All sewn up: International tourists have driven the industry's strong revenue growth

The Luxury Retailing industry has gone from strength to strength over the past five years. While much of the global retailing scene has suffered due to instability in financial markets, Australian luxury retailers have been relatively insulated, with growing discretionary incomes fuelling consumers' passion for fashion. Industry players have scoured the world for the right fusion of fashion and luxury to cater for consumers' changing desires. Meanwhile, high-profile Australian designers and labels have increased their footing in the retail scene. Global luxury powerhouses have also joined the Australian industry, with several high-profile brands expanding their retail networks across the country.The industry has grown at a rapid pace over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
10.2%
Forecast Growth 18-23
Profit
Employment
3,386
Businesses
190

Industry Threats & Opportunities

  • Australian luxury retailers have been relatively insulated from instability in financial markets
  • Consumers have greater access to a range of luxury items due to online shopping
  • Competition is expected to intensify due to an increasing number of boutique stores
  • Industry Report - Starting a New Business Chapter

    The industry has high barriers to entry, although this trend is gradually decreasing. Initial set-up costs are typically higher for the industry than for general retailers due to the elaborate and decorative shopfronts afforded by the large luxury fashion houses. Following initial investment, capital intensity in the industry is low due to its reliance on labour.Although the industry is only moderately competitive, it can be difficult for new entrants to establish themselves. This is largely due to the strong brand names and customer loyalty that existing players enjoy. Global fashion powerhouses are well known for luxury products and it can be a long-term process for new players to build a reputation and gain market share from these retailers...purchase to read more.

    Additional Insights for the Luxury Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Luxury Retailing Industry are

  • Proximity to key markets
  • Having a clear market position
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Luxury Retailing industry impact industry performance..

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    What's in this report

    What is the Luxury Retailing Industry?

    The industry consists of bricks-and-mortar retailers who primarily sell luxury fashion items such as clothing, footwear and accessories. The industry excludes department stores that retail luxury products.

    Industry Products
  • Luxury clothing and footwear
  • Luxury watches and jewellery
  • Luxury leather goods and accessories
  • Industry Activities
  • Luxury clothing retailing
  • Luxury footwear retailing
  • Luxury accessories retailing
  • Luxury jewellery retailing
  • Luxury watches retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from online shopping
  • International travel to Australia

  • Current Performance
  • Changing luxury scene
  • Tourism
  • Participation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing luxury scene
  • Tourism
  • Participation and profit
  • Table: Luxury Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Luxury Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Clothing Wholesaling
  • Footwear Manufacturing
  • Footwear Wholesaling
  • Jewellery and Watch Wholesaling
  • Jewellery Manufacturing
  • Men's and Boys' Wear Manufacturing
  • Women's and Girls' Wear Manufacturing

  • Products & Services
  • Luxury clothing and footwear
  • Luxury watches and jewellery
  • Luxury leather goods and accessories
  • Chart: Luxury Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Luxury Retailing 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 Luxury Retailing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Luxury Retailing Industry

  • Industry Globalization
    Louis Vuitton Australia Pty Ltd, Tiffany & Co (Australia) Pty Ltd, Prada Australia Pty Ltd,
  • Table: Louis Vuitton Australia Pty Ltd - financial performance
  • Table: Tiffany & Co (Australia) Pty Ltd - financial performance
  • Table: Prada Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Luxury Retailing 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 Luxury Retailing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Boutique Stores
  • Independently owned luxury retailers that stock a variety of brands and products at the owner's discretion.
  • Crossover
  • A partnership between two brands, typically a high-tier brand and an affordable fashion label.
  • Experimental And Emerging Luxury
  • Luxury labels that are relative new and reflect a younger fashion sense.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Luxury Retailing 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 Luxury Retailing:
    • 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 Luxury Retailing 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 Luxury Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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