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China & Earthenware Market Report Plus 2009


Description: The collapse of Waterford Wedgwood in January 2009 threatened to wipe out almost a quarter of the UK's table-china manufacturing capacity at a single stroke, when it became the latest in a growing list of iconic British companies to succumb to the global economic slowdown. Saddled with debt and unable to persuade its lenders, led by Bank of America, to postpone its interest payments for a fourth time, the administrators were called in to Waterford Wedgwood, which employs around 7,700 worldwide, on 5th January 2009.

Garry Oakes, assistant general secretary of the union Unity, said he was not surprised by the problems Wedgwood faces, but believed it was still possible to run a profitable pottery in the city. At the same time, the Stoke-on-Trent Central MP Mark Fisher was quoted as saying: `This is the worst possible news, not only for the 1,000 families affected, but also for the whole of North Staffordshire and the whole of the ceramic industry. Wedgwood is the brand leader and an international flag carrier, not just for Stoke-on-Trent but for the whole of the industry.' The blow to the area came after Spode, which is also situated in Stoke-on-Trent, went into administration in November 2008, along with its sister company Royal Worcester.

One of the factors contributing to the downfall of these traditional British companies was the move away from formal dining. Efforts had been made to introduce more contemporary lines that appeal to a modern market; for example, by linking up with designer names to portray a more fashionable image. However, it could be argued that it was a mistake for brands such as Waterford Wedgwood to try to appeal to a mass market, rather than retaining their exclusivity. It has also been suggested that a mass move of production overseas, in order to minimise costs and maximise returns for shareholders — to whom the now publicly listed companies are beholden — has done much to damage the reputations of prestigious brands, which can no longer claim to be `Made in England'. Indeed, there are companies that have kept production in the UK and enjoyed considerable success in increasing sales in the difficult trading conditions. Emma Bridgewater Ltd is a prime example, having more than doubled its pre-tax profit in its financial year ending April 2008. The company's factory shop in Hanley took more than five times the previous year's takings in its January 2009 sale, showing that the demand is still there.

It cannot be denied that there are difficult times ahead for businesses and individuals alike. In January 2009, the International Monetary Fund (IMF) warned that the British economy would sink faster than the rest of the developed world. It slashed its prediction of world economic growth in 2009 from 2.2% in November 2008 to just 0.5% in January 2009, the weakest since the Second World War, but by March, it was forecasting a contraction of between 0.5% and 1%. The ceramics industry is no stranger to difficult trading conditions, yet the knock-on effects of the fall of Waterford Wedgwood are an unknown entity. Potteries historian Fred Hughes, commenting on the situation said: `There's no historical precedent for this. We've never been in this situation before. That's not to say it's the end of the road. In a sense it's a wake-up call to make readjustments, and history tells us we are at our best when making those adjustments.'


Contents: Executive Summary

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Tableware
Ovenware/Kitchenware
Ornamental Ware
MARKET TRENDS
Informal Eating Habits
Housing Market
Eating Out
Minimalist Décor
Bridal Market
Commemorative Giftware
ECONOMIC TRENDS
Gross Domestic Product
Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
Inflation
Table 1.2: UK Rate of Inflation (%), 2004-2008
Household Disposable Income
Table 1.3: UK Household Disposable Income Per Capita (£), 2003-2007
Population
Table 1.4: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
Unemployment
Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2004-2008
MARKET POSITION
The UK
Table 1.6: Household Expenditure on Glassware, Tableware and Household Utensils at Current Prices (£m), 2003-2007
Overseas

2. Market Size
THE TOTAL MARKET
Manufacturers' Sales
Table 2.1: UK Manufacturers' Sales of Ceramic Household and Ornamental Articles by Value at Current Prices (£000 at msp), 2004-2007
Retail Sales
Table 2.2: The Total UK Market for China and Earthenware by Value at Current Prices (£m at rsp), 2004-2008
Figure 2.1: The Total UK Market for China and Earthenware by Value at Current Prices (£m at rsp), 2004-2008
BY MARKET SECTOR
Figure 2.2: The UK Market for China and Earthenware by Sector by Value at Current Prices (%), 2008
Tableware, Ovenware and Kitchenware
Table 2.3: UK Retail Sales of Tableware, Ovenware and Kitchenware by Value at Current Prices (£m at rsp and %), 2004-2008
Ornamental Ware
Table 2.4: UK Retail Sales of Ornamental Ware by Value at Current Prices (£m at rsp and %), 2004-2008
OVERSEAS TRADE
Table 2.5: UK Imports and Exports of China and Earthenware by Sector by Value (£000), 2007 and 2008
Imports
Table 2.6: UK Imports of China and Earthenware by Sector by Value (£000), 2008
Exports
Table 2.7: UK Exports of China and Earthenware by Sector by Value (£000), 2008

3. Industry Background
HISTORICAL BACKGROUND
NUMBER OF COMPANIES
Table 3.1: Analysis of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ceramic Household and Ornamental Articles by Turnover Sizeband, 2008
EMPLOYMENT
Table 3.2: Analysis of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Ceramic Household and Ornamental Articles by Employment Sizeband, 2008
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
Manufacturers
Wholesalers and Importers
Specialist Retailers
Department and Variety Stores
Supermarkets
Home Shopping Channels
Promotional Market
Tourist Attractions
Collectors' Market
HOW ROBUST IS THE MARKET?
LEGISLATION
REACH
The Ceramic Articles in Contact with Food (England) Regulations 2006
KEY TRADE ASSOCIATIONS
British Ceramic Confederation
British Ceramic Plant and Machinery Manufacturers' Association
Ceramic Industry Forum
Craft Potters' Association
European Ceramics Society

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Aynsley China Ltd
Company Structure
Current and Future Developments
Financial Results
Caverswall China Company Ltd
Company Structure
Current and Future Developments
Financial Results
Churchill China PLC
Company Structure
Current and Future Developments
Financial Results
W Moorcroft PLC
Company Structure
Current and Future Developments
Financial Results
Portmeirion Group PLC
Company Structure
Current and Future Developments
Financial Results
The Royal Crown Derby Porcelain Company Ltd
Company Structure
Current and Future Developments
Financial Results
Villeroy & Boch (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Waterford Wedgwood PLC
Company Structure
Current and Future Developments
Financial Results
Table 4.1: Waterford Wedgwood PLC — Financial Results by Business Segment (_m), Years Ending 31st March 2007 and 5th April 2008
OUTSIDE SUPPLIERS
Raw Materials, Glazes, etc.
Kilns and Accessories
Consultancy
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 4.2: Main Media Advertising Expenditure on Tableware and Sculptures/Figurines (£000), Years Ending December 2007 and 2008
Recent Promotions
Villeroy & Boch
Other Marketing Activities
Cause-Related Marketing
Exhibitions
UK
British Ceramics Biennial
Exclusively Housewares
Home & Gift
Pulse
Spring, Autumn and Summer Fairs
Top Drawer
International
Ambiente Frankfurt
The Gourmet Housewares Show
International Home & Housewares Show
Macef
Maison & Objet

5. Brand Strategy
INTRODUCTION
GIFT OF THE YEAR 2008
BRANDS OF SELECTED COMPETITORS
Churchill China
Denby
Moorcroft
Portmeirion
Royal Crown Derby
Royal Worcester & Spode
Villeroy & Boch
Waterford Wedgwood

6. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

7. Buying Behaviour
HOUSEHOLD EXPENDITURE
Glassware, Tableware and Household Utensils
Table 7.1: Average Weekly Household Expenditure on Glassware, Tableware and Household Utensils by Gross Income Decile Group (£), 2007

8. Current Issues
CLOSURES, MERGERS AND ACQUISITIONS
Waterford Wedgwood PLC
Royal Worcester & Spode
Jesse Shirley & Son Ltd
The Denby Pottery Company Ltd
Steelite International
Studio Hinks Fine China
BOARD AND SENIOR MANAGEMENT CHANGES
Waterford Wedgwood PLC
NEW PRODUCTS
Heritage Collection
Moorland Regional Ranges
Villeroy & Boch
Barack Obama Jug

9. The Global Market
AMERICA
ASIA
Table 9.1: Exports of Ceramic Articles from Mainland China ($000), 2007 and 2008
EUROPE
SELECTED GLOBAL COMPETITORS
Churchill China PLC
Table 9.2: Churchill China PLC — Turnover by Geographic Region (£000), Years Ending 31st December 2006 and 2007
Hankook Chinaware Co Ltd
Lan Young Enterprise Co Ltd
Lenox Inc
Noritake Co Inc
Porcelana Chodziez SA
Portmeirion Group PLC
Table 9.3: Portmeirion Group PLC — Turnover by Country of Destination (£000), Years Ending 31st December 2006 and 2007
Villeroy & Boch AG
Table 9.4: Villeroy & Boch — Group Sales by Country/Region (_m and %), 2008
Waterford Wedgwood PLC
Table 9.5: Waterford Wedgwood PLC — Revenue by Geographic Region (_m), Years Ending 31st March 2007 and 5th April 2008
Williams-Sonoma Inc

10. Forecasts
INTRODUCTION
UK Economic Climate
Table 10.1: Forecasts for the UK Economy (%, million and 000), 2009-2013
FORECASTS 2009 TO 2013
Table 10.2: The Forecast UK Market for China and Earthenware by Value at Current Prices (£m at rsp), 2009-2013
Figure 10.1: The Forecast UK Market for China and Earthenware by Value at Current Prices (£m), 2009-2013
MARKET GROWTH
Figure 10.2: Growth in the UK Market for China and Earthenware by Value at Current Prices (£m), 2004-2013
FUTURE TRENDS
The Impact of Economic Changes
Demographics
Developing New Export Markets

11. Company Profiles
Churchill China PLC
W Moorcroft PLC
Portmeirion Group PLC
The Royal Crown Derby Porcelain Company Ltd
Villeroy & Boch (UK) Ltd
Waterford Wedgwood PLC

12. Company Financials

13. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources


Companies Mentioned -Churchill China PLC -W Moorcroft PLC -Portmeirion Group PLC -The Royal Crown Derby Porcelain Company Ltd -Villeroy & Boch (UK) Ltd -Waterford Wedgwood PLC


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