Industry Analysis & Industry Trends
Although consumer demand has been fuelled by solid growth in the number of mobile connections and continuing advances in product design and technology, these changes have not translated well into the retail market. Instead of record sales, industry operators have faced a difficult trading environment. Revenue is expected to decline at a compound annual rate of 6.5% over the five years through 2014-15 thanks to mounting competition between operators leading to shrinking profit margins and declines in the average price of phones. In 2014-15 industry revenue was struck by the collapse of Phones 4U in September 2014, meaning industry revenue is forecast to decline by 18.8% to reach £2.46 billion in the current year... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is estimated to be in the decline stage of its life cycle. Over the 10 years through 2019-20, industry value added (IVA) is expected to contract at a compound annual rate of 4%, compared with an expected expansion in UK GDP of 2.2% over the same period. This is a characteristic of a declining industry, the majority of the decline in IVA is expected to stem from falling profitability of small retailers in the industry and the exit of Phones 4U. Larger companies such as Dixons Carphone are expected to be better positioned to maintain profitability.
As the market approaches saturation small independent stores are expected to slash prices to compete with larger companies. As a result profitability for these operators is expected to fall... purchase to read more