Consumer Goods Retail in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) May 25, 2014 -- The Consumer Goods Retail subdivision has struggled with tough retail conditions over the past five years, with consumer goods retailers posting mixed results. According to IBISWorld industry analyst Lauren Magner, “Weak economic growth and plummeting consumer sentiment following the global financial crisis led to a tense time for subdivision operators, as households scaled back expenditure on non-essential goods, preferring to save rather than spend.” The household savings ratio reached record highs, indicating that consumers have been exercising greater caution with their spending. Consequently, subdivision revenue is estimated to decline by an annualised 0.3% over the five years through 2013-14, to total $121.1 billion.
Due to widespread economic uncertainty and instability in financial markets over the period, many households postponed housing construction activities and renovation plans, leading to a fall in demand for furniture, housewares, appliances, textile goods, hardware, garden tools and building supplies. Furthermore, as consumers have become more informed about purchases and the value of the products they buy, there has been a growing trend towards bargain hunting. “Price has become an important basis of competition in many industries as value-conscious consumers adopt more prudent spending habits,” says Magner. Subdivision revenue is expected to increase by only 0.9% in 2013-14, despite an improvement in overall economic conditions, as consumers remain frugal. The subdivision exhibits a low level of market share concentration, with Wesfarmers Limited the only dominant player.
Subdivision operators have been subject to intensifying competition from online retailers as consumers have become increasingly accepting and comfortable with electronic transactions. Online stores generally have lower overhead costs and are therefore able to offer consumers more competitive prices. The low prices and diverse product range available online makes it difficult for traditional retailers to compete, particularly as tech-savvy consumers are increasingly searching for the best value by comparing prices offered instore with those online. The retailers that have been most affected by the flood of online stores include the clothing, footwear, accessories, cosmetics, entertainment media and printed material industries. The Consumer Goods Retail subdivision's performance is forecast to improve slowly over the next five years. Sales will be aided by an increase in disposable incomes and a rise in household formation. Consumer goods retailers will continue to face strong competition from online players that stock similar items at low prices.
For more information, visit IBISWorld’s Consumer Goods Retail report in Australia industry page.
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IBISWorld industry Report Key Topics
Consumer goods retailing covers the sale of personal and household items such as clothing, furniture, appliances, computers and garden supplies. This report does not include revenue from the sale of food, fuel, alcohol or motor vehicles. Retailers purchase stock from manufacturers or wholesalers and then sell these products to the public. Although online sales generated by traditional retailers are accounted for, revenue earned by online-only retailers is excluded from the subdivision.
Industry Performance
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Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
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International Trade
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Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
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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.
Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]
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