Industry growth has been severely limited by imports and competition from the online segment
Melbourne, Australia (PRWEB) April 03, 2013
The Window Coverings Manufacturing industry in Australia has undergone a difficult five-year period. “Shoppers are becoming increasingly prudent and knowledgeable”, according to IBISWorld industry analyst Ricky Willianto, making it harder for operators to get away with high profit margins. Domestic manufacturers are also facing growing competition from the online segment and imports, which has severely limited the industry's growth in the five years through 2012-13. Despite a strong downstream market, a strong Australian dollar has made it more difficult for domestic players to compete with overseas manufacturers.
Market share concentration is low in the Window Coverings Manufacturing industry, with the market's largest players only making up a small amount of total market share. Other players in the market are relatively small as their main service generally consists of customised products. “The largest players have significant presence in Australia”, says Willianto, as they also produce in bulk window coverings that are used in residential properties in addition to customised lines. Over the next five years, market share concentration is forecast to rise as smaller window coverings manufacturers are forced to shut their doors. Increasing competition from cheaper foreign imports is threatening the viability of smaller businesses.
Producers in countries such as Indonesia and China are able to capitalise on low labour and operational costs to push down prices. This combined with a strong Australian dollar has made it difficult for local operators to grow their market share against imports in the past five years. Many operators underwent restructuring since 2007-08. In the attempt to lower their costs, several domestic operators have either shutdown some of their facilities or sent them offshore to capitalise on low labour costs in countries such as China. Revenue in the Window Coverings Manufacturing industry is expected to increase in the five years through 2017-18. Restructuring activities that occurred between 2007-08 and 2012-13 are expected to create synergy in the next five years, allowing operators to work at lower costs and reap higher profit margins.
For more information, visit IBISWorld’s report Window Coverings Manufacturing in Australia industry page.
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IBISWorld Industry Report Key Topics
Window covering wholesalers serve as intermediaries between manufacturers and retailers, purchasing large volumes of window covering products, such as curtains, blinds and draperies, for sale to retailers.
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
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.