Industry Analysis & Industry Trends
Industry Report - Industry Investment Chapter
Capital intensity for the Online Fashion Sample Sales industry is high. For every dollar spent on labor, the typical operator spends $0.74 on capital equipment. Labor is necessary for software development, product procurement, marketing efforts and customer care. Aggregate wage costs have grown from representing 2.2% of revenue in 2007 to 3.2% of revenue in 2012, indicating the industry's reliance on human capital. Capital investments, by contrast, have declined from 2.8% to 2.4% during the same period. For many internet-based companies, the initial capital investment is significantly larger than its subsequent upgrades. As such, depreciation costs have declined over the past five years, reducing the industry's overall capital intensity from a 1.28:1.0 capital-to-labor ratio... purchase to read more