Australia May Be The Next Pioneering Position For Fashion Brands.

According to the world clothing shoes and hats net,

The industry has never been in the mainstream position for Australia. Historically, Australia's fashion industry is mostly based on the introduction and adoption of the international market.

On the basis of this, most of them must come from the long history of luxury goods in Europe.

And brands are not prominent in the international market.

The limitations of its fashion market are not only reflected in the weakness of local brands, but for foreign brands, the land has not attracted much interest for a long time. From a geographical perspective, the market is much less expensive than the northern hemisphere and the urban distribution area is small and scattered.

But until four or five years ago, things began to change.

Since 2012, the Australian market has become the expansion destination of all fashion brands, and this trend is becoming more evident over time.

According to Australian news website The Australian, Australia will usher in the peak of European high-end brands in the near future. Many international brands plan to open flagship stores in CBD, including Italy brand Brenello Cucinelli, Roberto Cavalli, French leather brand Goyard and footwear Empire Hogan.

There is no doubt that these brands will enter the two cities of Melbourne and Sydney. As for which one to enter first, we must see which city has better leasing conditions. We can see that the high rent in Australia is the first consideration of the major brands. This is also one of the main reasons why many brands are reluctant to step into this land for a long time. The local consumption potential can not compensate for the high rental cost.

Therefore, when the per capita consumption level of Australia has not yet reached the requirements of luxury brands, only the fast fashion brands with price advantage can stand there. The most outstanding ones are Zara, H&M and UNIQLO, which first entered the Australian market. According to Leah The The Sydney Morning Herald of Melbourne, these fast fashion brands are concentrated in the bok Street Shopping Center (Bourke Street Mall) and Pitt Street Shopping Center (Pitt Street) in Sydney.

For TOPSHOP, a late entry to Australia, faced with the similar market that has been carved up by the three fast fashion brands, after six years of hard operation in the local market, it has to face the fate of bankruptcy.

According to commercial media Smart Company in May this year, relevant management departments have begun working with TOPSHOP and TOPMAN teams to enter voluntary management procedures.

In addition to entering the market too late and having no higher identification between competitors, retail analysts also pointed out to Smart Company reporters that Australia's fashion market is really too small, "the local market can not afford to enter so many new brands at a time, let alone local consumers' spending power has become weak."

However, according to Australian business media, the interest of luxury brands in Australian market in recent two years is the change of consumption main force -- the purchasing power of Asian tourists with high growth rate.

Cameron Taudevin, director of JLL international retail leasing department, said: "although the level of disposable income of local residents has reached a high level in recent two years and the economic base of the country has been constantly strengthened, what is really coveted by luxury brands is a strong Asian tourist market."

Zelman Ainsworth, director of the retail real estate department at CBRE (World Bank), also told The Australian that he had just visited Hongkong and Singapore to meet with the global retailers representatives. The feedback is that Australia is one of the few markets in the Asia Pacific region that keeps growing every year. Business and investment are relatively safe in terms of policy and economy. Chinese tourists coming to Australia are growing at double speed every year, which is the biggest potential of the luxury market.

At the same time, Ainsworth acknowledges that it is not yet clear whether these international brands really understand the Australian market, whether they can adapt themselves to the local season and culture while not lowering the quality of their own brands. Apart from these, the biggest challenge for the brand is Amazon, an e-commerce giant who will also enter the Australian market this year.

Of course, Amazon itself is also under tremendous pressure for its business in Australia. Although Australia has the same land area as the US, it has only 24 million people, and the main population distribution is very dispersed, up to 2500 miles, which undoubtedly increases the pportation cost of the electricity supplier.

In the next year to a year and a half, the entry of overseas brands will also re shape the local market structure. Local retailers will gradually be squeezed out to second tier cities because of their competitive advantages in profits and high rents.

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