Shipping out: Operators will introduce e-commerce platforms to compete with online retailers

The Mail Order industry, which comprises companies that primarily use mail catalogs to display and sell merchandise, has struggled over the five years to 2017. To maintain revenue and keep up with consumers' changing purchasing habits, operators have had to develop new strategies. Due to rapidly increasing competition from online retail outlets and a decrease in female participation in the labor force, the industry has experienced slow revenue growth. Over the five years to 2022, external competition from e-commerce and brick-and-mortar operators will continue to hinder industry revenue growth. Consumers will likely continue to opt for online shopping due to the increased convenience and ability to compare products and prices across multiple brands...read more.

Industry Statistics & Market Size
Revenue
$150bn
Annual Growth 12-17
0.4%
Forecast Growth 17-22
Profit
Employment
226,991
Businesses
57,536
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • To cope with slowing industry revenue, operators have begun to offer web and mobile e-commerce services
  • Due to the benefits of online shopping over traditional methods, e-commerce sales have risen
  • As revenue growth is begins to accelerate, the number of industry enterprises will also begin to rise
  • Industry Report - Industry SWOT Analysis Chapter

    The Mail Order industry is currently in the mature stage of its life cycle. Over the 10 years to 2022, industry value added (IVA), which measures an industry's total contribution to the overall economy, is expected to increase at an annualized rate of 3.1%. Conversely, GDP is estimated to increase an annualized 2.0% in the same period. IVA growth is comparable in size with GDP growth, indicating that the Mail Order industry is a mature industry. However, IVA is expected to be lower in the next five years as it is in the current five-year period, indicating that the industry could soon fall into a period of decline. Although technology is being used to improve operational productivity, there has not been any major innovations that could improve product demand. For...purchase to read more.

    Additional Insights for the Mail Order Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mail Order Industry are

  • Ability to quickly adopt new technology
  • Ability to control stock on hand
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as commerce sales and Per capita disposable income in the Mail Order industry impact industry performance..

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    What is the Mail Order Industry?

    The Mail Order industry is composed of companies that primarily use mail catalogs or TV to attract clients and display merchandise. This industry does not include operators that generate sales through door-to-door marketing, brick-and-mortar retail or e-commerce.

    Industry Products
  • Health and beauty products
  • Computer hardware, software and office supplies
  • Clothing, jewelry and accessories
  • Home furnishings
  • Sporting goods, toys, games and hobby items
  • Industry Activities
  • Direct retailing of merchandise using mail catalogs
  • Direct retailing of merchandise using TV advertising
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • commerce sales
  • Per capita disposable income
  • Labor force participation rate of women
  • Corporate profit

  • Current Performance
  • Online competition
  • Multichannel marketing
  • Chart: Revenue Growth

  • Industry Outlook
  • External pressures increase
  • New threat to TV home-shopping networks
  • Table: Mail Order Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mail Order Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Cardboard Box & Container Manufacturing
  • Cosmetic & Beauty Products Manufacturing
  • Couriers & Local Delivery Services
  • Generic Pharmaceutical Manufacturing
  • Men's & Boys' Apparel Manufacturing
  • Postal Service
  • Wholesale Trade
  • Women’s, Girls’ and Infants’ Apparel Manufacturing

  • Products & Services
  • Health and beauty products
  • Other
  • Computer hardware, software and office supplies
  • Home furnishings
  • Clothing, jewelry and accessories
  • Sporting goods, toys, games and hobby items
  • Chart: Mail Order Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers ages 60 and over
  • Consumers age 40 to 59
  • Consumers ages 0 to 39
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Mail Order Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Mail Order

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mail Order Industry

  • Industry Globalization
    Express Scripts Holding Company
  • Table: Express Scripts Holding Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mail Order Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mail Order Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • E-Commerce
  • The buying and selling of products or services over the internet through online retailers or company websites.
  • Fulfillment
  • Process of supplying goods after an order has been received.
  • Mail Order
  • Method of retailing in which orders are received by mail, fax, internet or telephone, and merchandise is mailed to the purchaser.
  • Why buy this report?

    IBISWorld’s industry research report on Mail Order provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mail Order:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mail Order market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mail Order, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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