Melbourne, Australia (PRWEB) November 13, 2014 -- Operators in the Clothing and Footwear Repair industry in Australia have fared well over the past five years. The industry has been largely unaffected by the turbulent economic conditions that have plagued traditional retailers. Widespread economic uncertainty and volatility in consumer sentiment have prompted many households to scale back expenditure on unnecessary items of clothing and footwear, and instead extend the life of existing items by spending on repair and alteration services. According to IBISWorld industry analyst Lauren Magner, “industry players have also benefited from the growing popularity of upcycling, where old garments are transformed into new items.” Over the five years through 2014-15, industry revenue is estimated to rise at an annualised 0.4% to reach $221.6 million.
There tends to be a negative correlation between consumer sentiment and industry revenue. When sentiment is weak, consumers are more likely to engage the industry's services because they are more cost-effective than purchasing new items of clothing and footwear. This was particularly evident in 2011-12, when consumer sentiment plummeted and industry revenue increased by 6.8%. Industry revenue has risen in each of the past five years, with the exception of 2010-11, when sales dropped by 10.4%. “This drop was partly due to the sudden influx in low-cost online fashion retailers to the market, which encouraged consumers to purchase new clothing at cheap prices,” says Magner. For example, online retailer ASOS launched its Australian store in 2011. Although online competition is still fierce, industry operators have managed to win back customers, with revenue anticipated to grow by 2.4% in 2014-15. The industry exhibits a low level of market share concentration. Major companies include Looksmart Alterations Pty Ltd.
Over the next five years, the Clothing and Footwear Repair industry will benefit from an improving reputation with customers. Demand for the industry will be largely driven by an expected downturn in consumer sentiment over the period, as falling capital expenditure by mining companies and concerns regarding the competitiveness of Australian businesses weigh on household purchasing decisions. As such, more consumers are expected to favour repairing and altering existing products as opposed to buying new ones.
For more information, visit IBISWorld’s Clothing and Footwear Repair industry in Australia report page.
Operators in the industry undertake repairs or alterations to clothing and footwear. Services offered range from basic repairs to complete restyling of older garments to make new clothing. Repairers may operate under a franchise model or as independent businesses. Stores are primarily located in shopping centres or shopping strips, which increases their exposure to passing consumer traffic.
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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
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Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]