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The Growth Of Clothing Retail Industry In Australia

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Discuss about the Growth of Clothing Retail Industry in Austraila.


Research Topic:

The clothing industry in Australia has mainly seen drastic change in the competition level, which might help in generating higher revenue. The research topic is “Growth of clothing retail industry in Australia”. Relevant decline in overall clothing industry could be seen in 2015, which is due to the contraction of demand. The changing fashion trends and customers choice mainly affects the overall growth in clothing industry situated in Australia. The clothing industry in Australia has mainly witnessed a drastic change in competition and relative inclusion of technological advancements in the selling process. The relative increment in competition mainly arrived from the introduction of low priced products provided by international companies. The inclusion of latest online technology has been effectively for clothing industry in reaching potential customer and generating higher sales. However, relevant decline could be witnessed in the clothing industry due to the slow in Australian economy, which reduced spending ability of the consumers.

Problem statement:

The research mainly aims in detecting the overall growth in clothing industry of Australia and the factors, which have impact on such growth.

Literature Review:

The wide spread economic uncertainty has mainly hampered the overall growth of clothing industry in Australia. The tough years faced by the clothing industry in Australia, is due to the cautiousness of the consumers in spending money on expensive clothing. In addition, the inclusion of global competitors in the Australian market has also hampered the overall growth factors, while increasing the competitiveness in the market. This high competition in the market has mainly derived the overall prices of the products, which reduced profitability of the clothing industry. Furthermore, the rising renting prices in Australia are also a major factor, which has increased costs and reduced profitability of the companies. However, the major impact on the clothing Industry is due to the global crisis, which mainly liquidates funds of the major companies and reduced its ability to innovate. This limited ability of the clothing industry has mainly reduced the indigenous companies to adapt the changing business environment. Marks (2015) mentioned that due to the reduced purchasing power of the consumers, low priced products in Australia are on high demand.


The overall clothing industry in Australia has been changing rapidly due to the alteration in the preference of consumers. The changing preference of the consumers has mainly allowed the overall international brands to enter the Australian market. The low growth in current companies profit retention capacity has mainly reduced its ability to accommodate the changing business environment. The clothing sector mainly comprises of products such as fashionable apparels, apparels and footwear and others. The growing demand of consumers for products of Nike, Adidas and others at low costs prices has mainly reduced Australian home company’s ability to compete with the international giants. Truett and Truett (2017) stated that companies like Tesco and Sainsbury mainly use factory prices to attract consumers and in turn increase their revenue. However, the current change in preference of consumers due to economic downturn is for low priced high quality products. They are not focused in brand rather quality, which could suffice their demands. Nossar et al. (2015) argued that companies not adapting to the changing business environment could hamper their profitability and could be forced out of business, as we have seen it happen to Nokia.

Figure 1: Depicting the fashion industry in Australia

(Source: 2017)

There is no major company situated in Australia rather than Billabong and Rip Curl, which mainly provides a wide opening for competition to enter the market. Maximum of the retailers in Australia are small scale, which mainly rely on big brands to support their operations. However, the negative impact on the purchasing power of consumer has mainly reduced the small retail company’s ability to support their activity ( 2017). Moreover, from the above depicted figure the overall market value and annual revenue of Billabong and Rip Curl could be identified, which is not close the overall annual retail sales. This huge difference in the overall revenue accumulation of the companies has mainly helped in paving the way for more competition from international companies. Billabong mainly earns around 1.1 billion in sales, while Rip Curl only earns 431 million, whereas the overall net sales conducted by retail industry are 21 billion Australian dollars ( 2017). This huge difference earned by big companies in Australia mainly indicates that clothing market have still high scope for accommodating major players. This accommodation of major players could increase the competiveness on the market, which in turn hamper industry growth (Ignjatijevic and Raicevic 2016).

Moreover, the supply chain management has also affected the growth in clothing industry. Furthermore, H&M, COS and MRP have entered the Australian market after 2014, which has mainly increased the demand for new and latest products ( 2017). However, these companies have priced their products lower than current competition, which in turn reduce the revenue generated in the industry. Nevertheless, the demand for new products is mainly on rise after 2015 as the economic condition started to become positive. This positive economic condition in Australia has mainly helped in growth of clothing industry. Kar (2015) argued that purchasing power of the consumers is subject to economic conditions, which increases the money supply and purchasing ability of consumers.


Furthermore, the clothing industry in Australia is mainly characterised by low level of market share concentration. There are 44% of the retail stoppers, which only earn between 200,000 to 2 million this indicate that majority of the consumers buys products from small retailers ( 2017). This is the major indication, which depicts the opportunity for international players to enter the clothing market. However, the retail companies or stores in Australia have still not accommodated the use of social media marketing, as they operate in cetin locality. This non-inclusion of the social media scope has mainly allowed companies like H&M, COS and MRP to generate higher demand ( 2017).

Variable and Hypothesis:

The overall variable mainly used in the hypothesis is the revenue, which is been generated by the clothing industry in Australia. Moreover, the other variables are the indigenous and foreign companies currently being situated in Australia. In addition, for generating the impact of clothing industry its contribution to the overall GDP is also calculated with the status of employment. The overall profits generated from the industry are taken into consideration for determining the overall financial condition.

H1: Major changes in the growth of clothing industry in Australia are seen.

H0: No significant change in the overall growth of clothing industry in Australia could be detected.

Operational Definitions and Measurements:

The data collected for research are mainly reliant on secondary research, which might be contributed with errors. The figure used in the research has higher values and is quite large, which could only be evaluated with the help of hypothesises. Relevant errors could be found in the overall data due to its sheer size, which might be used in data analysis. There is no such constraint involved in doing the research work.  

Research Methodology and Design:

This section mainly states the overall research design and methodology, which is been used in study for collecting the required data for analysis. Furthermore, the research seeing that only secondary analysis is needed will chose the quantitative method. Furthermore, the research is focused on previously developed models and no new models will be developed, which indicates that use of deductive approach is effective. The researcher could effectively use the overall secondary source for collecting the data required for determining the research outcome. Thus, the use of secondary data might help in detecting the overall growth in the clothing industry and its affect on GDP of Australia. Mackey and Gass (2015) mentioned that with the use of ethical data researcher is mainly able to improve the overall research outcome and support the research objective.

Overall research approach is mainly used in the research for determining the research outcome. Moreover, the research approach mainly consists of deductive and inductive approach. However, in the study, the researcher is going to use the defined theories and methods, which indicate that research, will use deductive approach. This approach might help in getting the relevant answers by using the pretested and deigned theories, which might help in authenticating the research outcome. Taylor, Bogdan and DeVault (2015) mentioned that with the help of inductive approach researchers are mainly able to design new research approaches, which could help in arriving at the desired result.


The use of secondary data mainly involves details from income of clothing industry, employment status, impact of industry on economy. The data will mainly be collected from official websites, which might help in reducing the problems of un-authenticity. Moreover, data from past 10 years will mainly be used, which could help in depicting the relevant growth in the clothing industry. There is no sampling method adopted by the researcher as only secondary data is been used. However, the selection of companies for both indigenous and foreign is subject to choice. Gast and Ledford (2014) argued that secondary data analysis does not use any kind of sampling method, as it is used in primary data collection process.

Providing milestone and Gantt chart

Figure 2: Stating the Gantt chart and milestone of the project

(Source: As created by the author)

Research Process:

The research process mainly consists of stages, which will be used by the researcher in completing the overall research study. In addition, beginning phase mainly comprises of activities for choosing relevant topic with adequate justification. This phase is essential as it helps in choosing the relevant topic for research, which will take approximately 4 days. Moreover, the second phase mainly comprises of developing the relevant literature review, which depicts the overall details about the topic. This mainly takes around 8 days to gather the relevant information and choose the accurate situations, which could portray the topic more efficiently.

The third phase mainly comprises of choosing the relevant methodologies, which could help in incorporating the data collected for the research. This determination of the relevant methodologies and techniques is essential for getting the pertinent outcome of the research. This phase will mainly take around 3 days, which is essential for authenticating the relevant outcome. The fourth stage is accumulation of the relevant data, which is to be used in the research. The fourth stage will mainly rake around 14 days for collecting the relevant data, as it needs to be collected from secondary research. Furthermore, the fifth stage is data interpretation, which uses the data derived from the previous stage. This interpretation of the data is mainly essential as it helps in supporting the identified hypothesis, whether clothing industry in Australia has grown in recent years. The interpretation of data will mainly help the researcher in linking the relevant outcomes with objectives or hypothesis of the research.

The sixth phase mainly comprises of conclusion and recommendation, which will be provided by the researcher. This conclusion mainly summarises the overall findings confuted in the research. Moreover with relevant recommendations are also provided for future research scope, which might help in improving the condition of the clothing industry in Australia. The last stage mainly comprises of project draft and submission, which is conducted after finishing the research work.

Analysis Method and Data Collection:

This section mainly helps is depicting the relevant methods, which is been used by the researcher is collecting and analysing the relevant data for the research. Furthermore, the overall data, which is going to be used on the research, needs to be collected from secondary source. The secondary source mainly consists of online official websites, newspaper printouts and any information regarding the growth in GDP and clothing industry. The data collection process is essential part of the research, as it mainly helps in detecting the relevant research data, which could help in supporting the research outcome. Moreover, the data collection is mainly conducted to identify the relevant changes and growth of clothing industry in comparison with its contribution to the overall GDP (Ott and Longnecker 2015).


The data collected for the research will mainly be analysed by using effective statistical tools and techniques. Moreover, adequate calculations like mean, median, standard deviation, variance, and range is been conducted in the research for deriving adequate outcomes. Moreover, descriptive statistics is mainly used by the researcher in deriving the outcome, which could help in depicting the authenticity of the research outcome. Furthermore, adequate graphs and presentation will also be conducted in the research for detecting the change in overall growth of clothing industry from precious years. Moreover, regression analysis tool could also be conducted by for determining the support provided by hypothesises. In addition, the values of GDP and profits generated from clothing industry could be used as dependent and independent variables in the regression equation. The significance of beta co efficient of the regression model will elucidate impact of clothing industry on GDP of Australia (Palinkas et al. 2015). The regression model will effectively be used in the research for satisfying the H1 and H0, which is been determined as the main research objective.

Research Outcome:

A positive research outcome is mainly anticipated, as relevant techniques and method used in the research is adequate. With the implementation of adequate regression model, hypothesis of the research could be satisfied, which states the major changes in growth of clothing industry in Australia. This mainly states that the overall clothing industry in Australia has effectively influenced its GDP. Furthermore, the inclusion of latest technology and advancements like online selling has been mainly helpful for indigenous industry to make a strong hold. However, the low priced clothing from international companies has mainly increased the overall competition level. In addition, during 2013 a small recession could be identified, which mainly reduced the progress of clothing industry in Australia.

 However, from 2007 the growth in the world economy and purchasing power of the consumers has mainly increased. The recession in 2008 mainly declined the abilities of companies to maintain profitability. Nevertheless, after the recession adequate growth in the clothing industry of Australia could be detected, this is essentially depicted in the overall research.


The researcher with the help of above discussion is mainly able to depict the growth attained by clothing industry in Australia. For deriving the research outcome relevant secondary data will be collected from authentic government source, which could be used in data interpretation. The use of regression, mean, media and standard deviation is mainly helpful in generating the required outcome, which could support the research hypothesis. Lastly, the use of adequate data and relevant research methodologies overall determined hypothesis of the research could be satisfied, which might in turn authenticate the study. Moreover, contribution of the research could help in detecting the overall progress of clothing industry in Australia.


References: (2017). [online] Available at: [Accessed 18 Feb. 2017].

Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research project. Sage.

Gast, D.L. and Ledford, J.R., 2014. Single case research methodology: Applications in special education and behavioral sciences. Routledge.

Ignjatijevi?, S. and Rai?evi?, V., 2016 The textile and clothing industry in the Danube region countries: Comparative advantages. Industrija, 44(3), pp.191-208.

Ignjatijevi?, S. and Rai?evi?, V., 2016. The textile and clothing industry in the Danube region countries: Comparative advantages. Industrija, 44(3), pp.191-208.

Johnstone, R., Nossar, I. and Rawling, M., 2015. Regulating supply chains to protect road transport workers: An early assessment of the road safety remuneration tribunal. Fed. L. Rev., 43, p.397.

Kar, M., 2015. The Indian Textile and Clothing Industry: An Economic Analysis. Springer.

Khan, Z.R., Rodrigues, G. and Balasubramanian, S., 2016. Ethical consumerism and apparel industry-towards a new factor model.

Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.

Malik, A., Lenzen, M., Ely, R.N. and Dietzenbacher, E., 2014. Simulating the impact of new industries on the economy: The case of biorefining in Australia. Ecological Economics, 107, pp.84-93.

Marks, A., 2015. Dimensions of Textile, Clothing and Footwear Production in the High Wage Cost Country of Australia in a Globalised Environment: Some Interesting Revelations. Research in World Economy, 6(2), p.p72.

Nossar, I., Johnstone, R., Macklin, A. and Rawling, M., 2015. Protective legal regulation for home-based workers in Australian textile, clothing and footwear supply chains. Journal of Industrial Relations, 57(4), pp.585-603.

Ott, R.L. and Longnecker, M.T., 2015. An introduction to statistical methods and data analysis. Nelson Education.

Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K., 2015. Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), pp.533-544.

Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd. (2017). Clothing Retailing in Australia Industry Market Research Report Now Updated by IBISWorld. [online] PRWeb. Available at: [Accessed 18 Feb. 2017].

Silverman, D. ed., 2016. Qualitative research. Sage.

Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.

Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Truett, L.J. and Truett, D.B., 2017. Cost relationships and globalization in the Australian clothing industry. Applied Economics, pp.1-19.


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