Australian Fashion and Apparel Industry Is Expected to Experience a Boom

In the coming years, the Australian fashion and apparel industry is expected to experience a boom due to a more relaxed spending approach of the shoppers, says a report released by the Melbourne-based research company IBISWorld.
 
For the past few years, the Aussie fashion and clothing sector has been struggling with lacklustre sales because of a discretionary spending attitude adopted by the Australian consumers resulting in revenue declines of 2.2 percent per annum.
 
In 2013, the figures are likely to slip a further 1.7 percent with total takings falling to US$ 12.2 billion, according to the Clothing Retailing market research report.
 
However,  the IBISWorld General Manager (Australia) Ms. Karen Dobie feels that over the next 12 months Aussies will adopt a more relaxed attitude to discretionary spending, which in turn will provide a boost to the country’s garment and fashion industry.
 
“The coming five years are looking brighter with a yearly growth of around 1.1 percent anticipated over the five years through 2017-18,” Ms. Dobie said in a press release.
 
She said the budget and luxury retailers have continued to perform well despite the fluctuating confidence of consumers towards spending over the last few years.
 
Well-known domestic luxury brands such as Oroton and Sass & Bide alongside international labels like Louis Vuitton, Gucci and Chanel have stood the test of time, while mid-market demand has been driven by the entry of international retailers such as Zara and Topshop, she said.
 
While stressing on the importance of online sales, the staement says, “Web-based discount fashion stores are increasingly becoming prosperous and it is a trend that is likely to continue.”
 
However, the report warns the traditional bricks-and-mortar retailers to pay attention or risk falling off the fashion radar because an online presence is no longer optional, and in fact, it has become paramount for them.
 
“Online presence along with a sensible pricing structure and product differentiation will be critical for the lower and mid-range clothing segments in the coming years,” Ms. Dobie said.