Fashion and Textiles Marketing Assessment 1

Author Emma Ruyg

2.61 Industry Analysis

Clothing retailing in Australia from 2015- 2016 had revenue of $18.7bn with a profit

of $709.3m. (Magner, 2016) In the past 5 years, the industry has grown by 3.3%

annually, with 12,785 businesses involved. There is high competition in the market,

with a key driver being demand from both online shopping and department stores.

(Magner, 2016)

The threat of new entrants with growing competition has intensified in recent years.

International retail giants like Zara, Gap and Topshop have entered, alongside Uniqlo

and H&M. The scale and efficiency of these retailers is something that current

Australian retailers can not match, by being slow in much smaller in scale. (Magner,

2016)

Rivalry amongst existing competitors is also noted as a key driver in becoming a

leader in the industry. Companies within the industry have to be innovative and

develop both products and experiences that relate to their target market well. This is

where a company is required to have a point of difference though, as to not saturate

the market with similar products.

Experiential retailing and the acquisition of new technologies to entice consumer

spending has been something new that is going to grow. Virtual stores and adaptive

storefronts are expected to become more common over the next five-year period,

(Magner, 2016) along with personalised, custom technologies that are available on

hand-held devices. The industry is in a mature stage, with many companies now

making business decisions with relation to geographic location, market share, cost

structure and globalisation suit their vision and goals for future growth.

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 Fashion and Textiles Marketing Assessment 1
Author Emma Ruyg

2.7 Portfolio Analysis GE Model

The following GE model analyses WHLs portfolios positions in the industry.

Industry attractiveness and business unit strength are the key measures in this model.

SELECTIVE GROWTH
5.00
INDUSTRY ATTRACTIVENESS

INVESTMENT AND
SELECTIVITY CRG GROWTH
3.67

HARVEST OR DJS SELECTIVE

DEINVEST GROWTH
SELECTIVITY
2.33

HARVEST OR HARVEST OR
SELECTIVITY
DEINVEST DEINVEST
1.00

1.00 2.33 3.67 5.00

COMPETITIVE STRENGTH OF A BUSINESS UNIT

Industry Attractiveness David Jones Country Road Group

Factor Weight Rati Weighted Ratin Weighted Score
ng Score g
Industry Growth Rate 0.25 2 0.50 4 1.00
Industry Size 0.25 3 0.75 4 1.00
Industry Profitability 0.20 4 0.80 3 0.60
Trend of prices 0.08 2 0.16 3 0.24
Market Segmentation 0.08 3 0.24 3 0.24
Strong Competitors 0.14 3 0.32 5 0.70
Total Score 1.00 2.77 3.78

Competitive Strength David Jones Country Road Group

Factor Weight Rati Weighted Ratin Weighted Score
ng Score g
Market Share 0.30 4 1.2 3 0.90
Relative Growth Rate 0.20 3 0.60 4 0.80
Companys profitability 0.25 3 0.75 3 0.75
Brand Value 0.25 3 0.75 4 1.00
Total Score 1.00 3.30 3.45

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