Angéline Le Ménach, Analyst – Home Industries, Euromonitor International
DIY plus

Romania

Bright prospects

A high level of home ownership, a large DIY-savvy rural population and rising salaries are driving the Romanian home improvement market. It will also continue in the next few years, according to a forecast by Euromonitor International
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Home improvement generated USD 622 mio retail value sales in Romania in 2015. Romanian consumers enjoy investing time and money in their houses and both the access to credit and the buoyant state of real estate is driving growth within home improvement. The share of homeowners in Romania is one of the highest in Europe and is increasing consistently while the number of households renting a home is expected to decrease significantly by 2030. Moreover, the number of Romanians inhabiting a house has been increasing while those living in apartments has stagnated from 2010 to 2015. These demographic factors are positive for home improvement and alongside rising disposable income, home improvement expenditure per household has grown by 12 per cent from 2010 to 2015 to reach USD 87 per year.With a USD 14 000 average disposable income per household in 2015, Romanian consumers remain price-conscious and are highly receptive to discounts. However, convenience of purchase and delivery are increasingly carrying weight and becoming purchase drivers.Romania has a large rural population, with rural households accounting for 45 per cent of the total. This segment of the population is quite dynamic with an increasing disposable income due to a shift from countryside to city jobs with most rural householders commuting to work. This population is also more attached to their home and garden and are likely to spend this new income on home improvement to increase the value of their property and renovate older inherited houses. Rural households are likely to acquire power tools and undertake extensive home improvement projects, like floor and wall coverings or room renovations. On the other hand, the urban population, living in modern accommodation, are likely to perform smaller home improvement project, like painting.In 2015, the biggest home improvement category remained floor covering, which recorded 9 per cent growth from 2010 to 2015. Floor tiles performed best, which indicates Romanian consumers have been mostly renovating bathrooms and kitchens. This trend is confirmed by the 10 per cent increase in bathroom and sanitary ware retail value sales over the same period.Power tools are expected to record the strongest growth among home improvement products with retail value sales predicted to increase by almost 30 per cent from 2015 to 2020. Power tools is the most dynamic category in Romania, undergoing constant innovation and product upgrades. Unlike developed markets…
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