Americans are increasingly opting to postpone weddings or live together outside the traditional bonds of marriage, limiting the potential market for bridal stores.
New York, NY (PRWEB) April 16, 2015
The Bridal Stores industry is expected to grow 2.5% per year on average during the five years to 2015. While the slowly declining marriage rate has limited industry growth, economic recovery has increased consumers' wedding budgets and boosted demand for price-premium wedding products retailed by this industry. According to the latest data available from The Knot's annual wedding survey, the average amount spent on wedding gowns expanded from a low of $1,099 in 2010 to $1,357 in 2014. This trend is expected to continue through 2015, with revenue rising 2.3% to $4.3 billion during the year amid rising disposable income.
According to IBISWorld Industry Analyst Britanny Carter, "Americans are increasingly opting to postpone weddings or live together outside the traditional bonds of marriage, limiting the potential market for bridal stores." The marriage rate is in decline; however, competition is on the rise and such pressures have shaped industry performance over the past five years. Many manufacturers are expanding vertically and opening bridal shops, allowing them to sell their products at higher markups and boost revenue. The number of industry players is consequently anticipated to rise. External competition is also on the rise as a growing share of consumers purchase their bridal products online. E-tailers benefit from significantly lower rent and labor costs, allowing them to sell wedding gowns and related products at a lower price than the brick-and-mortar bridal stores that comprise this industry. Moreover, many department stores are expanding their bridal departments to boost revenue and alleviate mounting competition from online stores. As a result, industry profit is expected to contract over the five-year period, despite improving economic conditions.
“Revenue growth is anticipated to slow over the five years to 2020 as the marriage rate continues to decline and external competition grows,” says Carter. “Companies are expected to increasingly invest in labor to provide superior customer service and differentiate from online retailers, and rising wage costs will likely limit profit.” Rising disposable income will nonetheless boost wedding budgets and couples that postpone marriage typically generate stronger incomes, translating to higher wedding budgets.
For more information, visit IBISWorld’s Bridal Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Stores in this industry primarily retail bridal wear, including wedding gowns, veils and other accessories such as shoes, gloves and jewelry. Stores also typically provide alterations, such as hemming, taking in or letting out seams, and lengthening or shortening sleeves.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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