StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Fashion Marketing in Australia: Market Size and Characteristics - Case Study Example

Cite this document
Summary
This case study "Fashion Marketing in Australia: Market Size and Characteristics" discusses Australia’s fashion market that is characterized by a mixture of several small retailers and a few large retail establishments. Large retailers tend to concentrate on low-end fashion and long-run production…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful

Extract of sample "Fashion Marketing in Australia: Market Size and Characteristics"

 Fashion Marketing In Australia Table of Contents 1. INTRODUCTION 2 1.1 Consumer Characteristics 2 1.2 Market Size and Characteristics 3 1.3 Industry Structure 4 1.4 Major Competitors 4 2. MACRO-ECONOMIC ENVIRONMENT ANALYSIS 5 2.1Socio-cultural and Demographic Analysis 5 2.2Political Analysis and Legal Analysis 5 2.3Economic Analysis 6 2.4Technological Analysis 6 3. MARKET SEGMENTATION 7 3.1 Segmentation Method 1: Gender 7 3.2 Segmentation method 2: Budget Pricing 7 3.3 Segmentation Method 3: Psychographic Segmentation 8 3.4 Segmentation Method 4: Geographical Segmentation 8 3.5 Description of Target Market 8 3.6 Positioning 9 4.0 MARKET STRATEGIES 9 4.1 Blue Jeans 9 4.2 Beach Wears 10 5.0 CONCLUSION 11 References 11 Australian Bureau of Statistics 2012, Available at: http://www.abs.gov.au/ 11 Bonnie, E and Pomazan, L 2010, Australian Fashion Unstitched: The Last 60 Years. Cambridge, Cambridge University Press. 11 Caron, B 2003, Proof of Antitrust Markets in Australia, Boston, Federation Press. 12 Maynard, M 2001, Out of Line: Australian Women and Style, Sydney, UNSW Press. 12 Webber, M and Sally, W 2001, Refashioning the Rag Trade: Internationalising Australia's Textiles, Clothing and Footwear Industries. Sydney, UNSW Press. 12 FASHION MARKETING IN AUSTRALIA 1. INTRODUCTION 1.1 Consumer Characteristics The Australia fashion make can be described as relatively small, highly competitive and well serviced by local industries. Nevertheless, this market presents numerous opportunities for both domestic and foreign companies. Most of the people in Australia share similar culture and lifestyles, for instance outdoors and sports and this translate into similar fashion trends and tastes. Faced with the ever increasing pressure from cheap imports, particularly from New Zealand, Canada and the United States of America, Australian fashion retailers are looking for new ways to compete and remain relevant in the dynamic world of business. Some fashion retailers have differentiated their businesses by specializing and offering only one particular type of product such as ladies clothing. Yet, others have specialized in selling exclusive products that cannot be found in any other real stores (Caron, 2003). Majority of Australian fashion retailers have moved to the mid to high-ends of the market. The boutique culture, which is characteristic of Western countries, has taken deep roots in the Australian fashion market. Australian consumers have a strong reputation for innovative design and quality. Retailers have accordingly taken advantage of this consideration to offer highly innovative and quality products. This has ensured increased competition and enhanced access to new products and brands (ABS, 2012). The favorable market characterised by high urbanization and deeply-entrenched Western culture presents opportunities where companies can fill gaps in the retail portfolio. Moreover, custom duties for fashion products imported into Australia have been reduced significantly since the year 2000 hence the market is competitive for foreign players. 1.2 Market Size and Characteristics Despite its big size, Australia has a population only 22 million people. In 2011, Australia recorded an annual GDP of A$1.4. Unlike several countries, Australia weathered the global financial crisis of 2007-2010 in a much better position because of its solid banking and financial systems. The increasing purchasing power of the Australian dollar, strong employment growth and strong consumer confidence in the country’s economy have all helped fuel retail sales for fashion products in the past few years. In 2010 for instance, Australia imported more than US$5 billion worthy of apparel products. Australia’s big size and the vast distance between major cities have created multiple, small but highly competitive markets for fashion products. However, the best selection of fashion products can be found in major urban centers where consumers are very much likely to buy better and competitively-priced fashion brands. As a result, majority of international fashion brands are found in large cities and tourist centers like the Gold Coast. The level of domestic demand for fashion products in Australia is valued in the excess of A$15 billion per year, with more than 40% of this demand serviced by direct imports. Since 1990, the Austrian government has increased its support for the textile and clothing industries to boost international awareness and to increase the industry’s international competitiveness. Investments in innovative technologies have been initiated by the government to reduce production costs. This has ensured that locally produced fashion product retail at cheap prices compared to imports (Caron, 2003). 1.3 Industry Structure Australia’s fashion market is characterised by a mixture of several small retailers and a few large retail establishments. Large retailers tend to concentrate on low-end fashion and long run production while the small retailers concentrate on responding to market changes in the market for their fashion products. In general, small fashion retailers operate with short runs at the top end providing exclusive feel. The increasing demand for fashion products and product variety have ensured that retailers of fashion products do not over-commit in production lines as this may leave them exposed to stock obsolescence. 1.4 Major Competitors Departmental stores are by far the dominant players in Australia’s fashion industry and compete aggressively with small and independent establishments. It is estimated that departmental stores account for 40% of fashion sales in Australia (Bonnie & Pomazan, 2010). Myer is the largest departmental store in Australia and has positioned itself as a mid-range fashion retailer. The retail giant has more than 60 stores in Australia and is undertaking active expansion programs. David Jones is a leading high-end fashion provider and strongly supports local fashion labels and designs. Target Australia, Kmart and Big W are other notable players in Australia’s fashion industry. The stores aim to provide on-trend fashion products at cheaper prices. There are numerous smaller fashion retailers including the Just Group, Ascendia Retail, Specialty Fashion, Group, Webster holdings, Colorado and Valleygirl. These retailers have stocked a wide range of fashion products for men, women and children (Webber & Sally, 2001). 2. MACRO-ECONOMIC ENVIRONMENT ANALYSIS 2.1 Socio-cultural and Demographic Analysis Australia has a population of 22 million people most of whom live in urban areas. Christianity is the dominant religion in the country and English is the main language. Australia’s population is highly diverse and bares lots of fashion similarities with Western countries, particularly the United Kingdom and United States. As such Western values have greatly influenced Australian consumer attitudes and trends. Moreover, there have been efforts by the government to attract immigration into the country so as to boost workforce and population. This has made Australia a multicultural community. Accordingly, fashion retailers have to consider the issue of cultural heterogeneity in distributing fashion products (Maynard, 2001). 2.2 Political Analysis and Legal Analysis Australia is a liberal democracy, built around a constitutional monarchy depicting both the British Westminster system and the American Federal system. The federal system divides power between the national government and state governments. As a result, financial and political relationships between the national government and state governments are an issue of ongoing concern. Since the Second World War, Australia has enjoyed political stability. This has enabled the county’s economic system to grow tremendously. In addition, Australia has strengthened political and economic ties with countries in the Asia-Pacific region and other parts (Caron, 2003). The country’s open economic policy has attracted foreign investments in various sectors of the economy including the textile and clothing industries. Relaxation of immigration policies has resulted in mass movement of foreigners into the country and this has boosted domestic demand for fashion products (Webber & Sally, 2006). Because of reductions in tariff levels, most of the payers in the fashion industry have moved offshore in the past few years. An increasing number of fashion retailers and producers have developed links with manufacturers in other countries to provide inputs or finished goods to complement the locally produced ones. 2.3 Economic Analysis Australia’s successful agricultural industry helps provide raw materials for the textile and clothing industry, which is the backbone for the booming fashion market. Australia has a high GDP growth rate. Tourism and mining are other important industries and account for about 15% of the country’s GDP. Australia is a highly industrialized country and has relatively high living standards. Currently, Australia is ranked among the top destinations for foreign investments. High per capita income, stable internal economic system and low population have ensured fair distribution of wealth. This has created a stable domestic market for various products including fashion products (Maynard, 2001). 2.4 Technological Analysis Because of impressive economic development standards, Australia has been quick in adopting and implementing new technologies. The government and private agencies support investment in Research and Development programs. This has enabled Australia to move at the same technological pace as other countries particularly the US. For instance, communication and transport have been greatly enhanced in the last two decades and has boosted the prospects of the fashion industry (Webber & Sally, 2001). High speed Internet has enabled fashion retailers to advertise to a wide client base at minimal cost. This has made the fashion industry to be profitable and upward-growth oriented. Textile and clothing manufacturers have employed the latest technologies in the production and distribution of their products. This has resulted in efficiency and timely delivery of products to the market. 3. MARKET SEGMENTATION 3.1 Segmentation Method 1: Gender According to the Australian Bureau of Statistics, women’s wear accounts for about 45% of total fashion sales. Men’s fashion products come second at 24% while girl’s clothing come third at6%. Boy’s clothing come last 4%. As such segmenting the target market by gender can help identify the particular products for each segment and hence serve that segment more effectively (ABS, 2012). 3.2 Segmentation method 2: Budget Pricing Budget pricing refers to pricing of products according to the customer’s economic status. Some consumers in Australia are willing to spend more money in buying highly priced and quality fashion products. Most of these customers are found in large urban centers. On the other hand, customers in small and rural are can only spend very little in fashion products (Webber & Sally, 2006). 3.3 Segmentation Method 3: Psychographic Segmentation The Australian fashion market can also be segmented according to people’s lifestyles and values and how these translate into consumption of fashion products. Australia’s multi-cultural population offers opportunities for segmenting the market according to people’s opinions, values, interest, attitudes and their cultural preferences (Caron, 2003). 3.4 Segmentation Method 4: Geographical Segmentation Australia is a vast country with lots of geographic variations. It is, therefore, necessary to segment the fashion market according to geographic people’s locations. Some of the most important geographic factors for segmenting the market include state, neighborhood and climate. As an example, Australia’s northern regions are drier than other parts. Therefore, different fashion products will be marketed to people in different regions (Webber & Sally, 2001). 3.5 Description of Target Market Women are an ideal target market for fashion products in Australia. Women constitute 52% of Australia’s population and have a high preference for fashion products. Statistics indicate that women’s wear constitute about half of total fashion sales. As such, there are lots of opportunities in targeting this market segment (Maynard, 2001). 3.6 Positioning Fashion businesses can be strategically located in Australia’s four largest cities, which are also the most important fashion markets: Sydney, Brisbane, Melbourne and Perth. Because trends in Australia’s fashion market are related to the country’s climate, clothing styles and fashion events vary across the country. For instance, Brisbane fashion focuses more on summer beach wear because of the local warm climate while Melbourne fashion retailers stock both summer and winter products because of the cities’ hot summers and cool winters. This patters offer valuable information for positioning (Webber & Sally, 2006). 4.0 MARKET STRATEGIES 4.1 Blue Jeans 4.1.1 Product: Blue jeans are a type of casual trousers made from denim. All over the world, jeans are one of the most popular casual dresses and enjoy ready market in different parts of the world. In Australia, majority of people prefer blue jeans as their number one casual wear. 4.1.2 Price: pricing of blue jeans takes into account several factors including production cost and the state of the economy. Australia has a ready market for both used and original jeans trousers. New trousers retail for an average of A$43. 4.1.3 Place: The most important markets for blue jeans are in the urban areas. There are hundreds of urban centers across Australia, majority of which are situated in the East coast. These urban areas have large populations of people from different cultural backgrounds and hence present a good market for the product. 4.1.4 Promotion: Blue jeans are promoted through advertisements in the media. Like in other countries, use of the internet for business promotion has grown remarkably over the last few years. It is therefore important for companies entering the Australian fashion industry to consider establishing websites for the purpose of virtual presence. 4.2 Beach Wears 4.2.1 Product: Australia is well endowed with numerous beautiful beaches. The fact that Australia an island means that its people have a vast experience of interacting with the sea. Accordingly, beaching has become an important recreation activity in Australia. This has fuelled a booming market for beach wear products. These products come in different fashions and designs and are targeted at different market segments (Webber & Sally, 2006). 4.2.2Price: Beach wears retail for an average of A$ 25 although this can go up to as high as $75 depending on the quality and design of the garment. Most of the beachwear are locally produced hence prices are relatively low compared to what they retail in other countries. Although a substantial amount of beach wears are imported, the reduced tariff rates has helped ensure that prices of imported beach wears remain relatively low. 4.2.3Place: most of Australia’s beaches are located in the Eastern part of the country and close to the country’s major cities. As a result, majority of beach wear retailers are located in eastern part of the country and in the count’s major urban centers. 4.2.4 Promotion: beach wears are mostly promoted through adverts in local media such as TV, newspapers and magazines and the internet. 5.0 CONCLUSION Australia has a very lucrative market for fashion products. Although the county has relatively low population in relation to its size, the high urbanization and multicultural population present opportunities for a booming fashion market. Australia has for a long time enjoyed political stability and impressive economic growth. In addition, the country has a competitive domestic market. The innovative success of local fashion brands and designs has effectively penetrated the market and actively competes against high-profile designer and imported goods. At the international stage, Australia is well known for its lucrative market for bush wear, beach wear, urban wear and other high fashion apparels. Currently there are several fashion labels trading in Australia and more than two thousand companies engaged in importing fashion products. References Australian Bureau of Statistics 2012, Available at: http://www.abs.gov.au/ Bonnie, E and Pomazan, L 2010, Australian Fashion Unstitched: The Last 60 Years. Cambridge, Cambridge University Press. Caron, B 2003, Proof of Antitrust Markets in Australia, Boston, Federation Press. Maynard, M 2001, Out of Line: Australian Women and Style, Sydney, UNSW Press. Webber, M and Sally, W 2006, Internationalising Australia's Textiles, Clothing and Footwear Industries. Sydney, UNSW Press. Webber, M and Sally, W 2001, Refashioning the Rag Trade: Internationalising Australia's Textiles, Clothing and Footwear Industries. Sydney, UNSW Press. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Fashion Marketing in Australia - Market Size and Characteristics, Indu Case Study, n.d.)
Fashion Marketing in Australia - Market Size and Characteristics, Indu Case Study. https://studentshare.org/marketing/2037205-market-of-fashion-industry-in-australia
(Fashion Marketing in Australia - Market Size and Characteristics, Indu Case Study)
Fashion Marketing in Australia - Market Size and Characteristics, Indu Case Study. https://studentshare.org/marketing/2037205-market-of-fashion-industry-in-australia.
“Fashion Marketing in Australia - Market Size and Characteristics, Indu Case Study”. https://studentshare.org/marketing/2037205-market-of-fashion-industry-in-australia.
  • Cited: 0 times

CHECK THESE SAMPLES OF Fashion Marketing in Australia: Market Size and Characteristics

The Abercrombie and Fitch and Burberry Australia

It is due to these developments that this paper sought to look at two leading fashion companies that operate retail outlet stores in australia, Burberry and Abercrombie and Fitch.... This paper looks at the two major fashion retail outlets in australia, the Abercrombie and Fitch Australia and Burberry.... It is with this knowledge that anybody who considers investing in the fashion industry ought to be ready for the dynamics in the market.... Losses are inherent and more probable if a retailer do not understand the exact needs of customers, while keeping an eye on the changing market trends in the fashion designs....
11 Pages (2750 words) Assignment

Marketing Professional Practice

Regardless of the unabated speed of globalisation and the nonstop stream of travelers to multipletourist targets, there is small notice salaried by traveler workers and welcome managersto the segmentation of festival creators supported on their characteristic expenditure behavior for income maximization....
11 Pages (2750 words) Essay

Marketing Plan of a Little Creatures Microbrewery

The paper "Marketing Plan of a Little Creatures Microbrewery" states that the company's market plan stresses consolidation and expansion.... The company operates in one industry, being brewing, and in one main geographical segment, being australia.... australia is currently ninth3 on the World League Table for beer drinking and while low and full-strength brews were once the staple drink at all Aussie events, their popularity is waning, as they're replaced by imported and domestic premium beers, wines, and pre-mixed, ready-to-drink spirit....
14 Pages (3500 words) Essay

Marketing Plan for Apple iPhone in Australia

ased on the demographic profile of its target consumers, the researcher will define the potential market size for the said product.... In line with the business dilemma with regards to the marketing of iPhone in australia, several key marketing concepts related to market segmentation, external Prior to the study conclusion and business recommendation, the forecasted sales on behalf of Apple and Vodafone will be discussed.... For this study, the researcher will develop a marketing plan for Apple iPhone in australia....
15 Pages (3750 words) Essay

Marketing Strategy of the Swimwear Galore Company

in australia for instance, the strong sporting culture, as well as beach culture, has influenced much on the growth of the fashion industry especially as concerns the swimwear and such designs (Austrade, 2014).... he fashion designs in australia on swimwear are effective in representing changes over time in customs, tastes as well as on international trends according to the website.... The paper "Marketing Strategy of the Swimwear Galore Company" states that creativity has therefore seen the incorporation of ads on search engines, which are therefore very effective in reaching the large market segment of those using the search engines....
9 Pages (2250 words) Essay

Market Segmentation Is Essential to Achieve the Optimum Marketing Mix

Today segmentation cannot merely be based on demographics as each nation and each society has its own characteristics.... While demographics look at the general characteristics like the age, income, education and occupation, psychographic variable delves deeper into people's lifestyles and attitudes.... From the paper "market Segmentation Is Essential to Achieve the Optimum Marketing Mix" it is clear that segmentation differs across industries, across countries and is again based on other factors also....
8 Pages (2000 words) Coursework

Identification of the Target Markets

Taking into consideration a unique environment of Australia's retail market and distinctive characteristics of Woolworths' business, in particular, its highly competitive capacities, the IMC program is developed with the purpose to integrate and coordinate effectively various marketing tools and resources, both online and offline.... In spite of Australia has a vast territory (almost as large as the USA), its market is not segmented geographically - the most of population is concentrated in coastal cities or towns, where Sydney and Melbourne are the major ones (CCIWA, 2006)....
11 Pages (2750 words) Term Paper

Wl Industry in Australia

The paper "Wооl Industry in australia" presents that the Australian wool industry is quite an essential element in the country's economy.... The harsh climate in australia also contributes to the production of strong, clean and fine wool.... These characteristics are desirable and make it sustainable to a large extent.... Some of the areas of concern include the wool fibre production, the end uses of the fibres, the sustainable credentials of the fibre as well as evident trends and innovations in the current market....
8 Pages (2000 words) Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us