Boiling over: Profitability has declined due to intense price-based competition

Changes to the retail landscape and mounting competition from external operators have created a tough trading environment for operators in the Domestic Appliance Retailing industry over the past five years. Despite continued advances in product design and technology, industry revenue growth has been limited by strong price-based competition, progressive declines in the average price of some domestic appliance categories, and weak consumer sentiment. Trends in real household discretionary income and household composition have also affected the industry's trading conditions over the five-year period. Overall, industry revenue is expected to grow at an annualised 2.1% over the five years through 2018-19, to $14.7 billion.Industry revenue is expected to fall by 2.2%...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 14-19
2.1%
Forecast Growth 19-24
Profit
Employment
40,179
Businesses
3,556
Market Share of Companies

Industry Threats & Opportunities

  • Strong price-based competition and weak consumer sentiment have limited revenue growth
  • The number of households has risen, boosting demand for domestic appliances
  • Renovation activity will likely continue influencing demand for new and replacement appliances
  • Industry Report - Industry Products Chapter

    The main products offered by the Domestic Appliance Retailing industry are domestic whitegoods, TVs, mobile phones and telephone handsets, and audio goods. Other goods retailed by the industry include in-car navigation systems, electric shavers, ereaders, electric toothbrushes, hair dryers and barbecues.Domestic whitegoodsDomestic whitegoods make up the industry's largest product segment, and include cooking stoves, ovens, microwaves, hotplates, refrigerators, freezers, washing machines, air conditioners, dishwashers and clothes dryers. Many of these items are considered essential for most households. Prices vary significantly across different whitegoods, depending on the brand and quality. Dem...purchase to read more.

    Additional Insights for the Domestic Appliance Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Domestic Appliance Retailing Industry are

  • Attractive product presentation
  • Having a clear market position
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household discretionary income in the Domestic Appliance Retailing industry impact industry performance..

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    What's in this report

    What is the Domestic Appliance Retailing Industry?

    Industry operators retail a range of domestic appliances, including TVs, barbecues, refrigerators, microwaves, washing machines and vacuum cleaners. These products are purchased from manufacturers and wholesalers for resale to consumers at retail stores. The industry includes online sales by bricks-and-mortar retailers, but excludes department stores and online-only retailers.

    Industry Products
  • Domestic whitegoods
  • Other household appliances
  • TVs
  • Audio goods
  • Mobile phones and telephone handsets
  • Other goods
  • Industry Activities
  • Heating and cooling equipment retailing
  • Domestic household appliance retailing
  • Audiovisual equipment retailing
  • Mobile phone and telephone retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Real household discretionary income
  • Number of households
  • Demand from online shopping
  • Demand from residential building construction

  • Current Performance
  • Trading landscape
  • Profit and competition
  • Industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Intensifying competition
  • Profit and participation
  • Table: Domestic Appliance Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Domestic Appliance Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Household Appliance Manufacturing
  • Household Appliance Wholesaling
  • Wireless Telecommunications Carriers

  • Products & Services
  • Domestic whitegoods
  • TVs
  • Audio goods
  • Other household appliances
  • Other goods
  • Mobile phones and telephone handsets
  • Chart: Domestic Appliance Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Domestic Appliance Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Domestic Appliance Retailing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Domestic Appliance Retailing Industry

  • Industry Globalization
    JB Hi-Fi Limited, Harvey Norman Holdings Ltd,
  • Table: JB Hi-Fi Limited - financial performance
  • Table: Harvey Norman Holdings Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Domestic Appliance Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Domestic Appliance Retailing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Internet Of Things
  • The network of physical objects, including devices, buildings, vehicles and other items, embedded with software, sensors, and network connectivity that enable these objects to exchange data.
  • Point Of Sale (Pos) Systems
  • Electronic systems used at check-out points in retail stores to process sales and capture information. This information is used to manage back of house functions, such as inventory management.
  • Subscription Video On Demand (Svod)
  • A subscription service that allows users to select and view content at a time and place of their choosing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Domestic Appliance Retailing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Domestic Appliance Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Domestic Appliance Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Domestic Appliance Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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