Table is known internationally for its quality, fresh
Table of Contents 1. 0Executive Summary1 2. 0Introduction2 3. 0Market Background3 3.
1Industry Definition3 3. 2Consumer Needs and Wants3 3. 3Industry History3 4.
0Market Statistics4 4. 1Market Size4 4. 2Market Growth5 4.
3Corporate Market Share7 4. 4Brand Market Share7 5. 0Key Companies8 6. 0Environmental Factors9 7. 0SWOT Analysis of the Australian Clothing Industry10 8. 0Company Information11 8. 1Company Name11 8.
2Product Description11 8. 3Target Market and Market Positioning12 9. 0Conclusion12 List of References13 1. Executive Summary The Australian clothing industry is looking for further export opportunities as a response to increased import competition in Australia, globalisation and technological change.
Australian fashion is known internationally for its quality, fresh and innovative designs complimented by strong branding and are often regarded as world market leaders with many well established and known brands. Clothing companies are finding they need to be able to compete not only on designs but on price to compete with overseas competitors.Quality marketing materials and brand development are also proving vital as well as advanced planning, financial resources and time commitment. 2. 0Introduction This report will explore the women’s clothing industry. The author will investigate the size of the industry, market growth and key companies operating within the industry. The author will also briefly examine the environmental influences and undertake a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis of the industry.
This report will also include a brief overview of one particular company who successfully functions within the industry and their marketing mix. . 0Market Background 3. 1Industry Definition Australian clothing is recognised internationally for its quality, sophistication and innovative designs, complimented by strong branding.
(Australian Trade Commission 2009) The women’s clothing industry consists of a variety of clothing products and accessories. Most retailers in this industry sell goods from a shop/s, however may also operate an online store. Retailers also undertake activities such as customer service, product merchandising, advertising, inventory control, and cash handling. (IBISWorld 2009) 3.
2Consumer Needs and WantsThe needs and wants of woman’s fashion do vary from each group in the market. The main demand from consumer is value for money. The consumer is looking for quality fabrics, quality craftsmanship at a reasonable price. The price is normally dictated by the fabrics uses, the complexity of make; however it can often be the name of the garments designer that can boost the cost.
The need of the lower end product group is easily affordable and accessible clothing; it is very affordable and made in large quantities. It suits the current trends without breaking the consumer’s budget.The mid product group is seen as more exclusive. The consumer within this range is willing to spend more money on what they feel is more quality of garment and material.
High end product group are in demand of a product that is often highly fashionable and in limited edition, the cost is high for such a product, it should be of excellent quality, design and the materials used are of the highest quality. (Australian Trade Commission 2009) 3. 3Industry History Australia’s clothing industry is long-standing and of major importance to the Country’s economy.Traditionally the clothing industry has been heavily influenced by the trends of Europe; however the cultures of each country tend to play a large roll in the styles and designs that are produced. The Women’s Liberation movement in the 1950’s allowed for designers to look at their work in a totally different light. It is these major social influences as well as changes in economic climates which have been the driving force behind what consumer’s demand of their clothing. (Australian Trade Commission 2009) 4.
0Market Statistics 4. 1Market SizeIt is estimated that the Australian Clothing Retailing industry will achieve sales revenue of $11. 49 billion in 2008-9, however the percentage of growth from previous year 2007-8 will be only 0. 9%. It has been observed that the Australian economy has and still is in some areas experiencing a downturn. Consumers are more incline to constrain their spending for most of 2008-09. The clothing industry is expected to contribute approximately $2.
85 billion to the Australian economy during the year, representing about 0. 27% of total GDP. (IBISWorld 2009) 4. 2Market GrowthThe table below shows the market growth of in percentage over the past three years: 2006-20072007-20082008-2009 Industry Revenue*3.
1*1. 3*0. 9% Industry Gross Product*-3. 8*0. 4*-0. 9% Number of Establishments*2. 0*1.
6*1. 7% Number of Enterprises*2. 1*1. 9*1. 1% Employment*3. 6*2.
3*2. 3% Total Wages*-11. 8*-2. 9*-3.
9% Domestic DemandNCNCNC% (IBISWorld 2009) The table below shows the market growth in AUS Dollars over the past three years: 2006-20072007-20082008-2009 Industry Revenue*10,481. 9*10,993. 1*11,494.
0$Mill Industry Gross Product*2,668. 8*2,775. 1*2,850. $Mill Number of Establishments*19,117*19,430*19,765Units Number of Enterprises*13,643*13,901*14,050Units Employment*74,394*76,110*77,890Units Total Wages*1,896. 6*1,906. 8*1,898.
2$Mill Domestic DemandNCNCNC$Mill (IBISWorld 2009) The graphs below illustrate revenue performance within the industry over the past five years: Revenue Revenue Growth Rate (IBISWorld 2009) 4. 3Corporate Market Share The below demonstrates the market share of the major companies operating in the clothing industry. Major PlayerMarket Share Range Premier Investments Limited 6. 2% (2009)Specialty Fashion Group Limited 5. 0% (2009) ARJ Group Holdings Pty Ltd 4.
9% (2009) Pretty Girl Fashion Group Pty Ltd 2. 0% (2009) Lowes-Manhattan Pty Ltd 1. 9% (2009) Other80. 0% (2009) (IBISWorld 2009) 4.
4Brand Market Share •Brand: Just Jeans, Peter Alexander, Jacqui E, Jay Jays, Portmans, Dotti Market Share: 6. 2% •Brand: Millers, Katies, Crossroads, Autograph, City Chic, Queenspark Market Share: 5. 0% •Brand: Sussan, Sportsgirl, Suzanne Grae Market Share: 4. 9% •Brand: Rockmans, Wombat, BeMe, Table Eight Market Share: 2. 0% •Brand: Lowes Australia Market Share: 1.
9% 5. Key Companies Just Group is the largest player in the Clothing Retailing industry and are located 658 Church Street, Richmond, Victoria. Brands such as Just Jeans, Jackie E, Jay Jays, Peter Alexander, Portmans, Dotti and Smiggle all operate under the Just Group. The Just Group was publicly listed until formally purchased in September 2008 by Premier Investments and delisted from the Australian Stock Exchange. The group of products rand from women’s and men’s clothing to sleepwear and also cover stationary. (The Just Group) Specialty Fashion Group is solely an apparel retailer.Specialty Fashion Group is positioned in the low-to-mid price range and is targeted towards value-conscious over-35 women.
Head office is located at 151–163 Wyndham St | Alexandria NSW. The brands that operate from Specialty Fashion Group are Millers, Crossroads, Katies, Autograph, City Chic and Queenspark. The Specialty Fashion Group is a publicly listed company on the Australian Stock Exchange. (Specialty Fashion Group 2008) ARJ Group Holdings Pty Ltd is the parent entity of Retail Holdings Pty Ltd, which is owned and run by Naomi Milgron.
After acquiring Sussan Corporation and affiliated brands the ARJ Group became a major participant within the Australian clothing industry. Retail Holdings owns and operates under the brand names Sussan, Suzanne Grae and Sportsgirl. Head office is located at 24-40 Rosslyn Street West Melbourne, Victoria. (Sussan 2006) 6. 0Environmental Factors This year will be a tough trading environment for clothing retailers. Average profits will be down significantly in 2008-09.
Most retailers are already severely discounting as the economy falters.Less than a year ago, most retailers and brands either tried to secure the luxury market, or aimed for the high volume, low cost market. It is expected that the ‘mid-market’ will grow by 9%, this market makes us for approximately half of the Australian clothing retail market.
The ‘mid-market’ is expected to behave in this fashion because a significant portion of discount apparel shoppers, nervous about economic circumstance, will ‘tighten’ spending habits and ‘trade up’ from high volume, low quality purchase, to the ‘middle market’ of better quality, but much lower volumes of purchases.On the other hand, the ‘luxury and high end clothing market’ is expected to decline by more than 12. 0%, which will see average industry profit margins drop significantly.
(IBISWorld) Over the past few years, there has been a moderate level of merger and acquisition activity in the industry. Although these acquisitions have helped to increase industry concentration, it remains at a low level due to the large number of diverse, independent retailers in operation. (IBISWorld) 7.
0SWOT Analysis of the Australian Clothing IndustryStrengths •Good design, production and technical capabilities •A lot of the materials used are produced here in Australia, e. g. wool and cotton •Australian clothing labels have excellent branding. Companies like Speedo are globally successful and originated in Australia •A major contributor to the Country’s employment and export earnings Weaknesses •Cost of manufacture labor in Australia is much more expensive than overseas •Small size of the domestic market •Low profit margins Opportunities Developing international markets •Investing in training and up-skilling existing employees •The recent ASEAN-Australia-New Zealand Free Trade Agreement offers opportunities for Australian brands to increase overseas exportsThreats •Labor cost overseas are much cheaper than domestically causing local companies to operate offshore •Economic crisis means consumers are not spending as usual resulting in profit loss •Overseas clothing importers are able to flood the market as the cost of labor is much cheaper .
0Company Information 8. 1Company Name Zimmermann Wear Pty Ltd 8. 2Product Description Zimmermann are leaders in the clothing industry and are recognised by their strong silhouettes, clever colour combinations and delicate original prints. The theme of their current Winter/Autumn line is Woods, Witches and Wonders. The collection features silhouettes of silk, chiffon and velvet in a powerful palette ranging from peach to moody grey and charcoal, being inspired by the darkness of night. (Zimmermann 2008) Autumn/Winter 09. Woods, Witches and Wonder 2009) 8.
3Target Market and Market Positioning Fashion and function are terms often bandied about in design circles as though they exist in some form of continuous opposition. Surry Hills, Sydney-based fashion company Zimmermann are proving that fashion and function can sit well together and their export successes show that others think so too. Zimmermann produces a range of high fashion clothing and swimwear that is at the exclusive end of the market. This means they haven’t ad to compete internationally on price point, but they do have to make sure that what they do is better than local suppliers. (Australian Trade Commission 2009) 9.
0Conclusion It has been made evident that the Australian clothing industry has felt the brunt of the economic crisis having seen local companies move offshore and is vulnerable to consumer spending habits. However the strengths lie in excellent branding, good design, production and technical capabilities, and the prospect of further overseas importation opportunities.Taking these factors into consideration the future looks bright for Australian clothing. List of References •Clothing and fashion overview 2009, Australian Trade Commission 2009, Austrade, viewed 1 April 2009, http://www. austrade. gov.
au/Textiles-clothing-overview/default. aspx •IBISWorld Australia 2009, Clothing Retailing in Australia, 26 March 2009, G5221, viewed 1 April 2009 •Zimmermann 2008, Zimmerman Profile, personal e-mail, 27 March 2009 •Autumn/Winter 09.Woods, Witches and Wonder in Zimmermann 2009, Ready To Wear, Zimmermann, viewed 9 April 2009 •Export Markets – Countries 2009, Australian Trade Commission 2009, Austrade, viewed 9 April 2009, http://www. austrade. gov.
au/Country/default. aspx •The Just Group 2009, The Just Group, viewed 3 May 2009, http://www. justgroup. com. au •Specialty Fashion Group 2009, Specialty Fashion Group, viewed 3 May 2009, http://www.
specialtyfashiongroup. com. au/ •Sussan 2009, Sussan, viewed 3 May 2009, http://www. sussan. com.