Industry Analysis & Industry Trends
Over the five years through 2016-17, revenue for the Clothing Wholesaling industry is expected to rise only marginally, by an annualised 0.2%. As the global reach of many clothing companies grows, wholesale bypass is becoming increasingly prevalent. Low-cost producers in countries such as China and Vietnam are becoming more accessible, selling products directly to retailers and bypassing wholesalers. The Clothing Wholesaling industry's weak performance can also be attributed to low underlying demand from the clothing retail sector. The rise of online clothing stores has undermined demand for products sold through traditional retail channels, which has undercut retailers' demand for products sold by wholesalers. Revenue is expected to decrease by 1.8% in 2016-17, to reach $8.36 billion... purchase to read more
Industry Report - Industry Investment Chapter
The Clothing Wholesaling industry exhibits a low level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $9.69 is spent on wages. The industry is typically labour intensive as employees are required to sell and distribute stock and perform administrative tasks. These roles do not add much value to the products and as a result, advances in computer technology have been able to automate an increasing number of these tasks.
As the industry continues to adopt new technology to improve operating efficiencies, capital investment will increase and labour intensity will fall... purchase to read more