New Consumer Goods market report from Euromonitor International: "Home Improvement in Mexico"

Boston, MA -- (SBWire) -- 08/22/2014 --Similar to the case with gardening, demand for home improvement products in Mexico has historically been undermined by the relatively weak state of the local DIY culture. Busy lifestyles and the widespread availability of cheap labour mean that many Mexicans still prefer to hire outside contractors for home improvement projects rather than undertake such tasks themselves. Consumer attitudes are gradually changing, however, as evidenced by the fact that home improvement current value sales grew steadily throughout the review period. One of the main reasons for this change is the emergence of specialist retail chains like Home Depot, which have exposed consumers to an increasingly wide assortment of home improvement products and inspired many to take on basic and more complicated DIY projects themselves. The willingness to undertake such projects has been further strengthened by the success of INFONAVIT's 'Renueva tu Hogar' (Renew Your Home) programme, which offers homeowners affordable loans for home repair and renovation projects.

View Full Report Details and Table of Contents

Competitive Landscape

Home improvement remained highly fragmented in 2013, with multiple players competing in all categories. Consorcio Comex was the overall leader with a value share of 7%. This was mainly due to its commanding lead in home paint, where it ranked first in decorative paint and second in lacquer and varnish thanks to its Comex brand. It also claimed third place in decorating sundries. Key to the success of this company is a unique distribution model based on a nationwide network of franchise outlets that only sell Comex products. Moreover, the Comex umbrella brand has a longstanding reputation for offering good quality at a reasonable price, and the company frequently updates its product ranges in response to new seasonal colour trends. Truper Herramientas was the second leading home improvement player with an overall value share of 5%. Offering a wide assortment of product types and models under its Truper and Pretul brands, the company dominated hand tools and finished third in power tools. Other prominent competitors in home improvement included Black & Decker SA de CV, Robert Bosch S de RL de CV, Makita Mexico SA de CV, Teka Mexicana SA de CV and American Standard B&K Mexico S de RL de CV.

Industry Prospects

The outlook for home improvement over the forecast period is broadly favourable, with growth in total value sales at constant 2013 prices expected to surpass that recorded during the review period. Population growth and economic improvements will bolster the development of the entire category, as these trends will support further growth in the total number of households in Mexico, and increased spending on the renovation of older homes, most notably via INFONAVIT's 'Renueva tu Hogar' (Renew Your Home) programme. Moreover, the category will benefit from the continued expansion of major specialist retail chains offering extensive assortments of home improvement products at competitive prices. The expansion of such chains will encourage more consumers to undertake minor home improvement projects themselves instead of hiring contractors. That said, the local DIY culture will remain relatively weak overall, and this will continue to hamper demand for many types of home improvement products.