Newspaper and Book Retailing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 01, 2015 -- Newspaper and Book Retailing has faced tough trading conditions over the past five years, due to a decline in the sale of printed publications and growth in the volume of sales lost to international e-tailers. According to IBISWorld industry analyst Claudia Burgio-Ficca, “industry trading conditions have been affected by competition from external operators, including supermarkets and department stores.” The challenging operating landscape has culminated in industry revenue declining. Revenue is estimated to drop at an annualised 5.7% over the five years through 2014-15. Consumer demand for newspapers has been influenced by trends in real household discretionary income, consumer sentiment, Internet connections and the volume of shopping done via Internet sites. Industry revenue is forecast to fall by 4.1% in 2014-15, to $4.1 billion. Growth in discretionary income has done little to stem the decline in industry revenue over the past five years. Spending has been affected by a drop in consumer sentiment and an increased focus on price. A rise in Internet connections and online shopping by consumers has eroded revenue and product margins for bricks-and-mortar retailers.
Industry revenue is forecast to decline over the five years through 2019-20. “Revenue is expected to be severely hindered by a decline in the circulation of printed newspapers and magazines due to a shift by consumers towards other mediums,” says Burgio-Ficca. Mounting pressure from external players aiming for a greater share of the market is likely to further hamper industry revenue. Book retailers are expected to respond to growth in the volume of sales being lost to the online book market (particularly those located overseas) by re-examining their online products and offers. Newspapers are expected to be more proactive in their approach by installing Connect, an on-counter screen that enables consumers to undertake a variety of tasks that would otherwise have been lost to other retail businesses.
The Newspaper and Book Retailing industry exhibits a low level of market share concentration. The majority of industry participants are small sized operators with fewer than 20 employees. Prospective entrants face low barriers to entry, which act as an incentive for new operators to enter the industry and gain market share. The entry of new players is supported by low capital requirements. The book retailing market has suffered a period of rationalisation over the past five years. Key examples include the collapse of Angus & Robertson and Borders in February 2011 and the purchase of Melbourne University and SPP Medical and Legal Bookshops by The Co-op Bookshop in June 2012. News agency numbers have also been in decline due to a drop in newspaper circulations, reduced demand for magazines and an overall shift in the buying habits of consumers.
For more information, visit IBISWorld’s Newspaper and Book Retailing industry in Australia report page.
Operators in the industry are primarily retail newspapers, books and magazines. Industry players may operate as independent businesses, as part of a retail chain of stores or under a franchised model. Newspapers and books are largely purchased from the relevant wholesalers and then sold via stores or online sites to end consumers. Players that operate purely online are excluded from the industry.
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IBISWorld industry Report Key Topics
- Industry Performance
- Executive Summary
- Key External Drivers
- Current Performance
- Industry Outlook
- Industry Life Cycle
- Products & Markets
- Supply Chain
- Products & Services
- Major Markets
- International Trade
- Business Locations
- Competitive Landscape
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmarks
- Basis of Competition
- Barriers to Entry
- Industry Globalisation
- Major Companies
- Operating Conditions
- Capital Intensity
- Technology & Systems
- Revenue Volatility
- Regulation & Policy
- Industry Assistance
- Key Statistics
- Industry Data
- Annual Change
- Key Ratios
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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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