More seats at the table: Rising household incomes have boosted demand and enticed new entrants

The Furniture Retailing industry has faced a tough trading environment over the past five years, with revenue growth stifled by increasing competition. Within the industry, players typically compete on the basis of price and product range. External competition comes from a range of other operators that sell furniture as part of their operations, including department stores, auction websites and online-only players. Despite rising competition, industry revenue is expected to grow at an annualised 1.2% over the five years through 2018-19, to $920.4 million. Real household discretionary income growth, positive consumer sentiment, and ongoing demand across the residential building construction market are expected to support the industry's revenue growth over the period...read more.

Industry Statistics & Market Size
Revenue
$920m
Annual Growth 14-19
1.2%
Forecast Growth 19-24
Profit
Employment
3,380
Businesses
654

Industry Threats & Opportunities

  • Increasing competition has stifled industry revenue growth over the past five years
  • The industry’s profit margins are quite low, due to the intense competition among players
  • Strong competition is forecast to reduce profit margins over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Furniture Retailing industry is characterised by moderate market share concentration. While the majority of industry participants are small-scale furniture retailers, the top four players are estimated to account for almost 50% of total industry revenue. Large-scale operators such as Harvey Norman, Furniture Zone, Big Save Furniture and Freedom Furniture are well-known businesses that operate an extensive network of chain stores. As a result, the market dominance of these players may deter the entry of new businesses. Prospective industry entrants may also be hindered by the industry's moderate barriers to entry and increasingly competitive environment.Industry concentration has strengthened over the past five years. Des...purchase to read more.

    Additional Insights for the Furniture Retailing Industry

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

  • Attractive product presentation
  • Having a clear market position
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Capital expenditure on residential buildings in the Furniture Retailing industry impact industry performance..

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    What's in this report

    What is the Furniture Retailing in New Zealand Industry?

    Industry operators primarily retail household furniture, blinds, awnings and mattresses through brick-and-mortar stores. This includes antique reproduction furniture, but excludes retailing second-hand or antique furniture. Curtain retailing, and manufacturing and installing blinds or awnings are not included in the industry. Online-only retailers and auction websites are also excluded.

    Industry Products
  • Lounge and dining room furniture
  • Bedroom furniture
  • Blinds and awnings
  • Outdoor and garden furniture
  • Other furniture
  • Industry Activities
  • Bedroom furniture retailing
  • Lounge and dining room furniture retailing
  • Blind and awning retailing
  • Outdoor and garden furniture retailing
  • Other furniture retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Capital expenditure on residential buildings
  • Consumer sentiment index
  • Cash rate
  • Trade-weighted index

  • Current Performance
  • Trading landscape
  • Competition and profit
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating landscape
  • Profit and competition
  • Table: Furniture Retailing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling in New Zealand
  • Furniture and Floor Covering Wholesaling in New Zealand
  • Furniture Manufacturing in New Zealand
  • Household Appliance Wholesaling in New Zealand

  • Products & Services
  • Lounge and dining room furniture
  • Bedroom furniture
  • Blinds and awnings
  • Outdoor and garden furniture
  • Other furniture
  • Chart: Furniture 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 Furniture Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, depreciation and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Furniture Retailing

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    Harvey Norman Limited, Bed Rumours Limited, Big Save Limited, Freedom Furniture New Zealand Limited,
  • Table: Harvey Norman Limited - financial performance
  • Table: Bed Rumours Limited - financial performance
  • Table: Big Save Limited - financial performance
  • Table: Freedom Furniture New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture 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 Furniture 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
    Online-Only Retailers
  • Retailers that operate online without a bricks-and-mortar store.
  • Point Of Sale (Pos)
  • Computerised systems used in retail sales to complete transactions.
  • Radio Frequency Identification
  • Tags or labels that enable products to be tracked through the supply chain
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Furniture Retailing in New Zealand 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
    • Quickly build competitive intelligence
    This report on Furniture Retailing in New Zealand:
    • 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 Retailing in New Zealand 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 Retailing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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