Legal services, counselling and childcare are just a few of the industries cashing in on Australia’s increasing divorce rate, according to IBISWorld, suggesting there are opportunities for start-ups. According to IBISWorld, the number of divorces in Australia increased by 8.7% over the past five years – from 47,209 in 2008 to 51,311 in 2013. Over this period, the total cost of divorce in Australia rose by 13.5% to $184.1 million, while the total cost of contested divorce rose by 14.7% to $155.5 million. According to IBISWorld general manager Karen Dobie, the average cost of a divorce sits at almost $3600 per couple, while the average cost of a contested divorce is just under $10,000. Here are the industries cashing in: Personal legal services According to IBISWorld, divorce accounts for about 6% of Australia’s personal legal services industry – generating $185 million in revenue each year. “The complexities of divorces – involving the division of assets and the care of children or loved ones – means individuals are inclined to seek the advice of lawyers,” Dobie said in a statement. “Key services provided by firms specialising in family law include the provision of advice, litigation, alternative dispute resolution and arbitration.” Counselling “Making the decision to separate or divorce is often an emotional one. Prior to making the decision, couples may seek marriage counselling,” Dobie said. “And during or after the process, a growing number of individuals are seeking out help and support from professional counselling services.” In 2012-13, individual and family support services are anticipated to account for $1.9 billion, or 21.1%, of the personal welfare services industry. Childcare and babysitting services The transition from a two-parent to a sole-parent, single-income household can often result in the need to work additional hours and greater difficulties in juggling childcare, IBISWorld said. This benefits childcare and babysitting services, which are expected to generate revenue of $10.3 billion and $175.2 million respectively in 2012-13. Online dating “Over the past five years, online dating has boomed in popularity, particularly among divorcees, resulting in a growing number of sites specialising in getting Aussies back in the game post-split,” Dobie said. Wedding services “The increasing number of divorces has resulted in increased takings for Australia’s weddings industry – with about 30% of all marriages involving at least one divorcee,” Dobie said. “Remarriages, particularly those involving two divorcees, tend to be more subdued affairs – with the big church wedding and sit-down reception often being replaced by a garden setting, celebrant and good-quality catering company.” Australia’s increasing divorce rate isn’t the only demographic change occurring. A report recently released by the Australian Bureau of Statistics shows the number of people working as independent contractors in Australia decreased over the last two years. In November 2012, almost 980,000 employed people were independent contractors in their main job. There were 47,000 fewer independent contractors than in November 2011, which was after a decline of 83,600 people between 2011 and 2010. The industries with the highest proportion of independent contractors were construction (29%), and administrative and support services (21%). According to census figures, the most common full-time job is technician and tradesperson in the construction industry. There are 333,298 people employed in the role and 99% of them are male. However, the most common job in Australia is retail sales worker – there are 556,403 retail sales workers in the country and 68% of them are female.
Premium chocolate brands and craft beers are among the firm favourites for Easter this year, with Australians set to spend more than $3 billion opting for at-home celebrations over overseas getaways, according to a new report. IBISWorld says that Australian consumers are opting for a “back to basics” Easter this year, with traditional celebrations at home taking precedence over overseas trips and restaurant meals. Across the four-day Easter break, IBISWorld forecasts Australians will spend more than $3 billion, equating to $132.85 per capita – a slight increase on the $130.33 per capita Australians spent last year. The findings are in line with the latest Roy Morgan Consumer Confidence rating, which shows consumer confidence is up to 122 points – 11.4 points higher than at the same time a year ago. Here are some of the key trends and tips for Easter spending in 2013: More discerning chocolate-lovers In 2013, expenditure on chocolate and confectionery is expected to grow by 5.2% to reach $185.7 million. However, many Australians will choose dark, organic chocolate over traditional favourites. “Australians are becoming increasingly health conscious – a trend that has resulted in growing demand for low-fat and low-sugar treats,” says IBISWorld general manager Karen Dobie. “Dark chocolate is expected to be a popular choice this Easter… Sustainability will also be on people’s minds, with fair trade chocolate tipped to be a favoured gift.” In addition to dark and fair trade chocolates, Dobie anticipates consumers’ love of luxury will also come to the fore, with brands such as Lindt and Haigh’s enjoying increasing demand. Seafood fare matched with a premium drop Since many people plan on celebrating Easter at home, Dobie says supermarkets and butchers can expect a boost in spending on traditional barbeque fare, while fishmongers and liquor retailers will also do well. IBISWorld anticipates fish and seafood expenditure to enjoy growth of around 4.9%, with seafood extending its popularity from Good Friday – when many Australians abstain from eating red meat – to Easter Sunday. Meanwhile, alcohol spending is forecast to hit $137.6 million, with imported wines, cider and craft beers tipped as firm favourites. Overall, IBISWorld anticipates food and beverage spending will reach $1.55 billion – a 3.6% increase on last year’s outlay. Russell Zimmerman, executive director of the Australian Retailers Association, says food retailers need to think about how best to promote their products. “If you’re a general store selling Easter bunnies, you should be predominantly displaying them,” Zimmerman says. “There’s also an opportunity there to perhaps market your Easter bunnies with another product. It’s not just about Easter bunnies – it’s about doing something else to sell with it. “Try and add that extra product in that you want to try and promote.” Similarly, retail guru Debra Templar, of The Templar Group, says bag-stuffers are an ideal way to boost sales. Domestic travel trumps overseas getaways This year, IBISWorld forecasts Easter holiday and travel spending will grow by just 3.9%. However, domestic travel will be more popular than short breaks overseas. “This year most of us will be limited to domestic destinations – using the break to visit family and friends rather than splurging on international trips,” Dobie says. According to the Australian Bureau of Statistics, Australians spent approximately 5% more on overseas travel during the past Christmas holidays than in 2011. This suggests Australians will be reining in their spending during subsequent holiday periods, including Easter. “Easter falling outside of the school holidays in some states will also have an impact on international travel,” says Dobie.
An increasing trend of do-it-yourself home design will stimulate sales for houseware retailing, according to an IBISWorld report, which shows industry revenue is expected to be worth $1.71 billion in 2017-18.
New research shows loved-up couples intend to celebrate Valentine’s Day by eating out, with spending expected to surge by 8%, while romantic getaways are also high on the agenda.
Gyms and restaurants are set to cash in on our New Year’s resolutions, suggesting there are opportunities for start-ups to get a piece of the action.
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Chocolatier Theobroma is expanding to the United Kingdom, Saudi Arabia and Singapore, having already launched in five other markets, bucking the trend of struggling chocolate chains.
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Concerns were raised by economic soothsayers this week when a new report predicted the end of the mining boom – Australia’s runaway success story – within two years.
An IBISWorld analyst says there are still opportunities in the chocolate industry, despite the collapse of Darrell Lea, but new entrants must determine their market position from the outset.
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Work just isn’t like it used to be. We work in different and more diverse occupations, and in different industries.
Online customers of overseas retailers would have to pay GST under preliminary options handed to the Federal Government today, while new research suggests Australian retailers’ woes are far from over.
Generation Z are more likely to live at home, receive financial assistance from their parents, live in cities and will trust their friends’ opinions on what to buy more than marketing, according to new research from IBISWorld.
Spending on seafood will be the highest growth area this Easter, according to IBISWorld, while domestic tourism operators and specialty chocolate retailers will also do well.
Valentine’s Day spending is tipped to increase by almost 5% this year, according to IBISWorld, with loved-up couples expected to spend almost $1 billion in the lead-up to February 14.
Niche group-buying site Kid U Not has acquired three of its competitors less than three months after launching, as the company seeks to ramp up its membership base of cost-conscious parents.
Consumer spending during the Melbourne Cup will fall more than 6% this year, according to IBISWorld, but retailers and hospitality businesses have been advised they can still spark sales with special offers and racing day “packages”.
Father’s Day spending will grow by 1.72% this year, according to research firm IBISWorld, with hardware and electrical retailers tipped to experience the largest percentage of spending growth.