The trend towards inner-city living has supported demand for home furnishing products, as apartment dwellers can allocate a larger portion of their budget to home furnishings
Melbourne, Australia (PRWEB) August 21, 2014
Online Home Furnishing Sales industry operators retail a range of products, including curtains, blinds, shades, floor coverings and decorative accessories. The industry has sustained robust growth over the past five years, primarily boosted by generally upbeat consumer sentiment and growth in real household disposable income. The rapid growth in online connectivity has also boosted the industry over the past five years, as consumers increasingly gravitate online to search for a range of home furnishing items. Industry revenue is forecast to rise by an annualised 7.7% in the five years through 2014-15. This includes forecast growth of 7.9% in 2014-15, bringing revenue up to $169.1 million. Increasing numbers of dwelling commencements over the past five years have also aided the demand for home furnishing items, as consumers have purchased home furnishing items to personalise their new homes. According to IBISWorld industry analyst Nick Flores, “The trend towards city living has also supported demand for home furnishing products, as consumers that reside in multi-unit dwellings such as apartment buildings can allocate a larger portion of their budget to home furnishings.”
Home furnishing products are typically sold in conjunction with other housewares such as furniture and kitchenware. Growth in pure-play online furniture retailers has supported online home furnishing sales, as consumers purchase home furnishing items to supplement big-ticket purchases such as furniture. Traditional bricks-and-mortar retailers such as David Jones and Myer have increasingly expanded their online sales channels to further boost and complement their physical retail store sales. Budget home furnishing retailer IKEA has been conservative in expanding its online presence, as its online sales capabilities currently only cater to businesses. IKEA has trialled its online sales channel in select cities overseas and is expected to roll out a similar online sales function locally. “The industry is projected to face strong price competition, which will dampen profit margins over the next five years,” says Flores.
The Online Home Furnishing Sales industry is characterised by a number of highly diverse industry operators. The majority of industry operators offer home furnishing products as a means to decorate and outfit consumer homes. It is difficult for any independent operator to gain significant economies of scale in the sale of home furnishings. The top four players in the industry are Milan Direct, Temple & Webster, Harvey Norman Holdings and Internet Service Australia 3, with market share concentration not expected to change over the coming years. Over the coming years, IBISWorld anticipates that the increasing sophistication of consumer tastes and ongoing premiumisation will give industry operators opportunities for further growth.
For more information, visit IBISWorld’s Online Home Furnishing Sales industry in Australia report page.
This industry retails a range of home furnishing goods, such as curtains, draperies, blinds, shades and decorative accessories via the internet. Merchandise is purchased from domestic and international manufacturers and wholesalers, and then sold to the public online. This industry excludes furniture sales.
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IBISWorld Industry Report Key Topics
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
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