In the past decade, the formal menswear retailing industry has been the beneficiary of a significant rise in demand, with IbisWorld predicting revenue o have grown at an annualised rate of four per cent over the past five years.

The category is expected to grow by five per cent over 2013-14 to reach $327.9 million.

This is due to men’s growing autonomy when it comes to clothing purchases, the rising prominence of office-based work for men and increasing exposure to women in the workplace.

According to IbisWorld industry analyst, Craig Shulman, “over the past five years, this demand has been further catalysed by the increasing prosperity of Australian consumers, declining costs of formal menswear and increasing access to information and options regarding men’s fashion online”.

The worst effects of the global financial crisis were avoided by Australia, and as a result, discretionary income levels have continued to grow. Formal menswear prices have declined as retailers engage in greater amounts of direct sourcing from manufacturers.

Exposure to an increased number of clothing options that are available online but not domestically have allowed men the opportunity to expand their wardrobe and gain a better idea of what type of clothing they enjoy wearing.

“The industry has remained substantially competitive, as smaller retailers entering the industry often offer better value products than established players,” said Shulman.

Several smaller retailers offer made to measure suits that allow the consumer a higher degree of customisation. Several online retailers are offering more standardised clothing such as shirts and ties at cheaper prices compared with established retailers. These smaller retailers are consequently fostering a fragmentation of the industry.

Over the next five years, many of these trends are projected to continue to affect the industry. The most notable trend is expected to be the continued change in how formal menswear is used. Offices are expected to emphasise wearing formal attire less, while formal attire is expected to be perceived as more suitable to wear in non-formal settings. This increasing breadth of use is expected to lead to continued growth for the industry.

For more information, visit IbisWorld’s Formal Menswear Retailing report.