Fast fashion industry revenue is expected to grow by an annualised 11.7% over the five years through 2015-16, and is said to be worth $1.4 billion. The rise of social media and online shopping has given consumers access to the latest designer fashion directly inspired by runway shows, creating desire for new styles and trends constantly. Fast fashion retailers’ strategies involve opening two to three stores per year, with the ultimate goal of opening between 20 and 30 stores within major cities or ‘hot zones’ around the country. Consequently, industry establishments are anticipated to grow rapidly over the next five years as these international retailers expand their store networks and take over the domestic Australian retailer brands. Fast …show more content…
According to NAB Online Retail Sales Index in-depth report, online spending increased by 12.4% over 2015. NAB Chief Economist Alan Oster, made note that online retail sales have grown nearly double over the past year. The decrease of the Australian dollar since 2013 has lead to an increase in sales for domestic online retailers, with growth in the homewares, fashion and appliance sectors. According to NAB the age bracket of the market who dominate online participants is 35 to 44, who account for nearly a quarter of all online sales, despite making up 17% of the adult population. Within Australia, the eastern states significantly dominate online purchases, with around 76% of total online spending in 2015 (Business Research and Insights …show more content…
Due to the online nature of e-commerce consumers can compare prices, quality, products, and available discounts and promotions across a wide range of websites. This creates considerable price competition and the need for retailers to try to out do each other online by creating websites which are sophisticated and easy for users to navigate. Although price is an important factor, many consumers may purchase a higher priced option if they perceive the retailer to be more reliable and a trusted brand