IBISWorld Industry Report NN006 Wedding Services in...

WWW.IBISWORLD.COM� Wedding�Services�in�the�US August 2011 1

IBISWorld Industry Report NN006Wedding Services in the USAugust�2011� Agata�Kaczanowska

Getting engaged: Wedding-related activity will rebound as postponed nuptials are planned

2� About�this�Industry2 Industry Definition

2 Main Activities

2 Similar Industries

3 Additional Resources

4� Industry�at�a�Glance

5� Industry�Performance5 Executive Summary

5 Key External Drivers

7 Current Performance

9 Industry Outlook

12 Industry Life Cycle

14� Products�&�Markets14 Supply Chain

14 Products & Services

16 Demand Determinants

17 Major Markets

18 International Trade

19 Business Locations

21� Competitive�Landscape21 Market Share Concentration

21 Key Success Factors

21 Cost Structure Benchmarks

23 Basis of Competition

24 Barriers to Entry

24 Industry Globalization

25� Major�Companies

26� Operating�Conditions26 Capital Intensity

27 Technology & Systems

27 Revenue Volatility

28 Regulation & Policy

28 Industry Assistance

29� Key�Statistics29 Industry Data

29 Annual Change

29 Key Ratios

30� Jargon�&�Glossary

www.ibisworld.com��|��1-800-330-3772��| ��[email protected]


This industry is composed of day-of wedding service providers, apparel retailers and venues. Wedding coordinators are included because

they have many responsibilities on the day of the event. However, the industry excludes pre-wedding and honeymoon spending.

The�primary�activities�of�this�industry�are

Wedding coordination

Ceremony & reception hosting

Wedding catering

Wedding apparel retailing

Wedding photography

Flower arranging

Jewelry design and retailing

Town car and limousine rental

Live or recorded music performance

Make-up application

56192 Trade�Show�&�Event�Planning�in�the�USTrade show and event planners organize, promote and managing events, such as business and trade shows, conventions, conferences and meetings.

72232 Caterers�in�the�USThis industry includes companies that provide single event based food services. Banquet halls with catering staff are included in this industry.

81299b Personal�Trainers�&�Wedding�Planners�in�the�USThis industry comprises establishments primarily engaged in providing personal services in areas including wedding and party planning services, and wedding chapels.

81311 Religious�Organizations�in�the�USThis industry includes churches, temples, mosques, synagogues, monasteries and other houses of worship that are commonly the location for marriage ceremonies.

Industry�Definition

Main�Activities�

Similar�Industries

About�this�Industry

The�major�products�and�services�in�this�industry�are

Accessories

Attire

Coordinators

Flowers

Food and drink services

Other

Photography

Venue


About�this�Industry

For�additional�information�on�this�industry

www.cdc.gov�Centers for Disease Control and Prevention

www.nielsen.com�The Nielsen Company

www.theweddingreport.com�The Wedding Report

Additional�Resources

�IBISWorld writes over 700 US industry reports that are updated up to four times a year. To see all reports, go to www.ibisworld.com


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Consumer spending

SOURCE: WWW.IBISWORLD.COM

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Revenue vs. employment growth

Products and services segmentation (2011)

25.7%Food and drink services

6.4%Accessories

20.6%Venue

5.5%Flowers

3.4%Coordinators

15.8%Other

13.6%Photography

9%Attire


Key�Statistics�Snapshot

Industry�at�a�GlanceWedding�Services�in�2011

Industry�Structure Life Cycle Stage Mature

Revenue Volatility Medium

Capital Intensity Low

Industry Assistance Low

Concentration Level Low

Regulation Level Medium

Technology Change Medium

Barriers to Entry Medium

Industry Globalization Low

Competition Level High

Revenue

$48.0bnProfit

$1.7bnWages

$23.0bnBusinesses

450,207

Annual�Growth�11-16

2.5%Annual�Growth�06-11

-1.3%

Key�External�DriversConsumer�spendingMarriage�ratePopulationNumber�of�college�studentsNational�unemployment�rate

Market�ShareThere are no Major Players in this industry

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FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 29



Key�External�Drivers Consumer spendingConsumer spending measures the total amount of money spent by Americans. An increase in consumer spending indicates that people will spend more on their weddings and thus contributes to industry revenue growth. Due to the significant amount of money spent on weddings, changes in consumer spending result in industry volatility. For example, drops in consumer spending in 2008 and 2009 rippled on to depress industry revenue. Conversely, rapid economic expansion in the late 1990’s led to fast-paced industry growth. This driver is

expected to increase in 2011, representing a potential opportunity for the industry.

Marriage rateWomen’s wages have increased compared with men’s, decreasing women’s need for financial dependence on men. Also, the uncertainty in people’s lives has increased as people change their careers and locations more than ever, decreasing their willingness to make a long-term commitment. However, the marriage rate is recovering from a recent dip due to a delay in nuptials caused by uncertainty and low

Executive�Summary

Economic uncertainty and an increasing acceptance of cohabitation caused a significant proportion of couples to postpone their nuptials over the past five years, which delayed their spending on industry services and, thus, caused a dip in revenue. Additionally, consumer spending dropped in response to high unemployment, resulting in industry revenue declines in 2008 and 2009. Also adversely affecting the industry has been the falling marriage rate. Slowly changing

social norms have dragged down the rate over the past several decades, and in the 10 years to 2016 it is expected to decline at an annualized rate of 1.2%. Over the five years to 2011, industry revenue is anticipated to decrease at a 1.3% annualized rate to $48.0 billion.

Over the past five years developments in internet speed and communication have enabled industry operators to reach out to potential clients at a lower cost. Social networking platform developments led to a shift in vendors’ marketing

strategies – toward communicating a unique vision to consumers. Less expensive and more effective online communication, however, has also lowered the barriers to entry for firms by enabling anyone to market to the same demographics as established businesses. Such improved marketing channels are expected to drive enterprise growth at an annualized rate of 1.1% to 450,207 in the five years to 2011.

The number of marriages is forecast to continue to decline at an annualized rate of 0.9% in the five years to 2016; however, it is not expected to dramatically impact industry performance. The amount spent on weddings is estimated to grow over the next five years as the demand for large costly weddings rises, which will offset the falling marriage rate. As the average marriage age and length of engagement further increase, couples will have more time to plan and save money for their ceremonies. A slow but steady 2.3% annualized increase in consumer spending is also projected to support revenue growth. As a result, industry revenue is projected to rise 1.8% in 2011 and 2.5% annually on average to $54.3 billion in the five years to 2016.

Industry�PerformanceExecutive�Summary�� |�� Key�External�Drivers�� |�� Current�PerformanceIndustry�Outlook�� |�� Life�Cycle�Stage

� A steadily falling marriage rate has been hurting demand for wedding services


Industry�Performance

Key�External�Driverscontinued

disposable income during the Great Recession. The marriage rate is expected to increase in 2011.

PopulationThe expanding population contributes to a relatively stable number of marriages in the United States by partly offsetting the rapidly declining marriage rate. However, population growth has eased over the long term as family sizes have shrunk. A considerable portion of the growth in population throughout the history of the nation has occurred via immigration. This also benefits the industry because many immigrants are more likely to marry, slowing the decrease in the marriage rate. This driver is expected to increase in 2011.

Number of college studentsNumber of college students represents the total enrollment (part-time and full-time, undergraduate and graduate) of both public and private universities. Although many people delay marriage

while in college, the college-educated have the highest marriage rates according to Nielsen, an audience research firm. As a result, a higher number of college graduates in the US population is forecast to increase the number of marriages in future years. This driver is expected to decrease slowly in 2011, representing a potential longer-term threat to the industry.

National unemployment ratePeople who are unemployed are much less likely to get married, or to spend a considerable amount of money on a wedding. The unemployment rate measures the proportion of Americans aged older than 16 who are currently unemployed and looking for work. This measure does not account for individuals who have given up on searching due to a lack of opportunities or otherwise, however such people are expected to re-enter the job market as job creation takes off. This driver is expected to decline in 2011.

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Technology�ups�competition,�specialization

Increasing participation rates in social networks and online wedding service websites are causing several changes within the industry’s fundamental structure. Online technologies such as Facebook enable

vendors to place affordable ads in front of a targeted demographic, such as engaged women of a certain age. The relative ease and lowered cost of targeted marketing attracted new businesses to this industry, despite a

Current�Performance

High unemployment due to the Great Recession led many couples to postpone their nuptials. It caused a simultaneous decline in consumer spending and an influx of people returning to school, creating a temporary dip in demand for wedding services. As a result, industry revenue is expected to decline 1.3% per year to $48.0 billion in 2011 over the five years to 2016.

Additionally, social norms are decreasing people’s willingness to commit to marriage, particularly at a young age. Over time women are becoming increasingly independent, financially and otherwise. Similarly, it is increasingly accepted for young people to stay single longer and to switch jobs and move around. This shift in perspective is leading couples to think twice about commitment, prolong their engagements or try cohabitation to make sure that they want to get married. Also, over the past several decades, weddings have become increasingly commercialized. The cost

of an average wedding skyrocketed from less than $5,000 in 1980 to more than $20,000 in 2010, creating another disincentive to tie the knot.

A reversal in consumer spending and unemployment is expected to support revenue growth in 2011, though, helping push it up 1.8%. The marriage rate is also forecast to improve, with the number of marriages reaching a five-year high this year. This high is due to the many couples who delayed their weddings for financial reasons during the recession, when there was a longstanding negative trend in the marriage rate.

Supported by a rebound in the number of and spending on weddings in 2011, industry profit is expected to total 3.6% of revenue. This profit remains lower than in 2006, however, when the cost structure of many businesses in the industry included much higher expenditure on marketing and wages. Price competition has eaten into profit significantly as a result of consumers bargain hunting in the past five years.

Marriage�statistics

YearMarriage�rate�

(Units per capita)Population�

(Million people)No.�of�marriages�

(Millions) (% change)

2006 0.0073 298.8 2.18 N/C2007 0.0073 301.6 2.20 0.92008 0.0071 304.1 2.16 -1.82009 0.0068 307.0 2.09 -3.22010 0.0070 309.6 2.17 3.82011* 0.0071 312.3 2.21 1.8

*EstimateSOURCE: IBISWORLD



Technology�ups�competition,�specializationcontinued

few consecutive years of declining revenue. In the past five years, the number of enterprises is estimated to increase 1.1% annually on average to 450,207 in 2011. Service providers now face direct price competition in an industry where services are difficult for the consumer to distinguish differences between them.

In response to the increased competition, vendors are transitioning their promotional tactics toward niche markets where customized and unique services warrant higher prices. Also,

social media facilitates communication between service providers and consumers, enhancing the understanding and information between all parties on a more personal level. This increases the consumers’ propensity to spend while also allowing vendors to offer discounted services.

Spending�less The easiest way for couples to cut back spending was to trim their guest list, according to statistics collected by industry affiliate The Knot. The Knot’s “2010 Real Weddings Survey” found that the average guest count was 141, while in 2007 the average number of guests was 153. Other ways that couples reduced costs include getting married in the off-season or on a weekday because many vendors offer discounted pricing during these times due to the lower demand for their services.

Another way for couples to reduce the guest list and save money is by having a destination wedding. Such marriages

occur at least 200 miles from the bride and groom’s primary residence and more than 80.0% of guests require overnight accommodations. Many guests choose not to attend such events because of the higher cost of attendance, thus greatly reducing the budget. Additionally, couples can choose to get married in a cheaper location than they reside in or even in a foreign country where the exchange rate stretches their budget. A 2005 industry survey by Fairchild, a magazine publishing company, found that the average destination wedding reception was 41.0% of the cost of an average reception. Based on The Knot’s

Intimate�affairs In the past couple decades, the wedding services industry became increasingly commercialized. As people became less traditional and less religious, according to US Census surveys, they began to place more emphasis on the extravagance of the event. Bridal blogs and magazines often emphasize the physical aspects of weddings, instead of the emotional meaning behind them.

The Great Recession, however, temporarily reversed that trend: consumer spending dropped 0.3% in

2008 and 0.6% in 2009 because of high unemployment and consumer uncertainty. This decrease was more pronounced for the primary demographics of the Wedding Services industry because consumers between the ages of 20 and 29 had relatively low incomes and higher unemployment. Although many couples decided to postpone their nuptials, others worked with their lower incomes by limiting their budgets and by asking their parents to pay for more of it.

� Social networks have lowered the barriers to entry and cost of operations



Spending�lesscontinued

survey statistics and IBISWorld estimates, about one-fourth of all marriages in 2011 will be destination weddings, compared with just 9.0% in 2006. The smaller guest lists and greater number of destination weddings reduced the demand for industry services over the past five years.

Do-it-yourself (DIY) weddings are a trend that also helped sweep spending away from the Wedding Services industry. In 2008, DIY became popular because it enabled couples to add a personal touch to their nuptials while saving money. While most couples plan their own wedding, about one-third hire a professional planner. And many even hire professionals to plan some of the smallest of details, such as ambient decor. Yet, according to The Knot’s “2008 Real Weddings Survey,” 55.0% of

couples crafted their favors and ceremony programs, and many also made their own decorations. This trend not only helped many couples cut spending on certain services, but also created external competition for vendors in the industry.

DIY also became popular as part of a green movement to conserve resources by using what you already have. This includes buying local and used goods and using vendors that have environmentally friendly business practices. Similarly, many couples chose to highlight such businesses as preferred outlets in their registries or even chose to donate to charities in place of gifts or favors. All of these efforts helped consumers to rationalize their wedding spending habits, balancing out a portion of the dip in consumer spending.

Industry�Outlook

During the Great Recession couples found ways to spend less to weather the storm; however, they are anticipated to continue their thriftier habits through the next five years. Longer engagements and lower living expenses through cohabitation will enable couples to continue spending less day-to-day, even as employment recovers. With these larger savings and steady 2.3% five-year annualized growth in consumer spending, consumers are expected to demand more industry services over the next five years. As a result, IBISWorld projects a 2.5% annualized increase in revenue to $54.3 billion in 2016.

An influx of small businesses is estimated over the next five years because of lowered barriers to entry and positive business sentiment. Because of such new business formation, profit growth is expected to be limited during this time. Higher spending per

consumer, however, will help businesses in the industry operate more profitably by decreasing costs per sale. This greater profitability, combined with savings from declining wages and decreasing marketing costs, will help profit expand to 4.1% of revenue in 2016.

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Time�is�money Industry consumers will also benefit from economic recovery by gaining (higher-paying) employment and are expected to be increasingly involved in their careers, making the average couple more time poor than in the past five years. Consequently, the wedding coordinators segment is estimated to flourish. Also, because many people

delayed their weddings during the Great Recession, couples’ parents are older on average and likely less able to help out physically. Demand for other professional services that were easier for couples to substitute or forego because they were not perceived as essential, such as live musicians, is also expected to rebound.

An�aging�tradition Structural unemployment is projected to linger for the next few years, particularly among consumers aged 16 to 25. Additionally, this unemployment will continue to boost college enrollment rates because people increasingly return to school when job prospects are limited, and people are less likely to get married while still in school. Continually growing social acceptance of cohabitation will also lead many of these young individuals to choose to delay their wedding. These trends are forecast to cause a more rapid decline in the number of marriages to a five-year annualized rate of 0.9%. As a result, just 2.1 million couples are estimated to say their vows in 2016, compared to 2.2 million in 2011.

For decades people have delayed vows to pursue their careers, yet this trend is expected to particularly help the industry in the next five years. Countering the declining number of marriages, consumers are anticipated to save for longer than ever directly prior to tying the knot. Although not all savings will go toward their nuptials, this move gives couples more time to build a wedding fund. Couples will also have more opportunities and resources to save during this time. According to data from The Knot, a prominent wedding resource, the rate of cohabitation before marriage is forecast to continue increasing at an annualized rate of 1.7% over the next five years, with about 75.0% of couples already cohabiting before

marriage in 2011. Couples are better able to save for the big day by consolidating rent payments and food expenses through cohabitation. Consequently, people aged 25 to 34 will continue to grow as a share of industry consumers, while younger couples will be increasingly less likely to tie the knot. Consumers aged 25 to 34 will contribute greatly to spending on wedding services and help generate 2.8% industry revenue growth in 2012.

Although parents historically contributed more to weddings involving couples from the youngest age group, they are anticipated to shift toward spending more on older couples because getting married later in life (older than 25) is increasingly perceived as the norm. This trend expands the number of people who receive financial help from their parents, though after a certain age this trend tapers off. Parents that pay for all or part of a wedding are also more likely to invite some of their friends to the event, which further increases spending on food and related services. As a result, the industry will receive a boost from spending by the previous generation.

� Longer engagements and cohabitation will help couples build their wedding budgets



Time�is�moneycontinued

The do-it-yourself trend will also grow, though it will extend into more expensive and personalized, professional services. For example, couples are already providing an array of desserts for their guests. The trend will evolve from a money-saving strategy to a creative outlet

as couples order more elaborate, customized desserts. Such increasing discretionary spending on weddings will attract new businesses. Consequently, the number of enterprises is projected to grow at a five-year annualized rate of 5.4% to 584,749 in 2016.


Industry�PerformanceThe primary consumer base is contracting while expenditure per wedding grows over the 10 years to 2016

Adaptation to technology will facilitate 32% 10-year annualized enterprise growth and steeper competition

Industry participants are refining their products to appeal to consumers and to generate higher spending per customer

Life�Cycle�Stage


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DeclineCrash or Grow?

Potential�Hidden�GemsFuture Industries

Quality�GrowthHigh growth in economic importance; weaker companies close down; developed technology and markets

Time�WastersHobby Industries

MaturityCompany consolidation;level of economic importance stable

Shake-out

Shake-out

Quantity�GrowthMany new companies; minor growth in economic importance; substantial technology change

Key�Features�of�a�Mature�Industry

Revenue grows at same pace as economyCompany numbers stabilize; M&A stageEstablished technology & processesTotal market acceptance of product & brandRationalization of low margin products & brands

Trade�Show�&�Event�Planning

Jewelry�&�Watch�Wholesaling Caterers

Soft�Drink,�Baked�Goods�&�Other�Grocery�Wholesaling

Wine�&�Spirits�Wholesaling

Wedding�Services



Industry�Life�Cycle The Wedding Services industry is mature because, though its rate is declining steadily, marriage will remain a significant tradition in many American’s lives. The average amount of money spent per wedding is estimated to increase over the 10 years to 2016 despite a steep drop in spending during the recession. IBISWorld projects that the average couple’s wedding expenditure will increase at a ten year annualized rate of 0.9%, from $23,527 in 2006 to $25,646 in 2016.

The industry’s contribution to the economy is forecast to decline in the ten years to 2016. Industry value added (IVA) is projected to fall as a

result of decreased consumer spending that coincided with a rise in industry enterprises after the financial meltdown. Consistent IVA growth from 2010 through 2016 will fail to make up for the earlier drop. As IVA declines at an annualized rate of 1.7% over the ten years to 2016, GDP is forecast to grow 2.0% annually on average. The increasing proportion of smaller businesses, which tend to make less revenue due to poor pricing and marketing strategies, is also driving down the industry’s IVA. Enterprise numbers are estimated to increase at a 3.2% annualized rate to 584,749 in 2016.

�This industry is Mature


Products�&�Services ReceptionThe reception segment is expected to make up 46.4% of wedding services spending in 2011. Catering and other food services are expected to be 25.7% of the typical wedding budget while venue fees will be about 20.6%. The line between food services and venue is blurred in some instances, contributing a heavier weight toward the venue segment because some venues, such as restaurants, also provide food services. The venues segment is primarily composed of hotels, country clubs, restaurants and religious establishments. Meanwhile, food service providers are mostly caterers.

Due to high unemployment and uncertainty, spending decreased over the

past five years. Many couples cut costs through a combination of serving less food or serving lower quality food, and booking a smaller venue or an otherwise cheaper venue. As a result, these segments declined as a share of industry revenue over the past five years.

Attire and accessoriesThe attire and accessories segment includes all clothing items worn by the wedding party, including shoes and jewelry. This segment will generate about 15.5% of industry revenue in 2011. However, it excludes make-up, hair and nails services that are counted in the “other” segment. This segment remained a constant share of revenue in the five

�Products�&�MarketsSupply�Chain�� |�� Products�&�Services�� |�� Demand�DeterminantsMajor�Markets�� |�� International�Trade�� |�� Business�Locations

KEY�BUYING�INDUSTRIES

81299b� Personal�Trainers�&�Wedding�Planners�in�the�US�Wedding planners make arrangements on behalf of the bride and groom.

9901� Consumers�in�the�US�Couples are the key drivers of demand for this industry’s services.

KEY�SELLING�INDUSTRIES

42394� Jewelry�&�Watch�Wholesaling�in�the�US�This industry distributes jewelry to retailers who the bride or groom purchases it from.

42449� Soft�Drink,�Baked�Goods�&�Other�Grocery�Wholesaling�in�the�US�Wedding caterers purchase a majority of the food and non-alcoholic beverages they serve from this industry.

42482� Wine�&�Spirits�Wholesaling�in�the�US�Wedding caterers purchase most alcoholic beverages from wine and spirits distributors.

42493� Flower�&�Nursery�Stock�Wholesaling�in�the�US�This industry supplies florists with flowers.

44313� Camera�Stores�in�the�US�This industry sells camera and film to wedding photographers.

44612� Beauty,�Cosmetics�&�Fragrance�Stores�in�the�US�Brides or make-up artists purchase many products from this industry to use on the day of the wedding.

45291� Warehouse�Clubs�&�Supercenters�in�the�US�Many wedding vendors purchase miscellaneous items from such stores.

53211� Car�Rental�in�the�US�Some out of town vendors and wedding guests rent a car on the day of the wedding.

53212� Truck�Rental�in�the�US�Caterers and florists often rent or lease trucks to transport their products.

Supply�Chain


Products�&�Markets

Products�&�Servicescontinued

years to 2011 because though spending on attire and accessories declined, couples cut down more on other services.

The largest expenditure in the attire segment is the bridal gown. Not only are brides shopping around more between stores, but online bridal networks facilitate information sharing about designers and stores. As a result, brides are better able to easily find and write reviews about bridal boutiques based on pricing and customer service. Such information sharing has greatly compromised the traditional information monopolies that certain bridal boutiques maintained, increasing direct competition in the industry. According to the Knot, the average expenditure on a wedding gown dipped from $1,317 in 2007 to $1,099 in 2010.

DetailsThe details segment is made up of photographers, florists and coordinators. It is expected to total 22.4% of industry revenue in 2011. Over the past five years this segment remained steady. However, many brides turned toward do it yourself flowers and coordination, or chose less comprehensive packages with these vendors. This trend is projected to

reverse quickly in the next five years as discretionary spending picks up.

The photography segment grew since 2006. This segment, which includes videography, increased because photo and video sharing is now much more prevalent thanks to social networking sites such as Facebook. Competitiveness between friends and family, and marketing designed to capitalize on this trend, is driving the cost of services up. Historically, wedding photography was relatively simple and while demand for photographers has not increased substantially, the amount spent per wedding has increased markedly. Photographers take more photos thanks to cheap digital memory cards, and the industry is engaging in improved postproduction services as a means of adding value to increase revenue. According to the Knot’s Real Weddings Survey the average couple spent $3,783 on photography and videography services in 2010 compared to $2,466 in 2006.

OtherThe other segment consists of a variety of services that will generate about 15.7% of industry revenue in 2011. Services include entertainment, transportation, officiate and beauty services, favors,

Products and services segmentation (2011)

Total $48.0bn

25.7%Food and drink services

6.4%Accessories

20.6%Venue

5.5%Flowers

3.4%Coordinators

15.8%Other

13.6%Photography

9%Attire




DemandDeterminants

The demand for the services supplied by this industry is determined by the marriage rate and by couples’ budgets, which are a portion of consumer spending. High consumer spending increases the likelihood of people setting higher budgets for elements such as entertainment like live musical performances. According to the Knot’s 2010 Real Weddings Survey, the money spent per guest remained steady at $194 and the average number of guests was 141 in 2010 compared with 149 in 2009 and 2008 when more survey respondents admitted that they had trimmed their budget for economic reasons. Couples often decreased their budget by inviting fewer guests to their wedding. This tactic automatically drops per-person costs such as food, furniture rental, menus and favors. Prior to the Great Recession, the Knot’s 2007 Survey found that the average number of guests was 153. In conclusion of these findings, the trend toward smaller weddings could be to create a more intimate feel for guests as well as a cost-cutting measure.

Another factor that influences wedding budgets is demographics. The marriage rate is gradually decreasing, and dipped further in 2008 when people pushed weddings back due to uncertain

economic conditions including high unemployment. Additionally, the average age for getting married is steadily increasing, as is the number of couples living together prior to matrimony. As a result, the average couple now has higher disposable income and has the means to pay more for services than the average couple five years ago. However, many people delay marriage because of other priorities, such as careers, and do not want to spend as much on a wedding.

Other factors can also determine demand for wedding services, such as brand recognition, changes in fashion trends and seasonal weather conditions. Many couples’ purchasing patterns are guided by their perception of certain brands. As such, demand for highly ranked brands is greater among consumers with higher incomes and more discretionary spending power. Style trends also guide purchase patterns. For example, there has been a trend toward elaborate, multicultural ceremonies, which has contributed to increasing revenue for certain vendors. On the other hand certain services vary according to seasonal and weather conditions. To this point, space heater and tent rentals will likely rise during unusually cold or wet months.

Products�&�Servicescontinued

decor other than flowers, and printed items like place cards, menus, ceremony programs and guest books. The most significant portion of this expenditure is on entertainment, which includes professional musicians, DJs and dancers. This segment is projected to rebound in the next five years as couples save and spend more money on such elements.

However, spending on entertainment and other services declined over the past five years. Many brides asked

friends to fill in or did it themselves. Do it yourself (DIY) is a significant trend that appeals to brides because it makes their wedding more personalized and was strengthened by its low-budget appeal when spending dropped off in 2008. Additionally, many venues have sound systems that are compatible with mobile music players, like the iPod, and provide an easy way for guests to control wedding playlists. This allows a couple an easy and cheap alternative to live music or even a DJ expenditure.



Major�Markets

The largest market for the Wedding Services industry is consumers between the ages of 25 and 29, accounting for 33.1% of total revenue. Many members of this age group have met the right person and decide that they are ready to make the commitment. The second largest market consists of people between the ages of 20 and 24, which represents about 24.2% of revenue. These two age groups are the highest spenders in the industry because they are most likely to have parents pitch in and pay for all or part of their wedding. However, the average age for couples getting married has increased over the past five years and, therefore, the segmentation for this industry is also shifting toward older consumers.

Consumers between the ages of 30 and 34 are estimated to account for 22.4% of the market. This demographic group accounts for a lower share of the market as they often have different priorities than marriage, and a higher proportion of this demographic is already married. However, this figure is forecast to increase over the next five years as consumers in the 25 to 29 age group may have delayed their vows due to unemployment or uncertainty during the recession or simply other priorities and,

therefore, entered this category. Consumers over 34 are also much less likely to get married or have a big wedding due to different priorities and other responsibilities (such as children) that often prevent high spending.

The smallest market is made of consumers under the ages of 20, accounting for 2.3% of the market. Many marriages before the age of 20 occur because of an unexpected pregnancy, which also restricts a couple’s willingness to spend on themselves. These consumers also have limited income, thus limiting their abilities to have big weddings.

According to The Knot, a business heavily involved in the industry, the average bride’s age is 29 and the average groom’s age is 31. These results from the 2010 Real Weddings Survey are consistent with the IBISWorld findings discussed above. The study also found that the average length of an engagement is 14 months, giving couples plenty of time to organize their big day. Also, 74.0% of couples surveyed lived together before their nuptials, compared with 70% of couples in 2008 and 2007. This may be to save money for the wedding, but also due to relaxing societal norms with regards to cohabitation.

Major market segmentation (2011)

Total $48.0bn

33.2%Consumers aged

25 to 29

2.3%Consumers aged

15 to 19

24.1%Consumers aged

20 to 24

22.4%Consumers aged

30 to 34

9.7%Consumers aged

over 39

8.3%Consumers aged

35 to 39




International�Trade Although some wedding services vendors may travel to provide their services abroad, this is not a significant segment of the industry.


�Products�&�Markets

Business�Locations�2011

MO1.9

West

West

West

Rocky Mountains Plains

Southwest

Southeast

New England

Great Lakes

VT0.3

MA1.5

RI0.3

NJ2.1

DE0.2

NH0.4

CT1.0

MD1.6

DC0.1

1

5

3

7

2

6

4

8 9

Additional�States�(as marked on map)

AZ1.6

CA10.4

NV5.3

OR1.2

WA1.9

MT0.3

NE0.6

MN1.3

IA1.0

OH3.2 VA

2.7

FL6.7

KS0.9

CO1.6

UT1.1

ID0.7

TX8.6

OK1.2

NC3.0

AK0.3

WY0.2

TN2.5

KY1.6

GA3.0

IL3.4

ME0.5

ND0.2

WI1.4 MI

2.5 PA3.2

WV0.6

SD0.3

NM0.5

AR1.5

MS0.7

AL1.9

SC1.6

LA1.5

HI1.2

IN2.4

NY5.9 5

67

8

321

4

9


Mid- Atlantic

Percentage�of�Marriages�(%)�

� Less�than�3%� 3%�to�less�than�10%� 10%�to�less�than�20%� 20%�or�more


�Products�&�Markets

Business�Locations Most weddings, with the exception of destination weddings, occur close to home for the bride or groom. Consequently, establishments in this industry are spread similarly to the US population. There are also a few underlying trends that affect the marriage rate in each state. For instance, states with a higher population in the primary demographic for matrimony are host to the most weddings per capita. On the other hand, people in urban centers are less traditional and more mobile, resulting in fewer marriages per capita in high-density areas.

About 24.7% of couples are expected to have a destination wedding in 2011. Destination weddings expanded from about 8% in 2006 according to the Knot’s Real Weddings Surveys. This increase was driven by declining consumer spending. Destination weddings are usually smaller and, therefore, cheaper despite the associated costs such as travel. Indeed, Las Vegas is the top spot for people to elope and has boosted Nevada to have the highest proportion of marriages to the population. Nevada hosts 5.3% of all nuptials in the US while its population is only 0.9% of the US total population.

The top US states for destination weddings are Nevada, Florida and California, followed by New York and Hawaii. As a result, the Southeast and West regions have the greatest proportion of marriages to their respective populations. This category is expected to decline slightly in popularity this year as consumer spending increases.

%

30

0

10

20

Sout

hwes

t

Wes

t

Gre

at L

akes

Mid

-Atla

ntic

New

Eng

land

Plai

ns

Rock

y M

ount

ains

Sout

heas

t

MarriagesPopulation

Marriages vs. population



Cost�Structure�Benchmarks

It is imperative to note that this industry is composed of a variety of service providers. As a result, individual cost structures are expected to vary from this aggregated analysis. Some examples of differing cost structures for subsections of this industry are provided below.

ProfitIndustry profit (earnings before interest and taxes (EBIT)) is expected to increase in 2011 to 3.6% of revenue. The profit

increase will stem from a higher number of weddings occurring this year as disposable incomes recover post-recession. However, the segment declined over the five years to 2011 as competition forced companies to cut prices. An increasing number of smaller players, such as in the Photography industry (NAICS 54192), also contributed somewhat to the decline. Nonetheless, profit is expected to rebound in the next five years as industry

Key�Success�Factors Provide services to high income individualsWedding services providers with an exclusive, high-quality image are best able to attract high income individuals that spend more on weddings.

Having a good reputationMany wedding services providers rely on word-of-mouth references to generate their business.

Ability to vary services to suit different needsWedding services providers must be flexible in order to accommodate a variety of client requests. They must also

be able to meet different expectations for each client.

Having a good technical knowledge of the productWedding services providers must be able to explain and deliver their services to potential clients in a variety of situations.

Willingness to outsource when appropriateThe most successful wedding vendors recognize the limitations of their business and outsource if necessary, ensuring that they provide a certain level of services to every client.

Market�Share�Concentration

There are no identifiable major players in this industry and the top four players account for less than 10% of industry revenue. The Wedding Services industry is so fragmented because it is composed of a wide variety of highly specialized vendors, including florists, venue providers and bridal gown retailers.

There are some venues that offer wedding packages with a majority of services included. However, most of these venues have only one location and still outsource to small businesses for these services. Many of these venues are

located in Las Vegas, which is known for eloping or where some couples decide to have a spur of the moment ceremony. For instance, Mandalay Bay offers several all inclusive vows and reception packages and they need just 24 hours notice. Other venues offer marriage ceremonies quicker than this, such as The Little White Wedding Chapel that even offers drive through ceremonies, because there is no waiting period in Nevada after receiving a marriage license. This law is unique to the state, making the business model impossible to replicate elsewhere.

Competitive�LandscapeMarket�Share�Concentration�� |�� Key�Success�Factors�� |�� Cost�Structure�BenchmarksBasis�of�Competition�� |�� Barriers�to�Entry�� |�� Industry�Globalization

Level��Concentration in this industry is Low

�IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:


Competitive�Landscape

Cost�Structure�Benchmarkscontinued

operators diversify and customize their services to appeal to niche markets.

The industry segment that had the highest average profit from weddings was venues. Venues have fixed maintenance costs regardless of whether or not their space is fully used. Also, they kept more of their EBIT because real-estate values declined, which led to lower property taxes. Meanwhile florists and photographers have some of the lowest profits because their work involves high expenditures in terms of purchases and time spent performing services.

Wages, purchases and otherWages are a significant, though declining, segment of revenue. They are anticipated to be 47.8% of revenue in 2011. Although many companies let go of employees since 2008, most have not yet re-hired workers. Also, some people created their own businesses when they were let go and had to pay themselves less as a result. Industry segments that pay the highest proportion of wages are the labor intensive parts of this industry, including food services and coordinators.

Industry purchases are expected to total 31.8% of 2011 revenue. Items such

as food, beverages, flowers or gowns must be purchased by their respective vendors to offer their basic services. Many of these costs fluctuated in the past five years, variously impacting different service providers. For example, changing weather patterns inflated flower prices and increased the proportion of purchases for florists. On the other hand, new venues were cheaper to buy or refurbish after the mortgage crisis due to an oversupply of developed property and construction workers. Because of the diversity of expenses within this industry purchases are estimated to stay a steady share of industry revenue.

Similarly to purchases, other expenses have fluctuated over the past five years yet remain a similar proportion of industry revenue due to the diversity of services that this industry provides. Other costs include rent, utilities and depreciation, as well as marketing and administrative expenses. In general, rent declined as a share of revenue as a result of lower property values post-mortgage crisis. On the other hand utility costs increased as a result of higher energy prices.

Industry�Costs�and�Average�Sector�Costs■�Profi�t■�Rent■�Utilities■�Depreciation■�Other■�Wages■�Purchases

Industry�Costs�(2011)�

Average�Costs�of�all�Industries�in�sector�(2011)�

3.6Profit

31.847.88.3

2.7

1.7

4.1

3.6Profit

28.736.122.22.7

2.3

4.3


0 100%



Basis�of�Competition The Wedding Services industry was traditionally made up of many smaller players that provided specific goods or services, such as a couple of designers’ dresses or flower arranging for a local community. These services all compete based on the price and quality of their services, in addition to customer service. However, technology and the Great Recession altered this landscape in a way that has boosted competition within and from outside of the scope of this industry.

Internal competitionWedding service providers are competing with each other in terms of quality, price, customer service and marketing. Because services make up the majority of industry revenue, the primary basis of competition is customer service. No matter how couples find a business, it is imperative for the representatives to be friendly and informative in order to book that wedding. Yet customer service only goes so far because the price and (perceived) quality of vendors’ goods and services determines their appeal to brides. Many vendors choose to provide a wide range of quality and pricing options in order to expand their consumer base.

Technology has drastically increased the competition between businesses in the industry over the past five years. Social media, blogs, online directories and search engines have facilitated couples’ research about wedding vendors. It also allows word of mouth to travel further and faster than it used to. Easier communication between vendors and

potential clients has also facilitated the availability of information. In response to this market opening up, many new operators are starting businesses in the industry. As the number of vendors rises, competition intensifies. The fast-growing destination-weddings segment is also relying on these technologies as couples increasingly book services from online information. The large amount of information about vendors allows couples to better judge the quality and price of many services, and to choose one to their liking. As a result of these new technologies, wedding service providers are increasingly competing based on marketing.

External competitionBecause most operators in this industry generate a majority of revenue outside of the industry, the competition from outside of the industry is limited. However, the Great Recession’s negative financial impact caused many couples to reconsider their spending. Many concluded that they could provide themselves with services or products for their own wedding, and many also asked friends and family to pitch in and help out. This do it yourself (DIY) trend took off and became a popular way for couples to save, but also to personalize their weddings. As consumer spending revives, the influence of consumer competition on the industry is projected to decline, however the DIY segment will continue as a way for people to customize their weddings.

Level�&�Trend��Competition in this industry is High and the trend is Increasing



Industry�Globalization

This industry has a low level of foreign ownership and no trade. Wedding services providers typically operate on a local level, rarely even travelling within a region or nationwide. The internet has enabled some couples to seek out foreign products for their wedding, such as offshoring custom gown production or

purchasing jewelry from foreign E-tailers. However, this remains a minimal component of the industry. Besides the geographical barrier, there are also cultural barriers to globalization for this industry. Many cultures have diverse wedding traditions that are best addressed by local professionals.

Barriers�to�Entry Barriers to entry have declined drastically in the past five years with the advent of cheap targeted marketing options online like Facebook. While vendors used to rely on expensive advertising local and nationwide magazines in order to attract clients, they now have a plethora of cheaper options to use. The decreased cost of reaching the consumer has allowed many small businesses to enter into the industry.

Existing vendors still benefit from reviews and word-of-mouth recommendations. However the wide variety of services and markets makes it possible for new operators to start out, albeit with a much smaller consumer base. The effectiveness of online communications has lowered barriers to entry by enabling anyone to market to the same demographics as established businesses.

Start-up costs have also decreased in the past five years for many businesses. The mortgage crisis resulted in lower rates for real estate, making it cheaper to buy or lease a venue or office. Meanwhile, technological advances and lower consumer spending led to decreased prices of equipment such as computers and digital cameras. Another factor that decreased start-up costs was a high unemployment rate. This decreased the opportunity cost for many new

vendors who started out in the industry when they became unemployed, as opposed to foregoing a steady income to create their wedding services business.

In some instances, larger vendors benefit from economies of size and scope. For example, David’s Bridal teams up with designers such as Vera Wang but mass produces dresses to sell in its over 300 locations nationwide. Many smaller dress shops cannot compete with the scope and pricing of David’s products. However, David’s lacks the quality and customer service aspect of the wedding business and, therefore, appeals mainly to brides with a low budget. As a result, many smaller bridal gown vendors project an exclusive image to avoid direct competition with David’s. Many small operators in the industry benefit not only from their ability to offer a wider range of goods but also from their personalized customer service.

Level�&�Trend��Barriers to Entry in this industry are Medium and Decreasing

Barriers�to�Entry�checklist� LevelCompetition HighConcentration LowLife Cycle Stage MatureCapital Intensity LowTechnology Change MediumRegulation & Policy MediumIndustry Assistance Low


Level�&�Trend��Globalization in this industry is Low and the trend is Decreasing


Other�Companies The Walt Disney CompanyEstimated market share: 1.4%The Walt Disney Company is an international conglomerate best known for its early cartoon characters, movies and amusement parks. The company was founded in 1923 and is traded as “DIS” on the NYSE. IBISWorld estimates that about 92.0% of total company revenue is generated in the US. Disney’s main revenue stems from a few segments, including media networks, parks and resorts, studio entertainment, consumer products and interactive media. These various segments work in conjunction with each other; for example, its parks, resorts and consumer products all contribute to the weddings services that Disney provides.

The company stated in 2010 that over 1,000 couples get married each year at Walt Disney World Resort, Disneyland Resort and aboard Disney Cruise Line. Since September 1991, Disney has hosted about 40,000 weddings. As a venue, Disney earns $20,000 for the average wedding it hosts for 50 people. After all, most of the ceremonies held at Disney are considered destination weddings. However, the company does not segment out wedding-specific revenue.

David’s BridalEstimated market share: 1.2%Known as the Walmart of weddings, David’s Bridal is the largest national retailer specializing in bridal gowns. With more than 300 stores nationwide, the company also sells costume jewelry, bridesmaid dresses, communion dresses, flower girl dresses, prom dresses, wedding gifts, wedding books, gloves, handbags, headpieces, shoes and undergarments.

David’s distinguishes itself from other bridal shops by offering low-priced gowns and bridesmaids dresses in many

styles and locations throughout the country. To this point, the retailer’s average dress costs about $550, while the national average cost for wedding gowns amounts to $1,075, according to the publishers of Brides magazine, Conde Nast Bridal Group. Such low costs have been enabled by in-house manufacturing of its dresses; the company produces its own dresses in Asia, where it can take advantage of low labor and overhead costs.

Formerly a division of Federated Department Stores (now Macy’s Inc.), David’s Bridal was sold in late 2006 to an private equity firm, Leonard Green & Partners. Since this buyout, the company does not disclose its financial information to the public, limiting the ability to provide financial analysis. In 2011, IBISWorld estimates David’s Bridal will generate about $580.0 million through its retail sales, accounting for about 1.2% of industry’s market.

The Pros Entertainment Service Inc.Estimated market share: Less than 1.0%Headquartered in Clearwater, FL, The Pros Entertainment Service Inc. is a large and diverse business. It offers DJ, video and photography nationwide in 40 of the largest US markets. Over half of its estimated $3 million in revenue is expected to stem from the Wedding Services industry. However, the Pros has operated for over 30 years as a family business. As a result there is relatively little publicly available information about the company.

The Pros has adapted in the past five years by developing a bridal website and hiring higher-quality professionals. The company operates proprietary design and video studios, and a photography lab. This in-house strategy has contributed to the company’s success by enhancing production flexibility and creativity.

�Major�CompaniesThere�are�no�Major�Players�in�this�industry�� |�� Other�Companies


Capital�Intensity The Wedding Services industry depends on labor to accommodate consumers. Labor expenditures are high because businesses in this industry compete primarily on the basis of customer service. As a result, vendors spend an average of only six cents on capital for every dollar they spend on labor.

Most capital costs are related to equipment or buildings that have an extended useful life. Also, many industry operators have minimal capital costs because of the nature of their services. For example, officiants incur little to no capital expenses.

�Operating�ConditionsCapital�Intensity�� |�� Technology�&�Systems�� |�� Revenue�VolatilityRegulation�&�Policy�� |�� Industry�Assistance

Tools�of�the�Trade:�Growth�Strategies�for�Success


Labo

r�Int

ensi

veCapital�Intensive

Change�in�Share�of�the�Economy

New�Age�Economy

Recreation,�Personal�Services,�Health�and�Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labor skills are key to product differentiation.

Traditional�Service�Economy

Wholesale�and�Retail. Reliant on labor rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth.

Old�Economy

Agriculture�and�Manufacturing.�Traded goods can be produced using cheap labor abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialize in niche, high-value products.

Investment�Economy

Information,�Communications,�Mining,�Finance�and�Real�Estate.�To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan.

Trade�Show�&�Event�Planning

Jewelry�&�Watch�WholesalingCaterers

Soft�Drink,�Baked�Goods�&�Other�Grocery�

Wholesaling Wine�&�Spirits�Wholesaling

Wedding�Services

Capital intensity

0.5

0.0

0.1

0.2

0.3

0.4

SOURCE: WWW.IBISWORLD.COMDotted line shows a high level of capital intensity

Capital units per labor unit

Wedding Services

Other Services (except Public

Administration)

Economy

Level��The level of capital intensity is Low


Operating�Conditions

Revenue�Volatility Historically, volatility was lower as revenue gradually grew. However, the commercialization of weddings increased the industry’s dependence on consumer spending. This industry’s revenue volatility increased modestly in the past five years due to the high

unemployment and economic uncertainty that led couples to spend less on or postpone their nuptials. For instance, revenue grew 1.5% in 2007 before dropping 3.4% in 2008 and falling another 5.7% in 2009. The slow economic recovery has exacerbated

Technology&�Systems

The software, machinery, equipment and intellectual property of most wedding services professionals have not changed greatly over the past few decades. Venues and clothing retailers are much the same, as is the job of caterers, florists, entertainers, hair, nails and make-up artists, and coordinators.

However, an abundance of online resources for consumers has boosted the competition between vendors. Likewise, the internet has facilitated price hunting and customization. Online services such as The Knot or Wedcharm share information from and about wedding vendors, making it easier for consumers to learn about the variety of options available to them. More intense competition, in turn encourages vendors to set themselves apart by catering to a niche audience, or offering discounts or unique services. As a result, many vendors are transitioning their marketing strategies toward communicating a unique vision to clients through social networking, blogging and wedding websites. Effective online communications have also lowered the barriers to entry for wedding services providers by enabling anyone to market to the same demographics as established businesses.

One segment of the industry that has benefited greatly from technological change is the Photography segment. Digital photography has revolutionized wedding photography businesses. Digital technology also allows photographers to

easily edit and touch up images without the need for studio technology or manual airbrushing. Programs such as Adobe Photoshop make these editing capabilities commercially available. Such advancements and other features, such as online album design, have enabled photographers to provide more add-on services. As a result, photographers now deliver more personalized, unique products to clients, increasing their revenue per wedding and their share of the industry. This change has also benefited other vendors because photographers often provide the pictures or videos they then use for marketing.

As technologies are adapted by an increasing segment of the population, they are expected to further change the landscape of the Wedding Services industry. For instance, mobile applications have the potential to alter how couples approach wedding planning. Another example of technological change is that some people choose to hook up an iPhone to their venue’s sound system and have a friend control the music instead of a professional DJ. Yet prior to iPhones, other media like MP3 players, CDs or tapes could be utilized. Therefore, if not driven by high-quality and easily accessible music selections today, the trend may be driven by couples minimizing expenses in the aftermath of the Great Recession. Nonetheless, easy-to-use and newly emerging technology is influencing the industry’s performance.

Level��The level of Technology Change is Medium

Level��The level of Volatility is Medium


Operating�Conditions

Industry�Assistance Although there are online services and bridal fairs that help vendors to advertise, there is no organization that supports operators across the scope of the industry.

Regulation�&�Policy Government regulationAlthough each state regulates marriage, there are no other regulations that apply specifically to wedding service providers. Most state laws dictate that officiants must be registered in the state, or have state approval by holding a recognized position in the community like that of a judge, priest or rabbi, in order to perform a legal ceremony.

The county or court clerk issue a marriage license for a nominal fee in the state that the ceremony is performed in. Some states have a

specified waiting period, usually of a few days, before the license is issued. This hampers the establishment of quick-wedding establishments in these states. A ceremony performed elsewhere, even abroad, is usually valid in any state as long as the marriage was legal in the jurisdiction where it occurred. Also, most states require that both bride and groom are 18 or older. In most states minors are permitted to marry with parental approval, and court approval is increasingly required as well.

Revenue�Volatilitycontinued

industry volatility, and industry revenue expected to return to growth starting in 2011. The current dip is projected to

cause unsteady growth spurts in the next few years while spending returns to pre-recessionary levels.


Volatility�vs�Growth

Reve

nue�

vola

tility

*�(%

)�

1000

100

10

1

0.1

Five�year�annualized�revenue�growth�(%)�–30 –10 10 30 50 70

Hazardous

Stagnant

Rollercoaster

Blue�Chip

* Axis is in logarithmic scale

Wedding�Services

A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment.

When a fi rm makes poor investment decisions it may face underutilized capacity if demand suddenly falls, or capacity constraints if it rises quickly.

Level�&�Trend��The level of Regulation is Medium and the trend is Steady

Level�&�Trend��The level of Industry Assistance is Low and the trend is Steady


�Key�StatisticsRevenue�

($m)

Industry�Value�Added�

($m)Establish-

ments Enterprises Employment Exports ImportsWages�($m)

Domestic�Demand

Number�of�Marriages�

(Thousands)2002 48,670.9 33,142.2 374,947 360,573 727,573 -- -- 29,781.2 N/A 2,274.42003 49,023.8 32,978.1 398,218 383,849 740,624 -- -- 29,599.3 N/A 2,236.12004 50,215.5 32,608.4 415,391 400,672 758,549 -- -- 29,245.5 N/A 2,287.72005 50,874.3 31,888.0 428,598 414,342 763,611 -- -- 28,469.8 N/A 2,248.82006 51,318.4 31,366.2 439,442 425,199 772,951 -- -- 27,985.6 N/A 2,181.22007 52,070.8 31,134.7 450,692 436,720 779,173 -- -- 27,554.8 N/A 2,201.72008 50,287.4 29,085.2 432,910 420,134 731,293 -- -- 25,942.3 N/A 2,159.12009 47,401.7 26,825.3 422,790 410,942 697,842 -- -- 23,839.0 N/A 2,087.62010 47,196.4 25,687.8 436,503 424,923 703,979 -- -- 23,139.2 N/A 2,167.22011 48,026.0 25,979.8 461,768 450,207 727,672 -- -- 22,954.2 N/A 2,217.32012 49,380.4 26,205.8 487,431 475,958 750,523 -- -- 23,008.4 N/A 2,204.32013 50,633.5 26,417.1 513,107 501,798 771,966 -- -- 22,999.3 N/A 2,159.72014 51,310.5 26,210.2 533,811 522,847 784,724 -- -- 22,721.1 N/A 2,145.32015 53,240.6 26,523.8 568,637 557,814 816,778 -- -- 22,983.3 N/A 2,131.12016 54,280.7 26,548.1 595,181 584,749 835,329 -- -- 22,843.4 N/A 2,116.6Sector�Rank 4/29 1/29 3/29 3/29 5/29 N/A N/A 2/29 N/A N/AEconomy�Rank 157/706 96/706 14/705 15/705 46/706 N/A N/A 58/706 N/A N/A

IVA/Revenue�(%)

Imports/Demand�

(%)Exports/Revenue�

(%)

Revenue�per�Employee�

($’000)Wages/Revenue�

(%)Employees�

per�Est.Average�Wage�

($)

Share�of�the�Economy�

(%)2002 68.09 N/A N/A 66.89 61.19 1.94 40,932.25 0.292003 67.27 N/A N/A 66.19 60.38 1.86 39,965.35 0.282004 64.94 N/A N/A 66.20 58.24 1.83 38,554.53 0.272005 62.68 N/A N/A 66.62 55.96 1.78 37,283.12 0.252006 61.12 N/A N/A 66.39 54.53 1.76 36,206.18 0.242007 59.79 N/A N/A 66.83 52.92 1.73 35,364.16 0.242008 57.84 N/A N/A 68.77 51.59 1.69 35,474.56 0.222009 56.59 N/A N/A 67.93 50.29 1.65 34,161.03 0.212010 54.43 N/A N/A 67.04 49.03 1.61 32,869.16 0.192011 54.10 N/A N/A 66.00 47.80 1.58 31,544.71 0.192012 53.07 N/A N/A 65.79 46.59 1.54 30,656.49 0.192013 52.17 N/A N/A 65.59 45.42 1.50 29,793.15 0.182014 51.08 N/A N/A 65.39 44.28 1.47 28,954.26 0.182015 49.82 N/A N/A 65.18 43.17 1.44 28,138.98 0.172016 48.91 N/A N/A 64.98 42.08 1.40 27,346.59 0.17Sector�Rank 3/29 N/A N/A 16/29 3/29 23/29 7/29 1/29Economy�Rank 125/706 N/A N/A 638/706 49/706 667/705 500/706 96/706

Figures are inflation-adjusted 2011 dollars. Rank refers to 2011 data.

Revenue�(%)

Industry�Value�Added�

(%)

Establish-ments�

(%)Enterprises�

(%)Employment�

(%)Exports�

(%)Imports�

(%)Wages�

(%)

Domestic�Demand�

(%)

Number�of�Marriages�

(%)2003 0.7 -0.5 6.2 6.5 1.8 N/A N/A -0.6 N/A -1.72004 2.4 -1.1 4.3 4.4 2.4 N/A N/A -1.2 N/A 2.32005 1.3 -2.2 3.2 3.4 0.7 N/A N/A -2.7 N/A -1.72006 0.9 -1.6 2.5 2.6 1.2 N/A N/A -1.7 N/A -3.02007 1.5 -0.7 2.6 2.7 0.8 N/A N/A -1.5 N/A 0.92008 -3.4 -6.6 -3.9 -3.8 -6.1 N/A N/A -5.9 N/A -1.92009 -5.7 -7.8 -2.3 -2.2 -4.6 N/A N/A -8.1 N/A -3.32010 -0.4 -4.2 3.2 3.4 0.9 N/A N/A -2.9 N/A 3.82011 1.8 1.1 5.8 6.0 3.4 N/A N/A -0.8 N/A 2.32012 2.8 0.9 5.6 5.7 3.1 N/A N/A 0.2 N/A -0.62013 2.5 0.8 5.3 5.4 2.9 N/A N/A 0.0 N/A -2.02014 1.3 -0.8 4.0 4.2 1.7 N/A N/A -1.2 N/A -0.72015 3.8 1.2 6.5 6.7 4.1 N/A N/A 1.2 N/A -0.72016 2.0 0.1 4.7 4.8 2.3 N/A N/A -0.6 N/A -0.7Sector�Rank 16/29 21/29 1/29 1/29 2/29 N/A N/A 24/29 N/A N/AEconomy�Rank 467/706 536/706 31/705 27/705 97/706 N/A N/A 594/706 N/A N/A

Annual�Change

Key�Ratios

Industry�Data



Jargon�&�Glossary

BARRIERS�TO�ENTRY Barriers to entry can be High, Medium or Low. High means new companies struggle to enter an industry, while Low means it is easy for a firm to enter an industry.

CAPITAL/LABOR�INTENSITY An indicator of how much capital is used in production as opposed to labor. Level is stated as High, Medium or Low. High is a ratio of less than $3 of wage costs for every $1 of depreciation; Medium is $3 – $8 of wage costs to $1 of depreciation; Low is greater than $8 of wage costs for every $1 of depreciation.

CONSTANT�PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using 2011 as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the ‘real’ growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC�DEMAND The use of goods and services within the US; the sum of imports and domestic production minus exports.

EARNINGS�BEFORE�INTEREST�AND�TAX�(EBIT)� IBISWorld uses EBIT as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding tax and interest.

EMPLOYMENT The number of working proprietors, partners, permanent, part-time, temporary and casual employees, and managerial and executive employees.

ENTERPRISE A division that is separately managed and keeps management accounts. The most relevant measure of the number of firms in an industry.

ESTABLISHMENT The smallest type of accounting unit within an Enterprise; usually consists of one or more locations in a state or territory of the country in which it operates.

EXPORTS The total sales and transfers of goods produced by an industry that are exported.

IMPORTS The value of goods and services imported with the amount payable to non-residents.

INDUSTRY�CONCENTRATION IBISWorld bases concentration on the top four firms. Concentration is identified as High, Medium or Low. High means the top four players account for over 70% of revenue; Medium is 40 –70% of revenue; Low is less than 40%.

INDUSTRY�REVENUE The total sales revenue of the industry, including sales (exclusive of excise and sales tax) of goods and services; plus transfers to other firms of the same business; plus subsidies on production; plus all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); plus capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.

INDUSTRY�VALUE�ADDED The market value of goods and services produced by an industry minus the cost of goods and services used in the production process, which leaves the gross product of the industry (also called its Value Added).

INTERNATIONAL�TRADE The level is determined by: Exports/Revenue: Low is 0 –5%; Medium is 5 –20%; High is over 20%. Imports/Domestic Demand: Low is 0 –5%; Medium is 5 –35%; and High is over 35%.

LIFE�CYCLE All industries go through periods of Growth, Maturity and Decline. An average life cycle lasts 70 years. Maturity is the longest stage at 40 years with Growth and Decline at 15 years each.

NON-EMPLOYING�ESTABLISHMENT Businesses with no paid employment and payroll are known as non-employing establishments. These are mostly set-up by self employed individuals.

VOLATILITY The level of volatility is determined by the percentage change in revenue over the past five years. Volatility levels: Very High is greater than ±20%; High Volatility is between ±10% and ±20%; Moderate Volatility is between ±3% and ±10%; and Low Volatility is less than ±3%.

WAGES The gross total wages and salaries of all employees of the establishment.

Industry�Jargon

IBISWorld�Glossary

BEAUTY�SERVICES Day-of services, including spa, hair, makeup and nail treatments. Services excluded visits made to estheticians prior to or after the wedding day.

BRIDAL�REGISTRY A service provided by a website or retail store to assist engaged couples in the communication of gift preferences to wedding guests.

DESTINATION�WEDDING A marriage ceremony or reception 200 or more miles away from where the couple lives and at least 80.0% of guests require overnight accommodations.

DO�IT�YOURSELF�(DIY)� A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider, for example, home renovations and wedding planning.

OFFICIANT An officiating priest or minister.

WEDDING�VENDOR A company that provides services on the day of the marriage ceremony or reception.

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IBISWorld Industry Report NN006 Wedding Services in...

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