Growth in corporate profit and total ad spending will contribute to steady price increases for textile printing services
Los Angeles, CA (PRWEB) October 19, 2014
The buyer power score for textile printing services is 3.6 out of 5. This score indicates a moderate level of buyer power, meaning buyers have leverage during negotiations but may need to make concessions. According to IBISWorld research analyst Kayley Freshman-Caffrey, “The availability of substitutes, the forecast price trend, price volatility and market share concentration all contribute to buyer power in the market.”
There are no direct substitutes for textile printing services except sourcing them in-house, which is impractical for the average buyer. As a result, buyers cannot leverage the availability of substitutes during negotiations, hurting buyer power. Forecast price growth is also not in the buyer’s favor, with prices expected to rise faster from 2014 to 2017 than they did in the past three years. Increases in demand for textile printing services and a rise in input costs will cultivate this price growth.
“The future pricing environment is not entirely unfavorable for buyers, though,” says Freshman-Caffrey. “Volatility of textile printing service prices boosts buyer power. Low price volatility protects buyers from extreme fluctuations in price, allowing them to accurately budget for their purchase without worrying that prices will change.”
Low market share concentration also aids buyers by empowering them to leverage the availability of other suppliers during the negotiation process. Market fragmentation fosters intense competition among suppliers, which include Staples Promotional Products, Ennis Inc. and Vistaprint, compelling them to offer lower prices to remain competitive. The positive effects of low concentration and low price volatility offset the negative impacts of the low availability of substitutes and upward future price trend, leaving buyers with a moderate level of negotiation power. For more information, visit IBISWorld’s textile printing services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of textile printing services. The focus of this report is on the two most common forms of commercial textile printing: screen printing and digital textile printing. Textile printing services are most often used to create custom fabric to be used in the production of apparel, or customized apparel to be used as promotional products. Forms of printing on nontextile surfaces, including flexographic printing, rotogravure printing and lithographic printing, are not covered.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.