FASHION RETAIL INDUSTRY IN AUSTRALIA

Evaluate the Fashion Retail Industry in Australia



Evaluate the Fashion Retail Industry in Australia

Introduction

Premier Investments Limited is a Australia based company that which is divided into two business segments such as investments and retail. Premier Pty Ltd is a major clothing retailing in Australia. It has significant contributions in the Australian fashion retail industry. The company generates majority of its revenue from cloth retailing in Australian industry. The high competitive retail clothing business world has altered the business practices for the Premier Pty Ltd. Therefore, there are various internal and external factors which are impacting the performance of Premier Pty Ltd in the Australian clothing retail industry (Premier Investments Limited, 2011).

The technological factors in the fashion industry have been impacting the Australian fashion industry especially Premier Pty Ltd in a very positive manner. Premier Pty Ltd is making good use of the technology that enables it to get a response from the customers. Premier's overall usage of technology has helped it to remain the market leader in Australian retail clothing industry. Similarly, stable Australian economy has helped retail clothing industry to blend technology and strategy has helped Premier Pty Ltd to remain the market leader in the industry (Phizacklea, 1990).

Porter's Five Forces Analysis

Bargaining Power of Suppliers

The bargaining buyer of suppliers in this industry is low because of power the company has in the industry. The company is the market leader in the fashion industry and is a part of the world's biggest fashion retailer. The company is doing a good job in the Australian industry which means that the company is one of the best in the industry. The company is vertically integrated which is one reason that the company has the power over its suppliers because of the company designs, produces and sells the products itself.

Bargaining Power of Buyers

The number of customers is large in the Australian industry. People are brand conscious and prefer quality which is why the bargaining power of buyers is average. Premier Pty Ltd cannot increase its prices with a very large margin, due to the fact that customers are huge and will move towards other alternatives in the industry. There is no doubt that the product is important to the customers which is why the bargaining power of buyers is average (Clothing Retailing in Australia, 2012).

Threat of Substitutes

The threat of substitutes is high for Premier Pty Ltd because there are a lot of fashion companies that offer trendy and fashionable clothes to the customers in the Australia. This is reason that the company has to make sure that it is abreast of the changing trends and fashions in the industry. There is no doubt that the company uses strategies that other companies cannot copy or cannot implement those strategies which is why the company is the market leader in the Australian clothing retail industry, but this does not mean that the threat of substitutes is low.

Threat of New Competitors

Premier Pty Ltd strategies have helped the company in eliminating new entrants ...