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What is going on in the construction, installation and home improvement sectors?

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DIY VERSUS DIFM

More than eight years of continuous research on the European home improvement market has provided us detailed insights on how overarching trends, for instance the ageing of the European population, influence DIY behaviour. Meanwhile, we have gathered substantial...

THE INFLUENCE OF CONTRACTORS IN THE DECISION-MAKING PROCESS VARIES BASED ON THE TYPE OF CONTRACT

When thinking about building materials and product and brand specification, we generally focus on architects and/ or engineers. It is not usual that architects and engineers work for a main contractor. However, the increasing number of design-build contracts and developer contractors, the type of contractors who are appointed to develop and carry out the full project cycle, enables a more integrated value chain. This becomes apparent in the H2 2020 report of USP Marketing Consultancy’s European Contractor Monitor.

UK INSTALLER MORE OFTEN HIRED TO INSTALL PRODUCTS BOUGHT BY THE END USERS

Internet and e-commerce have been a serious driver for changes in the way business operates. Professionals from different sectors of the construction industry claim that end users are getting more informed about products and possibilities in the market. They also do not hesitate to buy products themselves and hire an installer just to do the installation of the products. This has important consequences for the business models of the installers and their way of making money. As a part of the European Mechanical Installation Monitor, in Q3 2020 we focused on the decision making power of HVAC installers in Europe.

BELGIAN HVAC INSTALLERS HAVE THE HIGHEST DECISION-MAKING POWER

The construction and installation industry is a very particular market and very different from for example fast moving consumer goods. Why is that? Well, first and foremost it is a very traditional market, moving in a much slower pace. But, returning to the topic at hand, it is also quite unique in terms of decision making. The construction and installation market is characterised by a very large group of actors that hold some sway in terms of decision making.

CONSUMER MORE INFLUENTIAL ON PAINT PURCHASE

Traditionally about a third of the paint jobs in the residential market are outsourced to professionals. When a professional painter is involved, the influence of consumers on the brand or channel where the paint is purchased is limited. However, this year we see a change in this as a result of the COVID-19 pandemic. This change is driven by two factors; consumers are more often picking up the brush themselves and are searching for paint online more than before. This results in a shift in purchase channels for decorative paints. This is one of the insights from the European Home Improvement Monitor that is held on a monthly base among consumers in 11 European countries.

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Dirk Hoogenboom

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