Industry Analysis & Industry Trends
The Clothing Retailing industry has faced several tough years, with cautious consumer spending, intense competition, higher rent costs and the aftermath of the global financial crisis driving down revenue and profit margins. Over the five years through 2013-14, industry revenue is expected to contract at a compound annual rate of 0.9%.
Following the global financial crisis, consumers became more cautious about spending and the private savings rate reached record highs. Retail figures suggest that consumers remained nervous about the climate of the global economy in 2010-11 and 2011-12. However, improved conditions have led to revenue growth over the past two years. As consumer sentiment and disposable incomes increase, revenue is expected to grow by 2.4% in 2013-14 to reach $12.8... purchase to read more
Industry Report - Starting a New Business Chapter
IBISWorld classifies the Clothing Retailing industry as having medium barriers to entry, although smaller players exhibit lower barriers. The capital costs associated with establishing new stores are relatively low, as most stores in the industry are small to medium enterprises with one outlet. The most significant costs for operators include purchases, wages and rent. Location is critical for retailers and retail space in popular shopping strips and centres may be unavailable or too expensive for smaller retailers, which may be considered a barrier to entry.
While market share concentration in the industry is classified as low, concentration is higher in specific segments such as sportswear, where players, such as Nike and Rip Curl, dominate the market... purchase to read more