Industry Analysis & Industry Trends
Escalating external competition from online and mainstream adult product retailers, which increasingly carry vibrators and other erotica, has reduced the stigma associated with shopping at adult stores. As consumers see more sex paraphernalia featured on TV and in stores like Walmart, such items shift from taboo toward more of a social norm. The industry performed especially well when disposable income dipped during the Great Recession because consumers were less likely to spend on substitute entertainment, like eating out or going to the movies. Nonetheless, tighter consumer budgets did result in more sales of cheaper items during the past five years. Through 2018, the industry is anticipated to benefit from rising disposable income and growing social acceptance of sex paraphernalia.... purchase to read more
Industry Report - Starting a New Business Chapter
The Adult Stores industry faces minimal barriers to entry, with generally low establishment costs and no significant special licensing requirements. Adult shops may be subject to local zoning and business licensing ordinances, though, regulating where industry establishments are allowed to operate.
The greatest barriers to entry are external competition and name-brand recognition. High competition from e-commerce may initially hamper profit within the industry. As more online retailers sell sex toys and paraphernalia, it will become more difficult for retail stores to find a competitive advantage and maintain a steady profit... purchase to read more