-
Essay / Designer Clothing Market in Australia - 1191
Industry Reports:1 - Designer Clothing (Ready-made) in AustraliaSizeThe designer clothing market is quite large and it is expected to grow over the years due to people's perception of luxury clothing. as of great value. In 2008, the market size in millions was around $1,673.0 compared to 2013 where it increased to $2,063.2 as shown in the chart. By 2018, the market is expected to reach $2,411.1 million. (Euromonitor International, 2014a)According to Euromonitor International (2014a), the leading brands in terms of brand shares (2012) are: • Ralph Lauren in first position with 7.5% of brand shares • Then Berlei (Company: Pacific Brands Ltd) with 5.2%• Donna Karan (Company: Moet Hennessy Louis Vuitton SA) with 2.4%• Followed by Prada and Burberry at 2.2%• Other brands like Calvin Klein at 1.6% and Gucci 1.1%Competitive SetThe designer clothing market is extremely competitive and as a result, companies are becoming more strategic in their marketing approach to compete with other brands. For example, companies have considered collaborating with other designer brands to produce luxury designs at affordable prices, such as Sass & Bide collaborated with Havaiana and created a limited edition of flip flops together. Additionally, there is strong competition in price harmonization as local retailers face pressure from consumers due to differences in international prices. Therefore, it is evident that the designer clothing market is competitive and businesses need to take steps to compete and succeed. (Euromonitor International, 2014a)TrendsAccording to Euromonitor International (2014a), there are various trends in the designer clothing market...... middle of paper ...... countries that have successfully weathered recession during the global financial crisis. The strength of the local economy has therefore represented the Australian market as an attractive source for international entrants. Weakness • Luxury brands and retailers in the Australian market must always be “on top of changing consumer tastes”. The Internet exerts a great influence on these changes in taste, as consumers are believed to evolve as a direct result of their exposure to the Internet. • Premiumization is a business trend that is unlikely to die out anytime soon. However, theorists now suggest "there is only a certain degree of premiumization before products become unaffordable", establishing that luxury brands need to be aware of the extent to which their target market is willing to give up before believing that the cost exceeds the perceived price. advantage.