The fast fashion market can shift almost as fast as fashion.
Australians spend a significant amount of money on fast fashion items, but retail is undergoing significant challenges. Businesses will need to manage shifting trends and opportunities in fashion and various compliance issues in order to succeed in 2020.
Consumers have more options than ever for fast fashion through the plethora of online shopping options. With the demand for new styles continuing despite cutbacks in spending, anticipated revenue growth is at 4.4% in the current year. This is in addition to the burgeoning value of fast fashion in emerging and Asian markets which can be accessed through online portals. From La Chapelle and Forever21 to international giants H&M and Zara, Asia is taking up fast fashion at a greater extent that in local markets; within sportswear, Asian markets are generating absolute value growth of USD24 billion.
The cut back mentality of the past five years has not only pushed consumers to reconsider the utility value of fashion. Somewhat ironically, it has also prompted consumers who wish to save to turn to fast fashion in pursuit of cheaper clothing alternatives. Clothing is, after all, essential, and in particular in regards to children’s ware, there is a need for more cost-efficient fast fashion items.
Industry revenue, according to Ibisworld, is expected to grow at an annualised 11.8% over the five years through 2018-19, to $2.1 billion.
How can fast fashion businesses strengthen their position in 2020?
Calibre Business Advisory invests more time than most firms into finding solutions for our clients. Contact our business advisors and tax accountants below to discover new options for your business in Australia and beyond.
Important Disclaimer: Readers should not act solely on the basis of the material on this page. Items herein are general comments only and do not constitute or convey advice. Legislation and proposals of legislation are also subject to constant change. We therefore recommend that formal advice be sought before acting in any of the areas. This news article is issued as a guide to the readers. Calibre Business Advisory Pty Ltd and its associated entities disclaims any losses that may be incurred as a result of the reader undertaking any action based on this article.
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