Australia has become an appealing prospect for foreign operators
Melbourne, Australia (PRWEB) January 07, 2015
The Luxury Retailing industry has grown from strength to strength over the past five years. While much of the global retailing scene has suffered from instability in financial markets, Australian luxury retailers have been relatively insulated as growing discretionary incomes have fuelled consumers' passion for fashion. According to IBISWorld industry analyst Lauren Magner, “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 consumers' changing needs.” Back home, high-profile Australian designers and labels have 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 the country. The top three companies in the industry are Louis Vuitton Australia Pty Ltd, Tiffany & Co (Australia) Pty Ltd and Prada Australia Pty Ltd.
The Luxury Retailing industry has grown at a rapid pace over the past five years, especially as inbound tourists from Asia have provided another boon for retailers. Industry revenue is forecast to grow strongly in 2014-15 as burgeoning tourists from China and the rest of Asia provide ample growth for retailers. “Despite these favourable trends, competitive pressures lurk,” says Magner. The growth of foreign online luxury retailers has increased competition for the industry.
These competitive pressures are expected to be of greater significance over the next five years, especially as flagship stores bring the fight back to independent boutiques and online retailers as they ramp up exclusive offerings and five-star customer service. Experimental and emerging luxury labels are anticipated to make a stronger mark on the industry, especially as they target cash-rich younger consumers. This is expected to benefit independent boutiques, which have greater flexibility in what they stock. Overall, industry revenue is projected to grow at an annualised 8.5% over the five years through 2019-20, to total $2.4 billion.
For more information, visit IBISWorld’s Luxury Retailing industry in Australia report page.
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.
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