Evolution of Australian Fashion Industry 2016
Australia’s fashion industry is undergoing major changes, with greater demand for domestic brands alongside a stronger emphasis on online shopping. Shoppers want quality rather than quantity, and will pay more for a solid investment when it comes to clothing. As a result, the luxury clothing sector is actually growing, despite a weakened dollar which many predicted would curb spending. Meanwhile, international retailers are recognising the gap in the market and are lining up to provide greater fashion retail opportunities for the Australian public.
The Rise of Luxury Fashion Spending
Shoppers are starting to spend again, after the uncertainty of the global financial crisis. Record low interest rates and inexpensive, accessible credit are encouraging greater spending levels, and fashion is one area doing particularly well in the current economic environment. You may be surprised to learn that luxury fashion is selling very well, despite a weakened dollar. Buyers say they want products that will last for years to come, and they are now recognising the false economy of picking up bargains by compromising on quality. “Australian households have shown a willingness to pay for long-lasting investments,” said senior industry analyst Lauren Magner. Predictions show that luxury fashion retail will rise by 7.8% this year.
Vogue Magazine notes that ladies in particular are choosing online retail for luxury clothing buys. Dress sales online have risen by 35% in the last five years, and the average spend on formal dresses has also increased. Meanwhile, denim sales and footwear purchases have also increased. For women at least, online luxury shopping is increasingly popular. Some fashion retailers are performing particularly well in the Australian market – online clothing hub The Iconic is the third largest national retailer, while active-wear brand Lorna Jane has seen a 30% sales boost.
Some luxury retailers have changed the products they offer in order to attract a wider market. Boutiques stocking tailored suits have moved into selling shirts and jeans, while service and quality are now cited by consumers as their main reasons for choosing luxury goods. This is a long way from previous decades, where prestige and status were top drivers for high end fashion retail. Meanwhile, investments in jewellery and watches are growing by around 1.9% each year, particularly among travellers picking up duty free purchases as they pass through Australia’s airports.
Online Shopping Changing The Fashion Trade
Online shopping is also boosting the economy, especially across luxury and budget fashion sectors. Online transactions accounted for 18.9% of Australian fashion retail profit last year and over 40% of Australian adults make an online purchase in any average four week period. Much of Australian fashion sales currently rely on international brands, rather than domestic companies. However, clothing retail is changing with more international companies setting up within Australia, and a rise in national brands as well.
Fashion is the third biggest retail sector in Australia, behind entertainment and reading materials. Within Australia, at least 122,266 people are employed in the fashion retail sector. Clothing sales bring in an estimated $21 billion per year. Australian fashion manufacturers tend to focus on lifestyle brands, with surf clothing a key market export. Major retailers Billabong and Rip Curl are known throughout the globe, and bring in a combined $2 billion for the Australian economy. When it comes to online buys, shoes and accessories top the main purchases. Data suggests consumers still prefer to see clothing first and try it on – however, they will take the risk to buy online for items such as jewellery, hats and belts which usually come in one size only.
The Future Of Online Fashion Sales
Experts predict that this phenomenal rise in online clothes shopping will continue over the coming years, particularly as internet access increases and smartphone ownership rises. While web browser access is still the preferred method of online shopping, around one fifth of online clothing purchases are now made through a retailer’s mobile application. Online marketplaces are also growing in popularity and many buyers order through sites such as Amazon rather than visiting the retailer’s website directly.
Looking for bargains online is also common. Those with an eye for luxury goods will often spot what they want in store or via a designer’s own site, before looking it up through a search engine and hunting down the best price. Such shopping behaviour is not limited to any particular demographic: shoppers of all ages, genders and incomes can appreciate a good deal when they see one. Any increase in retail spending can only have a positive impact on the Australian economy.
As luxury goods are boosted and high end retailers are attracted to our markets, there should be greater availability of international brands and more choice online. Despite a weakened currency, domestic spending is proving popular: and smart shoppers are also making the most of exchange rates to find fashion bargains online. A stronger fashion industry according to latest research done by Roy Morgan Research, Vogue.com and IBISWorld, can create jobs, boost local incomes and attract more investment to Australia in the future.