Australian luxury market got A$2.3 billion in revenue and A$216.2 million profit during 2018-19 financial year. The Australian luxury market shows stable growth and is anticipated to reach A$3 billion in revenue by 2024-25. The market is in transformation phase due to response to the COVID-19 and online sales of major luxury brands are thriving. Australians have one of the highest portions of disposable income (A$45,800) that they are ready to spend on luxury items for self-betterment. That’s why Australian market is regarded as a strategic market for any brand in the luxury segment.
The luxury market in Australia has an average growth rate of 5.0% between 2014-15 and 2024-25 whereas GDP grows at around 2.3% over the same period.
- In 2018-2019 the industry had 385 businesses which employed 3,581 people;
- In 2018-19 demand for online shopping reached 4%
- Industry life cycle is in the growth stage.
- Australian dollar is anticipated to remain relatively weak over next years which make purchases more lucrative for international tourists;
Big luxury brands are dominant in major cities (Sydney, Melbourne and Brisbane). However, there is a place for independent luxury brands
- Demand of luxury goods from international tourists especially from emerging countries in Asia will increase profit of the industry;
- Australian affluents are very aware of the luxury products and 9 out of 10 luxury buyers make a thorough research before buying a luxury item;
- Australians prefer to make their luxury purchases in-store rather than online.
- Luxury market in Australia consists of clothing and footwear (63.8%) watches and jewellery (26.7%) and Luxury leather goods and accessories (9.5%).
Opportunities for foreign small and medium-sized enterprises.
The Australian luxury market is still in a growth stage. The market is not saturated.
- Around 81% Australian affluents seek for luxury items that can be a long-term investment (global average 76%). It ties to the fact that home ownership has become too unachievable for the younger generation.
- A lot of experienced, international workforce in major Australian cities.
- New entrants are supported by market polarisation trends, which have led to strong demand from Australian consumers.
- Big fashion brands have found Australian luxury market as not yet exploited. Despite the country’s remote location and relatively small population, Australia has a stable economy and high income which gives opportunities for affordable luxury brands.
How can Expandys help you?
Our consulting firm can assist you in:
- Defining the strategic approach and action plan for setting up your subsidiary in Australia
- Carrying out all the steps necessary for the creation of the subsidiary on your behalf, aligning with the Australian legal system and building relations with the financial institutions of your choice.
- Hosting your branch office on our premises for efficient cost benefits.
- Manage your subsidiary by outsourcing your administrative, accounting and financial procedures: Administrative and accounting management, Social and human resources management, Year-end accounting operations, Legal management, Financial management.
- Support your action in the commercial development of your subsidiary.