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 2.9% in the five years through 2014-15. Intense trading conditions have caused price to remain the key basis of competition, due to minimal product differentiation between operators. The resulting downward price pressures have eroded profit margins and led to the exit of some industry players.
In 2014-15, industry revenue is forecast to rise by 1.2% to reach $5.2 billion. Growth in discretionary income and an increase in the number of households with at least one computer are projected to underpin a modest recovery... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry exhibits a low level of market share concentration, with the four largest players expected to account just under 40.0% of the market in 2014-15. Concentration over the past five years has been dampened by the prevalence of non-employing operators across the industry. According to ABS data, a reported 50.0% of industry enterprises were non-employing businesses in 2012-13, although this share has declined from a high of 52.8% in 2009-10. The industry has moderate barriers to entry and capital intensity, which may deter new operators from joining the industry. Moderate competition across the industry reflects the dominance of larger players such as Harvey Norman.
Industry concentration is forecast to increase over the next five years... purchase to read more