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German home improvement market led by private label products

Alex De Angelis

The German home improvement market increased in value sales through 2012. Projects and little repairs in homes as well as the building of houses were postponed during and after the eurozone crisis and are now finally coming to pass.

Do-it-yourself (DIY) has been, is and most likely will continue to be an integral part of German society.

No matter the generation or the gender, people tend to be able and willing to take things in their own hands and do at least smallrepairs or constructions on their own.

Studies show that over 90% of men in Germany would hang shelves or install furniture themselves and about 85% are willing to paint walls or do other home improvement tasks.

Even the more complicated projects, like drywalling or flooring might be done by about 40% of people.

Home improvement stores - part of the overall home improvement and garden centres channel - is the most significant retail channel for home improvement sales in Germany, accounting for 49% of value sales in 2012.

Due to the high fragmentation of the German home improvement market, private label products currently account for 23% of sales.

The shares of 2% of the big companies therefore seem rather small in comparison. Nevertheless, large international companies like Bosch, Black & Decker and Villeroy & Boch deliver the leading brands in the overall home improvement category.

It is expected that the economic slowdown predicted for 2013 and the following years will also increase the pressure on home improvement retail sales.

Construction, restoration and building projects are likely to get postponed or downsized, and the already existing competition will increase as the customer base decreases.

For more information on the German home improvement market, see the latest research: German Home Improvement Market

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