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Demographics, affordability and ranging have been blamed for the demise of Topshop Topman Australia.

Euromonitor senior researcher Bettina Kurnik said the trifecta spelled misfortune for the iconic UK retailer.

“With the increasing competition on the A$18.8 billion Australian apparel market, established domestic brands and overseas entrants are vying for market share against a backdrop of weak consumer spending.

"Despite arriving to Australian shores to much fanfare in 2011, Topshop Topman has not been immune from competition from H&M, Zara and Uniqlo, with the brand’s combination of demographics, affordability and range contributing to its undoing.

"While Topshop Topman’s quirky apparel appeals to a younger demographic, its more premium offering and subsequent higher-end price positioning – for a fast-fashion brand – makes it less accessible to this demographic than H&M, for example, which has more of a diversified range at lower price points.

"Meanwhile, Zara, which also operates in the higher price tier, targets a slightly older demographic with typically more disposable income. Both H&M and Zara have managed to grow market share within apparel since establishing a retail presence in Australia, and combined represent 3% of the category’s value in 2016.”

Euromonitor apparel and footwear research analyst Bernadette Kissane said competition is set to intensify.

“Over the past five years we’ve seen a flurry of international apparel and footwear brands from Forever21, COS, Gap to Topshop expand into Australia in an effort to capitalise on high disposable incomes, healthy inbound tourism and growing demand for international brands.

"However, this has also been met with the rapid and aggressive expansion of behemoths such as H&M and Uniqlo.

"Fast fashion has taken the market by storm, illustrated by Zara who now ranks as the fourth largest brand, despite having only entered the market in 2011.

"However, unlike the behemoths who have maintained a tighter control over their Australian operations, boast a broader geographic presence and lower prices, Topshop’s appeal was tarnished by higher price points and stock quality that fell short of expectations."

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