Australian fashion retailers are expecting significant growth over the next 12 months according to a report from Commbank.
The report found that 40% of fashion retailers believe that business conditions will improve over the next 12 month and 49% expect significant growth of over 5% for the same period.
In line with these expectations, 38% are looking to increase their store numbers over the next year and only 16% of retailers expecting a decrease in their store numbers over the next year.
One of the causes for this optimism may come from retailers understanding where their consumers see them within the retail landscape and how they are differentiating from their competitors.
According to Commbank, after dividing fashion retailers into sub-sectors of high-end, mid-range and value fashion, it found that high-end fashion retailers should focus on personalisation for consumers while mid-range and value retailers should focus on efficiency in their sales channels.
“Within the high-end fashion sub-sector, personalisation factors have a much larger influence on consumers when it comes to choosing one retailer over another.
“Consumers shopping for high-end fashion are likely to be influenced by factors such as niche and boutique products, ongiong marketing campaigns and in-store services.
“Consumers shopping for mid-range or value fashion are more likely to be influenced by efficiency factors, such as seamless channel integration and sales and promotions.
"Consumers shopping for mid-range fashion are also influenced by customer service, while consumers shopping for value fashion are influenced by website design and functionality.
"Low prices also influence consumers for these two sub-sectors.
“Delivery and returns, product quality and design, and location of stores have a significant influence on consumers' decision-making for every type of retailer in this sector.”