European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...

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European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
European Home Improvement Monitor Q3 2020
Focus on: Name brands versus private labels
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Preface                                                                                     TEAM Members

                                                                                                                               REINIER ZUYDGEEST, MSc
                                                                                                                                Managing Consultant
                                                                                                                                     +31 626936109
                                                                                                                                @ zuydgeest@usp-mc.nl

                                                                                                                         MAJA MARKOVIC, MSc
                                                                                                                         Senior Research Analyst
                                                                                                                              +31 102066992
                                                                                                                         @ m.markovic@usp-mc.nl

The topics that are being covered in 2020:                                                                                     Mr. DIRK HOOGENBOOM
                                                                                                                               Research consultant
Q1 Focus: Orientation. Theme topic: Smart and energy efficient homes                                                                +31 652098924
                                                                                                                                @ hoogenboom@usp-mc.nl
Q2 Focus: Purchase channels. Theme topic: Influence of online channels in decision making
Q3 Focus: Branding. Theme topic: Name brands vs private labels
Q4 Focus: DIY vs DIFM. Theme topic: The rise of DIFM in home improvement
                                                                                            If there are any suggestions or remarks on our reports, please let us know.
                                                                                            We are always looking for ways to improve, so any feedback is welcome.
European Home Improvement Monitor Q3 2020 | Page 2
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
             THEME: NAME BRANDS VERSUS PRIVATE LABELS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Key insights
    European Home improvement Monitor November 2020

         Home improvement still …                           Ordering paint online has become more             … with home improvement
                                                            …

          Methodology
          The questions on COVID-19 impacting home improvement have been asked in our monthly online survey ‘The European Home Improvement Monitor’
          between April and November. Approximately 200 consumers per country were interviewed in 11 European countries per month.

4
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

         The majority spent … at home due to Covid-19.

          Statement: Due to the coronavirus, I am spending more time at home
           % agree with the statement

            OVERALL                  Austria       Belgium      Denmark      France       Germany      Italy          Netherlands          Poland            Spain            Sweden               UK

       100%

         80%

         60%

         40%

         20%

          0%
Months           5      8 11          5     8 11     5   8 11     5   8 11     5   8 11     5   8 11   5       8 11        5   8 11          5   8 11          5   8 11          5   8 11          5    8 11

(5=May, 8=August, 11=November)                                                                                 The result is present without taking into account those who answered “don’t know/ no answer”.

 N       2,238       2,246   2,210

     5 USP Marketing Consultancy | Page 5
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

        Consumers are ...

         Question: Are you conducting more (or less) home improvement jobs in and around your house due to the coronavirus?

         MORE | LESS

         OVERALL                     Austria     Belgium     Denmark       France       Germany           Italy          Netherlands          Poland            Spain            Sweden               UK

Month           5     8 11            5   8 11    5   8 11    5   8 11      5   8 11       5   8 11       5   8 11           5   8 11          5   8 11          5   8 11          5   8 11          5   8 11

N       2,238       2,246    2,210                                                                                The result is present without taking into account those who answered “don’t know/ no answer”.

    6 USP Marketing Consultancy | Page 6
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

  Attributed to the coronavirus, over half of the consumers expect to ...

                                       Question: Do you expect to be spending more time at home than normal due to the coronavirus in 2021?

                                                          YES | NO | Don’t know
                                            OVERALL

                                               Austria
                                              Belgium
                                             Denmark
                                               France
                                             Germany
                                                  Italy
                                          Netherlands
                                               Poland
                                                 Spain
                                              Sweden
                                       United Kingdom
                                                          N=2,210

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European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

        Around one-fifth of the consumers ...

        Question: Do you expect you will be doing more (or less) home improvement jobs in and around your house during the next 3 months due to the coronavirus?

        MORE | JUST AS MUCH AS I WOULD NORMALLY DO | LESS

         OVERALL                   Austria     Belgium      Denmark         France       Germany              Italy        Netherlands          Poland            Spain            Sweden                 UK

           33% 33%                 33% 33%     33% 33%      33% 33%        33% 33%        33% 33%        33% 33%             33% 33%           33% 33%           33% 33%          33% 33%           33% 33%

           33% 33%                 33% 33%     33% 33%      33% 33%        33% 33%        33% 33%        33% 33%             33% 33%           33% 33%           33% 33%          33% 33%           33% 33%

           33% 33%                 33% 33%     33% 33%      33% 33%        33% 33%        33% 33%        33% 33%             33% 33%           33% 33%           33% 33%          33% 33%           33% 33%
Month       8    11                 8     11   8   11        8    11        8   11         8   11         8       11          8    11           8    11           8    11           8    11           8    11

    N    2,246    2,210                                                                                          The result is present without taking into account those who answered “don’t know/ no answer”.

   8 USP Marketing Consultancy | Page 8
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

  On the European level, over one-fifth of the consumers expect to ...

                            Question: To what degree do you expect to spend more or less money on home improvement in 2021 compared to 2020?

                                                  >10% higher | 6% - 10% higher | 1% - 5% higher | The same | 1% - 5% lower | 6% - 10% lower | >10% lower | Don’t know

                                  OVERALL

                                       Austria

                                       Belgium

                                   Denmark

                                       France

                                   Germany

                                          Italy

                               Netherlands

                                       Poland

                                         Spain

                                       Sweden

                          United Kingdom
                                                   N=2,210
9 USP Marketing Consultancy | Page 9
European Home Improvement Monitor Q3 2020 - Focus on: Name brands versus private labels - USP ...
Impact on the home improvement market

        Compared to 3 months ago, consumers are ...
      Question: Do you feel comfortable to have a professional in your house to work on home improvement jobs or would you rather postpone this until the coronavirus is not a threat anymore?

      I would be COMFORTABLE to have a professional in my house | I would rather POSTPONE DIFM jobs

        OVERALL                   Austria     Belgium     Denmark         France        Germany              Italy          Netherlands          Poland            Spain            Sweden                UK

Month        5     8 11           5    8 11   5   8 11      5   8 11       5   8 11       5   8 11       5      8 11           5   8 11          5   8 11          5   8 11          5   8 11         5    8 11

N    2,238       2,246    2,210                                                                                      The result is present without taking into account those who answered “don’t know/ no answer”.

    10 USP Marketing Consultancy | Page 10
Impact on the home improvement market

        Compared to August, consumers are …
        Question: Would you feel comfortable to visit a DIY store or are you trying to avoid public spaces as much as possible during the coronavirus?

        I would be COMFORTABLE to visit a DIY store | I try to AVOID public places

        OVERALL                    Austria    Belgium       Denmark          France        Germany              Italy          Netherlands          Poland             Spain           Sweden                UK

Month        5     8 11           5    8 11   5   8 11       5   8 11        5   8 11       5   8 11        5     8 11            5   8 11          5   8 11          5   8 11          5   8 11         5    8 11

N    2,238       2,246    2,210                                                                                         The result is present without taking into account those who answered “don’t know/ no answer”.

    11 USP Marketing Consultancy | Page 11
Impact on the home improvement market

        Instead of postponing the paint jobs, consumers are …
        Question: If you want to do a paint job in your house, how would you most likely get the paint and paint supplies for it?

        VISIT a DIY store | Order it ONLINE | POSTPONE the paint job

             OVERALL                 Austria      Belgium      Denmark          France         Germany            Italy          Netherlands            Poland            Spain          Sweden               UK

Month         5      8    11        5   8    11   5   8   11   5   8   11      5   8   11      5   8   11     5    8      11      5    8   11       5    8   11       5    8   11       5    8   11       5    8   11
N    2,238        2,246    2,210                                                                                       The result is present without taking into account those who answered “don’t know/ no answer”.

    12 USP Marketing Consultancy | Page 12
Impact on the home improvement market

Half of the consumers are more ...
            Statements: Due to the coronavirus, I am spending more time ...
            % agree with the statement

                                thinking about future home                                 looking for inspiration on               actively searching online for
                                improvement projects                                       decorating my home                       home improvement products

                                                                                                                                                                    N

                OVERALL                                                                                                                                             11,334

                    Austria                                                                                                                                         962

                   Belgium                                                                                                                                          1,071

                  Denmark                                                                                                                                           896

                    France                                                                                                                                          997

                  Germany                                                                                                                                           974

                        Italy                                                                                                                                       1,116

              Netherlands                                                                                                                                           1,039

                    Poland                                                                                                                                          1,057

                      Spain                                                                                                                                         1,160

                   Sweden                                                                                                                                           978

                         UK                                                                                                                                         1,084

                                 *Question is asked to the respondents who reported spending more time at home due to coronavirus
                                 *The results are observations from April to November (excluding August and September).
USP Marketing Consultancy | Page 13
Impact on the home improvement market

About 4 in 10 of the consumers have ...
            Statements: During the past three months, …
            % agree with the statement

                                I enjoy doing home                                         I have improved my DIY skills   I have purchased more home
                                improvement jobs more than I                               a lot                           improvement products online
                                did before                                                                                 than normal
                                                                                                                                                         N

                OVERALL                                                                                                                                  6,599

                    Austria                                                                                                                              601

                   Belgium                                                                                                                               598

                  Denmark                                                                                                                                597

                    France                                                                                                                               610

                  Germany                                                                                                                                604

                        Italy                                                                                                                            599

              Netherlands                                                                                                                                600

                    Poland                                                                                                                               595

                      Spain                                                                                                                              596

                   Sweden                                                                                                                                601

                         UK                                                                                                                              598

                                 *The results are observations from June to November (excluding August and September).

USP Marketing Consultancy | Page 14
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
             THEME: NAME BRANDS VERSUS PRIVATE LABELS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
Key findings | European spending | European home improvement barometer

 European spending on home improvement – on Europe level
 Total spending by European households on home improvement decreased by XX% in the third quarter compared to last year.

                               European spending on labour + material
       SPENDING (BILLIONS)

                             € 140

                             € 120
                                                                                                                                                                             *
                             € 100                                                                                                                                    *

                              € 80

                              € 60

                              € 40

                              € 20

                               €0
                                     Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20
                                                                                               ACTUAL                                                             FORECAST*

European Home Improvement Monitor Q3 2020 | Page 16
Key findings | European spending | European home improvement barometer

 European spending on home improvement – on the country level
 The spending of the previous three quarters has increased compared to the same period in 2019 in most countries, esp. in XX. The average
 increase of all European countries is XX%.

                                Q1 – Q3 2020 vs. Q1 – Q3 2019
                                European spending on labour + material

                                     OVERALL

                                   Netherlands
                                       Denmark
                                       Germany
                                        Belgium
                                              Italy
                                            Spain
                                               UK
                                        Sweden
                                          Poland
                                          France
                                          Austria

European Home Improvement Monitor Q3 2020 | Page 17
Key findings | European spending | European home improvement barometer

Share of households conducting a home improvement job
In Q3-20, … households conducted a home improvement job, compared to Q3-19. European consumer confidence has been at a lower
level than last year.

                                       European home improvement barometer
                                                                                                                                                                                                   2020
                                                                                                                                                                                                   2019

                                                       The dotted part of the line is a forecast, after 6 months the share of households that conducted a home improvement job becomes definite.
                                       Jan            Feb        Mar          Apr          May           Jun           Jul         Aug           Sep          Oct          Nov            Dec
                                                                                                                                                                  N = 2,200 interviews per month

                                       Consumer confidence level

                                       Jan            Feb        Mar          Apr          May           Jun           Jul         Aug           Sep          Oct          Nov            Dec

European Home Improvement Monitor Q3 2020 | Page 18
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
             THEME: NAME BRANDS VERSUS PRIVATE LABELS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

In this chapter, we cover consumers’ review of DIY stores, as well as their attitudes and preferences towards private labels for home improvement products.
The respondents were asked the following:

GENERAL QUESTIONS                                                                    PRODUCT SPECIFIC
•    Did you make your brand selection in the shop or had you already                • Which of the following brands for  have you ever
     made your brand selection before going to the shop?                                heard of?
•    How would you rate [1-10] the following DIY stores* on the                      • How would you rate the following brands in general?
     aspects: 1) service & advice, 2) quality of products, 3)                        • Can you tell for the following statement how well it applies to the
     attractive prices, 4) sustainability, 5) shopping experience,                      brand?
     and 6) general satisfaction.                                                            •  has the best quality of products...
•    Private labels and home brands (own-brands) are regularly offered                       • < Brand X> offers the best overall value for money...
     in DIY stores as an alternative to the A-brands. Usually these                          • This is a brand that I trust…
     products are cheaper due to lower marketing costs for these                             • The products from < Brand X> are easy to use…
     brands. What's your opinion on these home-brands in DIY
                                                                                     * The DIY stores included
     stores?
                                                                                         Austria        OBI         Bauhaus       Hornbach      Lagerhaus
•    In which of the following categories would you prefer an A-                        Belgium        Brico          Hubo         Gamma       Mr Bricolage
                                                                                       Denmark       Bauhaus          Silvan       XL byg        jem&fix
     brand over a home brand? Covered categories: paint, bathroom                        France     Leroy Merlin   Castorama     Brico Depot    Bricorama
     products, masking tapes, garden tools, adhesives, sealants, locks,                Germany          OBI         Bauhaus       Hornbach        Toom
                                                                                            Italy   Leroy Merlin       OBI         Brico io    Bricocenter
     safety cameras, plugs, roof windows, boilers and taps.                                   NL      Gamma         Hornbach        Praxis        Karwei
                                                                                         Poland     Leroy Merlin   Castorama         OBI         Mrówka
                                                                                          Spain     Leroy Merlin   Brico Depot    Bauhaus           AKI
                                                                                        Sweden       Bauhaus        Hornbach      Byggmax      Clas Ohlson
                                                                                              UK       B&Q         Homebase        Wickes        Screwfix

European Home Improvement Monitor Q3 2020 | 20
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

The moment of brand selection is changing towards an earlier decision
The European consumer is now more likely to select a brand before going to the shop.

                                       Moment of brand selection
                                       Did you make your brand selection in the shop or had you already made your brand selection before going to the shop?

                                                                                                                             29%
                                                                                                              27%    26%
                                                               24%               25%               25%
                                              22%

                                              % of people who selected a brand before going to the shop

                                              2014              2015             2016              2017       2018   2019    2020

                                        *2014-2019: approximately n=71,500 per year; 2020 (Q1-Q3): n=28,000

European Home Improvement Monitor Q3 2020 | Page 21
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

Those with more DIY experience are more likely to …

                                                      Moment of brand selection
                                                      Did you make your brand selection in the shop or had you already made your brand selection
                                                      before going to the shop?

                                                                        % of people who selected a brand before going to the shop

                                                           18 till 34

                                                           35 till 54

                                                                55+

                                                      No experience

                                                          Decorator

                                                        Light DIY-er

                                                         Renovator
                                                                        Base: n= 450,000; 7 years combined [2014-2020]

European Home Improvement Monitor Q3 2020 | Page 22
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

Leroy Merlin remains to have the highest general satisfaction score in
Europe
                  Top-5 DIY stores with the highest general satisfaction score in Europe
                  How would you rate [1-10] the following DIY stores on general satisfaction?

                    #1                                #2                             #3               #4      #5

2019

                    (7.8)                             (7.6)                          (7.4)            (7.4)   (7.3)
                                                                                                                      Base: n=6,643

2020

                     (7.8)                            (7.5)                          (7.5)            (7.5)   (7.4)
                                                                                                                      Base: n=6,599

European Home Improvement Monitor Q3 2020 | Page 23
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

On the European level, the general satisfaction score of DIY stores is X
On Europe level, XX has the highest impact on the general satisfaction of a DIY store. XX is the key to keep them happy for all DIY stores in
general.

General satisfaction with DIY stores in each country                                       Importance of 5 aspects for general satisfaction
How would you rate [1-10] the following DIY stores on general satisfaction?                 Compared with other aspects, we find that XX has the highest impact on
                                                                                            general satisfaction of a DIY store. If a DIY store can provide its customers
                                                                                            with XX, it will be more likely to stand out.

                                                                                                                                                                               IMPORTANCE
                                                                                                                                                                              [Influence on GS^]

                                                                                                              #1 XX                                                                 XX%*

                                                                                                              #2 XX                                                                 XX%*

                                                    7,2
                                                                                                              #3 XX                                                                 XX%*
                                                 7,2

                                                                                                              #4 XX                                                                 XX%*

                                                                                                              #5 XX                                                                 XX%*

                                                                                           ^GS stands for general satisfaction. A regression model is built to see to what extent each aspect
                                     Base: n=6,599                                         influences general satisfaction. The higher the percentage, the more effect has the aspect on
                                                                                           general satisfaction.
European Home Improvement Monitor Q3 2020 | Page 24                                        *Statistically significant. If the effect is not significant, there is barely any influence on general satisfaction.
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

Satisfaction score on 5 aspects of DIY stores
On the European level, consumers are most content with the quality of the products, but least satisfied with the sustainability issues

Average satisfaction score per aspect                                                        Top-5 DIY store in each aspect
How would you rate [1-10] the following DIY stores on these aspects?

                                                      Average satisfaction score
                                                                                   #1             #2            #3            #4         #5

            Quality of products                                XX
                                                                                   7,9            7,7            7,6          7,6        7,6

                   Attractive price                            XX
                                                                                   7,5            7,4            7,3          7,3        7,3

             Service and advise                                XX
                                                                                   7,7            7,5            7,5          7,3        7,3

        Shopping experience                                    XX
                                                                                   7,7            7,6            7,3          7,3        7,3

                       Sustainability                          XX
                                                                                   7,3            7,3            7,2          7,2        7,0
                                                           Base: n=6, 599

European Home Improvement Monitor Q3 2020 | Page 25
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

Half of the consumers … opinion on private labels
Consumers remain to ....

 Attitude towards private labels
 What's your opinion on home-brands (or own-brands) in DIY stores?

                              POSITIVE | NEGATIVE | NEUTRAL
                      2019                                                                        Nowadays, consumers are provided with a huge variety of
                                                                                                  options for the same type of products. Private labels are regularly
                      2020                                                                        offered in DIY stores as an alternative to the A-brands. They are
                                                                                                  mainly designed to compete against branded products, offering a
                 18 till 34                                                                       cheaper alternative.

                 35 till 54                                                                       Although in the past they were seen as the low-cost imitations of
                                                                                                  branded products, ….
                       55+
                                                                                                  Compared to 2019, consumers have become ...

         Under € 2,000
    € 2,000 to € 4,000
           Over € 4,000

         No experience
               Decorator
             Light DIY-er
              Renovator
                              Income represents average household income   Base: n=6,599

European Home Improvement Monitor Q3 2020 | Page 26
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

The higher one’s income, the … towards A-brands

 Preference: A-brands versus private labels
 In which product categories (13 different were measured) would you prefer an A-brand over a home brand?*

                              A-BRANDS | PRIVATE LABELS

                      2019                                                                                          On the European level, consumers prefer …
                      2020                                                                                          The preference is clearly influenced by …

                 18 till 34
                 35 till 54
                       55+

         Under € 2,000
    € 2,000 to € 4,000
           Over € 4,000

         No experience
               Decorator
             Light DIY-er
              Renovator
                              *For this graph, all 13 products were summed up and presented on the overall level.
                               Base: n=6,599

European Home Improvement Monitor Q3 2020 | Page 27
Introduction | Moment of brand selection | Satisfaction with DIY stores | Brands vs. Private labels

Preference towards A-brands is influenced by …

 Preference: A-brands versus private labels
 In which product categories would you prefer an A-brand over a home brand?

                           A-BRANDS | PRIVATE LABELS

               Boilers                                                                                On the European level, consumers clearly prefer …

      Roof windows                                                                                    On the other hand, ....

   Safety camera's

                  Paint

                 Locks

           Adhesives

Bathroom products

                  Taps

                 Plugs

             Sealants

       Garden tools

            Duct tape

     Masking tapes
                                                                                 Base: n=6,643

European Home Improvement Monitor Q3 2020 | Page 28
Introduction | Home improvement barometer | Key facts – Branding

Compared to 2019, ...
… remains to be a leader in XX; XX has risen as a winner in the Netherlands.
Nr.1 DIY store per country by various aspects
How would you rate [1-10] the following DIY stores on these aspects…?

                                              AUSTRIA               BELGIUM       DENMARK                 FRANCE       GERMANY                     ITALY
                                           2019            2020   2019    2020   2019           2020   2019    2020   2019        2020      2019             2020

 General satisfaction

 Shopping experience

 Quality of products

 Attractive price

 Service & advice

 Sustainability

                                                      NL             POLAND             SPAIN            SWEDEN              UK
                                           2019            2020   2019    2020   2019           2020   2019    2020   2019        2020

 General satisfaction

 Shopping experience

 Quality of products

 Attractive price

 Service & advice
                                                                                                                                         Base per country:
 Sustainability                                                                                                                          n=600
European Home Improvement Monitor Q3 2020 | Page 29
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
THEME: BRANDING & BUYING PROJECTS INSTEAD OF PRODUCTS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
Introduction | Home improvement barometer | Key facts – Branding

SPAIN
                                       Number of home improvement jobs
                                         SPAIN
                                         EU AVERAGE

                                                                                                  64%                     65%
                                                           56% 55%              59% 60% 56%                                     56% 55%
                                                                                                                                            60% 58%
                                                                                                                                                        56% 56% 54%
                                                                                                                                                                          60% 59%                 58%
                                               55% 53%                                                  54% 51% 54%
                                       50% 53%         51%                                                                                                                            51% 50%

                                       Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

                                       Base: n=2,400 per year

European Home Improvement Monitor Q3 2020 | Page 31
Introduction | Home improvement barometer | Key facts – Branding

 SPAIN
 All aspects except for offering service/ advice play a role in making Spanish consumers satisfied.
 Leroy Merlin is the undisputed leader, which stands out in all aspects and have the most satisfied customers.

                  Satisfaction score on various aspects of DIY stores
                                                                                                                                                                         Attitude towards private labels
                                                AKI BAUHAUS BRICODEPOT LEROY MERLIN
                                                                                                                                                                         POSITIVE | NEGATIVE | NEUTRAL
                                                                                                                                        IMPORTANCE
General satisfaction                                                                                                                    [Influence on GS^]        2019    73%                             24%
         Shopping experience                                                                                                                 45%*                 2020    69%                             29%

            Quality of products                                                                                                              27%*

                   Attractive price                                                                                                          16%*
                                                                                                                                                                         Preference:
                Service & advice                                                                                                              4%                         A-brands versus private labels
                     Sustainability                                                                                                          8%*                  2019    62%                            38%
                                                5.5                                                                               8.5
                                                Avg. score                                                                 Avg. score
                                                                                                                                                                  2020    67%                            33%

    ^GS stands for general satisfaction. A regression model is built to see to what extent each aspect influences
    general satisfaction. The higher the percentage, the more effect has the aspect on general satisfaction.                                        Base: n=600

    *Statistically significant. If the effect is not significant, there is barely any influence on general satisfaction.

 European Home Improvement Monitor Q3 2020 | Page 32
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
             THEME: NAME BRANDS VERSUS PRIVATE LABELS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
AVAILABLE PRODUCT CATEGORIES

  FLOORS       PAINT SUPPLIES        PAINT             WALLPAPER           PLASTER BOARD

 INSULATION     POWER TOOLS      GARDEN TOOLS       DOORS/WINDOWS         FILLERS/MORTARS

 BATHROOM         KITCHEN       SAFETY & SECURITY   TILES & TILE GROUTS   ADHESIVE/SEALANT

WINDOW DECO    ROOF WINDOWS         LIGHTING          SMART HOME               HVAC
SPECIFIC QUESTIONS INCLUDED IN EHIM ON…

                                                                                  PAINT

Q1 Orientation                                                                        Q3 Branding
•       Did you get information about the paint online?                               •   Which of the following brands for Paint have you ever heard of?
•       Did you make your brand selection in the shop or had you already made         •   How would you rate the following paint brands in general?
        your brand selection before going to the shop?                                •   Can you tell for the following statements how well it applies to the brand(s)?
•       Who determined the choice of type of product?                                     [This brand has the best quality of products / This brand offers the best
•       Who determined the choice of type of brand?                                       overall value for money / This is a brand that I trust / The products from this
                                                                                          brand are easy to use]
                                                                                      •   [if purchased in the past 6 months] What brand did you buy?

                     EXAMPLE OF THE QUESTIONS ASKED ABOUT A PRODUCT IN THE MONITOR
                      These questions are being asked on a monthly base for 100+ different products and reported per
                                   quarter to subscribers of the European Home Improvement Monitor

Q2 Purchase channels                                                                  Q4 DIY vs. DIFM
•       Did you purchase the paint yourself or did a professional purchased it?       •   Did you apply the paint yourself or did a professional applied it?
•       Where did you buy the paint?                                                  •   How was the paint applied inside / outside the house?
•       Did you order any of the products online?                                     •   What type of paint was used inside / outside the house?
•       What was the name of the online shop where you purchased the paint?           •   Which percentage of the wall paint / lacquer that you have purchased for the
•       How much was spent in total on the paint?                                         inside / outside of the house was white, coloured (with/without tinting
                                                                                          machine)
                                                                                      •   What type of paint supplies were used?

    European Home Improvement Monitor Q2 2020 | Page 35
Index

        COVID-19 IMPACT ON HOME IMPROVEMENT BEHAVIOUR
                             EUROPEAN DEVELOPMENTS
             THEME: NAME BRANDS VERSUS PRIVATE LABELS
                         EUROPEAN OVERVIEW
                          COUNTRY OVERVIEW
                      HOME IMPROVEMENT PER CATEGORY     BRANDING
                                             APPENDIX
Methodology
Who is selected for the research?
                                                                             Sample background
We use a nationally representative sample for our study. This
includes all types of consumers aged 18+; Male and female, house                         Male             Female                18-34    35-54       55+
renters and owners, consumers with & without DIY experience.                             51%                 49%    BELGIUM      30%      35%        35%
This, in order to have a representative sample per country.
                                                                                         48%                 52%    FRANCE       26%      36%        37%

Questions on household level                                                             48%                 52%   GERMANY       25%     35%         39%

Respondents are interviewed on ‘household level’ which means it is                       48%                 52%      ITALY      26%     35%         39%
not about the home improvement projects that they have done
                                                                                         45%                 55%       NL        27%     34%         40%
themselves but the projects that have been done within the
household. This way, we are able to calculate the sum of the                             50%                 50%    POLAND       35%           37%   28%

number of specific jobs that have been done in a country based on                        55%                 45%      SPAIN      30%       38%       32%
the total number of households.
                                                                                         49%                 51%       U.K.      29%      36%        36%

                                                                                         50%                 50%   DENMARK       24%     32%         44%

                                                                                         52%                 48%    AUSTRIA      35%        36%      29%
   Sample size
                                                                                         49%                 51%    SWEDEN       32%      31%        38%
   1st chapter – EU results are based on 26,400 interviews per year
                                                                                        [GENDER]                                [AGE]
   2nd   chapter – EU level based on 6,282 interviews
   3rd chapter – Incidence rate (number of home improvement jobs) is
   based on 2,400 per country; theme questions on approx. 400 interviews     Weighting factor
   per country
   4th chapter – sample size depends on the incidence rate of the product    All European figures are weighted in order to account for the difference in
   category (see beginning of chapter 4 – share of households conducting a   population size of the countries.
   job)
   European Home Improvement Monitor Q3 2020 | 37
Methodology
INCLUDED CATEGORIES
General home improvement figures are based on 107 selected products:
1 "BATH"                        19 "FREEZER (FREE-STANDING)"         37 "DORMER WINDOW"           55 "RAIN WATERPIPE"               73 "DRYWALL"                   91 "PLUMBING MATERIALS"

2 "BATHROOM FURNITURE"          20 "COOKER SURFACE (BUILT-IN)"       38 "ROOF WINDOWS"            56 "GUTTER"                       74 "WOOD AND BOARD MATERIAL"   92 "TILE GROUT"

3 "SHOWER ENCLOSURES"           21 "COOKER (FREE-STANDING)"          39 "STAIRS STAIR COVERING"   57 "BOILER"                       75 "INSULATION MATERIAL"       93 "FILLERS"

4 "SHOWER SET/ SHOWER HEAD"     22 "FAUCET"                          40 "STAIRS BANNISTER"        58 "FUSE BOX/ELECTRICAL PANEL"    76 "STUCCO"                    94 "TAPES"

5 "SHOWER TRAY"                 23 "(COMBI-) MICROWAVE (BUILT-IN)"   41 "WC WASH BASIN"           59 "VENTILATION"                  77 "PAINT"                     95 "SANDPAPER"
                               24 "(COMBI-) MICROWAVE (FREE-
6 "TAPS & MIXERS"                                                    42 "WC TAPS & MIXERS"        60 "AIR CONDITIONING"             78 "LIGHTING"                  96 "BRUSH"
                               STANDING)"
                                                                                                  61 "ELECTRICAL VEHICLE CHARGING
7 "TOILET"                      25 "OVEN (BUILT-IN)"                 43 "WC TOILET"                                                 79 "TILE ADHESIVE"             97 "ROLLER"
                                                                                                  POINTS"

8 "WASH BASIN"                  26 "OVEN (FREE-STANDING)"            44 "BRICK"                   62 "THERMOSTAT"                   80 "FLOOR"                     98 "PAINT SPRAY MACHINE"

                                                                                                  63 "HOME AUTOMATION CONTROL
9 "WHIRLPOOL"                   27 "SINK"                            45 "CEMENT"                                                    81 "RADIATOR"                  99 "PRESSURE WASHER"
                                                                                                  PANEL"
10 "SHOWER DRAIN"               28 "STEAM OVEN (BUILT-IN)"           46 "ROOFING TILES"           64 "SMOKE ALARM OR FIRE ALARM"    82 "RADIANT HEATING"           100 "WET & DRY VACUUM CLEANER"

11 "HOOD VENT"                  29 "STEAM OVEN (FREE-STANDING)"      47 "DOOR"                    65 "ALARM INSTALLATION"           83 "SWITCH MATERIAL"           101 "STEAM CLEANER"

12 "KITCHEN COUNTERTOP"         30 "DISHWASHER (BUILT-IN)"           48 "ETICS"                   66 "SECURITY CAMERA"              84 "SEALANTS"                  102 "BLOW VAC"

13 "KITCHEN CABINETS"           31 "DISHWASHER (FREE-STANDING)"      49 "GLASS"                   67 "HINGES"                       85 "MORTARS"                   103 "CHAIN SAW"

14 "REFRIGERATOR (BUILT-IN)"    32 "DECORATIVE MATERIALS"            50 "WINDOW CASING"           68 "LOCKS"                        86 "WALLPAPER"                 104 "ROBOTIC MOWER"

15 "REFRIGERATOR (FREE-
                                33 "DIVIDER"                         51 "SOLAR PANELS"            69 "HAND TOOL"                    87 "INTERIOR DOOR"             105 "WINDOW VACUUM CLEANER"
STANDING)"
16 "REFRIGERATOR/FREEZER
                                34 "GARDEN FURNITURE"                52 "AWNINGS"                 70 "ELECTRICAL TOOL"              88 "FURNITURE"                 106 "PUMPS"
COMBINATION (BUILT-IN)"
17 "REFRIGERATOR/FREEZER
                                35 "GARDEN SHED / BARN"              53 "SKY LIGHT"               71 "GARDEN TOOL"                  89 "WINDOW DECORATION"         107 "WATERING SYSTEM"
COMBINATION (FREE-STANDING)"

18 "FREEZER (BUILT-IN)"         36 "GARDEN PAVING"                   54 "ASPHALT SHINGLE"         72 "GYPSUM BLOCKS"                90 "TILES"

European Home Improvement Monitor Q3 2020 | 38
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