Industry Analysis & Industry Trends
The Bread and Cake Retailing industry has performed weakly over the past five years. Industry revenue is anticipated to post marginal annualised 0.1% growth over the five years through 2014-15. Fierce competition both among industry players and from external sources has hurt the industry. This is evidenced by store closures and financial troubles among some of the industry's largest players. Industry revenue is forecast to fall by 1.1% in 2014-15, to reach $754.3 million. The industry's average profit margin has trended upwards over the past five years, although this is largely a recovery from weak margins in 2009-10.
Disposable incomes and consumer sentiment have dictated consumer spending on bread and cake products, which has influenced industry revenue... purchase to read more
Industry Report - Starting a New Business Chapter
Prospective entrants to the industry are subject to moderate barriers to entry. Significant market share, brand loyalty and consumer shopping habits enjoyed by existing players operating in the industry may hinder the success of prospective entrants. Unlike new entrants, existing industry players have established a reputation and built a relationship with consumers via their product range and customer service. These factors act as hurdles for new industry players that must establish their own brand awareness and loyalty among consumers.
Competition within the industry also affects the likelihood of success for new entrants. Competition is primarily price-based, due to limited product differentiation among brands and the price-conscious nature of consumers towards staple products... purchase to read more