Online shopping platforms have been extremely popular among customers due to increased convenience, accessibility and price transparency
Melbourne, Australia (PRWEB) November 12, 2014
The Online Large Appliance Sales industry has grown strongly over the past five years. Customers have become more comfortable purchasing products online, particularly costly big-ticket items such as refrigerators, freezers and other large appliances. Steadily rising household numbers and disposable income, positive consumer sentiment and increasing capital expenditure on residential homes have all supported demand for industry products. Households have been more willing to upgrade existing appliances and purchase new equipment. As a result, revenue is estimated to rise at a compound annual rate of 15.6% over the five years through 2014-15. According to IBISWorld industry analyst Spencer Little, “online shopping platforms have been extremely popular among customers due to increased convenience, accessibility and price transparency.” Rather than looking for appliances in-store, households can browse for products online. In addition, they can compare online prices with traditional retailers' prices in an effort to find the best deal. The growing popularity of online retail outlets is expected to contribute to strong industry revenue growth of 10.3% in 2014-15, to reach $293.8 million.
The industry is projected to continue growing strongly over the next five years. Steady growth in disposable income and household formation is likely to drive demand for new large appliances such as refrigerators, ovens, cooktops, freezers, washing machines, dryers and dishwashers. In addition, “industry operators will be able to target a larger potential customer base, as an increasing share of the population gains access to online shopping platforms,” says Little. Strong competition, particularly price-based competition, is expected to characterise the industry's operations over the next five years, as an increasing number of firms seek to take advantage of a lucrative online landscape.
The Online Large Appliance Sales industry exhibits moderate levels of market share concentration. The medium level of concentration is partly attributed to the high level of competition in the industry, as online retailers compete heavily on price and service quality. Market share concentration is expected to increase over the next five years, given the greater economies of scale and marketing power of the larger players. Pure-play online retailer Appliances Online is growing considerably, given its focus on customer service and emphasis on simplifying the online shopping experience. In addition, the large traditional retailers' increased investment in the online space is expected to boost the market share concentration of the major players in the next five years.
For more information, visit IBISWorld’s Online Large Appliance Sales industry in Australia report page.
Companies in the industry sell a range of large appliances such as refrigerators, ovens, cooktops, range hoods, dishwashers, freezers, washing machines and dryers via the internet. The industry includes both online-only operators and bricks-and-mortar stores that have an online presence.
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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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