Looking good: Increased corporate profit and downstream demand will boost industry revenue

The Model Agencies industry experienced growth over the past five years, with revenue expected to continue increasing. Demand for this industry's services depends on corporate advertising expenditures, as a significant portion of industry revenue is garnered through commissions and service fees gained from booking models in print, television, retail and internet advertising campaigns. Revenue growth over the past five years has been further propelled by steady demand from major downstream markets such as cosmetic and beauty product brands, clothing retailers and international apparel brands. Furthermore, social media platforms have opened a new avenue for models and agents to generate revenue by endorsing and promoting products, though have also increased competition...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
5.3%
Forecast Growth 17-22
Profit
Employment
13,780
Businesses
7,461
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • Improvement in business conditions led to a substantial rebound in industry revenue
  • The industry has benefited from the rising popularity of digital and mobile media platforms
  • As economic growth continues, advertising spending will increase and stimulate demand
  • Industry Report - Starting a New Business Chapter

    There are few traditional barriers to entry. Capital intensity and regulatory barriers in this industry are low. In some states, model agencies are considered private employment agencies and must be licensed accordingly. In California and New York, industry participants are required to obtain specific talent agency licenses.The major barrier to entry in this industry is establishing name recognition. The industry's largest agencies have existing relationships with fashion designers, publishers, studios and cosmetic and consumer goods companies. Having a good reputation, an established client list and proven modeling talent is essential for success in this industry...purchase to read more.

    Additional Insights for the Model Agencies Industry

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

  • Having a high prior success rate
  • Ability to effectively communicate and negotiate
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Total advertising expenditure in the Model Agencies industry impact industry performance..

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    What is the Model Agencies Industry?

    Operators in this industry represent fashion models in business dealings, such as auditions, bookings and contract negotiations. These agencies earn revenue via commission, usually from the deal they make with the model or another agency.

    Industry Products
  • Commissions from advertising agencies
  • Commissions from creative clients
  • Commissions from other commercial clients
  • Performance or project related contract
  • Product Licenses
  • Industry Activities
  • Scouting talent
  • Negotiating contracts
  • Representing clients
  • Managing models
  • Advertising talent
  • Training talent
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Total advertising expenditure
  • Demand from clothing and clothing accessories stores
  • Corporate profit
  • Demand from cosmetic and beauty products manufacturing
  • Demand from fashion designers

  • Current Performance
  • Downstream demand and technology lead the way
  • Profit and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets continue to improve
  • Competition rises
  • Table: Model Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Model Agencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cosmetic & Beauty Products Manufacturing
  • Retail Trade
  • Movie & Video Production
  • Fashion Designers
  • Advertising Agencies

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Law Firms
  • Office Supply Stores
  • Wired Telecommunications Carriers

  • Products & Services
  • Commissions from advertising agencies
  • Commissions from creative clients
  • Performance or project related contract
  • Commissions from other commercial clients
  • Other
  • Product Licenses
  • Chart: Model Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Advertising agencies
  • Creative clients
  • Other commercial clients
  • Chart: Major Market Segmentation for the Model Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Model Agencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Model Agencies Industry

  • Industry Globalization
    IMG ModelsWilhelmina International Inc.
  • Table: IMG Models - financial performance
  • Table: Wilhelmina International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Model Agencies 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 Model Agencies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Advertising Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Catwalk
  • A narrow platform used by models to demonstrate clothing during fashion shows.
  • Runway Modeling
  • Modeling on stage where clothing is the primary focus.
  • Talent Scout
  • Individuals employed or contracted by agencies to scout for new talent in local pageants and fashion shows.
  • Why buy this report?

    IBISWorld’s Model Agencies Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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 Model Agencies:
    • 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 Model Agencies 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 Model Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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