4. effectiveness of using porters’ five forces in analysing Australian fashion industry Porters’ five forces can be used to analyse the competitiveness of Australian fashion industry market. This framework of analysing the competitivity of fashion industry can be grouped into in five forces. These forces are: Buyer power: The first and most essential factor is the negotiating power of buyers, who have the opportunity to choose whether or not to purchase things, as well as whether or not to transfer merchants. Buyer power is a significant factor in the fashion business, particularly in Australian market. As individuals with little to no direct bargaining power (as opposed to large corporations purchasing in bulk, who may be the primary customers in other industries), clothing shoppers have a plethora of options for where to shop as well as little incentive to stick with a single company, providing them with a significant amount of indirect bargaining power (Bush 2016). Supplier power: the fashion retail industry in Australia has to consider the supplier abilities and in many cases the supplier power is low and less impactful force. The majority of clothes firms buy their items from third-world producers that only earn a percentage of the profits. Supply chain managers have limited influence on the fashion business since, regrettably, they are expendable and may be replaced at any time (Bush 2016). This has resulted in low input costs for this sector, which is expected to continue until the worldwide development gap is closed sufficiently. This input potential can be used by Australian retailers to boost productivity in the retail industry. Competitive Rivalry: When it comes to examining industries, the fashion business is particularly intriguing because of the degree of intense competition that exists within it. It is true that there are a great number of stores that offer relatively identical things, but there is also the notion of brands, which allows certain businesses to sell clothes at absurdly cheap prices. Because there is no development in this field these days, the industry is fast getting crowded with items that are quite identical to one another (Bush 2016). Threat of new entries: the Australian fashion industry is facing a challenge from international retailers who sell clothes at a considerably cheaper price. These threats of new entries create unfavourable environment for local fashion producers within Australia (Bush 2016). Given that this business has nothing to offer that is distinctive, this factor is similarly limited in its impact on the industry. New entrants, on the other hand, may discover creative methods to promote their own items (which may or may not be very distinctive), and as a result, they may develop novel brands — possibly via the savvy use of social media. Threat of substitute goods: There is nothing that can be substituted for garments for individuals working in the fashion retail business in Australia, which is fortunate for them. Because all of the 'substitution' in the fashion business is essentially simply competition, this factor has a small impact (Bush 2016). 5. Strategic lessons learned from analysis of Australia Fashion retailers One strategus lesson I have learned is that are various retail models that have been implemented to counter competition in the fashion retail industry. These models incorporate various techniques like staff management, inward logistics and point of scale. These techniques have been used to reduce competitivity and reduce competitivity in the market (Gazzola et al, 2021). The second strategic lesson is that innovative response is required in retail trends in Australin Fashion Industry. The retail industries near future will be defined by its ability to adapt and embrace change (Gazzola et al, 2021). The pace of innovation and the disruption it generates will continue to accelerate, and the expectations of consumers will continue to rise in intensity. To succeed in this climate, merchants must react swiftly to challenges and opportunities with their own innovations, led by the insights supplied by market data. They must integrate strategy, capabilities, and particular efforts (Gazzola et al, 2021). To be successful, you need the right people with the proper skills. The best employees will have to be sought for, recruited, and retained by retailers. However, it is a fact that no store would have all the necessary resources in-house, thus partnerships and specialized resources must be developed (Gazzola et al, 2021). To remain ahead of the competition, businesses will be able to swiftly access the relevant knowledge to create innovation in product offerings, business strategies, and consumer engagement. Another strategic lesson I have learnt is that data analytics is important for the success of the retail industry. Traditional techniques of data collection and analysis are being replaced by modern techniques that have been computerized. These data analytics techniques use artificial intelligence techniques to identify patterns within data and the Australian fashion retail industry has to incorporate these data analytic strategies in their supply chain (Gazzola et al, 2021). Customer relationship programs are vital for the success of an organization because there will be deeper insights on customer segmentation, market needs and key areas that require improvements that can be made to ensure customer satisfaction. Customization: During the past few years, customers have gotten more finicky and needy, and they constantly have high expectations for high-quality items, customized experiences and immediate support at reasonable rates. Fashion goods are chosen by consumers based on their unique style and beliefs (Gazzola et al, 2021). It is because of that purpose that fashion firms must understand how to provide items and experiences that consumers will view as distinct from the competition. References Bush, T., 2016. Five Forces Analysis of the Fashion Retail Industry. [online] PESTLE Analysis. Available at: <https://pestleanalysis.com/five-forces-analysis-of-fashion-retail-industry/> [Accessed 24 October 2021]. Gazzola, P., Pavione, E., Pezzetti, R. and Grech, D., 2021. Trends in the Fashion Industry. The Perception of Sustainability and Circular Economy: A Gender/Generation Quantitative Approach. [ebook] p.19. Available at: <http://file:///C:/Users/shedm/Downloads/sustainability-12-02809.pdf> [Accessed 24 October 2021]. Mondaq.com. 2021. Fashion retailing and wholesaling in Australia - Strategy - Australia. [online] Available at: <https://www.mondaq.com/australia/industry-updates-analysis/499340/fashion-retailing-andwholesaling-in-australia> [Accessed 24 October 2021].
