The Weddings industry is highly competitive with low barriers to entry
Melbourne, Australia (PRWEB) April 28, 2012
The Weddings industry is worth $4.31 billion in Australia, including all services from ring design to wedding dresses, photography, flowers, car rental, the ceremony and reception. Over the past five years, revenue generated by the industry has fallen at an annualised 0.8% due to slow growth in the number of marriages and weakening demand. According to IBISWorld industry analyst Craig Shulman, ‘the strongest decline in expenditure on weddings was in 2008-09, during the economic downturn.’ In that year, there were fewer marriages and the average cost of a wedding fell 9.0%. During 2011-12, the average wedding is expected to bring in $36,200, the same amount as in 2005-06. This indicates that despite a saturated market and strong competition, value-conscious spending has led to a funnelling of expenditure towards big events like weddings. As such, industry revenue is expected to grow 3.1% in 2011-12.
Over the five years through 2016-17, revenue is expected to grow marginally. This will be driven by solid growth in real disposable incomes and the strong Australian dollar, both of which will increase the perceived wealth of consumers. However, the industry will remain competitive and saturated, which will put downward pressure on profit. Shulman adds, ‘commodity prices are also likely to rise substantially, which will increase company costs.’ Overall, the next five years will see higher revenue growth but not much change in industry conditions.
The Weddings industry is estimated to have a very low level of market share concentration, as there are no major players and services are highly fragmented. Most operators are local businesses with small-scale operations and only local customers. There is minimal communication between industry participants and competition is based mainly on price and type of service. Larger players in the industry include Spotless Group and AAPC Limited.
For more information, visit IBISWorld’s Weddings report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
The Weddings industry covers all aspects of the Australian economy that are involved in the creation of the average wedding. This includes everything from invitations to the wedding dress, cake, rings, transportation and all other features.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.