WWW.IBISWORLD.COM WeddingServicesintheUS August 2011 1 Getting engaged: Wedding-related activity will rebound as postponed nuptials are planned IBISWorld Industry Report NN006 August2011 Wedding Services in the US AgataKaczanowska 2 AboutthisIndustry 2 2 2 3 Industry Definition Main Activities Similar Industries Additional Resources 18 International Trade 19 Business Locations 29 KeyStatistics 29 Industry Data 29 Annual Change 29 Key Ratios 21 CompetitiveLandscape 21 Market Share Concentration 21 Key Success Factors 30 Jargon&Glossary 4 IndustryataGlance 5 IndustryPerformance 5 5 7 9 Executive Summary Key External Drivers Current Performance Industry Outlook 21 Cost Structure Benchmarks 23 Basis of Competition 24 Barriers to Entry 24 Industry Globalization 25 MajorCompanies 26 OperatingConditions 26 Capital Intensity 27 Technology & Systems 27 Revenue Volatility 28 Regulation & Policy 28 Industry Assistance 12 Industry Life Cycle 14 Products&Markets 14 Supply Chain 14 Products & Services 16 Demand Determinants 17 Major Markets www.ibisworld.com|1-800-330-3772|info @ibisworld.com WWW.IBISWORLD.COM WeddingServicesintheUS August 2011 2 AboutthisIndustry IndustryDefinition This industry is composed of day-of wedding service providers, apparel retailers and venues. Wedding coordinators are included because they have many responsibilities on the day of the event. However, the industry excludes pre-wedding and honeymoon spending. MainActivities Theprimaryactivitiesofthisindustryare Wedding coordination Ceremony & reception hosting Wedding catering Wedding apparel retailing Wedding photography Flower arranging Jewelry design and retailing Town car and limousine rental Live or recorded music performance Make-up application Themajorproductsandservicesinthisindustryare Accessories Attire Coordinators Flowers Food and drink services Other Photography Venue SimilarIndustries 56192 TradeShow&EventPlanningintheUS Trade show and event planners organize, promote and managing events, such as business and trade shows, conventions, conferences and meetings. 72232 CaterersintheUS This industry includes companies that provide single event based food services. Banquet halls with catering staff are included in this industry. 81299b PersonalTrainers&WeddingPlannersintheUS This industry comprises establishments primarily engaged in providing personal services in areas including wedding and party planning services, and wedding chapels. 81311 ReligiousOrganizationsintheUS This industry includes churches, temples, mosques, synagogues, monasteries and other houses of worship that are commonly the location for marriage ceremonies. WWW.IBISWORLD.COM WeddingServicesintheUS August 2011 3 AboutthisIndustry AdditionalResources Foradditionalinformationonthisindustry www.cdc.gov Centers for Disease Control and Prevention www.nielsen.com The Nielsen Company www.theweddingreport.com The Wedding Report I BISWorld writes over 700 US industry reports that are updated up to four times a year. To see all reports, go to www.ibisworld.com 207 Wages Businesses Consumer spending 4 3 AnnualGrowth11-16 Revenue vs. 25 −8 05 07 09 11 13 15 17 Year −2 04 06 08 10 12 14 16 Employment SOURCE: WWW.IBISWORLD.COM SOURCE: WWW.IBISWORLD.3% Profit AnnualGrowth06-11 $1.0bn 450.IBISWORLD.IBISWORLD. 5 15.COM WeddingServicesintheUS August 2011 4 IndustryataGlance WeddingServicesin2011 KeyStatistics Snapshot Revenue $48.4% Food and drink services 25.COM IndustryStructure Life Cycle Stage Revenue Volatility Capital Intensity Industry Assistance Concentration Level Mature Medium Low Low Low Regulation Level Technology Change Barriers to Entry Industry Globalization Competition Level Medium Medium Medium Low High FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 29 .8% Other SOURCE: WWW.6% Venue p.7bn MarketShare 2.5% Coordinators 3.WWW.4% 6.6% 20.COM Products and services segmentation (2011) Flowers KeyExternalDrivers Consumerspending Marriagerate Population Numberofcollege students National unemploymentrate Attire Accessories 5. employment growth 6 4 2 There are no Major Players in this industry % change 0 −2 −4 −6 % change 2 1 0 −1 Year 03 Revenue p.5% $23.0bn -1.7% 9% Photography 13. drops in consumer spending in 2008 and 2009 rippled on to depress industry revenue. couples will have more time to plan and save money for their ceremonies.1% to 450.5% annually on average to $54. representing a potential opportunity for the industry.3% annualized increase in consumer spending is also projected to support revenue growth. As a result. thus. Over the five years to 2011. it is not expected to dramatically impact industry performance.2%. Due to the significant amount of money spent on weddings.WWW. A slow but steady 2. However. decreasing women’s need for financial dependence on men. This driver is expected to increase in 2011. Additionally.8% in 2011 and 2. has also lowered the barriers to entry for firms by enabling anyone to market to the same demographics as established businesses. Also adversely affecting the industry has been the falling marriage rate. industry revenue is projected to rise 1.0 billion. and in the 10 years to 2016 it is expected to decline at an annualized rate of 1.207 in the five years to 2011. which will offset the falling marriage rate. The number of marriages is forecast to continue to decline at an annualized rate of 0.COM WeddingServicesintheUS August 2011 5 IndustryPerformance Executive Summary Economic uncertainty and an increasing acceptance of cohabitation caused a significant proportion of couples to postpone their nuptials over the past five years. resulting in industry revenue declines in 2008 and 2009. Over the past five years developments in internet speed and communication have enabled industry operators to reach out to potential clients at a lower cost. Social networking platform developments led to a shift in vendors’ marketing strategies – toward communicating a unique vision to consumers. changes in consumer spending result in industry volatility. rapid economic expansion in the late 1990’s led to fast-paced industry growth. Such improved marketing channels are expected to drive enterprise growth at an annualized rate of 1. Also. For example.9% in the five years to 2016.3 billion in the five years to 2016. Slowly changing ExecutiveSummary | KeyExternalDrivers | CurrentPerformance IndustryOutlook | LifeCycleStage A steadily falling marriage rate has been hurting demand for wedding services social norms have dragged down the rate over the past several decades. The amount spent on weddings is estimated to grow over the next five years as the demand for large costly weddings rises. however. the marriage rate is recovering from a recent dip due to a delay in nuptials caused by uncertainty and low . industry revenue is anticipated to decrease at a 1. however. decreasing their willingness to make a long-term commitment. Conversely.IBISWORLD. Less expensive and more effective online communication. which delayed their spending on industry services and. consumer spending dropped in response to high unemployment.3% annualized rate to $48. Marriage rate Women’s wages have increased compared with men’s. KeyExternalDrivers Consumer spending Consumer spending measures the total amount of money spent by Americans. the uncertainty in people’s lives has increased as people change their careers and locations more than ever. caused a dip in revenue. An increase in consumer spending indicates that people will spend more on their weddings and thus contributes to industry revenue growth. As the average marriage age and length of engagement further increase. However. slowing the decrease in the marriage rate.95 0. however such people are expected to re-enter the job market as job creation takes off.80 Year −2 Year 03 05 07 09 11 13 15 SOURCE: WWW. This also benefits the industry because many immigrants are more likely to marry.IBISWORLD. Although many people delay marriage Consumer spending 4 3 while in college. population growth has eased over the long term as family sizes have shrunk.00 % change 1 0 −1 % change 04 06 08 10 12 14 16 2 0.COM . Population The expanding population contributes to a relatively stable number of marriages in the United States by partly offsetting the rapidly declining marriage rate.COM WeddingServicesintheUS August 2011 6 IndustryPerformance KeyExternalDrivers continued disposable income during the Great Recession. undergraduate and graduate) of both public and private universities. Number of college students Number of college students represents the total enrollment (part-time and full-time. the college-educated have the highest marriage rates according to Nielsen. As a result. National unemployment rate People who are unemployed are much less likely to get married. This driver is expected to decline in 2011. an audience research firm. This measure does not account for individuals who have given up on searching due to a lack of opportunities or otherwise.IBISWORLD.05 1. The unemployment rate measures the proportion of Americans aged older than 16 who are currently unemployed and looking for work. representing a potential longerterm threat to the industry. or to spend a considerable amount of money on a wedding. Population 1.90 0.WWW. This driver is expected to increase in 2011. The marriage rate is expected to increase in 2011. This driver is expected to decrease slowly in 2011.85 0. a higher number of college graduates in the US population is forecast to increase the number of marriages in future years. A considerable portion of the growth in population throughout the history of the nation has occurred via immigration. 000 in 2010.18 2. weddings have become increasingly commercialized.9 -1. The relative ease and lowered cost of targeted marketing attracted new businesses to this industry.21 (% change) N/C 0. A reversal in consumer spending and unemployment is expected to support revenue growth in 2011. when the cost structure of many businesses in the industry included much higher expenditure on marketing and wages. Similarly.8%.1 307.8 301. when there was a longstanding negative trend in the marriage rate.8 1.20 2. Supported by a rebound in the number of and spending on weddings in 2011. It caused a simultaneous decline in consumer spending and an influx of people returning to school.COM WeddingServicesintheUS August 2011 7 IndustryPerformance Current Performance High unemployment due to the Great Recession led many couples to postpone their nuptials.8 Technologyups competition.0073 0. however.6 304. Additionally.6% of revenue.16 2. Over time women are becoming increasingly independent. financially and otherwise. The marriage rate is also forecast to improve. it is increasingly accepted for young people to stay single longer and to switch jobs and move around. prolong their engagements or try cohabitation to make sure that they want to get married. Also.IBISWORLD.0073 0.0 billion in 2011 over the five years to 2016. social norms are decreasing people’s willingness to commit to marriage.0071 0.8 -3. As a result. creating another disincentive to tie the knot. Price competition has eaten into profit significantly as a result of consumers bargain hunting in the past five years.3% per year to $48. This shift in perspective is leading couples to think twice about commitment.ofmarriages (Millions) 2. The cost of an average wedding skyrocketed from less than $5. Online technologies such as Facebook enable vendors to place affordable ads in front of a targeted demographic. industry profit is expected to total 3.000 in 1980 to more than $20.WWW.0070 0.2 3. such as engaged women of a certain age. Marriagestatistics Year 2006 2007 2008 2009 2010 2011* *Estimate SOURCE: IBISWORLD Marriagerate (Units per capita) 0. industry revenue is expected to decline 1. over the past several decades. This profit remains lower than in 2006.0071 Population (Million people) 298.3 No. with the number of marriages reaching a five-year high this year. though. particularly at a young age. despite a .17 2. helping push it up 1.09 2. creating a temporary dip in demand for wedding services. specialization Increasing participation rates in social networks and online wedding service websites are causing several changes within the industry’s fundamental structure.0068 0.6 312.0 309. This high is due to the many couples who delayed their weddings for financial reasons during the recession. This decrease was more pronounced for the primary demographics of the Wedding Services industry because consumers between the ages of 20 and 29 had relatively low incomes and higher unemployment.3% in 2008 and 0. Such marriages occur at least 200 miles from the bride and groom’s primary residence and more than 80. the number of enterprises is estimated to increase 1. This increases the consumers’ propensity to spend while also allowing vendors to offer discounted services. others worked with their lower incomes by limiting their budgets and by asking their parents to pay for more of it. Also. enhancing the understanding and information between all parties on a more personal level. a magazine publishing company. according to statistics collected by industry affiliate The Knot. found that the average destination wedding reception was 41. Other ways that couples reduced costs include getting married in the off-season or on a weekday because many vendors offer discounted pricing during these times due to the lower demand for their services.0% of the cost of an average reception. however. specialization continued few consecutive years of declining revenue. Additionally. while in 2007 the average number of guests was 153. Spendingless The easiest way for couples to cut back spending was to trim their guest list. Service providers now face direct price competition in an industry where services are difficult for the consumer to distinguish differences between them.6% in 2009 because of high unemployment and consumer uncertainty. Another way for couples to reduce the guest list and save money is by having a destination wedding. Social networks have lowered the barriers to entry and cost of operations social media facilitates communication between service providers and consumers. In response to the increased competition. Based on The Knot’s .207 in 2011. instead of the emotional meaning behind them. Bridal blogs and magazines often emphasize the physical aspects of weddings.IBISWORLD. Although many couples decided to postpone their nuptials. couples can choose to get married in a cheaper location than they reside in or even in a foreign country where the exchange rate stretches their budget. according to US Census surveys. Many guests choose not to attend such events because of the higher cost of attendance.WWW. In the past five years.1% annually on average to 450. temporarily reversed that trend: consumer spending dropped 0. Intimateaffairs In the past couple decades. The Knot’s “2010 Real Weddings Survey” found that the average guest count was 141. the wedding services industry became increasingly commercialized. The Great Recession. they began to place more emphasis on the extravagance of the event. vendors are transitioning their promotional tactics toward niche markets where customized and unique services warrant higher prices. As people became less traditional and less religious.0% of guests require overnight accommodations.COM WeddingServicesintheUS August 2011 8 IndustryPerformance Technologyups competition. thus greatly reducing the budget. A 2005 industry survey by Fairchild. With these larger savings and steady 2.COM consumer. Higher spending per Industry revenue 4 2 % change 0 −2 −4 −6 Year 03 05 07 09 11 13 15 17 SOURCE: WWW. This includes buying local and used goods and using vendors that have environmentally friendly business practices. they are anticipated to continue their thriftier habits through the next five years. In 2008. such as ambient decor.IBISWORLD.0% of couples crafted their favors and ceremony programs. compared with just 9. balancing out a portion of the dip in consumer spending. will help businesses in the industry operate more profitably by decreasing costs per sale. And many even hire professionals to plan some of the smallest of details.1% of revenue in 2016. An influx of small businesses is estimated over the next five years because of lowered barriers to entry and positive business sentiment. IBISWorld projects a 2. Longer engagements and lower living expenses through cohabitation will enable couples to continue spending less day-to-day. combined with savings from declining wages and decreasing marketing costs.3 billion in 2016. Because of such new business formation. consumers are expected to demand more industry services over the next five years. many couples chose to highlight such businesses as preferred outlets in their registries or even chose to donate to charities in place of gifts or favors. according to The Knot’s “2008 Real Weddings Survey. All of these efforts helped consumers to rationalize their wedding spending habits. Industry Outlook During the Great Recession couples found ways to spend less to weather the storm. DIY also became popular as part of a green movement to conserve resources by using what you already have.” 55. about one-fourth of all marriages in 2011 will be destination weddings. The smaller guest lists and greater number of destination weddings reduced the demand for industry services over the past five years. about one-third hire a professional planner. profit growth is expected to be limited during this time. Yet. As a result.COM WeddingServicesintheUS August 2011 9 IndustryPerformance Spendingless continued survey statistics and IBISWorld estimates. however. Similarly. even as employment recovers. will help profit expand to 4. but also created external competition for vendors in the industry. .0% in 2006. This greater profitability.5% annualized increase in revenue to $54. and many also made their own decorations.WWW. however. Do-it-yourself (DIY) weddings are a trend that also helped sweep spending away from the Wedding Services industry. This trend not only helped many couples cut spending on certain services. DIY became popular because it enabled couples to add a personal touch to their nuptials while saving money.3% five-year annualized growth in consumer spending.IBISWORLD. While most couples plan their own wedding. with about 75.WWW. while younger couples will be increasingly less likely to tie the knot. As a result. and people are less likely to get married while still in school.2 million in 2011.IBISWORLD. because many people delayed their weddings during the Great Recession. Parents that pay for all or part of a wedding are also more likely to invite some of their friends to the event. As a result. this move gives couples more time to build a wedding fund. a prominent wedding resource. the wedding coordinators segment is estimated to flourish. Consequently.9%. Timeismoney Industry consumers will also benefit from economic recovery by gaining (higher-paying) employment and are expected to be increasingly involved in their careers.7% over the next five years. such as live musicians. though after a certain age this trend tapers off. couples’ parents are older on average and likely less able to help out physically. which further increases spending on food and related services. compared to 2. making the average couple more time poor than in the past five years. This trend expands the number of people who receive financial help from their parents. Continually growing social acceptance of cohabitation will also lead many of these young individuals to choose to delay their wedding. people aged 25 to 34 will continue to grow as a share of industry consumers. they are anticipated to shift toward spending more on older couples because getting married later in life (older than 25) is increasingly perceived as the norm. Demand for other professional services that were easier for couples to substitute or forego because they were not perceived as essential. Couples will also have more opportunities and resources to save during this time. this unemployment will continue to boost college enrollment rates because people increasingly return to school when job prospects are limited. Although not all savings will go toward their nuptials. According to data from The Knot. Couples are better able to save for the big day by consolidating rent payments and food expenses through cohabitation. These trends are forecast to cause a more rapid decline in the number of marriages to a five-year annualized rate of 0. For decades people have delayed vows to pursue their careers. Although parents historically contributed more to weddings involving couples from the youngest age group. Consumers aged 25 to 34 will contribute greatly to spending on wedding services and help generate 2. is also expected to rebound. yet this trend is expected to particularly help the industry in the next five years.COM WeddingServicesintheUS August 2011 10 IndustryPerformance Anagingtradition Structural unemployment is projected to linger for the next few years.0% of couples already cohabiting before Longer engagements and cohabitation will help couples build their wedding budgets marriage in 2011. the industry will receive a boost from spending by the previous generation.8% industry revenue growth in 2012. consumers are anticipated to save for longer than ever directly prior to tying the knot. just 2. particularly among consumers aged 16 to 25. Additionally. Consequently. the rate of cohabitation before marriage is forecast to continue increasing at an annualized rate of 1.1 million couples are estimated to say their vows in 2016. . Countering the declining number of marriages. Also. IBISWORLD. Such increasing discretionary spending on weddings will attract new businesses. The trend will evolve from a money-saving strategy to a creative outlet as couples order more elaborate. customized desserts. professional services.749 in 2016.4% to 584.WWW.COM WeddingServicesintheUS August 2011 11 IndustryPerformance Timeismoney continued The do-it-yourself trend will also grow. couples are already providing an array of desserts for their guests. . though it will extend into more expensive and personalized. the number of enterprises is projected to grow at a five-year annualized rate of 5. Consequently. For example. substantial technology change 5 WeddingServices Jewelry Wine&SpiritsWholesaling &Watch 0 Caterers Wholesaling Shake-out SoftDrink.COM .WWW. minor growth in economic importance. developed technology and markets KeyFeaturesofaMatureIndustry Revenue grows at same pace as economy Company numbers stabilize.COM WeddingServicesintheUS August 2011 12 IndustryPerformance LifeCycleStage The primary consumer base is contracting while expenditure per wedding grows over the 10 years to 2016 Adaptation to technology will facilitate 32% 10-year annualized enterprise growth and steeper competition Industry participants are refining their products to appeal to consumers and to generate higher spending per customer %Growthofprofit/GDP 30 25 Company consolidation. M&A stage Established technology & processes Total market acceptance of product & brand Rationalization of low margin products & brands 20 15 QuantityGrowth 10 Many new companies.BakedGoods&OtherGroceryWholesaling TradeShow&EventPlanning Shake-out –5 Decline –10 –10 –5 Crash or Grow? PotentialHiddenGems Future Industries 5 10 15 20 TimeWasters Hobby Industries 25 30 0 %Growthofestablishments SOURCE: WWW. weaker companies close down.IBISWORLD.IBISWORLD. level of economic importance stable Maturity QualityGrowth High growth in economic importance. from $23. which tend to make less revenue due to poor pricing and marketing strategies. The increasing proportion of smaller businesses. The industry’s contribution to the economy is forecast to decline in the ten years to 2016. though its rate is declining steadily. As IVA declines at an annualized rate of 1.527 in 2006 to $25. Enterprise numbers are estimated to increase at a 3.646 in 2016. GDP is forecast to grow 2.9%. is also driving down the industry’s IVA.2% annualized rate to 584. marriage will remain a significant tradition in many American’s lives.IBISWORLD. .7% over the ten years to 2016.0% annually on average.749 in 2016.COM WeddingServicesintheUS August 2011 13 IndustryPerformance IndustryLifeCycle T his industry is Mature The Wedding Services industry is mature because. The average amount of money spent per wedding is estimated to increase over the 10 years to 2016 despite a steep drop in spending during the recession. Industry value added (IVA) is projected to fall as a result of decreased consumer spending that coincided with a rise in industry enterprises after the financial meltdown.WWW. IBISWorld projects that the average couple’s wedding expenditure will increase at a ten year annualized rate of 0. Consistent IVA growth from 2010 through 2016 will fail to make up for the earlier drop. WWW. KEYSELLINGINDUSTRIES 42394 42449 Jewelry&WatchWholesalingintheUS This industry distributes jewelry to retailers who the bride or groom purchases it from.4% of wedding services spending in 2011. it excludes make-up. Wine&SpiritsWholesalingintheUS Wedding caterers purchase most alcoholic beverages from wine and spirits distributors. The line between food services and venue is blurred in some instances. also provide food services. including shoes and jewelry. Catering and other food services are expected to be 25. CameraStoresintheUS This industry sells camera and film to wedding photographers. This segment remained a constant share of revenue in the five .7% of the typical wedding budget while venue fees will be about 20. 42482 42493 44313 44612 45291 53211 53212 Products&Services Reception The reception segment is expected to make up 46. Many couples cut costs through a combination of serving less food or serving lower quality food.IBISWORLD. spending decreased over the past five years. TruckRentalintheUS Caterers and florists often rent or lease trucks to transport their products. Due to high unemployment and uncertainty. However. such as restaurants. country clubs. Beauty. restaurants and religious establishments. WarehouseClubs&SupercentersintheUS Many wedding vendors purchase miscellaneous items from such stores. and booking a smaller venue or an otherwise cheaper venue. SoftDrink. these segments declined as a share of industry revenue over the past five years.6%. hair and nails services that are counted in the “other” segment.5% of industry revenue in 2011.BakedGoods&OtherGroceryWholesalingintheUS Wedding caterers purchase a majority of the food and non-alcoholic beverages they serve from this industry.Cosmetics&FragranceStoresintheUS Brides or make-up artists purchase many products from this industry to use on the day of the wedding. food service providers are mostly caterers. The venues segment is primarily composed of hotels.COM WeddingServicesintheUS August 2011 14 Products&Markets SupplyChain KEYBUYINGINDUSTRIES 81299b 9901 SupplyChain | Products&Services | DemandDeterminants MajorMarkets | InternationalTrade | BusinessLocations PersonalTrainers&WeddingPlannersintheUS Wedding planners make arrangements on behalf of the bride and groom. Flower&NurseryStockWholesalingintheUS This industry supplies florists with flowers. As a result. contributing a heavier weight toward the venue segment because some venues. Meanwhile. This segment will generate about 15. ConsumersintheUS Couples are the key drivers of demand for this industry’s services. Attire and accessories The attire and accessories segment includes all clothing items worn by the wedding party. CarRentalintheUS Some out of town vendors and wedding guests rent a car on the day of the wedding. COM years to 2011 because though spending on attire and accessories declined. Competitiveness between friends and family. According to the Knot’s Real Weddings Survey the average couple spent $3. wedding photography was relatively simple and while demand for photographers has not increased substantially.WWW. brides are better able to easily find and write reviews about bridal boutiques based on pricing and customer service. florists and coordinators.0bn 15. or chose less comprehensive packages with these vendors.783 on photography and videography services in 2010 compared to $2. According to the Knot. officiate and beauty services. which includes videography. Historically. The largest expenditure in the attire segment is the bridal gown.IBISWORLD.4% of industry revenue in 2011. increasing direct competition in the industry. . As a result.099 in 2010.317 in 2007 to $1. This segment. favors. Other The other segment consists of a variety of services that will generate about 15. increased because photo and video sharing is now much more prevalent thanks to social networking sites such as Facebook.466 in 2006.6% 20.6% Total $48.4% Flowers 3. is driving the cost of services up. Details The details segment is made up of photographers. The photography segment grew since 2006. but online bridal networks facilitate information sharing about designers and stores. and marketing designed to capitalize on this trend. the amount spent per wedding has increased markedly.7% of industry revenue in 2011.IBISWORLD. It is expected to total 22. transportation. couples cut down more on other services.COM WeddingServicesintheUS August 2011 15 Products&Markets Products&Services continued Products and services segmentation (2011) Accessories 6. Over the past five years this segment remained steady. This trend is projected to reverse quickly in the next five years as discretionary spending picks up. the average expenditure on a wedding gown dipped from $1. many brides turned toward do it yourself flowers and coordination. However.7% Attire 9% Photography 13.5% Coordinators Food and drink services 25. and the industry is engaging in improved postproduction services as a means of adding value to increase revenue. Services include entertainment.8% Other Venue SOURCE: WWW. Photographers take more photos thanks to cheap digital memory cards. Such information sharing has greatly compromised the traditional information monopolies that certain bridal boutiques maintained.4% 5. Not only are brides shopping around more between stores. the trend toward smaller weddings could be to create a more intimate feel for guests as well as a cost-cutting measure. DJs and dancers. However. High consumer spending increases the likelihood of people setting higher budgets for elements such as entertainment like live musical performances. Additionally. Other factors can also determine demand for wedding services. like the iPod. ceremony programs and guest books. and do not want to spend as much on a wedding. such as careers. However. Do it yourself (DIY) is a significant trend that appeals to brides because it makes their wedding more personalized and was strengthened by its low-budget appeal when spending dropped off in 2008. spending on entertainment and other services declined over the past five years. Demand Determinants The demand for the services supplied by this industry is determined by the marriage rate and by couples’ budgets. Many brides asked friends to fill in or did it themselves. the average age for getting married is steadily increasing. and dipped further in 2008 when people pushed weddings back due to uncertain economic conditions including high unemployment. space heater and tent rentals will likely rise during unusually cold or wet months. changes in fashion trends and seasonal weather conditions. Another factor that influences wedding budgets is demographics. Style trends also guide purchase patterns. many people delay marriage because of other priorities. menus. . there has been a trend toward elaborate. To this point. As a result. As such. multicultural ceremonies. This tactic automatically drops per-person costs such as food. According to the Knot’s 2010 Real Weddings Survey. The most significant portion of this expenditure is on entertainment. as is the number of couples living together prior to matrimony. The marriage rate is gradually decreasing. demand for highly ranked brands is greater among consumers with higher incomes and more discretionary spending power.IBISWORLD. which has contributed to increasing revenue for certain vendors. many venues have sound systems that are compatible with mobile music players. and printed items like place cards. Many couples’ purchasing patterns are guided by their perception of certain brands. the money spent per guest remained steady at $194 and the average number of guests was 141 in 2010 compared with 149 in 2009 and 2008 when more survey respondents admitted that they had trimmed their budget for economic reasons. For example. such as brand recognition. On the other hand certain services vary according to seasonal and weather conditions. and provide an easy way for guests to control wedding playlists. This segment is projected to rebound in the next five years as couples save and spend more money on such elements. furniture rental.COM WeddingServicesintheUS August 2011 16 Products&Markets Products&Services continued decor other than flowers. the Knot’s 2007 Survey found that the average number of guests was 153. Prior to the Great Recession.WWW. This allows a couple an easy and cheap alternative to live music or even a DJ expenditure. In conclusion of these findings. the average couple now has higher disposable income and has the means to pay more for services than the average couple five years ago. which are a portion of consumer spending. menus and favors. Additionally. Couples often decreased their budget by inviting fewer guests to their wedding. which includes professional musicians. The smallest market is made of consumers under the ages of 20. Consumers over 34 are also much less likely to get married or have a big wedding due to different priorities and other responsibilities (such as children) that often prevent high spending. a business heavily involved in the industry. which also restricts a couple’s willingness to spend on themselves.COM WeddingServicesintheUS August 2011 17 Products&Markets MajorMarkets Major market segmentation (2011) Consumers aged 15 to 19 Consumers aged 35 to 39 8. entered this category. accounting for 2. thus limiting their abilities to have big weddings.COM therefore.3% Consumers aged over 39 9. These two age groups are the highest spenders in the industry because they are most likely to have parents pitch in and pay for all or part of their wedding.0% of couples surveyed lived together before their nuptials. the segmentation for this industry is also shifting toward older consumers. and a higher proportion of this demographic is already married. According to The Knot. The second largest market consists of people between the ages of 20 and 24. The study also found that the average length of an engagement is 14 months.3% 2. These consumers also have limited income. therefore. the average bride’s age is 29 and the average groom’s age is 31. compared with 70% of couples in 2008 and 2007.3% of the market.2% Consumers aged 30 to 34 22.WWW.1% of total revenue.7% Consumers aged 25 to 29 33.1% SOURCE: WWW. accounting for 33. Also. Consumers aged 20 to 24 24.2% of revenue. 74. the average age for couples getting married has increased over the past five years and. . This demographic group accounts for a lower share of the market as they often have different priorities than marriage. However.IBISWORLD. Many marriages before the age of 20 occur because of an unexpected pregnancy. but also due to relaxing societal norms with regards to cohabitation. giving couples plenty of time to organize their big day.0bn The largest market for the Wedding Services industry is consumers between the ages of 25 and 29. which represents about 24. Many members of this age group have met the right person and decide that they are ready to make the commitment.IBISWORLD.4% of the market. However. This may be to save money for the wedding. Consumers between the ages of 30 and 34 are estimated to account for 22. These results from the 2010 Real Weddings Survey are consistent with the IBISWorld findings discussed above.4% Total $48. this figure is forecast to increase over the next five years as consumers in the 25 to 29 age group may have delayed their vows due to unemployment or uncertainty during the recession or simply other priorities and. WWW.COM WeddingServicesintheUS August 2011 18 Products&Markets InternationalTrade Although some wedding services vendors may travel to provide their services abroad. . this is not a significant segment of the industry.IBISWORLD. 9 GA 3.4 IN 2.1 CO 1.5 Southeast 2.3 NE 0.3 1.2 West NV 5.WWW.9 5 4 6 7 8 WI 1.IBISWORLD.5 ME 0.6 NM 0.3 0.3 5 CT 6 NJ 2.COM WeddingServicesintheUS August 2011 19 Products&Markets BusinessLocations2011 West AK 0.6 1.5 TN SC 1.2 AR 1.0 CA 10.2 AdditionalStates(as marked on map) 1 VT 0.4 PA 3.2 Rocky Mountains ID 0.3 1 2 3 NY 5.3 Plains IA 1.6 KS 0.6 NC 3.5 4 RI 0.IBISWORLD.7 0.0 PercentageofMarriages(%) Lessthan3% 3%tolessthan10% 10%tolessthan20% 20%ormore SOURCE: WWW.2 9 UT 1.2 SD 0.3 New England Great Lakes MN MidAtlantic MI 2.6 WV VA 2.1 7 DE 0.0 LA 1.9 MO 1.7 MT ND 0.4 OH 3.2 WY 0.5 WA 1.4 OK AZ 1.6 IL 3.9 OR 1.0 1.COM 2 NH 0.5 Southwest TX 8.7 West HI 1.5 FL 6.1 .2 8 MD 1.6 9 DC 0.6 MS 0.9 KY 1.4 3 MA 1.7 AL 1. Marriages vs. As a result. resulting in fewer marriages per capita in high-density areas. For instance. Nevada hosts 5.COM WeddingServicesintheUS August 2011 20 Products&Markets BusinessLocations Most weddings. therefore. Destination weddings are usually smaller and. people in urban centers are less traditional and more mobile. states with a higher population in the primary demographic for matrimony are host to the most weddings per capita. the Southeast and West regions have the greatest proportion of marriages to their respective populations.IBISWORLD. There are also a few underlying trends that affect the marriage rate in each state. followed by New York and Hawaii. This increase was driven by declining consumer spending. Indeed. Las Vegas is the top spot for people to elope and has boosted Nevada to have the highest proportion of marriages to the population.9% of the US total population.3% of all nuptials in the US while its population is only 0. population 30 20 % 10 0 Rocky Mountains Great Lakes Mid-Atlantic New England Southeast Southwest Plains West Marriages Population SOURCE: WWW. About 24. establishments in this industry are spread similarly to the US population. with the exception of destination weddings. . Florida and California.7% of couples are expected to have a destination wedding in 2011. This category is expected to decline slightly in popularity this year as consumer spending increases. Consequently. occur close to home for the bride or groom. Destination weddings expanded from about 8% in 2006 according to the Knot’s Real Weddings Surveys.COM The top US states for destination weddings are Nevada.IBISWORLD. cheaper despite the associated costs such as travel.WWW. On the other hand. Having a good reputation Many wedding services providers rely on word-of-mouth references to generate their business. Many of these venues are MarketShareConcentration | KeySuccessFactors | CostStructureBenchmarks BasisofCompetition | BarrierstoEntry | IndustryGlobalization in this industry is Low located in Las Vegas. because there is no waiting period in Nevada after receiving a marriage license.IBISWORLD. For instance. also contributed somewhat to the decline. high-quality image are best able to attract high income individuals that spend more on weddings. The Wedding Services industry is so fragmented because it is composed of a wide variety of highly specialized vendors. venue providers and bridal gown retailers. Having a good technical knowledge of the product Wedding services providers must be able to explain and deliver their services to potential clients in a variety of situations. including florists. Mandalay Bay offers several all inclusive vows and reception packages and they need just 24 hours notice. However. most of these venues have only one location and still outsource to small businesses for these services. profit is expected to rebound in the next five years as industry . This law is unique to the state. making the business model impossible to replicate elsewhere. KeySuccessFactors I BISWorld identifies 250 Key Success Factors for a business.COM WeddingServicesintheUS August 2011 21 CompetitiveLandscape MarketShare Concentration Level Concentration There are no identifiable major players in this industry and the top four players account for less than 10% of industry revenue. which is known for eloping or where some couples decide to have a spur of the moment ceremony.6% of revenue. the segment declined over the five years to 2011 as competition forced companies to cut prices. They must also be able to meet different expectations for each client. such as The Little White Wedding Chapel that even offers drive through ceremonies. Nonetheless. Other venues offer marriage ceremonies quicker than this. As a result. Profit Industry profit (earnings before interest and taxes (EBIT)) is expected to increase in 2011 to 3. individual cost structures are expected to vary from this aggregated analysis. ensuring that they provide a certain level of services to every client. The most important for this industry are: Provide services to high income individuals Wedding services providers with an exclusive. CostStructure Benchmarks It is imperative to note that this industry is composed of a variety of service providers.WWW. such as in the Photography industry (NAICS 54192). Some examples of differing cost structures for subsections of this industry are provided below. The profit increase will stem from a higher number of weddings occurring this year as disposable incomes recover postrecession. An increasing number of smaller players. There are some venues that offer wedding packages with a majority of services included. Ability to vary services to suit different needs Wedding services providers must be flexible in order to accommodate a variety of client requests. However. Willingness to outsource when appropriate The most successful wedding vendors recognize the limitations of their business and outsource if necessary. utilities and depreciation. The industry segment that had the highest average profit from weddings was venues. Industry segments that pay the highest proportion of wages are the labor intensive parts of this industry. though declining. Similarly to purchases.3 3.6 2.7 4. other expenses have fluctuated over the past five years yet remain a similar proportion of industry revenue due to the diversity of services that this industry provides. Items such IndustryCostsandAverageSectorCosts Industry Costs (2011) Average Costsofall Industries insector (2011) as food. Although many companies let go of employees since 2008.6 2.3 .2 36. most have not yet re-hired workers. they kept more of their EBIT because real-estate values declined. For example.3 3. Venues have fixed maintenance costs regardless of whether or not their space is fully used. ■Profit ■Rent ■Utilities ■Depreciation ■Other ■Wages ■Purchases Profit 4. Many of these costs fluctuated in the past five years.8 28. Industry purchases are expected to total 31. On the other hand.1 8.7 2.WWW. as well as marketing and administrative expenses. purchases and other Wages are a significant. beverages. Other costs include rent.8% of 2011 revenue. variously impacting different service providers. segment of revenue. Also.7 0 100% 47. which led to lower property taxes. including food services and coordinators.8% of revenue in 2011. new venues were cheaper to buy or refurbish after the mortgage crisis due to an oversupply of developed property and construction workers. In general. Wages. Also. Because of the diversity of expenses within this industry purchases are estimated to stay a steady share of industry revenue. On the other hand utility costs increased as a result of higher energy prices. flowers or gowns must be purchased by their respective vendors to offer their basic services. They are anticipated to be 47.8 22. rent declined as a share of revenue as a result of lower property values post-mortgage crisis. changing weather patterns inflated flower prices and increased the proportion of purchases for florists. some people created their own businesses when they were let go and had to pay themselves less as a result. Meanwhile florists and photographers have some of the lowest profits because their work involves high expenditures in terms of purchases and time spent performing services.IBISWORLD.1 31.IBISWORLD.COM WeddingServicesintheUS August 2011 22 CompetitiveLandscape CostStructure Benchmarks continued operators diversify and customize their services to appeal to niche markets.COM Profit 1.7 SOURCE: WWW. Yet customer service only goes so far because the price and (perceived) quality of vendors’ goods and services determines their appeal to brides. It also allows word of mouth to travel further and faster than it used to. the primary basis of competition is customer service. Social media. However. Many vendors choose to provide a wide range of quality and pricing options in order to expand their consumer base. However. technology and the Great Recession altered this landscape in a way that has boosted competition within and from outside of the scope of this industry.COM WeddingServicesintheUS August 2011 23 CompetitiveLandscape BasisofCompetition Level&Trend Competition in this industry is High and the trend is Increasing The Wedding Services industry was traditionally made up of many smaller players that provided specific goods or services. customer service and marketing. wedding service providers are increasingly competing based on marketing.IBISWORLD. The fast-growing destination-weddings segment is also relying on these technologies as couples increasingly book services from online information. the influence of consumer competition on the industry is projected to decline. No matter how couples find a business. In response to this market opening up. . Easier communication between vendors and potential clients has also facilitated the availability of information. however the DIY segment will continue as a way for people to customize their weddings. competition intensifies. price. the competition from outside of the industry is limited. This do it yourself (DIY) trend took off and became a popular way for couples to save. online directories and search engines have facilitated couples’ research about wedding vendors. As the number of vendors rises. As a result of these new technologies. Internal competition Wedding service providers are competing with each other in terms of quality. These services all compete based on the price and quality of their services. The large amount of information about vendors allows couples to better judge the quality and price of many services. Because services make up the majority of industry revenue. it is imperative for the representatives to be friendly and informative in order to book that wedding. and to choose one to their liking. As consumer spending revives. such as a couple of designers’ dresses or flower arranging for a local community. the Great Recession’s negative financial impact caused many couples to reconsider their spending.WWW. Many concluded that they could provide themselves with services or products for their own wedding. External competition Because most operators in this industry generate a majority of revenue outside of the industry. but also to personalize their weddings. Technology has drastically increased the competition between businesses in the industry over the past five years. in addition to customer service. blogs. many new operators are starting businesses in the industry. and many also asked friends and family to pitch in and help out. The internet has enabled some couples to seek out foreign products for their wedding. David’s Bridal teams up with designers such as Vera Wang but mass produces dresses to sell in its over 300 locations nationwide. therefore. Start-up costs have also decreased in the past five years for many businesses. there are also cultural barriers to globalization for this industry. Many small operators in the industry benefit not only from their ability to offer a wider range of goods but also from their personalized customer service. However. However. David’s lacks the quality and customer service aspect of the wedding business and. This decreased the opportunity cost for many new BarrierstoEntrychecklist Competition Concentration Life Cycle Stage Capital Intensity Technology Change Regulation & Policy Industry Assistance Level High Low Mature Low Medium Medium Low SOURCE: WWW. As a result. as opposed to foregoing a steady income to create their wedding services business.IBISWORLD.COM WeddingServicesintheUS August 2011 24 CompetitiveLandscape BarrierstoEntry Level&Trend Barriers to Entry in this industry are Medium and Decreasing Barriers to entry have declined drastically in the past five years with the advent of cheap targeted marketing options online like Facebook. Existing vendors still benefit from reviews and word-of-mouth recommendations. rarely even travelling within a region or nationwide. Many smaller dress shops cannot compete with the scope and pricing of David’s products.IBISWORLD. appeals mainly to brides with a low budget. Meanwhile. they now have a plethora of cheaper options to use. many smaller bridal gown vendors project an exclusive image to avoid direct competition with David’s. However the wide variety of services and markets makes it possible for new operators to start out. albeit with a much smaller consumer base. larger vendors benefit from economies of size and scope.WWW. Besides the geographical barrier. The decreased cost of reaching the consumer has allowed many small businesses to enter into the industry. Many cultures have diverse wedding traditions that are best addressed by local professionals. such as offshoring custom gown production or purchasing jewelry from foreign E-tailers. . technological advances and lower consumer spending led to decreased prices of equipment such as computers and digital cameras. The effectiveness of online communications has lowered barriers to entry by enabling anyone to market to the same demographics as established businesses.COM vendors who started out in the industry when they became unemployed. Industry Globalization Level&Trend Globalization in this industry is Low and the trend is Decreasing This industry has a low level of foreign ownership and no trade. this remains a minimal component of the industry. In some instances. While vendors used to rely on expensive advertising local and nationwide magazines in order to attract clients. making it cheaper to buy or lease a venue or office. Another factor that decreased start-up costs was a high unemployment rate. The mortgage crisis resulted in lower rates for real estate. For example. Wedding services providers typically operate on a local level. In 2011. David’s Bridal was sold in late 2006 to an private equity firm.0 million through its retail sales. gloves. The Pros Entertainment Service Inc. prom dresses. With more than 300 stores nationwide. shoes and undergarments. Disneyland Resort and aboard Disney Cruise Line. studio entertainment.WWW. is a large and diverse business. It offers DJ. Over half of its estimated $3 million in revenue is expected to stem from the Wedding Services industry. resorts and consumer products all contribute to the weddings services that Disney provides. The Pros Entertainment Service Inc.2% of industry’s market. However.000 weddings. As a venue. bridesmaid dresses. The Pros has adapted in the past five years by developing a bridal website and hiring higher-quality professionals.IBISWORLD. David’s Bridal Estimated market share: 1.COM WeddingServicesintheUS August 2011 25 MajorCompanies OtherCompanies The Walt Disney Company TherearenoMajorPlayersinthisindustry | OtherCompanies Estimated market share: 1. IBISWorld estimates that about 92.000 for the average wedding it hosts for 50 people. Disney has hosted about 40. according to the publishers of Brides magazine. accounting for about 1. To this point. FL. including media networks. handbags.0% Headquartered in Clearwater. Disney earns $20. wedding books.000 couples get married each year at Walt Disney World Resort. headpieces. However. consumer products and interactive media. and a photography lab.4% The Walt Disney Company is an international conglomerate best known for its early cartoon characters. Such low costs have been enabled by in-house manufacturing of its dresses. Since this buyout. limiting the ability to provide financial analysis. The company stated in 2010 that over 1. the company also sells costume jewelry. the retailer’s average dress costs about $550. the company does not segment out wedding-specific revenue. IBISWorld estimates David’s Bridal will generate about $580. most of the ceremonies held at Disney are considered destination weddings. .). the company produces its own dresses in Asia. As a result there is relatively little publicly available information about the company. for example. Leonard Green & Partners. while the national average cost for wedding gowns amounts to $1. David’s Bridal is the largest national retailer specializing in bridal gowns.075. Conde Nast Bridal Group. This in-house strategy has contributed to the company’s success by enhancing production flexibility and creativity. The company was founded in 1923 and is traded as “DIS” on the NYSE. flower girl dresses. the Pros has operated for over 30 years as a family business. movies and amusement parks. Disney’s main revenue stems from a few segments. After all. parks and resorts. its parks. The company operates proprietary design and video studios. styles and locations throughout the country. wedding gifts. where it can take advantage of low labor and overhead costs. David’s distinguishes itself from other bridal shops by offering low-priced gowns and bridesmaids dresses in many Estimated market share: Less than 1. the company does not disclose its financial information to the public. These various segments work in conjunction with each other. communion dresses. Since September 1991. Formerly a division of Federated Department Stores (now Macy’s Inc.2% Known as the Walmart of weddings.0% of total company revenue is generated in the US. video and photography nationwide in 40 of the largest US markets. IBISWORLD. OldEconomy AgricultureandManufacturing. vendors spend an average of only six cents on capital for every dollar they spend on labor. SOURCE: WWW.IBISWORLD.WWW. As a result.To increase revenue firms need superior debt management. To expand firms must merge or acquire others to exploit economies of scale. CapitalIntensity | Technology&Systems | RevenueVolatility Regulation&Policy | IndustryAssistance Capital units per labor unit 0. HealthandEducation.2 0. or specialize in niche.FinanceandReal Estate.IBISWORLD. Firms benefit from personal wealth so stable macroeconomic conditions are imperative.1 0.0 Economy Other Services (except Public Administration) Wedding Services Capital intensity of capital intensity is Low Dotted line shows a high level of capital intensity SOURCE: WWW. Mining.COM ToolsoftheTrade:GrowthStrategiesforSuccess NewAgeEconomy Recreation.3 0. Traded goods can be produced using cheap labor abroad. many industry operators have minimal capital costs because of the nature of their services. InvestmentEconomy Information.COM Wedding TradeShow&EventPlanning Services ChangeinShareoftheEconomy .Communications. For example.5 0.4 0. Most capital costs are related to equipment or buildings that have an extended useful life. officiants incur little to no capital expenses. BakedGoods& OtherGrocery Wholesaling Wine&SpiritsWholesaling Caterers Jewelry&WatchWholesaling TraditionalServiceEconomy WholesaleandRetail.PersonalServices.COM WeddingServicesintheUS August 2011 26 OperatingConditions CapitalIntensity Level The level The Wedding Services industry depends on labor to accommodate consumers. CapitalIntensive LaborIntensive SoftDrink. Also. Functions cannot be outsourced therefore firms must use new technology or improve staff training to increase revenue growth. high-value products. Reliant on labor rather than capital to sell goods. Brand awareness and niche labor skills are key to product differentiation. a stable macroeconomic environment and a sound investment plan. Labor expenditures are high because businesses in this industry compete primarily on the basis of customer service. Another example of technological change is that some people choose to hook up an iPhone to their venue’s sound system and have a friend control the music instead of a professional DJ. if not driven by high-quality and easily accessible music selections today. CDs or tapes could be utilized. equipment and intellectual property of most wedding services professionals have not changed greatly over the past few decades. and coordinators. As technologies are adapted by an increasing segment of the population. increasing their revenue per wedding and their share of the industry. mobile applications have the potential to alter how couples approach wedding planning. However.5% in 2007 before dropping 3. However. As a result. or offering discounts or unique services. The slow economic recovery has exacerbated . RevenueVolatility Level The level of Volatility is Medium Historically.IBISWORLD. as is the job of caterers. blogging and wedding websites. Venues and clothing retailers are much the same. Likewise. making it easier for consumers to learn about the variety of options available to them. the commercialization of weddings increased the industry’s dependence on consumer spending. the trend may be driven by couples minimizing expenses in the aftermath of the Great Recession.COM WeddingServicesintheUS August 2011 27 OperatingConditions Technology &Systems Level The level of Technology Change is Medium The software. Digital photography has revolutionized wedding photography businesses. revenue grew 1.WWW. Nonetheless.7% in 2009. For instance. such as online album design. nails and make-up artists. Online services such as The Knot or Wedcharm share information from and about wedding vendors. machinery. an abundance of online resources for consumers has boosted the competition between vendors. entertainers. This industry’s revenue volatility increased modestly in the past five years due to the high unemployment and economic uncertainty that led couples to spend less on or postpone their nuptials.4% in 2008 and falling another 5. many vendors are transitioning their marketing strategies toward communicating a unique vision to clients through social networking. in turn encourages vendors to set themselves apart by catering to a niche audience. One segment of the industry that has benefited greatly from technological change is the Photography segment. Yet prior to iPhones. unique products to clients. the internet has facilitated price hunting and customization. Such advancements and other features. easy-to-use and newly emerging technology is influencing the industry’s performance. photographers now deliver more personalized. Effective online communications have also lowered the barriers to entry for wedding services providers by enabling anyone to market to the same demographics as established businesses. other media like MP3 players. volatility was lower as revenue gradually grew. Therefore. This change has also benefited other vendors because photographers often provide the pictures or videos they then use for marketing. Digital technology also allows photographers to easily edit and touch up images without the need for studio technology or manual airbrushing. they are expected to further change the landscape of the Wedding Services industry. For instance. Programs such as Adobe Photoshop make these editing capabilities commercially available. have enabled photographers to provide more add-on services. hair. florists. As a result. More intense competition. COM industry volatility. and industry revenue expected to return to growth starting in 2011. Also. even abroad. When a firm makes poor investment decisions it may face underutilized capacity if demand suddenly falls. before the license is issued.IBISWORLD. or capacity constraints if it rises quickly.COM WeddingServicesintheUS August 2011 28 OperatingConditions RevenueVolatility continued Revenuevolatility*(%) A higher level of revenue volatility implies greater industry risk. usually of a few days. is usually valid in any state as long as the marriage was legal in the jurisdiction where it occurred.IBISWORLD.WWW. most states require that both bride and groom are 18 or older. The county or court clerk issue a marriage license for a nominal fee in the state that the ceremony is performed in. A ceremony performed elsewhere. The current dip is projected to cause unsteady growth spurts in the next few years while spending returns to pre-recessionary levels. Industry Assistance is Low and the trend is Steady . such as the time frame for capital investment. and court approval is increasingly required as well. or have state approval by holding a recognized position in the community like that of a judge. priest or rabbi. there are no other regulations that apply specifically to wedding service providers. Some states have a specified waiting period. IndustryAssistance Level&Trend The level of Although there are online services and bridal fairs that help vendors to advertise. Most state laws dictate that officiants must be registered in the state. in order to perform a legal ceremony. This hampers the establishment of quick-wedding establishments in these states. there is no organization that supports operators across the scope of the industry. VolatilityvsGrowth 1000 100 10 Hazardous Rollercoaster WeddingServices 1 0.1 Stagnant –30 –10 10 30 50 BlueChip 70 Fiveyearannualizedrevenuegrowth(%) * Axis is in logarithmic scale SOURCE: WWW. Volatility can negatively affect long-term strategic decisions. In most states minors are permitted to marry with parental approval. Regulation&Policy Level&Trend The level of Regulation is Medium and the trend is Steady Government regulation Although each state regulates marriage. 08 3/29 49/706 Employees perEst.8 0.94 62.2 22.207 727.53 37.107 26.1 2.1 2.134 731.768 26.2 23.4 1.80 46.6 -6.966 522.1 4.793.8 27.6 N/A N/A AnnualChange 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SectorRank EconomyRank Revenue (%) 0.554.215.96 54.19 0.3 -4.134.346.1 22.3 422.888.19 66.92 51. SOURCE: WWW.40 23/29 667/705 AverageWage ($) 40.3 2.94 1.27 64.8 -3.07 52.431 26.7 2.8 4.7 4.8 461.790 25.1 513.1 4.3 23.687.9 49.979.778 584.8 25.7 -0.22 0.09 67.5 53.6 54.5 -0.670.54 1.781.9 6.7 4/29 157/706 Industry ValueAdded Establish($m) ments 33.0 1.9 -7.085.24 0.2 -0.1 5.217.181 1/29 3/29 96/706 14/705 Enterprises Employment 360.1 -2.21 0.342 763.59 54.5 -3.167.8 2.61 1.573 727.0 49.2 3.724 557.91 3/29 125/706 Imports/ Demand (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Exports/Revenue (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Revenueper Employee ($’000) 66.28 0.71 30.131.608.181.692 29.849 740.68 61.8 -6.5 6.874.3 3.2 0.4 5.17 51.173 420.78 1.3 -0.026.8 487.7 2.50 1.942 697.59 7/29 500/706 Shareofthe Economy (%) 0.206.19 0.3 2.2 2.4 2/29 58/706 Domestic Demand N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Numberof Marriages (Thousands) 2.6 27.82 48.637 26.5 51.8 4.28 43.7 -1.35 38.3 -1.401.00 65.83 68.910 26.4 1.503 25.5 0.2 439.77 67.236.17 1/29 96/706 Figures are inflation-adjusted 2011 dollars.0 -0.008.43 54.0 16/29 467/706 Industry EstablishValueAdded ments (%) (%) -0.4 2.869.59 65.42 44.27 0.6 3.240.672 758.2 1.598 31.548.7 2.7 0.12 36.825.2 2.18 35.554.39 65.7 21/29 1/29 536/706 31/705 Enterprises Employment (%) (%) 6.29 49.7 -1.WWW.2 1.44 1.1 4.599.7 2.47 1.7 2.8 2.811 26.4 47.38 58.17 42.310.749 835.1 398.5 28.6 2.4 50.9 -0.2 -4.03 47.COM WeddingServicesintheUS August 2011 29 KeyStatistics IndustryData 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SectorRank EconomyRank Revenue ($m) 48.6 24/29 594/706 Domestic Demand (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Numberof Marriages (%) -1.79 57.56 34.318.8 -2.814 816.3 22.417.843.283.65 1.523 501.391 31.442 31.954.672 475.3 29.3 1/29 2/29 27/705 97/706 Exports (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Imports (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Wages (%) -0.8 0. Rank refers to 2011 data.1 -2.4 0.9 4.24 55.9 -3.8 2.17 0.0 428.73 1.274.549 414.1 5.98 27.7 2.7 6.985.624 400.942.03 32.20 66.293 410.847 784.7 N/A N/A KeyRatios 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SectorRank EconomyRank IVA/Revenue (%) 68.329 3/29 5/29 15/705 46/706 Exports ---------------N/A N/A Imports ---------------N/A N/A Wages ($m) 29.3 22.8 2.839.4 52.53 52.798 771.954.196.59 50.364.2 6.76 1.7 47.COM .49 29.7 -3.201.8 2.10 53.08 49.79 65.3 51.IBISWORLD.469.218 32.2 -1.138.3 0.5 1.4 48.89 66.4 415.83 1.7 -0.070.18 64.287.9 -1.1 595.544.18 0.978.159.25 0.93 67.2 432.5 50. 1.248.58 1.611 425.380.84 56.633.62 66.4 2.4 0.6 -2.3 -2.3 3.523.923 703.2 1.573 383.9 5.6 -3.8 2.199 772.720 779.7 450.1 2.965.2 -1.204.04 66.142.25 39.7 3.15 28.4 3.18 0.6 0.280.0 -1.287.9 1.29 0.932.2 29.139.9 -8.983.2 2.999.979 450.39 66.IBISWORLD.4 2.023.8 436.6 2.210.2 533.69 1.366.6 -1.16 31.947 32.3 -0.656.8 568.98 16/29 638/706 Wages/Revenue (%) 61.951 436.474.2 3.0 0.958 750.842 424.087.8 50.145.0 23.6 1.86 1.721.159.5 1.8 50.7 2.2 374.245.5 -5.16 35.161.19 60.12 59.26 28.2 -2.205.4 -5.19 0.8 5.3 2.59 45.116.0 3.24 0.7 -0.4 22. . dividends and the sale of fixed tangible assets are excluded. DESTINATIONWEDDING A marriage ceremony or reception 200 or more miles away from where the couple lives and at least 80. and Low Volatility is less than ±3%. leasing and hiring income). WAGES The gross total wages and salaries of all employees of the establishment. Receipts from interest royalties. High means the top four players account for over 70% of revenue. ESTABLISHMENT The smallest type of accounting unit within an Enterprise. Medium or Low. including forecasts. Level is stated as High. NON-EMPLOYINGESTABLISHMENT Businesses with no paid employment and payroll are known as non-employing establishments. plus capital work done by rental or lease. ENTERPRISE A division that is separately managed and keeps management accounts. INDUSTRYVALUEADDED The market value of goods and services produced by an industry minus the cost of goods and services used in the production process. Volatility levels: Very High is greater than ±20%. Maturity is the longest stage at 40 years with Growth and Decline at 15 years each. DOMESTICDEMAND The use of goods and services within the US. including spa. Imports/Domestic Demand: Low is 0 –5%. including sales (exclusive of excise and sales tax) of goods and services. EMPLOYMENT The number of working proprietors. plus transfers to other firms of the same business. INDUSTRYREVENUE The total sales revenue of the industry. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator. hair. plus subsidies on production. Medium is $3 – $8 of wage costs to $1 of depreciation. INDUSTRYCONCENTRATION IBISWorld bases concentration on the top four firms. for example. IBISWorldGlossary BARRIERSTOENTRY Barriers to entry can be High. which leaves the gross product of the industry (also called its Value Added).WWW. Concentration is identified as High. and managerial and executive employees. home renovations and wedding planning. and rent. DOITYOURSELF(DIY) A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider. makeup and nail treatments. usually consists of one or more locations in a state or territory of the country in which it operates. are adjusted for inflation using 2011 as the base year. EARNINGSBEFOREINTERESTANDTAX(EBIT) IBISWorld uses EBIT as an indicator of a company’s profitability. LIFECYCLE All industries go through periods of Growth. Medium is 5 –35%. High means new companies struggle to enter an industry. Medium is 5 –20%. partners. Low is less than 40%. VOLATILITY The level of volatility is determined by the percentage change in revenue over the past five years. OFFICIANT An officiating priest or minister. Medium or Low. High Volatility is between ±10% and ±20%. permanent. plus all other operating income from outside the firm (such as commission income. temporary and casual employees. the sum of imports and domestic production minus exports. It is calculated as revenue minus expenses.0% of guests require overnight accommodations. An average life cycle lasts 70 years. Medium is 40 –70% of revenue. These are mostly set-up by self employed individuals. leaving only the ‘real’ growth or decline in industry metrics. WEDDINGVENDOR A company that provides services on the day of the marriage ceremony or reception. This removes the impact of changes in the purchasing power of the dollar. Medium or Low. The most relevant measure of the number of firms in an industry. repair and service income. part-time. High is a ratio of less than $3 of wage costs for every $1 of depreciation. IMPORTS The value of goods and services imported with the amount payable to non-residents.COM WeddingServicesintheUS August 2011 30 Jargon&Glossary IndustryJargon BEAUTYSERVICES Day-of services. while Low means it is easy for a firm to enter an industry. and High is over 35%. excluding tax and interest. EXPORTS The total sales and transfers of goods produced by an industry that are exported. High is over 20%. Moderate Volatility is between ±3% and ±10%. CAPITAL/LABORINTENSITY An indicator of how much capital is used in production as opposed to labor. Services excluded visits made to estheticians prior to or after the wedding day. CONSTANTPRICES The dollar figures in the Key Statistics table. BRIDALREGISTRY A service provided by a website or retail store to assist engaged couples in the communication of gift preferences to wedding guests. INTERNATIONALTRADE The level is determined by: Exports/Revenue: Low is 0 –5%. Maturity and Decline. 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Report "NN006 Wedding Services in the US Industry Report"