Demand for fabrics will be driven by solid growth across the house construction market
Melbourne, Australia (PRWEB) July 22, 2012
The Fabric Retailing industry has been stretched to the limit over the past five years. A volatile trading environment and increasing competition from external players, such as department stores played havoc with industry sales, leading to annualised growth of just 0.8% over the five years through 2012-13. According to IBISWorld industry analyst Claudia Burgio-Ficca, “revenue growth was largely influenced by trends in disposable incomes, which played a pivotal role in determining the type of merchandise demanded by consumers”. Other factors affecting industry sales volumes during this period included fluctuations in interest rates, the overall performance of the house construction market, consumer sentiment, consumer preferences and seasonal trends in fabric colour, design and texture. Industry revenue is expected to increase by 2.1% to $3.1 billion in 2012-13. Demand for products sold by fabric retailers will be largely underpinned by solid growth across the house construction market along with a rise in disposable income levels and a recovery in the consumer sentiment index.
Fabric retailers are forecast to experience growth over the next five years to 2017-18. “The housing construction market will continue to play a pivotal role in the performance of the industry during this period”, says Burgio-Ficca. Following solid growth over 2013-14 and 2014-15, the house construction market will begin to weaken in 2015-16, before declining in the two years ended 2017-18. Despite the cyclical dip in house construction, industry sales will benefit from a solid rise in disposable income. Annual fluctuations in consumer sentiment, and changing consumer trends and preferences for different seasonal fabrics, will also influence retail spending. Industry sales will continue to be affected by strong competition from department stores eager to account for a larger share of the market by offering discounts, competitive pricing and promotional deals to consumers.
The Fabric Retailing industry has a low level of market share concentration. This primarily stems from the fragmented nature of the industry, with many small retailers at one end of the spectrum and a few larger players accounting for a notable share of revenue at the other end. Concentration levels during this period have been affected by increasing competition, largely through growth in the range of similar goods sold by external competitors. Concentration has also been affected by consolidation activity in the industry. In 2012-13, the three largest companies in the industry are Spotlight, Lincraft and Adairs.
For more information, visit IBISWorld’s Fabric Retailing report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry retail fabric, curtains and household textiles such as bed linen and cushions. These products are purchased from manufacturers and wholesalers and then sold through stores to the general public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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