A woolly situation: Firms are shifting towards niche markets to remain competitive

The Knitted Product Manufacturing industry has struggled against intense competition from international manufacturers over the past five years. In particular, Chinese imports have flooded the domestic market due to the country's low wage and capital costs, which have allowed Chinese manufacturers to lower prices. Australian manufacturers have been unable to compete with foreign companies, losing an increasing proportion of the domestic market to imports. Volatile consumer sentiment, which has caused many consumers to spend more cautiously, has exacerbated this effect over the past five years. As a result, industry revenue is expected to decline at an annualised 7.3% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Revenue
$97m
Annual Growth 14-19
-7.3%
Forecast Growth 19-24
Profit
Employment
408
Businesses
101
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has struggled against intense competition from international manufacturers
  • The tariff reduction on clothing imports to 5.0% in 2015 will continue to boost import competition
  • Industry players are anticipated to increasingly target niche markets over the next five years
  • Industry Report - Industry Investment Chapter

    The Knitted Product Manufacturing industry exhibits low capital intensity. For every dollar spent on capital costs in the current year, an estimated $10.56 is expected to be spent on wages. Capital intensity is typically higher in medium-size firms that hire more than 20 employees as capital can be shared among workers and this increases productivity. It is less likely that small firms or sole proprietors and partnerships will invest in large amounts of capital due to production generally being based on quality and niche markets rather than mass production.The industry's capital intensity is expected to continue increasing over the next five years. Pla...purchase to read more.

    Additional Insights for the Knitted Product Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Knitted Product Manufacturing are:

  • Establishment of export markets
  • Establishment of brand names
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Demand from clothing retailing and Demand from department stores in the Knitted Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Knitted Product Manufacturing Industry?

    The industry consists of operators mainly engaged in manufacturing knitted or crocheted fabrics, or knitted clothing including hosiery, cardigans, jackets and pullovers. Fabrics are sold to other manufacturers for further production. Finished clothing products are purchased by wholesalers and retailers who then resell these items to the final consumer.

    Industry Products
  • Knitted outerwear, jumpers and cardigans
  • Hosiery, pantyhose and socks
  • Knitted and crocheted fabrics
  • Other knitted products
  • Industry Activities
  • Knitted clothing and jacket
  • Crocheted fabric
  • Custom knitting of jumpers and cardigans
  • Hosiery and sock
  • Knitted fabric
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from clothing retailing
  • Demand from department stores
  • Real household disposable income
  • Import duties on apparel manufacturing
  • Trade-weighted index

  • Current Performance
  • International activity
  • Retail conditions
  • Employment regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Import penetration
  • Structural shift
  • Improving conditions
  • Table: Knitted Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Knitted Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Men's and Boys' Wear Manufacturing
  • Women's and Girls' Wear Manufacturing
  • Sleepwear, Underwear and Infant Clothing Manufacturing
  • Clothing Wholesaling
  • Department Stores
  • Clothing Retailing

  • Key Selling Industries
  • Synthetic and Natural Textile Manufacturing

  • Products & Services
  • Knitted outerwear, jumpers and cardigans
  • Hosiery, pantyhose and socks
  • Knitted and crocheted fabrics
  • Other knitted products
  • Chart: Knitted Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Wholesalers
  • Clothing retailers
  • Department stores
  • Chart: Major Market Segmentation for the Knitted Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Knitted Product Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Knitted Product Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Knitted Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Knitted Product Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Knitted Fabric
  • More elastic than woven fabric, knitted fabric is suitable for flexible clothing such as hosiery.
  • Merino Wool
  • A type of wool considered to be one of the finest and softest, coming from the Merino or Jackson sheep breed.
  • Offshoring
  • The practice of basing some of a company's processes or services overseas.
  • Woven Fabric
  • Woven fabrics are the most common type of cloth, and are made by interweaving warp (longitudinal) yarns with weft yarns.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Knitted Product Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Knitted Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Knitted Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Knitted Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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