Industry activity has also been swayed by activity in the house construction market, which has trended downwards due to unfavourable housing affordability.
Melbourne, Victoria (PRWEB) March 14, 2015
The Manchester Retailing industry has faced a difficult trading environment over the past five years. Industry revenue is projected to decline by 2.2% annualised over the five years through 2014-15. According to IBISWorld industry analyst Claudia Burgio-Ficca, “Increasing competition from external players has played havoc with industry revenue and profit margins during this period.” Revenue has also been influenced by trends in discretionary income, consumer sentiment, interest rates, house construction activity, consumer preferences and seasonal trends in fabric colour, design and texture. Industry revenue is forecast to rise by 1.9% in 2014-15, to $2.1 billion.
Like most retail industries, manchester retailers have faced a challenging period over the past five years. Trading conditions were hindered by the collapse of global financial markets, which led to a lull in retail trade sales and a decline in consumer sentiment due to uncertainty surrounding the stability of the domestic market. Added to this, competition between operators and external businesses has influenced product price and profitability for players. “Industry activity has also been swayed by activity in the house construction market, which has trended downwards due to unfavourable housing affordability”, says Burgio-Ficca. Industry operators will face further pressure over the next five years. Increased activity across the housing construction market, particularly in the short term, is expected to play a pivotal role in the performance of industry operators during this period. Consumer demand for manchester will be supported by a forecast rise in discretionary income and weak overall growth in interest rates over the five-year period. Australia's free-trade agreements with China, Japan and South Korea are also projected to support revenue growth for the industry by making textiles sourced from these countries cheaper to import and therefore more affordable for consumers at the retail level. However, volatility in the consumer sentiment index during this period may hinder the actual level of consumer purchases.
The Manchester Retailing industry exhibits a medium level of market share concentration. The three major industry players hold significant market share. The remaining share of the market is largely controlled by small operators, many of which are non-employing businesses. The industry is operating in the mature phase of its life cycle, characterised by a well-developed product market and slow growth in establishment numbers. As result, new players may be discouraged from entering the industry due to high competition between existing operators and external businesses such as department stores and online retailers. Despite the industry's medium concentration, moderate barriers to entry aid new players in entering and gaining a share of the market. This is primarily achieved by businesses opening in suburban shopping strips to cater for the needs of local consumers. Low capital intensity also encourages new operators into the industry.
For more information, visit IBISWorld’s Manchester Retailing industry in Australia report page.
Operators in the industry primarily retail household textiles such as bed linen, cushions and curtains. These products are purchased from manufacturers and wholesalers and then sold through bricks-and-mortar stores or via online channels to the general public. However, businesses that operate solely online are excluded from the industry.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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