The pop-up of luxury boutiques and foreign online luxury retailers have increased competition for the industry.
Melbourne, Australia (PRWEB) December 10, 2013
The Luxury Retailing industry in Australia has grown from strength to strength over the past five years. According to IBISWorld industry analyst Ryan Lin, “while much of the global retailing scene suffered from the global financial crisis, Australian luxury retailers were relatively insulated as growing wages and high sentiment fuelled the consumer passion for fashion”. Australia's taste for fashion and luxuries has prompted industry players to scour all corners of the world for the right fusion of fashion and luxury to cater for the ever-changing needs of consumers. Back home, high-profile Australian designers and labels have also grown in prominence across the retail scene. Global luxury powerhouses have also pounced on the Australian industry, with several high-profile brands expanding their retail networks across Australia.
The Luxury Retailing industry has grown at a rapid pace in the years following the global financial crisis, especially as inbound tourists from Asia provide another boon for retailers, particularly for big-ticket items such as watches and jewellery. As a result of this, the industry is forecast to grow at a double-digit annualised rate of 11.1% over the five years through 2013-14 to total $1.4 billion. “In 2013-14 alone, industry revenue is anticipated to grow 15.9% as burgeoning tourists from China and the rest of Asia provide ample growth for retailers,” says Lin. Despite these favourable trends, competitive pressures lurk. The pop-up of luxury boutiques and foreign online luxury retailers have increased competition for the industry, though there is still a low level of market share concentration. Major industry players include Louis Vuitton Australia Pty Ltd, Prada Australia Pty Ltd, and Tiffany & Co (Australia) Pty Ltd.
These competitive pressures are anticipated to be of greater significance over the coming years, especially as flagship stores bring the fight back to independent boutiques and online retailers as they continue to ramp up exclusive offerings and five-star customer service. Over the coming years, experimental and emerging luxury labels are anticipated to make a stronger mark on the Luxury Retailing industry, especially as they target cash-rich younger consumers. This is expected to benefit independent boutiques, which have greater flexibility in what they stock.
For more information, visit IBISWorld’s Luxury Retailing in Australia industry report page.
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IBISWorld industry Report Key Topics
The industry consists of bricks-and-mortar retailers who primarily sell international luxury fashion items such as clothing, footwear and accessories. The industry excludes department stores that retail luxury products.
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.