The recession caused steep declines in industry demand as disposable income levels fell
New York, NY (PRWEB) February 05, 2015
Sales of online large kitchen appliances rely heavily on activity within the housing market; therefore, online large kitchen appliance sales grew significantly over the five years to 2015. Although overall demand for major household appliances did not begin recovering until 2012, cost advantages attributed to online purchasing enabled industry operators to expand operations. Consequently, in the five years to 2015, industry revenue is estimated to grow at an annualized rate.
According to IBISWorld Industry Analyst Edward Rivera, “Online retailers are typically able to pass on low transportation costs and reduced inventory costs to consumers, lowering the price of industry products.” During the past five years, slow growing disposable income levels in-store hindered purchases of large kitchen appliances and moved consumers toward online purchases. Further, government incentives, such as consumer rebates on the Energy Star-qualified appliances, helped to somewhat spur industry demand in the past five years. In 2015, the market is expected to receive a boost from overall economic improvement, specifically rising per capita disposable income levels, and sales growth is expected to accelerate.
In the five years to 2020, revenue is forecast to continue its upward trend, increasing at an average annual rate. “As more consumers spend money, online industry profitability is expected to rise as operators are able to boost sales while maintaining prices and low operating costs,” says Rivera. These trends are expected to encourage more brick-and-mortar establishments to engage in online activities, thereby attracting new companies to the market. Industry operators are also expected to expand employment, with establishments expected to have more employees per establishment in 2020 than in 2015.
For more information, visit IBISWorld’s Online Large Kitchen Appliance Sales in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry sell major household appliances, such as household cooking appliances, laundry equipment, refrigerators, upright and chest freezers, dishwashers, water heaters and garbage disposal units, via the internet.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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