Brexit: “We Expect The Kitchens Market to Grow Moderately as Confidence Resumes”

by | Dec 23, 2019 | #kitchens

As the UK gears up for Brexit, Daniele Brutto, founder of kitchen specialist Onestá Design, shares his opinion on how the kitchen industry is likely to be affected.

“My advice to those looking to begin a new kitchen project – don’t hesitate and crack on!

We have had a number of clients take this view in the past six months, as the desire to improve their home is still very strong.

Surprisingly, Brexit is not something that has been front of mind for many, if any, of our clients over the last nine months. This time last year, concerns were expressed about the uncertainty of negotiations and how this may affect their projects, but more recently it seems to be less considered.

Market growth

Despite uncertainty, low consumer confidence and the reported reduced spend on the high street, our business is still steadily growing. We expect the market to continue to grow at a moderate pace as confidence, hopefully, becomes reinstated.

With Brexit just around the corner, it’s unlikely that pricing will be affected immediately, and so sudden price inflations are very questionable – which is the same with our suppliers for both the kitchen and appliances.

For example, we have had a four per cent price rise from one of our Italian furniture manufacturers, but this is in line with their business strategy and something that we were expecting, considering we’ve had zero price increases from the same factory in six years.

Pricing

Whether you’re buying your kitchen from a UK, German or an Italian designer or manufacturer, finished product or materials are mostly purchased from Europe; meaning that, as a kitchen designer, we are on a level playing field within our sector.

Our competitors and suppliers will all be experiencing similar concerns which should not affect current client orders.

Customers with kitchens being planned within the next six months should not notice any difference to their projects. We can expect normal yearly price increases within the next six to 12 months, but for now we don’t believe that Brexit will have an immediate effect on pricing and businesses.

Long-term planning

Long term, however, is a much bigger question. The supply chain is questionable which means that our business strategy as a result must be flexible.

Long-term planning is difficult in these uncertain times, meaning that until there is a confirmed result it is hard to prepare for every potential outcome and create a solid business framework.

Right now, we are working towards a contingency plan until there is clarity on how it may or may not affect our business. One of the biggest challenges that we are facing within the Brexit negotiations is that there is a lack of clarity and business concerns are currently not front of mind.

As a business we have the capacity to expand and further invest in 2020, but we will not commit to anything until the direction we take with Brexit is clearer.

Once things settle, nothing much may actually change. Our relationships with suppliers is concrete, as over the years we have built strong partnerships with established suppliers.

We are all constantly working towards maintaining a relationship that works both ways – benefiting our customers and our businesses. We have a strong order book and so we see consolidation in 2020 being our major focus, with 2021 being our next year of further investment into the business.”

Onesta / onesta.design

Brexit: “We Expect The Kitchens Market to Grow Moderately as Confidence Resumes”

by | Dec 23, 2019 | #kitchens

As the UK gears up for Brexit, Daniele Brutto, founder of kitchen specialist Onestá Design, shares his opinion on how the kitchen industry is likely to be affected.

“My advice to those looking to begin a new kitchen project – don’t hesitate and crack on!

We have had a number of clients take this view in the past six months, as the desire to improve their home is still very strong.

Surprisingly, Brexit is not something that has been front of mind for many, if any, of our clients over the last nine months. This time last year, concerns were expressed about the uncertainty of negotiations and how this may affect their projects, but more recently it seems to be less considered.

Market growth

Despite uncertainty, low consumer confidence and the reported reduced spend on the high street, our business is still steadily growing. We expect the market to continue to grow at a moderate pace as confidence, hopefully, becomes reinstated.

With Brexit just around the corner, it’s unlikely that pricing will be affected immediately, and so sudden price inflations are very questionable – which is the same with our suppliers for both the kitchen and appliances.

For example, we have had a four per cent price rise from one of our Italian furniture manufacturers, but this is in line with their business strategy and something that we were expecting, considering we’ve had zero price increases from the same factory in six years.

Pricing

Whether you’re buying your kitchen from a UK, German or an Italian designer or manufacturer, finished product or materials are mostly purchased from Europe; meaning that, as a kitchen designer, we are on a level playing field within our sector.

Our competitors and suppliers will all be experiencing similar concerns which should not affect current client orders.

Customers with kitchens being planned within the next six months should not notice any difference to their projects. We can expect normal yearly price increases within the next six to 12 months, but for now we don’t believe that Brexit will have an immediate effect on pricing and businesses.

Long-term planning

Long term, however, is a much bigger question. The supply chain is questionable which means that our business strategy as a result must be flexible.

Long-term planning is difficult in these uncertain times, meaning that until there is a confirmed result it is hard to prepare for every potential outcome and create a solid business framework.

Right now, we are working towards a contingency plan until there is clarity on how it may or may not affect our business. One of the biggest challenges that we are facing within the Brexit negotiations is that there is a lack of clarity and business concerns are currently not front of mind.

As a business we have the capacity to expand and further invest in 2020, but we will not commit to anything until the direction we take with Brexit is clearer.

Once things settle, nothing much may actually change. Our relationships with suppliers is concrete, as over the years we have built strong partnerships with established suppliers.

We are all constantly working towards maintaining a relationship that works both ways – benefiting our customers and our businesses. We have a strong order book and so we see consolidation in 2020 being our major focus, with 2021 being our next year of further investment into the business.”

Onesta / onesta.design

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