Firms develop niche products to combat industry competition.
Melbourne, Australia (PRWEB) March 07, 2013
Even as campaigns were cut short and marketing budgets were slashed, industry sales only declined 1.5% in 2008-09. Nevertheless, the disappointing year failed to dampen spirits for long. Not many operators enjoyed the roller-coaster ride, as it caused too much uncertainty for employees and put projects on hold. Although business and consumer sentiment were bearish, one economic indicator working in favour of the Online Corporate and Promotional Giftware Sales industry was the strong Australian dollar. As the industry obtains a substantial amount of supplies from overseas manufacturers, the strengthened Australian dollar helped soften the impact of the global financial crisis. The lower costs cushioned the effect of weaker sales.
Industry participants successfully overcame weak conditions to record compound annual growth of 2.4% over the five years through 2012-13. Growth in the current year will be modest, with revenue only projected to grow 0.7% from the previous year, to $2.1 billion in 2012-13. However, this comes off the back of sharp growth in 2011-12.
According to IBISWorld industry analyst Ee Jen Lee, “enterprises in this industry are gradually transitioning up the value chain.” Besides specialising, industry participants are increasingly offering more product customisation options. While generic products will remain the staple, the profit margins of enterprises heavily engaged in the sales of these products are more sensitive to price competition. The effort to specialise and offer more niche products has intensified in the recent years.
“As consumer sentiment and household consumption expenditure rise over the two years through 2015-16, demand for the industry's products is expected to grow strongly,” Lee says.
The highly competitive nature of the industry is a deterrent. The Online Corporate and Promotional Giftware Sales industry in Australia is highly segmented and consists of many small players. The top-four players are Chilli Promotions, Fresh Promotions, Marketing Options (VIC) Pty Ltd and Flashbay.
For more information, visit IBISWorld’s Online Corporate and Promotional Giftware Sales report in Australia industry page.
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IBISWorld industry Report Key Topics
Industry participants market and sell promotional and corporate merchandise, primarily advertising specialties. Industry participants do not manufacture, rather they assist clients in meeting merchandise needs.
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.