Global players and shopping websites are altering the Clothing Retailing industry landscape in Australia
Melbourne, Australia (PRWEB) May 19, 2012
The Clothing Retailing industry in Australia faced several tough years with cautious consumer spending, lower prices, higher rents and the global financial crisis driving down revenue. Over the past five years to 2011-12, IBISWorld expects industry revenue to contract at an annualised 0.8%. Revenue is anticipated to grow just 0.5% in 2011-12 to total $12.1 billion. Since the economic downturn, consumer spending behaviour changed and clothing retailers suffered as a result. According to IBISWorld industry analyst Kiera Outlaw, “following the downturn consumers became savvier about spending and Australia's private savings rate grew to its highest point since 1984”.
Further hindering Clothing Retailing industry revenue has been the decline in prices. Prices have been driven lower by fierce competition, but also because of the surging Australian dollar. Outlaw adds, “the high value of the Australian dollar means that for many retailers, especially the larger operators, stock can be purchased at significant discounts”. However, consumers have scaled back spending, inciting price reductions industry wide. Over the next five years to 2016-17, industry revenue is forecast to grow. Competition is expected to strengthen as industry participants fight for the consumer dollar. The entrance of a number of international players and increased acceptance of online shopping, supported by the strong Australian dollar, will change the industry's landscape. Industry participants will need to position themselves in niche markets in order to flourish in this increasingly competitive environment.
The Clothing Retailing industry is highly fragmented and therefore market share concentration is low. Some merger and acquisition activity has taken place as major players seek to capture a greater share of the market and improve economies of scale. Major companies in the industry include Premier Investments Limited, Specialty Fashion Group Limited, ARJ Group Holdings Pty Ltd, Country Road Limited, Pretty Girl Fashion Group Pty Ltd and Lowes-Manhattan Pty Ltd
For more information, visit IBISWorld’s Clothing Retailing report in Australia industry page.
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IBISWorld industry Report Key Topics
Clothing retailers purchase a variety of clothing products and accessories from wholesalers and sell these products directly to consumers, generally without developing or changing them. Most retailers in this industry sell goods from one or more shops and may also operate an online store. Retailers also undertake administrative activities such as customer service, product merchandising, advertising, inventory control and cash handling.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.