Increasing consumer income and access to broadband internet is boosting industry sales
New York, NY (PRWEB) April 14, 2014
The Online Antiques and Collectibles Sales industry has fared well over the past five years, largely due to the growing ubiquity of the internet and online shopping. Antiques' discretionary nature indicates the industry is highly sensitive to changes in disposable income. Typically, demand for discretionary products sharply declines when income and consumer confidence falls. Nevertheless, the industry has benefited from the wider trends of e-commerce growth, with consumers increasingly turning to online retailers to purchase antiques and collectibles. As a result, although revenue declined in 2009 due to the recession, industry operators have exhibited strong growth over the past five years. IBISWorld expects industry revenue to increase at a significant average annual rate in the five years to 2014, including a jump in 2014.
The growth of this relatively new industry has coincided with the increasing prevalence of internet access, particularly broadband. Additionally, according to IBISWorld Industry Analyst David Yang, “smartphones and other mobile technology have made it easier for consumers to purchase products on the go, further stimulating demand for online retailers in this industry.” Online retailers also owe much of their success to the development of eBay's PayPal and other secure payment methods, which add a practical component to the "shop anytime, anywhere" spirit of the online marketplace. Rising demand has also bolstered industry profitability in recent years. In 2014, “profit is anticipated to total a significant proportion of revenue, which is considerably higher than the overall retail sector,” says Yang. Compared with brick-and-mortar stores, industry operators benefit from low overhead costs because firms serve as middlemen for product owners in exchange for a set percentage or fee of the sale price.
The Online Antiques and Collectibles Sales industry has a medium-to-high level of market share concentration. In the coming years, the Online Antiques and Collectibles Sales industry will attract a larger customer market as more households buy industry products electronically and consumers have more income to spend on luxuries. Positive income and consumer confidence growth will drive demand for discretionary products. Rising consumer confidence will particularly benefit the industry's long-term growth because it makes consumers more willing to splurge on discretionary antiques and collectibles. However, revenue growth will also slow as the e-commerce sector matures. Therefore, IBISWorld projects that in the five years to 2019, revenue will increase at an average annual rate.
For more information, visit IBISWorld’s Online Antiques & Collectibles Sales in the US industry report page.
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IBISWorld industry Report Key Topics
The Online Antiques and Collectibles Sales industry retails or auctions antiques and collectibles, such as coins, jewelry, books, figurines and memorabilia. Online sales and auctions of original art pieces 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
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.