The August issue of DIY & Industrial Trade News provided an analysis of the sealants industry where it investigated the segments overall index between the year-to-date (YTD) – January to June 2024 – to the previous period last year. In this instalment of our series, Aquidneck shifts the focus to the padlock market, which has proven to be a significant segment in the hardware retail space.
Aquidneck’s findings will be featured in a series of articles by DIY and Industrial Trade News, offering monthly updates across various hardware categories.
The padlock market in South Africa from June 2023 to June 2024 has been influenced by economic conditions, crime rates, and technological advancements. Increased crime rates and economic growth have driven demand, while the rise of smart locks has impacted traditional padlock sales. Import dynamics and consumer trends also played significant roles.
The padlock market in South Africa is a significant segment within the DIY retail space, providing essential locking solutions for various applications. Padlocks are widely used to secure doors, gates, cabinets, lockers, bicycles, and other valuable assets. The padlock market has witnessed steady growth in recent years, driven by the increasing focus on security and the rising need for reliable locking mechanisms. Padlock sales, whether standard size or long shackle, are 71% conventional, although their turnover contribution is lower at 57% in 2024 YTD. Discus padlocks are the second most popular option at 19% in units and 31% in value followed by water resistant conventional types at 5% and 6% respectively. Around 16% of these padlocks are sold in multi-packs with twin packs at 70% in units being the most common variant.
Almost two thirds of all conventional padlocks, across all sizes, tend to retail below R100. This view also includes the more expensive multi-packs. In contrast discus padlocks sell mostly between R100 to R250. The most expensive type of padlocks are straight locking variants (also known as insurance padlocks) which generate 60% of their revenue with price points above the R250 border but their sales relevance is capped at just 1% of the total padlock market. The water-resistant models are more expensive than conventional ones, however the price gap is small with a focus on the price bracket between R100 and R150.
Besides the type, the size of the padlock impacts the price position. In 2024 YTD the most popular size across all padlock types is 50mm at 23% in units. This bracket is also the most competitive segment compounded by a very deep product portfolio with price points that range for entry-level to high-end. The second most popular size is 38mm at 15% followed by 40mm at 13% and then 70mm at 11%. All other sizes combined make up the difference of 38%. While some types or sizes are more sales relevant than others the key characteristic of the padlock market is range depth. The average large hardware shop may stock more than 250 different types of padlocks and more than 10 different brands. The lion share originates from conventional padlocks, divided in an 80-20 split between normal size and long shackle. Although the range depth declines for more specialised applications the need for multiple sizes on the shelf remains. For example, straight-locking (insurance) padlocks may not generate high sales volumes but require multiple size options ranging from 60mm up to 90mm.
For conventional padlocks 14% of the sales volume is generated by multi-packs with single packs providing 86%. Within bundle sales alone 51% originates from twin packs, 20% from triple packs and 25% from quad packs. The reminder of 6% is generated by blister packs with more than four items. Price wise most single sales of conventional padlocks retail below the R100 border (77%) while most double packs retail above R100 and most triple or quads are priced well above R300.
The size variety for conventional padlocks is impressive with no clear winner. The most popular size is 50mm at 27% in units in June, followed by 38mm at 24% and then 40mm at 14%. All other 10 common sizes make up 35% of the sales volume. The price range even within the same size category is major indicating for the need of offering a deep range. For example, the 50mm segment ranges in average price from just R80 for a house branded model to over R200. Similar trends can be observed across the brands in all major size categories, bear in mind that house brands are not necessarily the most affordable option and even within the same size category specs may vary in terms of shackles (long or standard), material (brass, iron, etc) or security application.
Discus (also known as disc or round padlocks) were initially designed to be used directly in conjunction with a hasp and staple meaning that the shackle is completely covered when closed hindering cutting attempts although the security rating is directly linked to production quality as well. Variants may include water resistance and/or hardened steel reinforced bodies. Two thirds of all discus padlocks are sold as single packs with twin packs generating almost one third of the sales volume. Larger blister packs with more than two items are rare due to their relatively high price points.
Most discus padlocks are 70mm (56% in June in units), 60mm at 25% followed by 80mm and 90mm both generating 10% each. Within the most popular size, 70mm, the average prices range from R96 for budget models to R320 for the average premium item. This price spread is linked to added security features which have been spear- headed by up-market suppliers when compared to cheaper offerings.
Water resistant models in this view mean dedicated ‘conventional’ padlocks with additional weather protection like a thermoplastic shell and/or keyhole cover for outdoor protection against the elements. Colour code may help in lock identification when multiple padlocks are used. Water resistant models from other padlock types are allocated to their respective type segments. Usually, this padlock type generates around 5% in volume and 6% in value contribution to the retail sales. Due to their rather high price points 85% of the sales volume is generated by single items with 14% by double packs, larger variants being negligible at just 1%.
The product range of water-resistant conventional padlocks is limited. The most popular size is 50mm generating 36% of the retail sales in June followed by 40mm at 33% and then 21% for the 30mm variants. All other sizes just make up 10% of the sales. Price wise house branded models corner the affordable price points across the size spectrum with a major gap to premium offerings. This price spread is linked to the degree of water resistance and engineering inherent to premium models.
