Impact of Competitiveness in Australian Fashion Industry on Consumers

This report investigates the increasing competitiveness within the Australian fashion industry and its subsequent effects on consumer purchasing behavior. It begins with an overview of Desigual, a leading fashion retailer, and its operational strategies within the Australian market. The research problem focuses on the challenges faced by the industry due to free trade agreements, technological advancements, and the need for product differentiation. The research aims to analyze the factors influencing market competitiveness and their impact on customer satisfaction, incorporating a literature review that covers topics such as industry competitiveness, changing local capacity, factors affecting competitiveness, and customer satisfaction. The research employs a quantitative methodology, using questionnaires administered to Desigual customers in Australia to gather data. The study explores the independent variable (competitiveness) and its effect on the dependent variable (customer satisfaction), aiming to provide recommendations for mitigating challenges and enhancing customer satisfaction within the Australian fashion market.

Significance of increasing competitiveness in
Australian fashion industry and its impact on
consumer purchasing behavior
Name:
Course:

Industry partner
Research problem
Research aim
Literature review
Research questions
Research design
Ethical considerations
Conclusions
Contents

Desigual is a leading fashion retailer that was established in 1986. The company
believes in the high importance of its customer, the matter that led to the release of
its first brand with the goal of dressing people, not bodies.
The company creates unique products in order to inspire customers; the products
can change the people mood with their colorful designs. The company appreciates
the value of people that makes it acquire and retain authentic and talented people.
Source: Desigual 2019
Industry partner

Desigual is highly responsible towards people and environment. All of the business
processes are based on the concept of made with love, people creativity,
responsibility and talent.
The company goal is to make the world a better place that enables people to be
themselves and express their authenticity by consuming distinguished creations.
Source: Desigual 2019
Industry partner
Cont.

This is achieved through its multi-category and multi-channel of distribution. It
designs and distributes 6 categories of products across 10 channels within 90
countries, including Australia.
The multi-channel distribution system enables Desigual to operate and grow
globally by taking the advantages of internationalization and innovation.
In the Australian market, Desigual products are featured in the best shop window.
Source: Desigual 2011 & Desigual 2019
Industry partner
Cont.

The increasing competition in the Australian fashion industry grasped the
international attention due to its increasing intense and high market pressure.
This competitive environment led organizations to put customer satisfaction in the
first place.
The Australian fashion companies operate in a highly challenging environment
characterized by a perfect storm of competitive factors. Technology allows
companies to instantly spread their new fashion trends and facilitates shopping by
using internet applications.
Source: Santarelli (2016)
Research problem

The free trade agreements between countries and tariff reduction policies
facilitate new entry to the industry and lower the protection sealing for the local
manufacturers the matter that led to a reduction in revenues in recent years.
The Australian government and fashion industry groups encourage product
differentiation and innovation to leverage competitiveness for Australian retailers.
Source: Santarelli (2016)
Research problem
Cont.

The fashion products involve multiple dimensions that make them complex due to
their cultural and economic values. They should satisfy their targeted customers
to gain their loyalty.
Anticipating and fulfilling the consumer needs by introducing creative and
differentiated products are directly related to business success.
The global super brands, like Desigual can easily operate and expand their
business across the country by opening new stores and selling online, the issue that
led to retailers problem of the flat-lined revenues.
Source: Santarelli (2016)
1
Research problem
Cont.

To explore the currently increasing challenges that the
Australian fashion industry faces by analyzing the factors
that influence the market competitiveness and their impact
on customer satisfaction.
Research aim

Competitiveness of Australian fashion industry
The Australian fashion industry generates about 27 billion dollars of revenues
annually. Also, it employs about 200 thousand employees across its activities of
manufacturing and operations, wholesaling and retailing.
There are core processes for all fashion companies that involve design and
development of products to be ready for selling by using the distribution channels,
then consumers can shop from the retailers.
Source: Santarelli (2016)
Literature review

Competitiveness of Australian fashion industry
Many suppliers believe that the Australian fashion market is saturated, the matter
that lowers its attractiveness for the new design, where the designs are already
developed in the northern hemisphere. These reasons create the "derivate
Australian fashion".
Fashion spreads rapidly with the aid of live catwalk events that are accessible
online and live on the spot. Also, the immediate sharing of images by using
internet applications and social media channels facilitate customer reach with new
designs.
The Australian manufacturers started to become more innovative by considering
the sustainability issues in their design and production processes.
Source: Santarelli (2016)
Literature review
Cont.

The changing local capacity of the fashion industry
The local fashion industry depends on imported and locally manufactured
products. Fashion products can be found in different locations, including the retail
stores, outlets, chain stores, department stores, special fashion stores and general
stores.
The rapid spread of fashion and mass consumerism could influence the Australian
market by bringing innovative designs to the local customer. Youth are targeted
with new designs and the industry is characterized by vertical disintegration due
to the various companies.
Source: Craik (2015)
Literature review
Cont.