Shifting consumer preferences toward digital calendars are crippling the industry
Los Angeles, CA (PRWEB) July 25, 2012
Consumers are increasingly plugged in to their digital devices, and they are buying fewer printed calendars each year. The transition to digital technologies was particularly pronounced during the past five years as consumers adopted calendar applications on smartphones, hurting demand for the Calendar Publishers industry. Such applications enable consumers to access and share their schedules on the go. Since 2007 the number of mobile internet connections is estimated to rise at double-digit rates. “Meanwhile,” says IBISWorld industry analyst Agata Kaczanowska, “consumer spending on discretionary items like wall calendars also declined due to high unemployment and uncertainty during and after the Great Recession.” Spending on office calendars was simultaneously slashed as businesses implemented budget cuts to protect profitability. Downstream retail store closures and liquidations also hampered demand for calendars in the short term. Consequently, industry revenue is expected to fall at a 9.0% annualized rate during the past five years to $1.6 billion, including a 7.2% decline from 2011 to 2012.
In response to a contracting market, companies are diversifying or exiting the industry altogether. Diversification enables companies to boost or maintain profitability while focusing on new products and markets. Although IBISWorld expects the number of companies to decline at an 11.5% five-year annualized rate to 229 in 2012, industry profit is expected to contract during this time. Most firms in the Calendar Publishers industry are small and employ fewer than 20 workers, and maintaining profit margins is crucial to many companies’ survival. Profit is being constrained by quickly declining revenue and simultaneously rising input costs. For example, the price of paper is anticipated to rise during the five years to 2012. “To cut costs further,” says Kaczanowska, “companies in the industry are investing in technologies that automate production and decrease waste by recycling materials.” Due to higher automation and company closures, the number of employees is estimated to fall quickly in the five years to 2012.
During the next five years, higher consumer spending will slow revenue declines. However, a continued shift toward digital calendar use will result in lower revenue each year. As the number of book stores and other brick-and-mortar calendar retailers dwindles, industry products will become even more inconvenient for consumers to buy. As a result, industry revenue is forecast to fall over the five years to 2017. For more information, visit IBISWorld’s Calendar Publishers in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry edit, design and publish printed calendars. The industry does not include authors or printing services. Digital and desktop calendars are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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