Milan Direct has been named market leader in the online furniture space for the third consecutive year, with a market share of 10.1 per cent up from 9.9 per cent in 2014, according to an IbisWorld report.
Traditional furniture retailers are still struggling to gain traction online, with Harvey Norman holding less than three per cent of market share and Ikea less than one per cent of the online furniture retailing category
The online furniture retailing category is currently valued at $369 million, with annual average growth at 19.7 per cent..
Growth is attributed to a demand from new house construction and increasing popularity in online shopping, fueled by the rapid uptake of mobile smartphones and tablets, and increasing accessibility to internet connectivity Australia wide.
Dean Ramler, co-founder and CEO of Milan Direct, attributes the company’s success to its lean warehouse to consumer model and smart use of data analytics, which provide insights to allow the company to quickly respond to changing consumer preferences.
“Not having a retail showroom does provide us with a huge cost advantage over other retailers as we are just not carrying the physical overheads that they do, so can pass the savings directly onto our customers.
“However, importantly we are very agile and can respond quickly to changes in the market and consumer demands, which is something the major retailers struggle to do with their large inventories.
“I put our success down to three key factors; best prices in Australia, the convenience of furniture delivered to customers doors, and the flexibility of our business model”, says Ramler.
The top 5 online furniture retailers are:
– Milan Direct (10.1 per cent)
– Temple & Webster (8.9 per cent)
– Zanui (Less than five per cent)
– Matt Blatt (Less than four per cent)
– Harvey Norman (Less than three per cent)