Fast fashion and luxury brands Chanel and Louis Vuitton expected to outperform retail industry
Niche brands that include fast fashion giants H&M, Topshop and Zara and premium brands Chanel and Louis Vuitton are expected to deliver huge revenue growth in the next five years to outperform the wider Australian retail industry, new research from IBISWorld showed.
Other niche retail industries on the to-grow list include bridal stores and maternity wear, however fast fashion and luxury retailing are tipped to lead with annualised revenue growth of 11.0% and 8.5% over the 5 years through 2019-20. The results indicate international brands are “keeping pace” with fashion-conscious buyers, while domestic mass-market retailers are struggling to keep up.
IBISWorld Australia general manager Daniel Ruthven said the reason for this continued switch to fast fashion and premium products is due to an increase in our disposable incomes and a change in our tastes and buying behaviour. If you're dreaming of that new Chanel bag, open a high interest savings account to see your cash stash grow and head to Mozo’s credit card section to find the perfect plastic for you.
“Fast fashion business models, which have been harnessed particularly well by overseas retailers, are benefiting from our desire for up-to-the-minute and affordable fashion.”
“Luxury retailing has been buoyed by Australia’s relatively stable economy, high disposable incomes and increasingly discerning consumers. Furthermore, wealthy international visitors are providing additional incentives for luxury stores to increase their floor space,” said Ruthven.