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Men migrate online for fashion

 

tie, suit, menswear, formalwearThe online men’s clothing sales industry in Australia has flourished over the past five years, driven by the growing acceptance of online shopping and changing attitudes towards men’s fashion, according to IbisWorld.

Over the five years through 2013-14, industry revenue is expected to grow by an annualised 23.7 per cent to reach $325.3 million. Continued demand for online menswear is expected to fuel revenue growth of 12 per cent in 2013-14.

IbisWorld industry analyst, Lauren Magner, says that while traditional retail industries have struggled with volatile consumer sentiment and subdued discretionary spending, online stores have benefited from consumers seeking choice and value.

Global economic uncertainty and instability in financial markets has prompted many consumers to scale back expenditure on discretionary items and look for cheaper alternatives online. The online retail space offers a diverse range of products at highly competitive prices, providing consumers with greater choice, flexibility and convenience, without geographical boundaries.

The online menswear retail market has fared particularly well over the past five years, due to a surge in demand from fashion-conscious male consumers. Younger generations of men are becoming increasingly concerned with their appearance, and these consumers are prepared to spend more on how they look.

As men are generally less interested in the social aspect of shopping, online retail has been an attractive option for the industry’s target market.

“Online shopping allows male consumers to purchase apparel and accessories from the comfort of their home or office, and this has appealed to men who are time poor or simply want to find what they are looking for quickly,” says Magner.

The online men’s clothing sales industry is characterised by low market share concentration. Significant operators include The Iconic, Billabong, and Myer.

Over the next five years, revenue is expected to continue to grow strongly but at a slower pace than the previous five-year period, as online retailing becomes more normalised.

The potential market is expected to expand as the rollout of the NBN will provide regional areas with faster and more secure internet connections. Furthermore, growth in online shopping through mobile devices such as smartphones and tablets will provide retailers with an opportunity to reach a wider audience.

An increasing number of traditional retailers are anticipated to migrate online to complement existing sales in response to strong consumer demand.

For more information, visit IbisWorld’s Online Men’s Clothing Sales report in Australia industry page.

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