Taking a seat: 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 web sites and online-only players. Despite rising competition, Industry revenue is expected to grow at an annualised 1.9% over the five years through 2017-18, to reach $780.0 million. This growth is anticipated to be supported by greater real household discretionary income, positive consumer sentiment and ongoing demand across the residential building construction market...read more.

Industry Statistics & Market Size
Revenue
$780m
Annual Growth 13-18
1.9%
Forecast Growth 18-23
Profit
Employment
3,235
Businesses
858

Industry Threats & Opportunities

  • Increasing competition has placed downward pressure on industry revenue over the past five years
  • Profitability has been eroded by increasing industry competition
  • Strong competition will continue to reduce profit margins over the next five years
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry and the trend is steady. New players may be deterred from entering the industry due to its moderate market share concentration. The industry's top four players are estimated to account for almost 55% of the market. These well-known businesses have existing store networks and a loyal customer base, which represents a tough hurdle for new entrants. The industry's moderate and increasing level of competition may also deter the entry of new players. Operators primarily compete on price and product range, with some players choosing to specialise in a particular style of furniture as a point of difference. The industry's mature life cycle stage also presents little growth opportunities for new entrants...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 Consumer sentiment index 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
  • Consumer sentiment index
  • Demand from residential building construction
  • Cash rate
  • Trade-weighted index

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

  • Industry Outlook
  • Operating landscape
  • Profit and competition
  • Industry structure
  • 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
  • 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 Holdings Ltd, Bed Rumours Limited, Big Save Limited, Steinhoff Asia Pacific Group Holdings Pty Ltd,
  • Table: Harvey Norman Holdings Ltd - financial performance
  • Table: Bed Rumours Limited - financial performance
  • Table: Big Save Limited - financial performance
  • Table: Steinhoff Asia Pacific Group Holdings Pty Ltd - 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 (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
    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 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 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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