As input prices increase and the economy and, thus, demand for shopping carts grows stronger, prices will rise
Los Angeles, California (PRWEB) January 21, 2015
Shopping carts have a buyer power score of 2.6 out of 5, indicating that suppliers have a distinct advantage over buyers in price negotiations. According to IBISWorld market research analyst, Jeffrey Cohen, "The primary factors that have negatively impacted buyer power during the past three years are the low availability of substitutes and high market share concentration."
The low availability of substitutes hampers buyer power by limiting buyers' leverage during the negotiation process. "The only alternatives to shopping carts are shopping baskets, which are capable of holding fewer items," says Cohen. Because most buyers need shopping carts for customers that purchase a large volume of goods, buyers have no other option than to purchase this market's goods, which benefits suppliers. Another factor that harms buyer power is high market share concentration. The top four suppliers command about 80.0% of market revenue, which reduces price-based competition among suppliers. As a result, buyers have less leverage when negotiating price with top suppliers. Major vendors in the market include Unarco Industries, Technibilt and Global Equipment Company Inc.
Another factor that has hampered buyer power during the past three years is the high level of price driver volatility, which has largely resulted from fluctuations in the world price of steel. The high level of price driver volatility has made it more difficult for suppliers to budget their purchasing costs on a yearly basis. Consequently, the price of metal-wire shopping carts, for which steel is an important input, has fluctuated. Because of this trend, the price of shopping carts has been highly volatile during the past three years, which has negatively impacted buyer power by reducing buyers' ability to accurately budget for purchases on an annual basis.
Fortunately for buyers, the low level of product specialization in the market has positively impacted buyer power. Shopping carts are typically standardized products, which means that buyers have more leverage during the negotiation process because they can switch suppliers if their current supplier is not offering competitive prices. Also, there are plenty of suppliers that are capable of providing buyers with shopping carts of similar quality, widening the pool of capable suppliers that buyers have to choose from. For more information, visit IBISWorld’s Shopping Carts procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of shopping carts. Shopping carts help shoppers transport their items through a store and to the cash register. Suppliers of shopping carts include manufacturers and wholesalers. The primary types of buyers of shopping carts range from grocery stores, warehouse clubs and supercenters to consumer electronics stores and home improvement stores. Shopping baskets are excluded from the scope of this report.
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.