An improved employment rate and growth in corporate profit will spur office furniture sales
New York, NY (PRWEB) November 06, 2014
Over the five years to 2014, the Online Office Furniture Sales industry's revenue is expected to grow substantially. Much of this growth has been due to the increasing prevalence of e-commerce as a whole. Ordering office furniture online makes it easier for businesses to view a wide selection, compare prices and arrange a convenient delivery. Moreover, traditional brick-and-mortar retailers, such as industry leaders Office Depot and Staples, have increasingly expanded their online presence and relied on e-commerce to grow their businesses. In addition to improving their online platforms, companies have developed applications to take advantage of the proliferation of mobile devices.
Improvements in the business environment and labor market have also bolstered industry growth. Over the past five years, rising corporate profit has allowed companies to allocate more funds towards purchasing new office furniture. Moreover, growth in the number of businesses and employees has required more companies to buy industry products to occupy new office spaces and accommodate more workers. According to IBISWorld Industry Analyst Leah Goddard, “As private investment in computers and related equipment increased, more companies needed to purchase office furniture to house information processing systems.” For these reasons, demand for industry products rebounded from recession-induced lows in 2009, and as more businesses bought office furniture online, industry revenue surged over the five years to 2014. As these trends continue into 2014, industry revenue is forecast to grow markedly.
The Online Office Furniture Sales industry has a low level of market share concentration. In 2014, IBISWorld estimates that the three largest firms in the Online Office Furniture Sales industry will account for a small percentage of revenue. The largest firms are major players in the Office Supply Stores industry (IBISWorld report 45321), including Office Depot, which recently acquired OfficeMax, and Staples. The industry is considerably less concentrated among smaller players, which are more likely to sell specialized units or specific product types. “Like most e-commerce industries, the industry's relatively low barriers to entry also encourage the entrance of new companies,” says Goddard. The entrance of these companies is expected to increase the number of enterprises over the five years to 2019, leading the industry to remain fragmented. However, the largest industry players are expected to increase in size as a result of acquisitions during the five years to 2019.
Over the five years to 2019, IBISWorld projects that industry revenue will strongly increase. During that time, the industry will continue to benefit from the falling unemployment rate and rising private investment in computers. Related to this factor, the rising prevalence of broadband and high-speed internet will boost overall e-commerce demand. However, revenue growth and profit margins are expected to be stifled by the closures of tax loopholes that have given industry operators a competitive advantage over their brick-and-mortar counterparts. Profit will also be constrained by growth in the number of businesses that operate in the industry. Saturation is expected to cause new players to seek alternative models, such as built-to-order units.
For more information, visit IBISWorld’s Online Office Furniture Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells office furniture online. Products include desks, tables and seating. The industry does not include brick-and-mortar sales of office furniture.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.