Industry Analysis & Industry Trends
The Sleepwear, Underwear and Infant Clothing Manufacturing industry has consistently contracted over the past five years due to stringent international competition based on low wage costs and a high Australian dollar. The industry has declined by an annualised 6.4% over the five years through 2012-13 as trade tariffs were reduced and international competition intensified throughout textile manufacturing. Furthermore, the global financial crisis resulted in plummeting consumer sentiment, consumers focusing on savings rather than spending. Clothing retailing remains the key downstream market for the industry and falling retail demand has exacerbated industry declines. The industry continues to perform poorly in the current year, industry revenue declining by 6.5% in 2012-13 to $288.5... purchase to read more
Industry Report - Starting a New Business Chapter
The Sleepwear, Underwear and Infant Clothing Manufacturing industry exhibits medium barriers to entry, as capital costs and competition remain high. Prospective participants most notably will require a large amount of start up capital in order to purchase factories and machinery to be competitive in production. Furthermore, new participants would need adequate cash flow at the beginning of their business to be able to purchase materials and pay wages before receiving profit. These capital and cash flow problems would most likely be difficult to address due to the declining industry, making large scale loans an unattractive venture for lending institutions... purchase to read more