Ground to cover: Industry operators are challenged by wholesale bypass and intense competition

Operators in the Furniture and Floor Covering Wholesaling industry have faced difficult trading conditions over the past five years. Wholesale bypass represents a significant constraint on the long-term pace of industry expansion as retailers increasingly look to dealing directly with manufacturers and importers, which can squeeze traditional wholesalers out of the furniture supply chain. Some wholesalers are confronting the issue by establishing positions in the online furniture market, while others have expanded their capacity to sell direct to the public. Moderate demand growth for furniture and floor coverings from downstream residential and commercial building markets has supported the industry's performance over the past five years, despite intense competition in the supply more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Weak discretionary income and wholesale bypass are driving down industry sales
  • Exposure to wholesale bypass and competition from online retailers has limited revenue growth
  • Wholesale bypass will continue to erode the industry’s position in the supply chain
  • Industry Report - Industry Key Buyers Chapter

    The Furniture and Floor Covering Wholesaling industry exhibits a low level of concentration, with the four largest players contributing less than 15.0% of annual revenue during 2018-19. The concentration held by major players in the industry has fallen over the past five years due to the continued effect of wholesale bypass and a volatile trading environment. Industry concentration has also been affected by the growing number of manufacturing businesses becoming vertically integrated and expanding their operations to include wholesaling activity.The industry has a fragmented structure comprising many small-scale businesses servicing narrow geographic or niche product markets. An estimated 95.0% of enterprises employ fewer than 20 people, including 41.9% o...purchase to read more.

    Additional Insights for the Furniture and Floor Covering Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Furniture and Floor Covering Wholesaling are:

  • Ability to control stock on hand
  • Experienced work force
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from furniture retailing and Demand from floor coverings retailing in the Furniture and Floor Covering Wholesaling industry impact industry performance..

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    What's in this report

    What is the Furniture and Floor Covering Wholesaling Industry?

    Industry operators wholesale blinds, floor coverings, furniture and mattresses. Wholesalers act as the supply link between manufacturers and retailers. The wholesale of ceramic tiles and canvas blinds is excluded from the industry.

    Industry Products
  • Bedroom furniture
  • Lounge and dining room furniture
  • Office and other furniture
  • Carpets
  • Vinyl and other flooring covering
  • Industry Activities
  • Blind wholesaling (except textile)
  • Floor covering wholesaling (except ceramic floor tiles)
  • Furniture wholesaling
  • Mattress 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 furniture retailing
  • Demand from floor coverings retailing
  • Real household discretionary income
  • Consumer sentiment index
  • Trade-weighted index

  • Current Performance
  • Operating landscape
  • Profit
  • Structural environment
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Short-term sales growth
  • Wholesale bypass continues
  • Trading landscape
  • Table: Furniture and Floor Covering Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture and Floor Covering Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Furniture Retailing
  • Floor Coverings Retailing
  • Accommodation and Food Services
  • Education and Training
  • Health Services

  • Key Selling Industries
  • Mattress Manufacturing
  • Metal Furniture Manufacturing
  • Wicker and Fibreglass Furniture Manufacturing
  • Wooden Furniture and Upholstered Seat Manufacturing

  • Products & Services
  • Lounge and dining room furniture
  • Carpets
  • Bedroom furniture
  • Vinyl and other flooring covering
  • Office and other furniture
  • Chart: Furniture and Floor Covering Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Residential and commercial construction
  • Income, consumer sentiment and interest rates
  • Wholesale bypass and online sales

  • Major Markets
  • Retailers
  • Businesses and commercial customers
  • Households
  • Chart: Major Market Segmentation for the Furniture and Floor Covering Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Road transport services
  • Depreciation and rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Furniture and Floor Covering Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture and Floor Covering Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture and Floor Covering 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 Furniture and Floor Covering Wholesaling Industry
  • 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
  • Operators using the internet to undertake business transactions (i.e. selling goods online).
  • Vertically Integrated
  • Describes a style of operations and management, whereby a firm engages in different parts of production, manufacturing, distribution and retail.
  • Wholesale Bypass
  • When buyers bypass or skip wholesalers to buy directly from the manufacture and thereby cut costs.
  • What Our Customers Say

    Why buy this report?

    The Furniture and Floor Covering Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Furniture and Floor Covering 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 Furniture and Floor Covering 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 Furniture and Floor Covering Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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