The Circuit Breaker in 2020 meant that people had to spend their time at home. The myriad of online stores catering to household furnishings has prompted homeowners to shift their attention to buying from these online stores boosting sales in the sector. The Department of Statistics reported an 8 per cent year-on-year increase in exports for this sector in 2020 while domestic consumption slumped by 32 per cent.
Overview of the Sector
The Household Equipment and Furniture market segment consists of major domestic white goods such as washing machines, dishwashers, refrigerators, and washer-dryers. Domestic appliances such as coffee machines, food processors, microwaves and vacuum cleaners belong to the small domestic category. These appliances can be purchased from online platforms such as Harvey Norman and Best Denki.
The Household Equipment and Furniture market has been heavily impacted by the global corona virus pandemic of 2020. For many parts of the industry, the pandemic has been a boon as reflected in the 2020 export data. When lock downs and stay-at-home orders were instituted in April last year, many companies had their employees transition to a home office environment. This move required millions of people to set up an office space for themselves for the first time and purchase the necessities to do so. Restrictions in movement and leisure activities also meant that those DIY projects people had been putting off suddenly became one of the few things people could invest their time into. The beginning of the pandemic also set off a wave of panic buying and hoarding of essential household items. It was not uncommon to see such basics as toilet paper and paper towels out of stock.
The Online Furniture Shopping Experience
In the past, buying a piece of furniture meant going from showroom to showroom at different locations. Now, the ease of shopping online from home has made it even more convenient for homeowners. Online buyers can view the item and see it in different home layouts, its dimensions, read reviews of other customers who have bought it and arrange for installation and delivery from the website. Some companies even allow for customization of size and colour.
Companies that have gained customers' attention include Ikea, Hipvan, Castlery, FortyTwo, Crate and Barrel and Urban Outfitters. Each site offers the online shopper a clear understanding of the product they are ordering.
Digital Transformation will continue to drive this sector in the coming years.
According to the Department of Statistics, the Household Equipment and Furniture encompass the following:
- SSIC 46431 Furniture (including mattresses, cushions)
- SSIC 46432 Furnishings (including curtains, carpets, wallpaper)
- SSIC 46433 Lighting and lighting accessories
- SSIC 46434 Crockery, cutlery and kitchen utensils
- SSIC 46435 Household electrical appliances and equipment (including household air-conditioners)
- SSIC 46436 Audio and video equipment except electrical and electronic components (e.g. radio and television sets, sound reproducing and recording equipment)
- SSIC 46437 Musical instruments and scores
- SSIC 46439 Furniture, home furnishings and other household equipment nec
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