Over 70 per cent of the Australian GDP is comprised of the service industry. This may range from food industries to the fitness industry. While there might be space for a new business, pretty much of any new startup will have to counter stiff competition from other similar businesses. Nonetheless, the market is still large to accommodate new entrants. However, industry expert Norman argues that though the Australian economy is booming, it is only safe for any entrepreneur to avoid saturated industries. This is because you will have to use a few bucks trying to educate potential clients on your brand – and it is always a tough job trying to grab a routine client from your competitor. Sectors that you should look to avoid include.
Several years ago, the child care services were booming with parents scouring for places that their kids would feel at home in their absence. According to Australia Childcare Alliance, over 1100 childcare centres have applied for licenses, and if allowed, they can add up to 90,000 childcare places. This greatly saturates the industry meaning more competition and fewer returns. While this is taking place, Community Early Learning Australia has reported that over 70 per cent of their members has reported a drop in the number of enrolments as compared to 2017.
With a population aware of some of the health hazards posed by being obese; has led to the number of gyms and yoga centres sprouting on every corner. According to the Business Franchise, there are over 3300 fitness centres in Australia. While more centres are being opened, some are closing down due to poor unique selling points. Industry expert Norman states that to thrive in a saturated industry, you need to find a great USP and an ideal way to market your business, lest you will close down in a few months.