Industry Analysis & Industry Trends
Aggressive price discounting and the rapidly increasing popularity of online sales of computer and software products have negatively affected the Computer and Software Retailing industry. As a result, industry revenue is forecast to decline by an annualised 2.6% in the five years through 2014-15. Intense trading conditions have made price remain the key basis of competition, due to minimal product differentiation between operators. The resulting downward price pressures have eroded profit margins and have led to the exit of some industry players.
In 2014-15, industry revenue is forecast to rise by 0.9% to reach $5.1 billion, aided by growth in discretionary income and an increase in the number of households with at least one computer... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a low level of capital intensity. For every dollar spent on wages, an estimated $0.07 is spent on capital. While capital investment is required to operate in the industry, labour is required to undertake a number of tasks, including the restocking of display shelves, the processing of consumer purchases and assisting with inventory management.
Capital expenditure for the industry has remained steady over the past five years. The use of computerised point of sale (POS) systems has simplified staff tasks and minimised the incidence of human error. POS systems have also allowed operators to better control inventory and reduce excess stock levels. Nonetheless, the industry remains labour-intensive, with staff required at all levels of operation... purchase to read more