Fast fashion retailers are set for a profit boom in 2015.
Business information firm IBISWorld has revealed the top five industries expected to soar in 2015.
IBISWorld analysts are tipping the arrival of global giants such as Zara, Topshop, H&M, Uniqlo and Forever 21 to contribute to a revenue increase of up to 10.4 per cent.
While the industry was previously dominated by Australian mainstay Cotton On, analysts claimed international operators have taken the country by storm.
Senior industry analyst David Whytcross said that the ongoing success of international retailers setting up shop in Australia is causing a domino effect on similar businesses.
"Zara posted exponential growth with extremely high retail profit margins over its first three years of operation in Australia, and IBISWorld expects this to grow in 2015," Whytcross said. "The rousing success of the grand openings of H&M and Uniqlo in Melbourne is expected to result in similar growth for these stores, which will generate significant growth for the overall fast fashion industry."
While online retailing in general has soared in the last five years, industry analysts are tipping online grocery sales to be the big winner in 2015 with 14.16 per cent growth.
Recent private equity interest in local retailers such as Seafolly is also expected to continue.
“Growth in merger and acquisition (M&A) activity in Australia coincides with greater global interest in M&A, as Europe and particularly the United States are emerging from a prolonged period of crisis and subdued growth,” Whytcross said.
He said private equity firms will continue to play a key role in upcoming M&A deals.
This will result in growth in management fees earned and potential investment returns, ultimately leading to forecast industry revenue growth of 10.1 per cent for the year.