The popularity of DIY and cooking reality TV shows has boosted industry revenue growth.
Melbourne, Australia (PRWEB) October 20, 2014
Operators in the Houseware Retailing industry in Australia sell a range of products including tableware, cooking utensils, bakeware and knives. As part of the Australian furniture, houseware and appliance retailing market, the industry faces competition from other stores that sell housewares, such as department stores and supermarkets. According to IBISWorld industry analyst Lauren Magner, “The industry is in the mature stage of its life cycle, as a high proportion of houseware products are well defined and technological advancements within each product segment are minimal.” Most operators have a well-established market position with many players now expanding into niche segments within the industry. The industry exhibits a low level of market share concentration.
The Houseware Retailing industry is influenced by trends in new dwelling commencements, alterations to existing dwellings and changes in household disposable incomes. Over the past five years, instability in financial markets and widespread economic uncertainty led to subdued spending on consumer goods, including houseware. “In many cases, retailers have been left with significant levels of excess stock as households have postponed replacing or upgrading their tableware and cookware,” says Magner. In order to clear inventory, industry firms have resorted to heavy discounting, inciting fierce price-based competition. Over the five years through 2014-15, industry revenue is estimated to grow at an annualised 0.9%. The industry has shown signs of improvement, however, partly due to the popularity of DIY and cooking reality TV shows. These programs have inspired people to take up cooking or home redecorating as leisure activities. As a result, industry revenue is anticipated to increase 2.5% in 2014-15, to be worth $1.6 billion.
Over the next five years, the industry is expected to face intensifying pressure from online operators, department stores and other retailers that sell housewares. Furthermore, consumer sentiment is forecast to display substantial volatility due to falling capital expenditure by mining companies and concerns regarding the competitiveness of Australian businesses. This is anticipated to significantly affect the spending behaviour of consumers, as households cut back expenditure on unnecessary items and opt for cheaper alternatives when it comes to houseware.
For more information, visit IBISWorld’s Houseware Retailing industry in Australia report page.
Houseware retailers stock a range of houseware goods including china, glassware, cutlery and kitchenware. These products are purchased from domestic manufacturers and wholesalers. Operators then retail these goods through their stores to the general public for private use. Retailers that are primarily engaged in selling housewares make up this industry. Department stores and supermarkets are excluded.
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