SWIMMING POOL MARKET TRENDS IN SOUTH AFRICA - Roger Hill by sdsdfqw21

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									“Swimming pool market trends in
        South Africa“

        Roger Hill

   NSPI Committee member
      Gauteng Chapter
           Spa & Pool Institute RSA
                 NSPI (National Spa & Pool Institute)

•   A voluntary association organisation formed in 1972 to support the
    image and welfare of its members, pool builders, pool trade product
    and service providers and pool equipment manufacturers and
    suppliers
•   Focus on increasing consumer confidence through improved
    member business and technical competence
•   Acts as a “watchdog” body for the industry within RSA, for both
    suppliers and consumers
•   Code of ethics in place to promote and maintain high standards of
    health, safety, product research and development, compliance with
    laws, ordinances and regulations, fulfillment of contractual
    obligations and ethical advertising
•   First swimming pool company of note in RSA was Penguin Pools,
    formed by Dr Michael Finn in Johannesburg in 1956
         Spa & Pool Institute RSA
                    Market Trends 1996 – 2007

•   Mature Market – 52 years

•   Characterised by:

        • Excess of supply over demand

        • Low barriers to entry

        • Increasing number of suppliers, local and International

        • High levels of price competition

        • Growth influenced mostly by economic wealth of consumers
         Spa & Pool Institute RSA
                    Market Trends 1996 – 2007

•   Unregulated market

        • Fragmentation of “larger” pool builders

        • Strong emergence of small single entity pool builders

        • Increase in “unauthorised” building of pools

        • Building contractors increase in pool building activities
          Spa & Pool Institute RSA
                   Market Trends 1996 – 2007

•   Market statistics

         • 750 000 to 800 000 pools in RSA

         • 25 000 to 35 000 pools built per year (unknown non registered
           volumes from bakkie builders)

         • Growth of pools down from 12% 1996 to 2004 to 5% last 12 months

         • 50 000 spa’s in RSA (growth +/- 10% pa down from 15%
           1996 to 2004)

         • Pool growth reduced in 2007 due to economic conditions
         Spa & Pool Institute RSA
                 Market Trends 1996 – 2007

•   Market statistics Cont…

        • 92% of pools in private homes

        • 1% in clusters

        • 2% in town houses

        • 5% other e.g. rural, plots, reserves, lodges
           Spa & Pool Institute RSA
                    Market Trends 1996 – 2007

•   Market statistics Cont…

        • 48% of pools in Gauteng (fastest growing)

        • 19% in Kwazulu-Natal

        • 15% in Western Cape

        • 7% in Eastern and Southern Cape

        • 6% in Northern Province, Mpumalanga, Limpopo

        • 5% in Orange Free State
          Spa & Pool Institute RSA
                   Market Trends 1996 – 2007

•   Pool Demographics

        • 73% white

        • 19% black (fastest growing percentage due to income & home
          ownership growth

        • 8% coloured, Indian, Asian, other


• 60% of pool owners want pools for enjoyment & entertainment

• 40% for aesthetic features & property values
        Spa & Pool Institute RSA
                 Market Trends 1996 – 2007

•   Consumer demand shift

        • Retailer increase in pool product trading

        • Decrease in independent pool trade specialists

        • Decrease in size of swimming pools
                Pre 1994 average 60 to 70 000 litres
                Post 2001 average 30 to 40 000 litres

        • Strong increase in “splash” pools – 40% of all pools built in 2006,
          smaller than 40 000 litres

        • Trend continuing downward to 15 – 20 000 litre pools – size of
          home plot decreasing
          Spa & Pool Institute RSA
                  Market Trends 1996 – 2007

•   Consumer demand shift cont…

        • Increase in pre moulded pool volumes vs. cement and plaster pools
          – speed and ease of installation

        • Pool Heating demand trends
              10 % of SA pools are solar heated
              4 % of SA pools are electrically heated
              Solar heating growth rate 20 % 2000 to 2005
              Electrical heating growth rate 15 % 2000 to 2005
              Electrical heating growth decreased to 5% in 2007
              Solar heating growth decreased to 15 % in 2007
          Spa & Pool Institute RSA
                           Summary

•   Number of pools growth slowing from 10% to 5% pa
•   Size of pool decreasing – increase in spa and splash pools
•   Consumer demand softening – economic conditions
•   Pool heating will grow at higher levels than number of pools per year
•   Solar demand increasing
•   Electrical heating demand waning - economic conditions – will pick
    up with economic recovery
•   Market remains mature
•   Increase in pools due to growing residential boom over period 1998
    to 2005 – will slow down
    Spa & Pool Institute RSA
                  Sources of data

NSPI

Waterlinx Pool & Spa customer data base

Municipalities

Swimming pool product suppliers

Building contractors & associations

Architects
May best practices prevail


       Thank you

								
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