Tailoring and Clothing Accessories Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 26, 2015 -- Operators in the Tailoring and Clothing Accessories Manufacturing industry in Australia have faced challenging conditions over the past five years as key downstream retail market conditions have softened. In addition, rising import competition from low-cost producers in countries such as China has resulted in declining industry revenue as local manufacturers have struggled to compete. According to IBISWorld industry analyst Lauren Magner, “low consumer sentiment and subdued discretionary spending have resulted in key markets such as department stores, clothing retailers and wholesalers reducing inventory levels and therefore industry demand.” As a result, industry revenue is expected to decline by a compound annual rate of 5.7% over the five years through 2014-15.
Conditions are expected to continue to deteriorate in 2014-15, with revenue falling by 9.8% to $1.8 billion. Retail spending will be hindered as consumer sentiment weakens due to concerns over the future of the Mining division while commodity prices fluctuate and increasing capital costs deter foreign investment. Furthermore, the tariff rate on clothing was reduced from 10.0% to 5.0% on 1 January 2015, enhancing the price discrepancy between foreign-manufactured and locally produced goods. “This is expected to boost the presence of imported clothing accessories and constrain industry revenue,” says Magner. Over the past five years, enterprises have left the industry at a compound annual rate of 5.7% as international competition has put downward pressure on prices. Many companies have struggled to maintain profitability and have therefore left the industry. Other companies are moving manufacturing operations offshore to compete and capture greater profit margins. The industry displays a low level of market share concentration.
The Tailoring and Clothing Accessories Manufacturing industry will face better conditions over the next five years, though revenue declines are still expected. The diverse range of products offered by the industry means that operators will be able to focus on niche markets, producing high-end goods that are more likely to be successful. Australia's competitive advantage lies in the production of higher quality, niche market goods that can be specialised for consumers. Industry operators are therefore expected to focus less on mass production and more on focused product lines. The adaptation of operators in these conditions is paramount, particularly following the recent tariff reduction. The industry will be increasingly exposed to international competition and therefore will need to adjust its operations to survive.
For more information, visit IBISWorld’s Tailoring and Clothing Accessories Manufacturing industry in Australia report page.
Companies in this industry are primarily engaged in manufacturing headwear, fur or leather clothing, swimwear, gloves and other clothing accessories. The industry also includes operators that provide clothing trade services such as hem stitching, basque knitting and buttonholing.
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IBISWorld industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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