Turned off at the wall: Heavy price competition has decreased revenue

The past five years have been challenging for the Household Appliance Wholesaling industry. Weak consumer sentiment, a depreciating Australian dollar, and an increasingly competitive operating environment have all created tough trading conditions for industry firms. There is a high level of product innovation in the industry and wholesalers must stock the newest and best products to perform well. Increased competition at the retail level has deflated prices over the past five years, contracting industry revenue despite wholesalers selling higher volumes of household appliances. Industry revenue is expected to decline by an annualised 2.8% over the five years through 2017-18, to total $8.4 billion. Revenue is expected to fall by 1.7%...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Weak consumer sentiment and strong price competition have contributed to industry revenue declines
  • The increase in residential building construction has supported demand for industry products
  • Product innovation that offers added convenience or improved energy efficiency will boost demand
  • Industry Report - Industry Key Buyers Chapter

    The Household Appliance Wholesaling industry is characterised by a low level of market share concentration, with the top four players expected to account for less than 40% of revenue in 2017-18. Industry concentration has risen over the past five years. Several small localised enterprises have left the market over period as competition has increased and margins have contracted. These 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.Concentration is relatively high in some market segments. For example, Electrolux states that it holds roughly 40.0% share of the core appliance market. GUD...purchase to read more.

    Additional Insights for the Household Appliance Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Household Appliance Wholesaling Industry 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 and ovens
  • Refrigerators, freezers and dishwashers
  • Washing machines and dryers
  • Air conditioners and heaters
  • Other audiovisual equipment
  • Other household electrical appliances
  • Televisions
  • Video equipment and games consoles
  • 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
  • Residential building construction
  • Changing retail environment
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Retail spending
  • Consumer trends
  • Competition and innovation
  • 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 audiovisual equipment
  • Other household electrical appliances
  • Video equipment and games consoles
  • Stoves and ovens
  • 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
  • Profit
  • Purchases
  • Wages
  • Other
  • 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,
  • Table: Samsung Electronics Australia Pty Ltd - financial performance
  • Table: Electrolux Home Products 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
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    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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