According to the Australian Bureau of Statistics (ABS) Australian National Accounts: National Income, Expenditure and Product report, home improvement projects, gardening activity and home offices drove the largest increases in spending throughout 2020. This spending was mainly on household tools (29.8%) and appliances (21.1%).
Toward the end of the year, spending was bolstered by the increasingly popular Black Friday event, which helped boost Australia’s retail trade prior to the Christmas period. Some of the most popular items included electrical goods. According to Australian Bureau of Statistics data released on Monday, retail turnover rose 7.1% in November compared with the previous month, led by Victoria as Melbourne stores reopened their doors for a full month following harsh COVID-19 lockdowns. Household goods sales in particular jumped 12.7%, as Australian consumers sought out price slashed products.
Vacuum cleaners have seen increased sales amid the pandemic, driven by an increase in home cleaning as consumers have spent more time at home and become increasingly conscious of hygiene in their living spaces. There is an escalating obsession with hygiene, cleanliness, and immunity among global consumers, as awareness of infectious disease and how it can affect or be affected by consumer choices rises.
The high demand for household appliances, combined with stock shortages as a result of supply chain issues, have pushed up the price of some products in the second half of 2020. The price increases seen throughout the year have boosted revenues for household goods/appliance retailers, which alongside increased demand has bolstered growth in the market. Prices are expected to stabilize in 2021 as supply chains are repaired and demand subdues slightly.