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Household Appliance Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Apr 24, 2015, 16:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Over the past five years, large discount department stores such as Kmart have been engaging in more instances of wholesale bypass.

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Melbourne, Australia (PRWEB) April 25, 2015 -- The past five years have been immensely challenging for household appliance wholesalers. Wavering consumer confidence, historically low housing construction levels and the flow-on effects from global economic turmoil have all created tough trading conditions for appliance wholesalers. Most major household appliance wholesalers in Australia are domestic outlets of foreign brands that own the exclusive distribution rights for the brand's products. Product innovation is strong in the industry, which means that wholesalers that stock the newest and best-in-class products continue to do well. However, according to IBISWorld industry analyst Lauren Magner, "price deflation caused by increased competition at the retail level has resulted in many wholesalers facing declining revenue despite moving higher volumes of products." Therefore, industry revenue is expected to decline by an annualised 0.9% in the five years through 2014-15.

Like all sectors connected to the Retail Trade division, the Household Appliance Wholesaling industry is suffering from several trends that are changing the way consumers purchase products. "Over the past five years, large discount department stores such as Kmart have been engaging in more instances of wholesale bypass, sourcing products directly from manufacturers and selling them instore under private labels," says Magner. This practice has effectively removed the need for some wholesalers. The internet has also provided a convenient medium for consumers to compare prices and look for better deals at the retail level, which has affected pricing throughout the supply chain. These factors mean that wholesalers are now operating under tighter margins than they were five years ago. As a result, industry revenue is forecast to fall by 2.3% in 2014-15 to $8.5 billion. Wholesale bypass will continue to pose a significant challenge to industry firms. Department stores and specialist appliance retailers are likely to find cost savings by sourcing products directly from low-cost manufacturers overseas. Domestic demand for household appliances and audiovisual products will respond to the release of new, innovative products at lower prices, including more energy-efficient appliances.

The Household Appliance Wholesaling industry is characterised by a low level of market share concentration. Industry concentration has fallen over the past five years. This decline has been due to a greater selection of household appliance products (mainly imported China) being available on the market, which has diluted the significance of other brands. A number of small localised enterprises have left the market over the past five years as competition has increased and margins have contracted. These have been steadily replaced by larger globalised wholesalers and vertically integrated retailers. Within market segments, concentration can be relatively high. For example, Electrolux states that it holds a 40.0% share of the core appliance market. GUD's Sunbeam brand and Breville Group Ltd also account for a high percentage of sales in many product categories in the Australian small electrical appliance market. The top four flat-panel TV vendors (Samsung, Panasonic, LG and Sony) are estimated to account for almost 60.0% of the Australian flat-panel TV market.

For more information, visit IBISWorld’s Household Appliance Wholesaling industry in Australia report page.

Organisations in this industry are primarily engaged in wholesaling household appliances such as TVs, DVD players, air conditioners, kitchen appliances (e.g. stoves, ovens, microwave ovens, fridges and freezers), vacuum cleaners, washing machines, clothes dryers, sewing machines and stereo equipment.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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