Faster growth

Growth in the Philippines' PHP 274.13 bn home improvement industry (EUR 4.75 bn) will be faster in the next five years than it was from 2014 to 2018. The reasons are that the government's focus on infrastructure, expectations of rising disposable income, a young population and more credit sources spur spending in the industry. That's what Euromonitor International states in a study commissioned by Philippine retailer AllHome.
In its market research dated August 2019 and attached to AllHome's prospectus for its planned public offer, Euromonitor forecasts a compound annual growth rate (CAGR) of 8.9 per cent for home and garden specialist retailing in the country for the period of 2019 to 2023, with retail value - measured by retail sales price - growing to PHP 385 bn (EUR 6.67 bn). This pace is considerably faster than the market's CAGR of 5.5 per cent from the period of 2014 to 2018.
Brick and mortar stores are seen to dominate the growth, increasing 8.8 per cent, with its value going up from PHP 272.76 bn (EUR 4.73 bn) in 2019 to PHP 382.47 bn (EUR 6.63 bn) in 2023. Sales of non-store shops - encompassing online selling, home shopping and direct selling - are expected to grow 18.7 per cent from PHP 1.37 bn (EUR 20 mio) to PHP 2.57 bn (EUR 40 mio).
Euromonitor divides home and gardening specialist retailers into two types. The first type includes home improvement and gardening stores which can be chained or independent retail outlets; they focus on selling home improvement materials and hardware, paints, coatings and wall coverings, kitchen and bathroom fixtures and fittings, gardening equipment, and house and garden plants. These include DIY stores, hardware stores, garden centres, kitchen and bathroom showrooms, and tile and flooring specialists.
Euromonitor, which values this subchannel at PHP 111.65 bn (EUR 1.94 bn) as of 2019, forecasts an annual growth rate of 9.5 per cent between now and 2023. At the end of the review period, the subchannel is expected to grow into a PHP 160 bn market (EUR 2.77 bn).

The second subchannel, the homewares and home furnishing stores, specialises in furniture and furnishings, homewares, floor coverings, soft furnishing, lighting and others.
Factors that drive industry growth include strong…