Franchise Spotlight: Clothing and Accessories
Apparel industry trends, criteria for assessing aspiring franchisees, and a look at popular clothing and accessory franchises.
Australia’s $16 billion clothes retail market includes both large chains like Zara, Uniqlo and H&M and smaller players specializing in niches such as children’s clothing, plus-size clothes and sports apparel. Everyone needs clothes of course, and many wardrobes are refreshed frequently with the seasons and changing fashions.
It’s fair to say, then, that demand for clothing and fashion accessories, which come in a dizzying array of categories and styles, is enormous. The ecommerce segment is meeting a growing share of that demand, with revenue forecast to grow 4.5% annually between 2021-2025 by market research statistics firm Statista.
Bricks-and-mortar retailers at least benefit, however, from the fact that many customers still prefer to see, feel and try apparel before they buy. Nevertheless, many invest as much resource in their digital store as their physical one – and aspiring franchisees should assess both channels during due diligence.
Franchise industry analysis
Clothing retail franchises generally require above-average investments – often in the region of $175-300k – given the need for inventory and (unless exclusively selling online) premises.
Gap is the most stellar name, but is exacting in its demands of would-be franchisees, requiring “significant business experience in the apparel retail sector”.
However, some franchises prioritise personal attributes like leadership and customer service skills instead, as is the case with Sportsco, a retailer of training, performance and lifestyle gear from top global brands.
The Athlete's Foot franchise, meanwhile, specializes in athletics-style footwear, apparel and accessories at competitive prices.
Established more than half a century ago, Aussie Disposals is best known for selling military surplus but its ‘outdoor adventure stores’ also sell camping gear and workwear, and drive interest through catalogues, and TV, radio and print advertising.