Australia’s apparel retails industry has come across umpteen challenges in the past few years. One of the major downsides is that clothing retail in Australia does not have widespread reach. The industry is fragmented and there are several small and independent operators, which has left significant percentage of businesses to be operated by owners.
Economic slowdown has also hit the pace of customer spending and this cautious customer base has upset the industry’s revenue. Also, with the Australian dollar sliding in value in recent times, rising prices of apparel are denting consumer pockets. Rising import prices of apparel have left retailers with little choice. Controlling apparel prices would mean a compromise with the quality and not many are willing to do so.
The Australian apparel is yet to realise its full potential. While competition from international players is inevitable, the local apparel retailers are required to offer novelty in design instead of backing regular, mundane clothing. The apparel retail hypothesis has transformed and the future is bright for brands that are ready to takevon the competition.