A recent report released by IBISWorld has revealed that the women’s and girls’ wear manufacturing industry in Australia has performed poorly over the past five years.
According to the report the industry is faced with increasing international pressure in the form of cheap imports which gain favour at the expense of locally manufactured goods.
“A high Australian dollar exacerbated import competition, as consumers turned to mediums such as online shopping to purchase relatively cheaper goods,” Jeremy Edwards IBISWorld industry analyst said.
The report stated that industry’s revenue has declined by a compound annual growth rate of 6.3% over the five years through 2012-13.
In addition, cheap labour and capital costs in parts of Asia (particularly China) have encouraged more Australian manufacturers to shift production offshore.
Cheap imports have made it extremely difficult for any one particular brand to capture the market share, as it is tough to differentiate between products, the IBISWorld report explained.
The findings have suggested that the industry is expected to move towards manufacturing more versatile and customisable products over the next five years, as competitive advantage lies in high value added production, the PR Web reports.
The women's and girls' wear manufacturing industry in Australia has a low-level of market share concentration, and clothing manufacturers in the country generally focuses on specialising in the manufacturing of boutique goods for niche markets.
The chief player in the Aussie women’s and girls’ wear manufacturing industry is Cue Design.
The women’s and girls’ manufacturing industry in Australia comprises operators that manufacture women’s or girls’ outwear from purchased or transferred-in materials, except waterproof clothing or clothing made from fur, leather, plastic or rubber.