Hard drive for sales: Strong competition and fluctuating demand lead to revenue volatility

The Computer and Software Retailing industry has faced challenging trading conditions over the past five years. Weak discretionary income growth and volatile consumer sentiment over the period have prompted many consumers to rein in their spending. In addition, many computer and software retailers have aggressively discounted prices due to the rapidly increasing popularity of online shopping. The resulting downward pressure on prices has eroded profit margins and ultimately led to the exit of some industry players. Industry revenue is expected to increase at an annualised 0.1% over the five years through 2019-20, to $5.9 billion, including an anticipated decline of 0.5% in the current year...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 15-20
0.1%
Forecast Growth 20-25
Profit
Employment
12,281
Businesses
2,740

Industry Threats & Opportunities

  • Software providers have rapidly adopted cloud services, reducing software retail sales
  • Increased import prices and declining consumer sentiment have hindered industry demand
  • Intensifying price competition is likely to constrain industry profit margins
  • Industry Report - Industry Key Buyers Chapter

    The Computer and Software Retailing industry has moderate market share concentration, with the four largest players expected to account for almost 57% of the market in 2019-20. According to ABS data for 2017-18, 49.9% of industry enterprises were non-employing businesses in that year. A further 47.6% of operators employed between one and 19 staff, with the remaining 2.5% of businesses employing over 20 staff. Barriers to industry entry are moderate, which may deter new operators from entering the industry. High internal competition reflects the dominance of larger players such as Harvey Norman and JB Hi-Fi. The collapse of Dick Smith in April 2016 exemplifies the industry's highly competitive nature...purchase to read more.

    Additional Insights for the Computer and Software Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Computer and Software Retailing are:

  • Ability to control stock on hand
  • Having a clear market position
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Demand from online shopping in the Computer and Software Retailing industry impact industry performance..

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    What's in this report

    What is the Computer and Software Retailing Industry?

    Industry operators retail computer and software products including desktop computers, laptops, tablets, printers, keyboards, computer game consoles and packaged software (excluding game software). Industry companies purchase products from manufacturers and wholesalers and then sell them to the general public for private use or to corporate clients for business use. The online operations of industry retailers are included in the industry, but pure-play online retailers are excluded.

    Industry Products
  • Computer hardware
  • Computer peripherals, parts and accessories
  • Games consoles
  • Computer software
  • Industry Activities
  • Desktop, notebook, laptop and tablet computer retailing
  • Monitor, scanner, printer, keyboard and storage media retailing
  • Packaged computer software retailing (except video games)
  • Game console retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Demand from online shopping
  • IT and telecommunications adoption
  • Internet subscribers
  • Consumer sentiment index
  • Trade-weighted index

  • Current Performance
  • Consumer demand
  • Technological developments
  • Online surge
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology trends
  • Industry structure
  • Table: Computer and Software Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer and Software Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Communication Equipment Manufacturing
  • Computer and Computer Peripheral Wholesaling
  • Computer and Electronic Office Equipment Manufacturing

  • Products & Services
  • Computer hardware
  • Computer peripherals, parts and accessories
  • Games consoles
  • Computer software
  • Chart: Computer and Software Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporate or business clients
  • Consumers aged 35 to 54
  • Consumers aged 15 to 34
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Computer and Software Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Computer and Software Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer and Software Retailing Industry

  • Industry Globalization
    JB Hi-Fi Limited, Harvey Norman Holdings Ltd, Wesfarmers Limited,
  • Table: JB Hi-Fi Limited - financial performance
  • Table: Harvey Norman Holdings Ltd - financial performance
  • Table: Wesfarmers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer and Software Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer and Software Retailing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Console
  • A gaming device that enables users to play computer games.
  • It Literacy
  • A term that refers to the population’s ability to efficiently use information technology.
  • Tablet
  • A handheld portable PC equipped with a touch screen.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Computer and Software Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer and Software Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer and Software Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer and Software Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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