Navigating the SOHO Market: Understanding Consumer Categories and Emerging Trends

Strategic Insights -

The Small Office Home Office (SOHO) market is a rapidly growing segment for PC purchases and replacement equipment, with four consumer categories within the home office sector: self-employed individuals, people holding two jobs, corporate employees who bring work home, and telecommuters. Additionally, the market is comprised of very small businesses (fewer than five employees) and small businesses (five to nine employees). The decentralised nature of these business units makes them akin to independent buyers, each with their own unique buying patterns.

Key Takeaways:

  • The SOHO market is the fastest growing market for PC purchases and replacement equipment, with more than two-thirds of businesses in Australia falling into the very small and small business categories.
  • Within the home office sector, there are four distinct consumer categories: self-employed individuals, people holding two jobs, corporate employees who bring work home, and telecommuters.
  • Very small businesses (fewer than five employees) and small businesses (five to nine employees) make up a significant portion of the SOHO market.
  • These business units are decentralised, with each unit having its own unique buying patterns, making them similar to independent businesses.
  • The Australian Bureau of Statistics reports 550,000 businesses in the very small business category and 135,000 in the small business category, employing between five and nine staff.
  • The SOHO market is the most misunderstood segment of the industry, according to industry analyst Graham Penn.

Statistics:

  • 900,000 businesses of all sizes in Australia (Australian Bureau of Statistics).
  • 550,000 businesses in the very small business category (Australian Bureau of Statistics).
  • 135,000 businesses in the small business category, employing between five and nine staff (Australian Bureau of Statistics).
  • Two-thirds of businesses in Australia fall into the very small and small business categories (IDC Analyist Graham Penn).
  • 5 business units are part of the decentralized business model (IDC Analyst Graham Penn).

Sources:

  • International Data Corporation (IDC) - no date provided.
  • Graham Penn, IDC Analyst - no date provided.
  • Australian Bureau of Statistics (ABS) - no date provided for the statistics mentioned.