Floored: Wholesale bypass trends will continue constraining the industry's performance

The performance of the Furniture and Floor Covering Wholesaling industry has been significantly impeded over the past five years by its increasing exposure to wholesale bypass. Wholesale bypass is the practice whereby retailers or other downstream markets source products directly from manufacturers or import agents, which effectively eliminates the need for wholesalers.Despite the negative effects of wholesale bypass, the industry has benefited from favourable trends in household and business spending over the past five years, along with stronger demand for furniture and floor coverings for installation in new housing and non-residential buildings. Industry revenue is expected to increase at an annualised 1.2% over the five years through 2017-18, to reach $680.5...read more.

Industry Statistics & Market Size
Revenue
$681m
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
1,435
Businesses
405
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry continues to lose market share due to the rising wholesale bypass trend
  • The exposure to wholesale bypass has significantly impeded the industry’s performance over the past five years
  • Solid demand is expected from the non-residential building market over the next five years
  • Industry Report - Industry Analysis Chapter

    Wholesale bypass has significantly constrained the performance of the Furniture and Floor Covering Wholesaling industry over the past five years. The underlying demand for furniture and floor covering products has been solid, underpinned by favourable trends in the housing and non-residential building markets, along with rising household discretionary incomes. Industry revenue is expected to increase at an annualised 1.2% over the five years through 2017-18, to total $680.5 million. This includes expected industry revenue growth of 1.7% during the current year, due to anticipated increased sales to downstream retailing industries on the back of improved consumer sentiment and rising household discretionary income...purchase to read more.

    Additional Insights for the Furniture and Floor Covering Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Furniture and Floor Covering Wholesaling Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Guaranteed supply of key inputs
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Demand from non-residential building construction and Real household discretionary income 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 in New Zealand 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
  • Lounge and dining furniture
  • Bedroom furniture
  • Office and other furniture
  • Carpets
  • Vinyl and other floor coverings
  • 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 non-residential building construction
  • Real household discretionary income
  • Trade-weighted index
  • Consumer sentiment index
  • Demand from residential building construction

  • Current Performance
  • Wholesale bypass

    and profitability

  • Demand trends
  • Structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand drivers
  • Profitability and participation
  • 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
  • Construction in New Zealand
  • Department Stores in New Zealand
  • Furniture Retailing in New Zealand
  • Floor Coverings Retailing in New Zealand
  • Commercial Property Operators in New Zealand

  • Key Selling Industries
  • Furniture Manufacturing in New Zealand

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

  • Demand Determinants
    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
  • Chart: Cost Structure Benchmarking – Sector vs Furniture and Floor Covering Wholesaling

  • Basis of Competition
  • Internal competition
  • External 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
    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
    B2b
  • Business-to-business (B2B) is the terminology for online (e-commerce) transactions between businesses.
  • Supply Chain
  • A system of organisations, people and resources involved in moving a product from a supplier to the consumer.
  • Wholesale Bypass
  • The trend for retailers to source products directly from manufacturers and cut wholesalers out of the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Furniture and Floor Covering Wholesaling 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 and Floor Covering Wholesaling 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 and Floor Covering Wholesaling 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 and Floor Covering Wholesaling 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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