Product range is a differentiating factor between operators in the retail and online spheres
Melbourne, Australia (PRWEB) February 05, 2013
The Online Small Electrical Appliance Sales industry has enjoyed rapid growth in the past five years. IBISWorld estimates revenue growth at a compound rate of 18.4% in the five years through 2012-13, reaching $135.2 million, with current year revenue growth estimated at 18.7%. According to IBISWorld industry analyst Ricky Willianto, “several sparks of success in the industry attracted many traditional bricks-and-mortar brands to enter the online sphere, especially during a dismal sales period for retailers”.
The Online Small Electrical Appliance Sales industry is characterised by a small number of players enjoying fast organic growth. Most major players entered the market within the past five years, making the industry relatively new in contrast to many online industries. Despite this, online purchases of electrical appliances are increasing in popularity, largely due to a receptive market that has been extensively primed by other online industries. “Products in the market are highly differentiated and well developed with low level of technological changes, as expected of an online industry that is simply an extension of an already well-established industry,” says Willianto.
Market share concentration is low because the industry is new. Players have popped up and sales are growing quickly with little need for consolidation. For example, many traditional retailers have only recently launched their online retailing platforms. With much market potential remaining for the industry, sales are expected to continue to expand rapidly over the next five years. The outlook for the industry is positive. As existing players grow in size, the market is expected to become more concentrated, resulting in a lower number of entrants in the next five years. Operational expansions also mean that many players are able to function more efficiently due to economies of scale, generating higher profit margins in the medium term.
For more information, visit IBISWorld’s Online Small Electrical Appliance Sales report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry retail small electric appliances via the internet. Products sold within this industry include small kitchen appliances such as blenders and coffee makers, personal care appliances such as electric shavers and hair dryers, and floor care appliances such as vacuum cleaners.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.