Online grocery sales and fast fashion have been ranked in the top five industries expected to soar in 2015, according to business information analysts, IbisWorld.
IbisWorld anticipates the online grocery sector to see the second highest amount of revenue growth in 2015, followed by fast fashion, which ranked number three.
Online grocery shopping has been slow to catch on in the Australian market, even as local online shopping as a whole has exploded in popularity over the past five years, however, this is expected to change in 2015, with IbisWorld estimating revenue growth of 14.6 per cent for the year.
IbisWorld senior industry analyst, David Whytcross, says this increase is due to time conscious consumers increasingly realising the benefits of online grocery shopping, with options such as click and collect expected to also rise this year.
“The increased prevalence of click and collect options and greater comfort with purchasing perishable items like fresh fruit online are expected to boost industry revenue over the coming year,” Whytcross said.
Fast fashion stores have been expanding rapidly across Australia and while the industry was previously dominated by Australian mainstay Cotton On, international operators including Zara, Topshop, H&M, Uniqlo, and Forever 21 have taken the country by storm over the past 12 months.
Spanish retail chain, Zara, is expected to continue its phenomenal growth, while 2015 will be the first full calendar year of Australian operations for H&M, Uniqlo and Forever 21, leading to projected industry revenue growth of 10.4 per cent over the year to $1.35 billion.
“Zara posted exponential revenue growth with extremely high retail profit margins over its first three years of operation in Australia, and IbisWorld expects this growth to continue in 2015,” Whytcross said.
“The rousing success of the grand openings of H&M and Uniqlo in Melbourne in April 2014 is expected to result in similar growth for these stores, which will generate significant growth for the overall fast fashion industry.”
While some industries are set for significant growth, there are many that will be dreading the year ahead. Petroleum exploration is tipped to be the biggest loser in 2015 as oil prices plunge, while mining and construction machinery manufacturing, cigarette manufacturing, motion picture and video distribution, and electricity distribution are all expected to endure a difficult year.
