Domestic Appliance Retailing in Australia - Industry Market Research Report

Renovated: the Covid-19 Pandemic Has Provided the Industry With Revenue Growth Opportunities

Domestic appliance retailers are susceptive to shifts in consumer spending, which is why the COVID-19 pandemic's renovation boom has wavered the industry. Consumers tend to purchase big-ticket home appliances like refrigerators, washing machines and TVs instore, but this was largely impossible during rolling lockdowns and temporary bricks-and-mortar store closures. Home-bound consumers rapidly shifted to online channels to purchase these appliances - spurred along by an upswing in renovation projects and home entertainment trends - ramping demand for retailers with online platforms. Government assistance payments and surplus holiday funds uplifted real household discretionary income, aiding consumers buying power to spend on home appliances. Despite the highs, the pandemic has wreaked havoc on supply chains, leading to higher procurement costs and acute shortfalls instore stock. Overall, industry revenue is expected to rise by 2.4% over the five years through 2022-23, to $17.0 billion. This includes an estimated dip of 4.1% in the current year, as low consumer optimism scales back discretionary spending.

Industry operators retail a range of domestic appliances, including TVs, barbecues, refrigerators, microwaves, washing machines and vacuum cleaners. These products are purchased from manufacturers and wholesalers for resale to consumers at retail stores. The industry includes online sales by bricks-and-mortar retailers, but excludes department stores and online-only retailers.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.