Flights of fancy: Demand from inbound tourists has boosted industry revenue

The Luxury Retailing industry has gone from strength to strength over the past five years. Australian luxury retailers have been relatively insulated from the financial instability that has affected most of the global retail sector. Growing inbound tourism has boosted demand for Australian luxury retailers over the period. Market polarisation has further fuelled demand for luxury products. These trends have encouraged several global luxury powerhouses to enter the industry or expand over the past five years.The Luxury Retailing industry's revenue is expected to grow by an annualised 9.1% over the five years through 2018-19, to reach $2.2 billion. This includes expected growth of 5.7% in the current year...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
9.1%
Forecast Growth 19-24
Profit
Employment
3,588
Businesses
240

Industry Threats & Opportunities

  • Growing demand from inbound tourists has boosted industry revenue over the past five years
  • Growing inbound tourism has significantly boosted demand for industry operators
  • Competition is anticipated to intensify due to an increasing number of boutique stores
  • Industry Report - Industry Locations Chapter

    The geographical spread of the Luxury Retailing industry is closely linked with Australia's population distribution and average discretionary incomes. New South Wales and Victoria account for the largest share of establishments at an estimated 38.2% and 28.4%, respectively, while representing approximately 57% of the population. The proportion of luxury retail stores compared with the population is higher in these states, largely due to higher discretionary incomes and strong demand for luxury products. Furthermore, more tourists visit these destinations making them prime locations for luxury retailers.Although Melbourne and Sydney lead the industry in terms of store numbers, Brisbane and Perth are emerging as potential growth markets for luxury retailers. Thi...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
  • Profit
  • Purchases
  • Rent
  • Wages
  • Other
  • 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, Richemont Australia Pty Limited, Gucci Australia Pty Ltd, Hermes Australia Pty Limited, Chanel (Australia) Pty Ltd,
  • Table: Louis Vuitton Australia Pty Ltd - financial performance
  • Table: Tiffany & Co (Australia) Pty Ltd - financial performance
  • Table: Richemont Australia Pty Limited - financial performance
  • Table: Gucci Australia Pty Ltd - financial performance
  • Table: Hermes Australia Pty Limited - financial performance
  • Table: Chanel (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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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
  • Innovative fashion labels that are relatively new and focused on younger consumers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Luxury Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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