When the fences start to fall in: The story of wire rack shelved fencing
Posted October 05, 2019 10:04:55When it comes to wire racks, the future looks bright for the home improvement and home improvement furniture business.
Last week the National Retail Federation (NRF) released its latest statistics on the state of the industry, and one thing was certain.
Wire racks are on the rise in Australia.
According to the NRF’s annual report, there were 2.6 million wire racks in the Australian market last year, up 3 per cent on 2016.
The market is predicted to grow by 12 per cent by 2019.
The growth is driven by the arrival of a new generation of consumers looking for home improvement in their home, who are increasingly interested in a variety of products from hardware to appliances to furniture.
The NRF predicts the industry will be worth $4.4 billion by 2021.
“The industry has a lot to celebrate in the next 10 years and the growth rate is accelerating,” NRF chairman David Parnell said.
“We have a generation of homebuyers who want the best in house solutions, and we have a new customer for that: people looking for the next big thing.”
The NRf’s report says wire racks have seen an explosion in popularity, and is expected to account for almost half of the total residential furniture sales in 2021.
The industry’s growth has been driven by two trends.
Firstly, a growing number of consumers are looking for products that can fit into their homes, while the demand for products with high durability is also increasing.
Second, the industry has been able to scale up with the introduction of new product types and a better understanding of what makes a good home improvement product.
Mr Parnett says the key is to make sure your product meets the needs of the new generation, while offering an attractive price point.
“I think one of the biggest drivers for our industry over the last decade has been the way we have designed products,” he said.
“We are seeing a new set of consumer needs.”
It is a very challenging environment, but one that is changing rapidly.
“A lot of that change is coming from the younger generation who want to look at home improvement as a part of their life and they are not looking to buy something that is a lot of work, they want to buy a product that is not quite so complicated.”
In the first quarter of this year, the NRf saw a 2.2 per cent increase in the number of wire racks sold in the industry compared to the same period last year.
While the industry’s total sales are up, it’s not all good news.
According the NRG, wire rack sales fell by 6 per cent to 1.5 million, a decline of 16 per cent.
“Wire racks have been on the decline in recent years due to the emergence of the ‘big four’ home improvement companies – Home Builders Supply, Home Depot, Home Improvement Supply and New Home Hardware,” Mr Parnick said.
But Mr Pang said there was a growing recognition that the industry needed to do more to reach new customers.
“What we are seeing is an increase in customers coming from all types of home improvement businesses.
They are looking to purchase products from these brands that have been around for a long time, and they want something more affordable,” he explained.”
They want something that has more features and durability.”
The future of the wire rack industryThe industry is looking at a number of ways to deliver value to its customers, including:• The introduction of more sophisticated products that have greater durability and affordability.• A greater understanding of the products consumers want.• Better product packaging and product design.
Topics:industry,furniture-and-home-equipment,home,advertising-and,advertising,advertising—industries,industry-economics-and_industries-general,australiaMore stories from New South Wales