Current USA Competition
Now Viewing Current USA's competition in: Gift and Souvenir Stores (primary)
Recent Developments
Favored Giftware Shopping Venues Change - A new giftware market study by Unity Marketing finds that consumers are shopping differently for gifts. The industry's traditional venue, the specialty gift shop, continues to decline in market share, accounting for only 7 percent of the overall giftware market. Consequently, the number of specialty gift shops has dropped 21 percent in the past five years. Discount stores have the largest share of the market, while the Internet claims the number 2 spot. The ability to conveniently comparison shop and ship gifts makes the Internet a fierce and growing competitor.
Greater China Gift Suppliers Raising Prices - Some 92 percent of Chinese craft gift suppliers plan to increase prices in the coming months, according to Global Sources. About one-third of these suppliers point to the Yuan/US dollar exchange rate as the reason; 26 percent blame the rising cost of raw materials, while 21 percent cite design piracy. Due to tough competition for orders, most suppliers are forced to keep price increases below 10 percent.
"Staycationers" could Impact Souvenir Sales - Because tourist travel drives gift and souvenir sales, this could be the summer of discontent for many specialty retailers. Gas prices increased 36.7 percent in June 2008 from a year ago; the US average regular grade gas price hovered at about $4.10 per gallon at the end of June 2008 and is projected to remain there until fourth quarter 2009. High gas prices could cause tourists to take "staycations" in their home states and to curtail vacation spending, impacting souvenir sales.
Competitive Landscape
Consumer spending, special occasions, and tourist travel drive demand. The profitability of individual companies depends on effective merchandising and the ability to generate store traffic. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling specialty products, providing superior service, or delivering a unique customer experience. The industry is labor-intensive: average annual revenue per worker is about $80,000.
Gift and Souvenir Stores Industry Forecast
from Hoover's/D&B subsidiary First Research
US personal consumption expenditures for toys, dolls, and games, an indicator for gift and souvenir stores, are forecast to grow at an annual compounded rate of 4.4 percent between 2008 and 2013.
Spending Growth on Toys, Dolls, Games Stabilizes
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on consumer income
- Require effective marketing
- Risk: Slow economy limits spending on non-essentials
Industries Where Current USA Competes
- Retail
- Floral & Gifts Retail (primary)
- Apparel & Accessories Retail
- Hobby & Craft Retail
- Home Furnishings & Housewares Retail
- Jewelry & Watch Retail
