Competition intensifies as industry starts to recover from financial crisis
Melbourne, Australia (PRWEB) May 26, 2013
Party and event planners are hired to assist in the organisation of social events that may be for personal enjoyment or to raise awareness of a certain commercial endeavour (like a new fashion line) or charitable cause. Over the past five years, Party and Event Planners industry has endured an environment characterised by volatility spurred by the global financial crisis. The global financial crisis led to cautious spending by consumers, businesses and non-profit organisations. This increased caution led to budget cuts by all, specifically targeting non-core activity. This led to a drop in event expenditure, as these services are perceived as a nonessential to putting on an event. According to IBISWorld industry analyst Craig Shulman, “due to the transient nature of the industry, many players and employees exited the industry during the global financial crisis”. Profit margins were put under pressure because fewer projects were available, meaning planners had to compete more for those still needing industry services to stay afloat.
Those that have suffered over the past five years have left the industry or have been acquired by larger players. Rising player MCI Australia Pty Ltd has made several significant acquisitions over the past five years as several high-profile players struggled to recover from this economic shock. The Party and Event Planners industry has a low level of market share concentration. The industry’s largest player is Staging Connections Group Limited.
Consumer and business sentiment has started to recover as economic stability persisted. As a result, the industry has managed to recover somewhat, with revenue growing at an annualised rate of 0.7% over the five years to 2012-13. In 2012-13, the economic environment has improved significantly. Revenue is expected to grow 4.4% over the year to reach $237.3 million.
Over the next five years, industry prosperity is expected to continue to heavily rely on increasing spending power by consumers and healthy business confidence. "In an attempt to increase their market shares further, larger players are expected to attempt to broaden their services beyond the industry, integrating conference, exhibition and meeting organisation or integrating with venues to increase operation efficiencies", says Shulman.
For more information, visit IBISWorld’s Party and Event Planners report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry is comprised of companies that organise social events such as parties, weddings and other social gatherings. This industry does not include companies that organise conventions and trade show events.
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
About IBISWorld Inc.
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