Ann Eveleth
South African household furnishings are shrinking to fit into government-built homes – and to lower costs in line with falling consumer spending power, say retailers.
OK Furniture, a division of OK Bazaars, said this week it had seen a sharp rise in sales of “slimline refrigerators and ovens” during the past four to five years as new home-owners sought appliances to fit into their homes and budgets. The government subsidy of up to R15 000 generally goes towards purchasing a 30m2 structure with water, sewerage and, often, electricity laid on.
Carla Marcus, a buyer for the company’s domestic and household section, said OK had also experienced success with smaller literage microwaves, but added that single- tub washing machines produced for the same market had not yet become popular. “I think we were probably a year too early, because people have bonds and have to purchase basic furnishings. Washing machines are probably not high on the priority list of new home-owners,” she said.
Marcus said OKBazaars, now a subsidiary of Shoprite Checkers, had also tested the market with smaller-than-normal furniture sets, but found that consumers “seem to prefer the bulkier sets, even if they have to split their lounge suite between two rooms, because they think it is better value for money”.
Other changes in consumer demand included a drop in sales of full dining-room suites, added Marcus.
“People are looking instead at dinettes. They don’t want the sideboard and cabinets any more, just the table and chairs. It’s more cost-effective and takes up less space.”
Despite these mixed reactions from consumers, Marcus said the new economy- sized homes had had a far-reaching effect on the furniture industry. “Manufacturers have been looking ahead, because tooling in a factory is expensive and can’t be changed overnight.”
Conrad Kent, a representative of Highpoint Furniture manufacturers, said he had witnessed a steady rise in demand for specially designed lounge suites in recent years, with consumers looking for suites comprising two two-seat couches and two chairs, instead of the standard suite which included a longer three-seat couch.
Nolene Rautenbach, a representative of Hyperama, another recent Shoprite Checkers acquisition, said her company also planned to begin marketing some of OK’s smaller items in its stores. “We do look at smaller items for smaller homes, such as one-and-a- half or two-seat couches instead of the normal three-seat, but that is really a matter of responding to the buyer’s needs,” she said.
Ellerines, another retailer targeting the lower and middle end of the furniture market, said it also supplied smaller furniture for smaller houses, but denied this was in response to the development of Reconstruction and Development Programme (RDP) homes. “Our sales reps try to provide what our customers need in a particular area. In Umtata, for instance, we supply furniture for round homes [rondavels],” said Ellerines group sales manager Issy Rimer.
“We don’t call it RDP furniture as such. It just depends on the market in a particular area. Some people will sell 137cm base sets, others will sell battery-run TVs as people don’t have electricity.
“When a new type of home is built, we go out and look at it to establish what the consumer wants and then we ask our suppliers to make it. There are definitely different specifications for government houses,” he added.