Melbourne, Australia (PRWEB) April 18, 2014
The Online Kitchen and Diningware Sales industry in Australia has thrived in an otherwise dim retail sector, enjoying robust growth in spite of turbulent economic conditions, volatile consumer sentiment and subdued discretionary spending. According to IBISWorld industry analyst Lauren Magner, “The growing acceptance of the internet as a safe and credible medium for shopping can be attributed to improvements in the security and reliability of online retailers, faster broadband speeds and higher computer literacy.”
Online retailers have benefited from a paradigm shift in the way consumers are conducting transactions. Following the global economic crisis, financial markets were thrown into turmoil as consumer sentiment plummeted. Slow household income growth led to many consumers scaling back discretionary expenditure, and either postponing purchases or opting for cheaper alternatives. “The industry has benefited from consumers seeking choice and value, as the trend towards bargain hunting has become increasingly prevalent,” says Magner. With an unprecedented multitude of products available online at competitive prices, consumers have been able to search, compare and evaluate options across a variety of different websites, without geographical boundaries. Industry revenue is forecast to grow by an annualised 27.4% over the five years through 2013-14, to be worth $238.3 million. The industry exhibits a low level of market share concentration. Kitchenware Direct Pty Ltd is the only player in control of a significant portion of industry revenue.
Given the relative infancy of the industry, revenue has increased from a very low base. While other online industries have grown in leaps and bounds, online houseware sales were initially slow to take off. Due to the high utility of the products sold by the industry, many consumers often prefer to physically inspect housewares prior to purchase. Consumers are generally more willing to put in the time and effort to evaluate kitchen and diningware before making a decision, as goods such as cutlery and crockery are used on a daily basis. However, as attitudes towards e-commerce have changed, an increasing number of savvy consumers have taken to researching and inspecting goods in bricks-and-mortar stores, then comparing prices with online sellers to find the best value. Revenue is expected to increase by 14.1% in 2013-14. The Online Kitchen and Diningware Sales industry is expected to continue to grow strongly over the next five years, fuelled by improving economic conditions, expanding product ranges online, and a rise in the number of internet connections.
For more information, visit IBISWorld’s Online Kitchen and Diningware Sales report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry retail a range of houseware goods online, such as china, glassware, cutlery, bakeware and kitchenware. Industry participants are either online-only retailers or bricks-and-mortar stores that have an online presence. The industry includes online houseware sales generated by department stores, but excludes sales by agents that do not take ownership of the goods.
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.