for U.S. housewares exporters that deserves long-term commitment. Take advantage of this qualified opportunity for establishing business success and furthering friendly relations!
Report and analysis by: Laura Spingola, Trade Resources Ltd., Chicago, IL
+1.312.939.5030 / LSpingola@TradeResources.com
