On the fritz: Strong price competition has caused revenue and profitability to decline

The Household Appliance Wholesaling industry has faced a difficult trading environment over the past five years. Fluctuating consumer sentiment, a depreciating Australian dollar and rising competition have contributed to a decline in industry revenue over the period. However, increased demand stemming from greater residential construction activity has provided opportunities for some industry operators to grow. Industry revenue is expected to decline at an annualised 0.5% over the five years through 2018-19, to $9.5 billion. This includes an anticipated decline of 2.5% in the current year, attributable to a downturn in demand from residential building construction.Changes in the way consumers shop have affected industry operators over the past five years...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
-0.5%
Forecast Growth 19-24
Profit
Employment
13,831
Businesses
741

Industry Threats & Opportunities

  • Strong price competition has contributed to declining industry revenue and profitability
  • Rising residential construction activity has supported the industry over the past five years
  • Innovative products that offer added convenience or greater energy efficiency will boost demand
  • Industry Report - Industry Key Buyers Chapter

    The Household Appliance Wholesaling industry displays low market share concentration, with the top four players expected to account for approximately 27% of industry revenue in 2018-19. Several small localised enterprises have exited the industry over the past five years as competition has increased and profit margins have tightened. These enterprises have been steadily replaced by larger globalised wholesalers and vertically integrated retailers, which have expanded their share of the market over the past five years.As the industry's product range is broad, market share concentration can vary by product segment. For example, the game console segment is dominated by Nintendo, Sony and Microsoft with few small players competing directly against them. In ...purchase to read more.

    Additional Insights for the Household Appliance Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Household Appliance Wholesaling are:

  • Guaranteed supply of key inputs
  • Ability to control stock on hand
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Demand from domestic appliance retailing and Demand from residential building construction in the Household Appliance Wholesaling industry impact industry performance..

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    What's in this report

    What is the Household Appliance Wholesaling Industry?

    Industry organisations primarily wholesale 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.

    Industry Products
  • Stoves, ovens and microwaves
  • Refrigerators, freezers and dishwashers
  • Washing machines and dryers
  • Air conditioners and heaters
  • Other audiovisual equipment
  • Other household electrical appliances
  • Televisions
  • Industry Activities
  • Air conditioner, fan and heater wholesaling
  • Household floor-polisher wholesaling
  • Kitchen appliance wholesaling
  • Radios and TV (and parts) wholesaling
  • Refrigerator wholesaling (except commercial refrigeration equipment)
  • Sewing machine wholesaling
  • Electric shaver wholesaling
  • Domestic vacuum cleaner and washing machine wholesaling
  • DVD player and personal MP3 player wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from domestic appliance retailing
  • Demand from residential building construction
  • Real household discretionary income
  • Consumer sentiment index
  • Trade-weighted index

  • Current Performance
  • Wholesale bypass
  • Demand trends
  • Changing retail environment
  • Profitability and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition and innovation
  • Consumer trends
  • Retail spending
  • Profitability and participation
  • Table: Household Appliance Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Household Appliance Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Supermarkets and Grocery Stores
  • Domestic Appliance Retailing
  • Houseware Retailing
  • Hardware and Building Supplies Retailing
  • Pharmacies

  • Key Selling Industries
  • Household Appliance Manufacturing

  • Products & Services
  • Televisions
  • Refrigerators, freezers and dishwashers
  • Other household electrical appliances
  • Other audiovisual equipment
  • Stoves, ovens and microwaves
  • Washing machines and dryers
  • Air conditioners and heaters
  • Chart: Household Appliance Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household appliance retailers
  • Department stores
  • Other service industries
  • Chart: Major Market Segmentation for the Household Appliance Wholesaling 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 Household Appliance Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Household Appliance Wholesaling Industry

  • Industry Globalization
    Samsung Electronics Australia Pty Ltd, Electrolux Home Products Pty Limited, LG Electronics Australia Pty Limited,
  • Table: Samsung Electronics Australia Pty Ltd - financial performance
  • Table: Electrolux Home Products Pty Limited - financial performance
  • Table: LG Electronics Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Household Appliance Wholesaling 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 Household Appliance Wholesaling 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
    Brown Goods
  • Electronic items such as TVs, stereo, DVD players and computers.
  • Whitegoods
  • Major domestic appliances, such as refrigerators and washing machines.
  • Wholesale Bypass
  • A trend whereby the wholesaler is bypassed in the supply chain, such as when retailers purchase directly from the manufacturer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Household Appliance Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Household Appliance Wholesaling:
    • 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 Household Appliance Wholesaling 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 Household Appliance Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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