Melbourne, Australia (PRWEB) January 08, 2014
The Sunglasses Stores industry in Australia has suffered in a difficult retail environment over the past five years, as weak consumer sentiment, constrained demand and fierce competition have placed significant pressure on revenue. Over the five years through 2013-14, industry revenue is expected to contract by an annualised 0.9%, to total $306.9 million. The global financial crisis, and subsequent instability in financial markets, caused consumer confidence levels to plummet. According to IBISWorld industry analyst Lauren Magner, “this led to consumers becoming more cautious with their spending, with many households scaling back expenditure on non-essential, discretionary goods and preferring to save rather than spend”. Further contributing to the industry's woes has been the rise of online shopping and continued competition from department stores. Department stores, such as Myer and David Jones, have significant economies of scale and are able to source products directly from manufacturers at a lower cost. As a result, these large retailers are able to offer a diverse range of eyewear at competitive prices, attracting value-conscious consumers.
Competition from online sunglasses stores has intensified as consumers have become increasingly accepting and comfortable with electronic transactions. Uncertain economic conditions and weak consumer sentiment over the past five years prompted many consumers to look online for cheaper alternatives to bricks-and-mortar stores. Consumers are increasingly searching for the best value by comparing products across a wide range of websites and bricks-and-mortar stores. “As online retailers often have lower overhead costs than traditional operators, they are able to offer consumers more affordable prices, and this can be difficult for the industry to compete with,” says Magner. As a result of continuing competition, revenue is expected to rise by only 0.3% in 2013-14, despite improvements to overall retail conditions. The Sunglasses Stores industry exhibits a moderate level of market share concentration due to the dominance of lone major player Luxottica Group South Pacific Holdings Pty Ltd.
The outlook for the Sunglasses Stores industry is anticipated to be more positive over the next five years. An increased focus on customer service is expected to lead to continued upward pressure on wage costs, as retailers invest in employee training and incentive programs. Industry players will need to differentiate themselves from online stores by improving their customer experience and using new technologies to create an interactive shopping experience.
For more information, visit IBISWorld’s Sunglasses Stores in Australia industry report page.
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IBISWorld industry Report Key Topics
Businesses in this industry sell prescription and non-prescription sunglasses, and may also provide fitting and lens processing services. The industry excludes department stores, optometrists and all online sunglasses sales.
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.
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.