Continuing market growth

The DIY market in South America has been through a period of expansion, averaging double-digit growth rates over the past five years. This is revealed by market surveys carried out by Euromonitor International. The DIY and garden market in Brazil has experienced good rates of growth, particularly in 2007 and 2008. The garden market, which is considerably smaller than its DIY counterpart, actually showed continuously higher growth. Ornamental flowers and plants and home-grown vegetables were in vogue, though gardening equipment and care products produced the highest rates of growth. Best performers in the DIY sector were power tools and accessories, plus kitchen and bath products. This growth was sustained by a property market boom and a rising level of income, which resulted in the middle class becoming stronger. Higher growth rates are expected again for the current year, following the restraint of the crisis-ridden year 2009. The big players in this market are Leroy Merlin and Casa & Construção, both trading brands belonging to the French Groupe Adeo. In Argentina both manufacturers and traders have now recovered from the crisis that lasted from 1999 to 2002. One of the many factors contributing to this recovery is the fact that investment in the ownership of real estate has risen by around 20 per cent annually since 2003. Large-scale retail sales outlets have become increasingly important, especially the Easy Home Centers of the Grupo Cencosud and the Sodimac stores of the Falabella Group. The expansion by the operators of DIY superstores means they have gained market share at the expense of the specialist traders. The idea of doing it yourself is becoming increasingly widespread. Chile has been in the headlines as a result of the earthquake suffered by the country (see the interview with Sandro Solari, CEO of Sodimac). Here, too, the construction boom and rising incomes had resulted in people investing in their homes and gardens. “The DIY culture is lagging behind” Mary Tabion is Latin America research manager for Euromonitor International. She explained the current situation in the Latin American DIY and garden market during an interview with DIY International According to the figures provided by Euromonitor there has been enormous growth in almost all the countries of Latin America. What is the reason for these growth rates? Mary Tabion: Constant value growth is in the double digits for Brazil and Columbia. Below 10 per cent growth for the years…