Increased web access has increased online shopping, boosting industry revenue
Los Angeles, CA (PRWEB) April 13, 2012
The Online Household Furniture Sales industry has grown rapidly, with revenue posting double-digit gains during the first half of the decade. IBISWorld industry analyst Caitlin Moldvay says, “The ubiquity of internet access has fostered greater growth of online shopping, as consumers increasingly turn to the web for increased convenience and often discounted pricing. These factors have led online sales of furniture to outperform traditional offline furniture sales over the past five years, even in the midst of the economic downturn.” Over the five years to 2012, industry revenue has grown at an annualized rate of 5.7% to $6.9 billion; this includes projected growth of 9.9% during 2012.
The industry includes e-tailers and traditional furniture stores with significant online sales platforms. “Over the past five years, companies have continued to flock to the industry, attracted by its lower operational costs and sales tax collection advantages over traditional brick-and-mortar locations,” continues Moldvay. Consequently, the number of operators has grown to reach 1,234 businesses. The Online Household Furniture Sales industry is highly fragmented and exhibits a low level of market share concentration. The top two companies are Williams-Sonoma Inc. and Wayfair LLC.
Over the next five years, continued economic improvements are expected to contribute to the industry's strong growth. Increases in per capita disposable income, consumer sentiment and homeownership rates will positively affect consumers' willingness to purchase big-ticket items, such as furniture. Additionally, broadband internet adoption will grow in the next five years, boosting online retailers' accessibility. As a result, over the five years to 2017, industry revenue is forecast to rise. For more information, visit IBISWorld’s Online Household Furniture Sales report in the US industry page.
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IBISWorld industry Report Key Topics
This industry includes companies that retail a range of indoor and outdoor home furniture, such as sofas, beds, tables and chairs, via the internet. Industry goods are typically purchased from domestic and international manufacturers and wholesalers, and then sold to the public online
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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