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    Luxury Brands Pour Into The Australian Market, Fashion Is The Most Popular Clothing.

    2015/11/13 15:06:00 36

    LuxuryAustralian MarketLuxury Area

    The Asia Pacific market is saturated and Australia is a luxury brand. At present, Australia is experiencing the largest influx of new luxury brands in history. It comes mainly from two industry categories, and is the most popular fashion apparel and jewelry retailing industry.

    According to recent reports, CBRE's latest report shows the Asia Pacific region.

    Luxury goods

    The future of retailing lies in finding new driving forces and changing consumer demands.


    Most of the major luxury retailing businesses are currently in the Asia Pacific region. Mainland China and Hongkong have the highest market penetration rates, accounting for 89% and 81% respectively.

    However, after several years of rapid expansion, these markets have become saturated, and even some luxury brands have stopped developing because of poor sales.

    On the contrary, Luxury Retailing is

    Australian market

    The penetration rate is only 50%, the most important reason is that department stores are monopolized in the local market.

    But now the Australian market has changed.

    Luxury brands have established independent branches in Australia, which are more powerful in the management of businesses and brands.

    In 2014, 16 luxury retail businesses entered the Australian market or opened their first independent store in 5 cities. By the 2012-2013, luxury brands entering the Australian market have doubled.

    "Unlike Asia, Luxury Retailing is far from saturated in the Australian market," said Tim Starling, head of Retail Tenant Representation Australia. "Australia is experiencing the biggest influx of new luxury brands in history, coming from two industry categories, the most popular fashion apparel and jewelry retail industry."

    Starling said that the main entry to the Australian market is some large groups, such as LVMH, Kering Group and Richemont.

    Other brands, such as Valentino and Moncler, are considering entry.

    "Another trend we have noticed is that the relevant brands are more willing to find room for development in the central business district."

    Starling said, "this is a tough choice for many new brands that want to enter the Australian market."

    However, the new development activities can make the brand locates into a "successful" area.

    Rare Flashlights

    Chadstone in Melbourne is the best example.

    Alistair Palmer, national director of CBRE retail service, added that in 2016, a new luxury area was set up in the Pacific Shopping Center in Gold Coast, and Chadstone is planning to double its luxury scale.

    The increase in Chinese tourists has partly supported the development of Australian Luxury Retailing industry, Palmer said, especially considering the depreciation of the Australian dollar.

    "Sydney Kingsford Airport is also building a new luxury shopping area, where many luxury and premium luxury stores open here to catch the Asian tourist market," explains Palmer.

    Palmer says there are many luxury brands in Melbourne, such as Dior, Gucci, Longchamp, Hermes and Cartier in Paris street, Collins street.

    For the development of the Asia Pacific region, the CBRE report highlights the characteristics of its over saturation, surging operating costs and sluggish sales performance, especially in Hongkong, where China's slow economic growth has prompted retailers to work hard to strengthen existing online stores and slow down the pace of entry into new markets that focus on operational efficiency.

    However, CBRE pointed out a new trend that could partly offset the negative impact of development slowdown and make up for the loss of demand reduction.

    The rise of cheap luxury goods

    Retail luxury goods, often called bridge brands, such as Michael Kors, provide high quality brand goods, but much lower than the price of luxury goods retail.

    Some high-end luxury brands have been so large in Australia that they are too common, which will stimulate many consumers to find differences.

    Palmer said that the luxury brands that enter Australia will continue to increase, including Kate Spade, Michael Kors, Coach, Furla, and Tory Burch that will be opened in Australia in the near future.

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