New York, NY (PRWEB) March 18, 2014
The Electric Shaver Manufacturing industry has not experienced the cleanest past five years. According to IBISWorld Industry Analyst Maksim Soshkin, “Since the majority of industry products are discretionary, significant declines in per capita disposable income has caused demand for to fall considerably.” Moreover, industry operators have had to deal with increased competition from low priced imported devices. Therefore, despite some recovery in recent years, IBISWorld expects industry revenue to decline at an average annual rate of 0.5% to $208.0 million over the five years to 2014, with a 1.8% drop in 2014.
While industry revenue did increase in 2012 and 2013, it was primarily caused by demand for industry devices climbing from abnormally low levels that were caused by the recession. In reality, rising import penetration of low priced Chinese goods has been a driver of declining industry revenue from even before the recession. Chinese manufacturers can take advantage of low wages and less stringent regulation to produce goods at lower costs than in the United States, passing down the savings to US consumers. As a result, many companies that would usually produce industry devices domestically have outsourced their production abroad. “This trend has triggered intense price competition within the industry, significantly pressuring the remaining US manufacturers' profitability and reducing domestic production,” says Soshkin. Therefore, even though domestic demand for electric shavers and trimmers has increased over the past five years, it was mostly satisfied by imports, as their share of domestic demand increased from 78.8% in 2009 to an expected 87.5% in 2014.
Over the next five years, demand for electric shavers and trimmers is projected to increase. Unfortunately for industry players, imports are forecast to capture most of this increase in the long run. However, increased emphasis on exports and high end products is expected to help manufacturers offset some of the damage done by imports. Nonetheless, these responses will only slow the rate of industry decline, not reverse it. Therefore, industry revenue is forecast to decline in the five years to 2019.
For more information, visit IBISWorld’s Electric Shaver Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Electric Shaver Manufacturing industry manufacture shavers, razors and clippers powered by electric motors. They also manufacture related accessories, such as chargers and new razors.
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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