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China & Earthenware Market Report Plus 2009
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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.' |
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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 |
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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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