Industry Analysis - INDUSTRY ANALYSIS Industry Definition...

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INDUSTRY ANALYSIS Industry Definition Designer Rentals will compete in the “Formal Wear and Costume Rental in the US” industry (NAICS 53222 and SIC 7299). Companies in this industry are primarily engaged in renting clothing, such as formal wear, costumes (eg theatrical), or other clothing (except laundered uniforms and work apparel). The major products and services in this industry are men’s formal wear rental (56 %), women’s formal wear rental (14 %), costume rental (13.7 %), theatrical wardrobe rental (8.1 %), sale of ex- rental items (5.8 %), and accessories (1.6 %). A well-know company competing in the industry is Macy’s. Industry Size, Growth Rate, and Sales Projections Industry Size 2005 2006 2007 2008 2009 Industry Revenue (mill$) 1.139,40 1.185,60 1.169,50 1.139 1.080,20 Number of Establishments 3.157 3.285 3.391 3.380 3.267 Employment 14.757 15.224 15.487 15.730 15.238 Industry Growth Rates (%) 2005 2006 2007 2008 2009 Industry Revenue -0,70 4,10 -1,40 -2,60 -5,20 Number of Establishments 0,70 4,10 3,20 -0,30 -3,30 Employment 0,80 3,20 1,70 1,60 -31,00 Industry Sales Projections 2010 2011 Industry Revenue (Mill$) 1.042,70 1.053,60 Growth Rate -3,5 1 950,00 1.000,00 1.050,00 1.100,00 1.150,00 1.200,00 2005 2006 2007 2008 2009 2010 2011 Industry Revenue (mill$) -10,00 -5,00 0,00 5,00 2005 2006 2007 2008 2009 2010 2011 Industry Revenue Growth Rate
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Industry Characteristics : Industry Structure: The concentration of the industry is low, with the 4 largest firms accounting for 23 % of the industry revenue. This low concentration level reflects a largely fragmented market. Nature of Participants: The single large participant in the industry (After Hours Formal Wear, owned by Federated Department Stores) has increased in size through acquisition of smaller competitors. A large number of companies operating in the industry are small, independent formal wear or costume rental firms. However, there are several firms within the formal wear sector that have a many stores across the country. Geographically, the industry is not homogeneously spread across the US. The Southwest account for the 10.39 % of the establishments, while accounting with the
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This note was uploaded on 01/23/2012 for the course BUSINESS IDS301 taught by Professor O'byrne during the Spring '09 term at San Diego State.

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Industry Analysis - INDUSTRY ANALYSIS Industry Definition...

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