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Shower Market

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Submitted By MiriamQ
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1. Analyze the UK shower market.

Shower industry analysis
Rivalry (High): competition is fierce in the industry because new design could be copied quickly. Lead-time of a new technical invention is about 2 years.

Distributor (Buyer) bargain power (High)
- Product differentiation (Low): The shower industry has been stagnant in term of technical breakthrough. The products in the market are probably very similar in their inner mechanism with little difference in appearance.
- Distributors’ influence to customer (High): Most customers make decisions fully/partially based on distributors’ recommendation.

Distribution channels & market share
DIY & Trade shops occupy the two biggest potions of the market (36% & 47% respectively). The surprising high market share of DIY Sheds is probably due to the significant shortage of master plumbers, which causes the extreme long queuing time (6 months). Hence customers are forced to try to install and even fix the shower themselves if they want to shorten the waiting time. This is quite common in the case of shower, as people normally purchase a shower when they need it immediately (for example the old one is broken or they move into a new apartment which does not have shower). | | | Electric Showers | Mixer Showers | Power Showers | Total | Market share | Do-It-Yourself Sheds | 550,000 | 80,000 | 20,000 | 650,000 | 36% | Showrooms | 55,000 | 70,000 | 20,000 | 145,000 | 8% | Trade Shops | 330,000 | 400,000 | 110,000 | 840,000 | 47% | Other (Electrical wholesalers) | 165,000 | | | 165,000 | 9% | Total Units Sold | 1,100,000 | 550,000 | 150,000 | 1,800,000 | |
Exhibit6 U.K. Shower Market, by Product Type and Channel (Total Units Sold, 2000)

Customer analysis
Distributors (especially plumber) play a very important role in customer decision-making process. For example only 27%

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