Home shopping: Online shopping and DIY renovation trends have driven revenue growth

The Online Hardware and Tool Sales industry has strongly grown over the past five years. Rising consumer adoption of online shopping platforms, and increasing capital expenditure on private dwellings have driven revenue growth over the period. As a result, industry revenue is expected to increase at an annualised 4.5% over the five years through 2018-19, to reach $304.8 million.In December 2016, Woolworths ceased operation of its Masters business. While other industry operators are expected to absorb some former Masters sales, some customers are likely to switch to shopping at bricks-and-mortar stores. The exit of Masters has also reduced market share concentration over most of the two years through 2017-18, providing smaller players with opportunities to boost sales...read 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

  • Rising consumer adoption of online shopping platforms has supported the industry
  • Homeowners and tradespeople have been attracted to the benefits that online outlets offer
  • Due to Bunnings’ entry, industry establishment numbers are projected to increase
  • Industry Report - Industry Investment Chapter

    The Online Hardware and Tool Sales industry displays moderate capital intensity. For every dollar spent as wages, an estimated $0.22 is invested in capital. Capital and labour requirements tend to vary between online and traditional retailers. Online retailers must invest in websites, which represent the largest capital outlay for industry players. Larger companies may also invest in warehouses to store hardware products, tools and building supplies, before these goods are distributed to customers. However, many operators lease these warehouses and storage facilities to minimise initial capital investment requirements.Aside from developing online purchasing systems, online hardware and tool retailing is labour intensive. Emp...purchase to read more.

    Additional Insights for the Online Hardware and Tool Sales Industry

    IBISWorld has determined the most important Key Success Factors for the Online Hardware and Tool Sales are:

  • Having a good reputation
  • Provision of superior after-sales service
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Internet connections and Consumer sentiment index in the Online Hardware and Tool Sales industry impact industry performance..

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    What's in this report

    What is the Online Hardware and Tool Sales Industry?

    Industry companies retail a range of hardware, tools and building supplies through the internet. The industry includes both online-only operators and bricks-and-mortar stores that have an online presence.

    Industry Products
  • Tools and equipment
  • Building supplies
  • Gardening tools
  • Paint supplies
  • Other hardware products
  • Industry Activities
  • Online hardware retailing
  • Online tool retailing
  • Online building supplies retailing
  • Online garden tool and equipment retailing
  • Online paint retailing
  • Online timber retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Internet connections
  • Consumer sentiment index
  • Real household discretionary income
  • Capital expenditure on private dwellings

  • Current Performance
  • Revenue and profitability
  • Downstream demand
  • Online benefits
  • The exit of Masters
  • The entry of Bunnings
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Online demand
  • Competition
  • Industry opportunities
  • Table: Online Hardware and Tool Sales Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Hardware and Tool Sales Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Consumers

  • Key Selling Industries
  • Fabricated Metal Product Manufacturing
  • Hardware Wholesaling
  • Nut, Bolt, Screw and Rivet Manufacturing

  • Products & Services
  • Tools and equipment
  • Paint supplies
  • Gardening tools
  • Other hardware products
  • Building supplies
  • Chart: Online Hardware and Tool Sales 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 Online Hardware and Tool Sales Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Online Hardware and Tool Sales

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Hardware and Tool Sales 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 Online Hardware and Tool Sales 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 Online Hardware and Tool Sales 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
    Big-Box Stores
  • Large warehouse-style retail outlets that tend to offer a diversified range of products.
  • Bricks-And-Mortar
  • A store that has a physical presence and location.
  • Click-And-Collect
  • The practice of purchasing products online and then collecting them via a bricks-and-mortar outlet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Hardware and Tool Sales market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Online Hardware and Tool Sales:
    • 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 Online Hardware and Tool Sales 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 Online Hardware and Tool Sales, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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