The short-term outlook for the Australian fashion retail industry is continued disruption by new technologies and innovative competition. There will be no single formula for success. Traditional retailers must look to unlock the physical store as a formidable weapon to fight the onslaught of online retail and northern hemisphere retailers. Continued growth in online retail and loss of market share to northern hemisphere retailers will lead to further rationalisation in the Australian retail sector. The big will get bigger, with smaller niche players at the other end of the spectrum. The 'middle ground' will prove a difficult place to trade for medium sized retailers. In this environment, the biggest risk for clothing wholesalers will be wholesale …show more content…
Is the physical store dead? No, on the contrary – it has the potential to be a formidable weapon in the traditional retailers' arsenal. However, unlocking its value will require significant investment and innovation. Our dependence on stores to serve as distribution points for products is diminishing as digital media, in all forms, becomes more effective at fulfilling our shopping and distribution needs which, until relatively recently, could only be fulfilled by physical stores. This re allocation of investments into the online world of shopping has been done by almost every retailer/wholesaler with the funds to do so. Betty Basics has not only an online store but also instagram and facebook in an attempt to access the online customers that continue to strengthen every day. Wholesale for Betty involves the distribution of goods to over 700 accounts around Australia, the demand for such goods really depends on the styles that are trading well and the ones that aren’t, because finding a style that is attractive to a consumer involves time and money there can often be a large surplus in the Wholesale market with unwanted styles being held in warehouses awaiting sale. Buying and selling of goods in the wholesale market is somewhat simple, garments are shipped Australia wide after they have been sold to departments and …show more content…
For Betty Basics Myer is by far the largest customer in the way of garments, so far in the companies history there hasn’t been a style bad enough for a rebate or mark down assist which is why it has become so successful among wholesale brands. Online retail plays a huge impact price variables because its extremely easy for consumers to compare price points across a variety of brands, ultimately the online retail provides consumers with a degree of perfect information because they are so easily able to compare price of garments. Price may also be dependent on consumers disposable income and their willingness to spend money on garments rather then other categories of expenditure. “Betty Basics operates in a perfectly competitive market, we compete with a very large number of domestic and international brands and we compete with both bricks and mortar and ecommerce businesses. We achieve our market share by
The other problem people face with many other online clothing retailers is the inconvenience caused if they need to return a product. With our service, the customer does not pay the price for the product and has considerable amount of time to come to a decision as to whether or not to buy the product. This removes any remaining doubt in the customer’s mind and increases customer confidence levels.
Berry, Hannah. “The Fashion Industry: Free to Be an Individual.” The Norton Field Guide to
Being a multi-billion dollar retailer comes with its perks. JCPenney’s dominance over catalog merchandising has now extended into the cyber world at www.jcpenney.com. This website is multi-functional and easy to navigate, but how would JCPenney’s new e-commerce site stack up against its toughest competitor, Kohl’s, on the web? The answer may surprise you. This is an intriguing look at how varied retail comparisons can be. While JCPenney is struggling with sales on the retail floor, Kohl’s continues to exceed expectations in their stores. Online though, it is a completely different story.
The competitive rivalry is high as the industry is comprises of many clothing retailers. For instance, ASDA’s brands George and Matalan, which provide not only quality garments but also sell them in a low price. Primark may lose a significant number of customers due to the intense
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
Taxation and tariffs: governments may apply different clothes taxations, making it more difficult to sell in certain location. This in turn will influence the price as a consequence, mining demand in some countries.
As a leading retailer of household textiles and furnishings in Australia, Adairs has 143 stores across the country. The five physical formats, consisting of Adairs, Adairs Homemaker, Adairs Kids, Urban Home Republic and Adairs Outlets are highly successful across the nation. The business has significantly more control over their range, supply chain, and quality than some traditional retailers and have the ability to earn a higher profit margin as they are vertically integrated (Mellor E,2015). This is due to the vertically integrated nature of Adairs, as this enables them to develop, design, source, distribute, merchandises and sell their own products (Adairs Prospectus, 2015).
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
In addition, since more shoppers are loading up on online shopping style when they can not spent time to shop because of busy work. Asos, an online market leader in the online shopping industry, announced that its sales of maxi-dresses and festival wear helped its sales has rose by 54% during the first quarter this year (Jessup). From this point, fast fashion could consider the possibility of online business and gain a share of the market.
A lot of retailers including a local Topshop franchise has collapsed in Australia (Bartholomeusz, 2017). Myer’s rival David Jones has seen the worst quarterly sales since 2014. It is expected that retailers in Australia will be more affected by Amazon’s fast delivery system than its cheap prices. All these factors can highly impact sales and may negatively impact Myer company’s competitive position in which for Myer is currently operating in very high competition where there are new entrants to the
Though a majority of American spending is still done in brick and mortar stores, e-commerce continues to grow and affect the sales of major brick and mortar retailers. The two main effects of the rise of e-commerce on brick and mortar stores are widespread store closures and shifts in the traditional brick and mortar business model. Based on consumer responses, brick and mortar stores will likely continue to thrive due to consumers’ preference for instant gratification over convenience. THE EFFECTS OF E-COMMERCE (Source 6) The findings of online shopping versus in-store shopping showed that brick and mortar stores are seemingly surviving the rise of e-commerce.
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods
The demand for wholesale clubs continue to increase, more and more countries are looking to get a wholesale store into their country. The majority of wholesale clubs that are started and their location headquarters are located in the United States. Although, these companies are making the biggest impact on the market, people are finding new ways
Have you ever wondered why we do the things we do? Why might we get
The Internet is currently the third most shopped channel; brands are pushed to keep up with the trend of building an online shopping option for their consumers and this is evident through the increase in retailers offering online options for their consumers (Valerio). With solely digital stores like Net-A-Porter, Amazon and eBay, competition among digital stores and physical stores are tight. Retailers are pushed to keep up with the rise of digital shopping whether they want to or not. There are several retail implications with the rise of digital shopping, retailers are turning to multi-channel retai...