Industry operators will significantly ramp up their product offerings to negotiate supply agreements from an increasing range of international designers and fashion houses
Melbourne, Australia (PRWEB) August 11, 2014
Over the past five years, Online Handbag and Luggage Sales in Australia have grown strongly, assisted by ongoing growth in the popularity of online shopping. While the industry remains small in 2014-15, it provides consumers with a new shopping avenue – offering more affordable prices and a larger range of handbags, luggage and other leather goods than traditional bricks-and-mortar establishments. According to IBISWorld industry analyst Ryan Lin, “the industry has been assisted by the proliferation of internet connectivity and mobile technology, which have allowed consumers to seamlessly integrate online activity into their everyday lives.” Over the past five years, the industry has grown at an annualised 11.2% to total $66.8 million, underperforming the overall online shopping sector due to competition from foreign websites. Despite this, growth is expected to be strong due to favourable consumer conditions and the fact that it has started from a low base. In 2014-15, industry revenue is anticipated to grow by 12.1%, due to rising incomes and an increasing product range offered by industry operators.
Over the next five years, the industry is forecast to continue growing strongly. As online shopping becomes the norm, IBISWorld expects that industry operators will significantly ramp up their product offerings to negotiate supply agreements from an increasing range of international designers and fashion houses. Competition will be rife within the industry, as online handbag and luggage retailers become increasingly upscale, offering a premium shopping experience beyond the purchase of a product. “Industry operators will employ greater levels of after-sales service to add further value and differentiate from the competition,” says Lin. Over the next five years, the industry will be assisted by the increasing sophistication of mobile and internet technology, which will increase online interaction between industry operators and consumers.
The Online Handbag and Luggage Sales industry is characterised by a low level of market share concentration. The major companies, Oroton and Strandbags, specialise in the retail of handbags, luggage, satchels and wallets, and thus exert significant dominance over the industry. These firms have a strong presence outside of the online space, enabling them to use their size, economies of scale and large customer base to direct consumers to their online channels. Strandbags and Oroton have focused on increasing sales through their websites, and this has led to an increase in market share concentration over the past five years.
For more information, visit IBISWorld’s Online Handbag and Luggage Sales industry in Australia report page.
This industry is made up of establishments that sell handbags, wallets and other leather goods on the internet. This includes online-only retailers and bricks-and-mortar stores that have an online presence.
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IBISWorld Industry Report Key Topics
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.