Demand for e-books and e-readers is likely to offset some of the fall in revenue over the next five years.
Melbourne, Australia (PRWEB) February 24, 2015
Operators in the Book Stores industry in Australia have struggled over the past five years, with revenue projected to decline at an annualised 8.3% over the five years through 2014-15. Industry conditions have been affected by numerous challenges including lower book prices, tough competition from online retailers and external operators, and a shift in consumer reading habits from print books to e-books. According to IBISWorld industry analyst Claudia Burgio-Ficca, “The operating landscape for industry players has also been influenced by trends in real household discretionary income, consumer sentiment, the IT and telecommunications adoption rate and demand for online shopping.” Industry revenue is projected to decline by 5.9% in 2014-15 to reach $2.0 billion.
Retail trade has exhibited a lacklustre performance over the past five years. “Expenditure on retail goods has been affected by the global financial crisis, which led to a reduction in consumer sentiment and a drop in discretionary spending, as individuals worried about the stability of the domestic economy,” says Burgio-Ficca. Bookstores have also been affected by competition from department stores and online retailers, which have sought to attract and retain larger shares of the market. Despite external competition, bookselling retail conditions have been aided by the rising popularity of e-books and e-readers, which have created a new area of growth for bookstores. The industry displays a low level of market share concentration. Major players include University Co-operative Bookshop Limited and Dymocks Pty Ltd.
Declining sales volumes are forecast to continue over the next five years. While trading conditions are expected to remain intense due to further competition from internet-based operators and other external players, demand for e-books and e-readers is likely to offset some of the fall in revenue. The performance of the Book Stores industry will also be influenced by anticipated changes to the parallel import legislation that prohibits booksellers from importing commercial quantities of books if they can be supplied by a local publisher within 14 days of their international release.
For more information, visit IBISWorld’s Book Stores industry in Australia report page.
Companies in this industry primarily retail books. They may also retail audio books, e-books and e-readers. This industry excludes online-only booksellers.
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