Homeware retailing in Australia is making a comeback after a tough few years according IBISWorld’s latest industry report. Revenue fell for three years in a row but bounced back in 2011-12.
Revenue is forecast to rise at an annualised 0.1 per cent over the five years through 2012-13. It is predicted to return to moderate growth and hit $1.7 billion in 2017-18 after growing at an annualised rate of 2.7 per cent.
In the report, Ricky Willianto says the renewed interest in purchasing homewares is partly due to the popularity of reality DIY and cooking shows. “These programs inspire people to take up cooking or home redecorating as pastime activities,” he states.
The industry is also expected to benefit from the growth in housing construction, which started in 2009-10 and continued in 2010-11, as well as a downward trend in housing prices. This is because consumers tend to update or buy new homewares when they renovate or move into a new home, the report says.
Moreover, building and renovating activity needed after floods in Queensland, New South Wales and Victoria has increased demand for homewares. The report says this “one-off boost” will fuel growth in the industry into 2012-13.
However, IBISWorld notes that the effects of the global financial crisis are still being felt and current concerns about overseas economies like the US and local uncertainty has changed Australians from spenders to savers.
Despite this the report highlights a positive outlook for the industry and outlines purchasing trends for the next five years. Tableware has lost market share over the past 10 years because of a move away from “expensive dinner sets to entertain guests”. Consumers are now more interested in versatile products.
Glassware meanwhile has remained stable and lifted its industry share slightly over the last 10 years. The report says this is because drinking habits remain the same and people are still happy to buy things like champagne flutes as they don’t have a substitute. The category also includes mugs and cups which are staple items in a household.
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