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Online Home Furnishing Sales in Australia - Market Research Report (2014-2029)

Claudia Burgio-Ficca Claudia Burgio-Ficca Melbourne, Australia Last Updated: November 2024 ANZSIC OD4174

Revenue

$2.1bn

2024-25

$2.1bn

Past 5-Year Growth

Profit

$XX.Xm

Employees

6,381

Businesses

1,269

Wages

$XXX.Xm

Online Home Furnishing Sales in Australia industry analysis

The Online Home Furnishing Sales industry has exhibited a roller-coaster trajectory in recent years. The initial stages of the pandemic ignited a boom for online retailers as consumers, confined to their homes, sought to enhance their living spaces with new furnishings. However, the post-pandemic landscape has introduced challenges. Strong inflation and high interest rates have meant consumers have become more frugal, prioritising essential purchases over discretionary spending. Volatile consumer purchasing power has challenged online furnishing retailers. Industry revenue is anticipated to have risen at an annualised 9.3% over the five years through 2024-25, to $2.1 billion. This includes expected growth of 5.3% in 2024-25, owing to a hike in discretionary income.

Trends and Insights

  • Shifts towards online shopping have fuelled a surge in industry sales. Improved technological literacy has helped consumers become increasingly comfortable buying a more comprehensive range of goods online.
  • Expanding product ranges have fuelled sales. Bed linen, floor rugs and home decor goods sales have risen as online retailers have given consumers more choices.
  • New South Wales, Victoria and Queensland dominate the online home furnishings market. These states’ high populations mean online retailers can target a significant pool of consumers.
  • Product price and range are the key basis of competition for online home furnishing sites. Online sites also use incentives like free delivery and returns to attract shoppers.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 9.3 % over the past five years, to reach an estimated $2.1bn in 2024.

Trends and Insights

Changing conditions have led to sales fluctuations

  • Online home furnishing sales surged during pandemic restrictions, when customers were encouraged consumers to shop online rather than instore. Growth in home renovation projects at this time fuelled consumer demand for home furnishings and boosted profitability.
  • Additional trends and insights available with purchase
Online Home Furnishing Sales in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Online connectivity is set to continue rising

  • The pool of potential customers choosing to shop online is set to keep expanding as migration numbers escalate and new technology, like fibre connections, are adopted.

Biggest companies in the Online Home Furnishing Sales in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Temple & Webster
220.0
Spotlight
191.4
Adairs
119.1

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Home Furnishing Sales in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Bed linen, Window coverings and Floor rugs, mats and matting. Bed linen is the largest segment of the Online Home Furnishing Sales in Australia.

Trends and Insights

Bed linen sales have surged thanks to an upturn in household numbers

  • Bed linen includes bed sheets, fitted sheets, mattress liners, mattress protectors, pillowcases, quilt covers and blankets. Rising household numbers have contributed to stronger bed linen sales.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators retail home furnishing goods online. Products include manchester, curtains, draperies, blinds, shades and decorative accessories. Merchandise is purchased from domestic and international manufacturers and wholesalers, and then onsold to the public. Industry operators are either pure-play online retailers or the online operations of bricks-and-mortar stores.

What's included in this industry?

Bed linenFloor rugs, mats and mattingHome decorWindow coveringsHome textile products

Companies

Temple & WebsterSpotlightAdairs

Purchase this report to view all 4 major companies in this industry.

Related Terms

BIG-BOX RETAILEROMNI-CHANNELPURE-PLAY

Industry Code

ANZSIC 2006

ANZSIC 4213 - Online Home Furnishing Sales in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Shifts towards online shopping have fuelled a surge in industry sales. Improved technological literacy has helped consumers become increasingly comfortable buying a more comp...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Expanding product ranges have fuelled sales. Bed linen, floor rugs and home decor goods sales have risen as online retailers have given consumers more choices.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

New South Wales, Victoria and Queensland dominate the online home furnishings market. These states’ high populations mean online retailers can target a significant pool of co...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Product price and range are the key basis of competition for online home furnishing sites. Online sites also use incentives like free delivery and returns to attract shoppers...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Merger and acquisition activity has enabled online home furnishing sites to expand their product range and customer base. As a form of differentiation, sites have also branch...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Temple & Webster's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Spotlight's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Adairs's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Temple & Webster, and factors influencing its performance in the industry
  • Description and key data for Spotlight, and factors influencing its performance in the industry
  • Description and key data for Adairs, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Changes to GST legislation have removed overseas-based online home furnishing sites’ competitive advantage over local online sites. This has created a level playing field bet...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Surging sales and a drop in wages' revenue share have helped online home furnishing sites strengthen profitability. Cost management improvements have also contributed to a ri...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Online Home Furnishing Sales industry in Australia in 2024?

The market size of the Online Home Furnishing Sales industry in Australia is $2.1bn in 2024.

How many businesses are there in the Online Home Furnishing Sales in Australia industry in 2024?

There are 1,269 businesses in the Online Home Furnishing Sales industry in Australia, which has grown at a CAGR of 7.9 % between 2019 and 2024.

Has the Online Home Furnishing Sales industry in Australia grown or declined over the past 5 years?

The market size of the Online Home Furnishing Sales industry in Australia has been growing at a CAGR of 9.3 % between 2019 and 2024.

What is the forecast growth of the Online Home Furnishing Sales industry in Australia over the next 5 years?

Over the next five years, the Online Home Furnishing Sales industry in Australia is expected to grow.

What are the biggest companies in the Online Home Furnishing Sales market in Australia?

The biggest companies operating in the Online Home Furnishing Sales market in Australia are Temple & Webster, Spotlight and Adairs

What does the Online Home Furnishing Sales in Australia include?

Bed linen and Floor rugs, mats and matting are part of the Online Home Furnishing Sales industry.

Which companies have the highest market share in the Online Home Furnishing Sales in Australia?

The company holding the most market share in Australia is Temple & Webster.

How competitive is the Online Home Furnishing Sales industry in Australia?

The level of competition is moderate and increasing in the Online Home Furnishing Sales industry in Australia.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.