Those extra 20,000 deaths a year will create a ‘golden age of death’ for the funeral Industry. However, changing funeral preferences and broader economic uncertainty have restrained industry revenue growth over the past five years. The increasing popularity of cremations in place of traditional burials has stifled revenue growth, as cremations generally generate lower revenue per service. Price sensitivity among consumer Is Increased because of the uncertainty of economic.
The number of annual deaths has Increased modestly, while families are Increasingly opting for cheaper cremations over burials. Meanwhile, the Australian funeral industry as exists today has irrevocably changed. According to the American funeral firm operation, the corporate management approach has become part of the Australian way of death. Besides, the central warehousing of bodies, the prevalence of viewings, embalming and pre-pall funerals, and the merchandising of everything from memorial books to cremation urns is all part of the American legacy.
And unlike the traditional Australia sales, lately staffs at big firms are sent to seminars to learn subtle sales techniques aimed at convincing the consumer to ‘supervise’ the funeral. Invoker’s Competition Invocate Limited Is the largest funeral, cemetery and crematorium Industry operator n Australia, New Zealand and Singapore which has significant 30. 6% market share, $1. Ban market capitalization, $1. Ban enterprise value and $mm sales revenues in 2014.
It has 250 locations across Australia, New Zealand & Singapore, including 14 cemeteries & crematoria with over 1 ,700 employees. It has over 60 contemporary style brands of funeral homes and 1 55 contemporary style and heritage funeral homes In Australia and New Zealand in order to meet different customers’ preference. Based on the scale efficiencies, Invocate has best risk averse and experienced management. It also has the best asset rich balance sheet, dividend yield – appear. 3%, healthy debt service capability, interest cover ratio among this industry.
As a listed company, its defensive characteristics and outperformed ASS 200 and it Is one of the better-placed companies In the ASS to benefit off Australia’s ageing population consolidation of the funeral services industry via acquisitions is a global trend. Further more, to meet the demand for a new approach, Invocate has Jettisoned the old funeral model and replaced it with a celebration of life – to review options that meet the lately customer’s needs. Their emphasis is on selecting an approach that works with the family’s budget and preferences.
