Stitch-up: Firms are increasingly 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. Chinese imports, in particular, have flooded the domestic market, due to 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. This effect has been exacerbated over the past five years by largely negative consumer sentiment, which has caused consumers to spend more cautiously. As a result, industry revenue is expected to decline at an annualised 6.9% over the five years through 2017-18. Difficult trading conditions are expected to result in industry revenue declining by 3.2%...read more.

Industry Statistics & Market Size
Revenue
$100m
Annual Growth 13-18
-6.9%
Forecast Growth 18-23
Profit
Employment
448
Businesses
107
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 will increasingly target niche markets over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Knitted Product Manufacturing industry is characterised by low market share concentration, with no player accounting for more than 5.0% of industry revenue. The industry is highly fragmented and is made up of small, individual businesses. According to the ABS (latest available data), 46.5% of knitted product manufacturers are owner-operated and non-employing, while another 46.5% employ 19 staff members or less. Additionally, about 86.0% of industry players generate less than $2 million in revenue, annually. Industry concentration is low as most large manufacturers have relocated production offshore in an effort to improve efficiency and boost competitiveness with foreign firms. Dom...purchase to read more.

    Additional Insights for the Knitted Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Knitted Product Manufacturing Industry 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
  • Clothing retailers
  • Discount department stores
  • Wholesalers
  • Other department stores
  • Supermarkets and other 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
    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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • 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
  • Made by weaving warp (lengthwise) yarns or spun fibre through weft yarns, woven fabrics are the most common type of cloth.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Knitted Product Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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