Mkx9550 Marketing and the International Consumer-Victoria's Secret
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Australia has become an attractive market for clothing retailing instead of a gradual decrease in consumer spending due to global financial crisis, which driven the total revenue from this industry down by 0.7% per annum. Nonetheless, it is expected that in the next five years, the industry revenue will grow by 1.2% per annum.
Current economic situation in Australia has encouraged major overseas retailers to enter into the Australian market for the first time and these opportunities can bring some advantages to Victoria’s Secret to opens its stores in Australia. With a superb record in the US and strong brand name throughout the world, Victoria’s…show more content… However over the next five years, industry revenue is estimated to grow by 1.2% per annum, reach $12.9 billion in 2016-2017. There will be an increase in competition as more international clothing retailers enter Australian market, increase trend of online shopping supported by strong Australian dollars and also strong market positioning of major domestic retailers. This situation will make the industry become more attractive but also there is higher risk of failure if the industry players do not have strong market position in the end (IBISWorld, 2012).
1.2 Industry market segments
Given the alignment of product segmentation towards women 's clothing, women make up the majority of buyers in each key age demographic. According to the chart, the major market for clothing retail industry is people aged 29 to 43 years, which accounted for about 39% of the market. Fashion trends and brands appeal to this segment. However in the past few years, spending power of generation Y has increased and tends to spend a high proportion of the income on clothing. Generations X and Y will increase their share of the market in this industry as more of these consumers enter the workforce [see Exhibit 2] (IBISWorld, 2012).
The mid-market is defined as purchases of a single item of clothing that ranges from $80 to $250 in price. This market grew by 3.6% in 2009-10, compared with a stronger