Online shopping thrives despite poor economic conditions
London, United Kingdom (PRWEB) March 01, 2013
Over the past five years to 2012-13, the Online Home Furnishing Sales industry is expected to post annualised growth of 17.8% to reach £1.24 billion. According to IBISWorld industry analyst Kiera Outlaw, “despite the poor economic conditions over the past five years, consumers scaling back on large discretionary purchases largely supported this growth as they refrained from home renovations projects and big-ticket furniture purchases in favour of jazzing up existing décor with less expensive decorative items such as table linens, lamps and throw pillows”.
Although the industry experienced considerable growth over the past five years, IBISWorld expects the level of competition also rose considerably, evidenced by slower growth of 7.6% in 2012-13. As more players realised the benefits of the online retail space, IBISWorld expects industry establishments grew at an annualised 18.6% in the five years to 2012-13. As a result, industry participants began competing on price, employing a number of pricing strategies and discount offers such as free shipping. Moreover, the rise of mass merchandisers operating in the online retail space place further pressure on industry players. With the ability to offer consumers a one-stop-shop online platform, larger players, such as Asda Direct, have the potential to siphon industry revenue.
However, with the ability to offer consumers high quality, and to some extent customisable home furnishing products, IBISWorld forecasts industry revenue will continue to grow strongly over the five years through 2017-18. Outlaw adds, “as the UK economy continues its slow recovery, IBISWorld expects consumers to loosen their purse strings, further supporting exceptional revenue growth over the next five years”. Pressure from external and internal competition is expected to continue to increase. In an effort to remain competitive, industry players will need to ensure the smooth operation of their online portals.
The Online Home Furnishing Sales industry has a low level of market share concentration, with the top four players accounting for a little over 20% of the industry. The high level of fragmentation within the online space means that no single player has enough clout so as to influence the entire industry. Further, the expansive nature of online retail makes it very difficult for a single retailer to have any material effect on an industry, unless it's very niche or specific. Major companies include Home Retail Group and IKEA.
For more information on the Online Home Furnishing Sales industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Businesses in this industry retail a range of home furnishing goods, such as curtains, draperies, blinds, shades and decorative accessories, via the internet. Merchandise is purchased from domestic (and in some cases international) manufacturers and wholesalers, and then sold to the public online.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.