The industry is gradually shrinking in size
Melbourne, Australia (PRWEB) April 11, 2015
The Stationery Goods Retailing industry includes companies that sell stationery goods, writing materials, art supplies, ink, pens, pencils and notebooks. The industry is a relatively small component of the overall Retail Trade division and is subject to increasing external competitive pressures and threats. Falling international paper prices and the increasing number of alternative retail channels that also sell stationery items, including online retailers, are challenging the industry's long-term growth. According to IBISWorld industry analyst Arna Richardson, “the industry is gradually shrinking in size.” Over the five years through 2014-15, revenue is estimated to fall by an annualised 2.8%, as the industry continues to contend with external variables. Revenue is expected to total $787.0 million in 2014-15, down 2.4% on the previous year due to the challenging trading conditions and lower business confidence. The rise of fashion-based stationery is partly alleviating the saturation of the industry's traditional core segments. However, this trend has not counteracted falling stationery consumption, as consumers and businesses increasingly rely on online mediums as an alternative for correspondence.
With the industry expected to remain in the decline stage of its life cycle, this weak performance is projected to continue over the next five years. “Declining paper consumption trends and the continued move towards electronic communication methods will put sustained downward pressure on the industry,” says Richardson. Similar constraints within other segments of Australia's paper value chain will have implications for the operating environment of specialty stationery retailers, particularly as local paper stationery manufacturers close down or relocate offshore. However, prospects are slightly brighter within niche segments, including customised stationery products and fashion-based stationery aimed at younger demographics. Industry participants stocking higher margin green products like carbon-neutral or recycled papers and soy-based ink products may also be in a position to alleviate consumer concerns over the environmental waste associated with paper usage.
The Stationery Goods Retailing industry has a medium level of concentration. This reflects the dominance of established office superstores such as Officeworks. At the same time, the industry is quite fragmented, with many differing players and markets. On the one hand, there are the large nationwide office supply superstore chains, supported by billion dollar companies (such as Wesfarmers). On the other hand, there are a large number of small companies operating in niche segments, with individual or small-scale operators supplying specialist products. The industry operates in a highly competitive environment and stationery products are available from an increasing array of external competitors, such as supermarkets (Woolworths and Coles), discount department stores (Big W and Kmart), newsagents and even Australia Post.
For more information, visit IBISWorld’s Stationery Goods Retailing industry in Australia report page.
Companies in the industry retail stationery goods and writing materials, which include artists' supplies, ink, pens, pencils and notebooks. Products are sourced from upstream manufacturers, wholesalers and international suppliers, and then sold in specialist retail outlets.
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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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