White flag: Fierce price competition has contributed to some industry exits

The Whitegoods Wholesaling industry has endured tough market conditions over the past five years. Volatile consumer sentiment and weak retail conditions limited demand from whitegoods retailers over the period. Slower demand from these downstream retail market led to significant price-based competition among operators, as wholesalers sought to secure supply contracts. Despite this, more efficient manufacturing processes overseas made new whitegoods cheaper to import, putting downward pressure on per-unit prices. Industry revenue is expected to decline at an annualised 2.8% over the five years through 2017-18, to $3.1 billion. Deteriorating demand from downstream markets, coupled with a fall in dwelling commencements, is expected to reduce industry revenue by 1.7% in 2017-18...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-2.8%
Forecast Growth 18-23
Profit
Employment
4,403
Businesses
313

Industry Threats & Opportunities

  • Strong competition and a depreciating dollar have eroded industry profit margins
  • Volatile consumer sentiment has curbed spending on whitegoods, causing retailers to cut prices
  • Wholesale bypass is anticipated to continue threatening the industry over the next five years
  • Industry Report - Starting a New Business Chapter

    The industry faces high barriers to entry. There are no licensing requirements, government regulations or resource constraints that prevent firms from entering the industry. However, the substantial capital investment required to establish warehouse and distribution facilities can deter new players. Potential entrants must also be prepared to invest significantly in computerised inventory systems if they want to compete effectively with larger companies.Competition is high and existing players such as Electrolux and Samsung have well-established operations and reputations. Industry operators typically compete for the same retail customers, and incumbent firms have built strong relationships with suppliers and retailers. Thi...purchase to read more.

    Additional Insights for the Whitegoods Wholesaling Industry

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

  • Guaranteed supply of key inputs
  • Prompt delivery to market
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Demand from domestic appliance retailing and Dwelling commencements in the Whitegoods Wholesaling industry impact industry performance..

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    What's in this report

    What is the Whitegoods Wholesaling Industry?

    Industry participants mainly wholesale whitegoods such as refrigerators, washing machines and ovens. The industry includes operators that also wholesale brown goods and consumer electronics. However, revenue generated from these activities is not included in the industry.

    Industry Products
  • Refrigerators, freezers and dishwashers
  • Cooking stoves, ovens and microwaves
  • Washing machines and clothes dryers
  • Air conditioners and heaters
  • Industry Activities
  • Air conditioner and heater wholesaling
  • Refrigerator wholesaling
  • Freezer wholesaling
  • Oven and stove wholesaling
  • Washing machine and dryer wholesaling
  • Dishwasher 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
  • Dwelling commencements
  • Trade-weighted index
  • Consumer sentiment index
  • Real household discretionary income

  • Current Performance
  • Retail conditions
  • Price competition
  • House construction
  • Energy efficiency
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Intense competition
  • Environment and technology
  • Table: Whitegoods Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Whitegoods Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Accommodation and Food Services
  • Laundry and Dry-Cleaning Services
  • Domestic Appliance Retailing

  • Key Selling Industries
  • Household Appliance Manufacturing

  • Products & Services
  • Refrigerators, freezers and dishwashers
  • Cooking stoves, ovens and microwaves
  • Washing machines and clothes dryers
  • Air conditioners and heaters
  • Chart: Whitegoods Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic appliance retailers
  • Other service industries
  • Department stores
  • Chart: Major Market Segmentation for the Whitegoods Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and other
  • Chart: Cost Structure Benchmarking – Sector vs Whitegoods Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Whitegoods Wholesaling Industry

  • Industry Globalization
    Electrolux Home Products Pty Limited, Fisher & Paykel Australia Holdings Limited, Samsung Electronics Australia Pty Ltd, LG Electronics Australia Pty Limited,
  • Table: Electrolux Home Products Pty Limited - financial performance
  • Table: Fisher & Paykel Australia Holdings Limited - financial performance
  • Table: Samsung Electronics Australia Pty Ltd - financial performance
  • Table: LG Electronics Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Whitegoods 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 Whitegoods 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
    Brown Goods
  • Smaller, more easily portable household appliances, such as kettles, toasters and irons.
  • Consumer Electronics
  • Electronic equipment intended for entertainment, communication and office use, such as TVs, computers, mobile phones and MP3 players.
  • Whitegoods
  • Major, heavy appliances that have historically been painted or enamelled white, such as refrigerators, freezers and washing machines.
  • Wholesale Bypass
  • The process of eliminating the wholesaler from the supply chain, such as when retailers purchase directly from the manufacturer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Whitegoods 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:
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    This report on Whitegoods 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 Whitegoods 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 Whitegoods Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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