Australia Fashion Retail Market

Australia Fashion Retail Market Overview:

The Australia fashion retail market size reached USD 11.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 27.96 Billion by 2032, exhibiting a growth rate (CAGR) of 9.60% during 2024-2032. The market is propelled by the rapid e-commerce growth and digital transformation, increasing sustainability and ethical fashion, changing consumer preferences and demographics, economic conditions and disposable income levels, and seasonal trends.

Australia Fashion Retail Market Trends:

E-commerce Growth and Digital Transformation

The Australia fashion retail market has also been influenced to a great extent by the growth in e-commerce and digital transformation. Online shopping, backed by increasing internet penetration and widespread usage of smartphones, has grown to be a big part of consumer behavior. This trend accelerated with the COVID-19 pandemic when restrictions and lockdowns further pushed consumers toward finding alternative methods for shopping. According to Red Search, 17.08 million people in Australia accessed online shopping websites every month in 2024, up 45% from 2020. Online platforms grant convenience, more varieties of products, and the ability to compare prices and reviews-all of which have cumulatively moved consumers away from traditional brick-and-mortar stores. E-commerce has also afforded the fashion retailers the opportunities to expand their market, reaching beyond geographical barriers. For instance, it enables brands now to sell into remote areas or other states where a physical presence would not allow them to do so. Furthermore, direct-to-consumer models are emerging and changing the retail landscape within which brands can now interface directly with their very own consumer, collect gold data, and build personalized shopping experiences.

Sustainability and Ethical Fashion

In recent years, sustainability has become a key driver in the Australian fashion retail market. As environmental concerns and awareness about ethical issues continue to rise at an increasing rate, consumers pressurize brands to lead sustainable behavior. According to Monash University, 51% of Australian respondents consider sustainability an enabler for them to make a purchase from a retailer. The fashion industry creates high environmental effects through water consumption, high levels of waste, and carbon emissions. On account of this, numerous Australian fashion retailers have started manufacturing with eco-friendly practices, from using sustainable materials to implementing recycling programs. Consumers are becoming more educated about environmental and social implications for their purchases, moving toward ethical fashion. Brands supporting transparency, decent labor practices, and sustainable sourcing tend to rise in the eyes of a conscious consumer. This is also driven by the social media trend, where information on the brand practices spreads out fast and impacts the public perception.

Changing Consumer Preferences and Demographics

The Australia fashion retail market is being transformed by shifting consumer preferences and demographics. The demographics of the country is changing as more millennials and Gen Z consumers, each with unique preferences and expectations, make up a larger portion of the population compared to older generations. The Australian Bureau of Statistics reported that millennials now make up 21.5% of the population, up from 20.4%, while gen Z comprises 18% of Australians. These younger individuals are more inclined toward prioritizing uniqueness, genuineness, and brand principles before making a retail purchase. Trends and social media have a bigger impact on their fashion decisions. Moreover, the increasing popularity of the "casualization" trend has resulted in a higher need for casual and athleisure clothing. This change mirrors larger lifestyle shifts, such as an increased emphasis on convenience and practicality. With the rise of remote work and flexible schedules, consumers are looking for clothing that fits their updated daily schedules. This has led fashion retailers to increase the range of casual and versatile clothing they offer. Fashion trends in Australia are being impacted by the growing cultural diversity in the country. Retailers are addressing this issue by providing a wider variety of inclusive product lines that cater to different ethnicities, body shapes, and personal preferences. This inclusivity is a reaction to shifts in demographics and is also a strategic decision to reach a wider range of customers.

Australia Fashion Retail Market News:

• August 28, 2024: Frasers Group has acquired a strategic investment in Australian retail and distribution company Accent Group. Having acquired a 14.65% share in the business, the owner of Sports Direct, a top retailer in the UK, claimed that the acquisition will enable it to expand into Australia and New Zealand.
• September 2024: A major fashion retail merger is emerging in Australia, as Myer, an Australian mid-range to upscale department store, considers buying up more than 700 of Premier Investment's apparel stores, including Portmans, Dotti, Jacqui E, Jay Jays, and Just Jeans.

Australia Fashion Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and sales channel.

Type Insights:

• Fast Fashion
• Mass-Market Fashion
• Ready-to-Wear (RTW)
• Haute Couture
• Others
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes fast fashion, mass-market fashion ready-to-wear (RTW), haute couture, and others.

Sales Channel Insights:

• Variety Stores
• Department Stores
• Discount Stores
• Supermarkets
• Independents Stores
• Online
• Others
   

The report has provided a detailed breakup and analysis of the market based on the sales channel. This includes variety stores, department stores, discount stores, supermarkets, independents stores, online, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Fashion Retail Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia fashion retail market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia fashion retail market?
• What is the breakup of the Australia fashion retail market on the basis of type?
• What is the breakup of the Australia fashion retail market on the basis of sales channel?
• What are the various stages in the value chain of the Australia fashion retail market? 
• What are the key driving factors and challenges in the Australia fashion retail?
• What is the structure of the Australia fashion retail market and who are the key players?
• What is the degree of competition in the Australia fashion retail market? 

 Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia fashion retail market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia fashion retail market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia fashion retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.