Understanding Australia's Business and Consumer Environment: A Guide for Successful Business Down Under

Understanding Australia's Business and Consumer Environment

How will Australia's economy, business environment and consumer trends impact the success of your business? This e-book examines the fundamentals businesses must understand to successfully expand or operate in Australia.

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Heralded as the success story among advanced economies for weathering the global economic downturn of 2008-2009, Australia’s high income levels and steady growth offer good opportunities for consumer goods and services in a wide range of sectors.

Key Findings:

• At the height of the global slowdown, advanced economies as a whole contracted by 3.5% - contrasting with Australia’s 1.4% growth.
• Whereas incomes and consumer expenditure have stagnated across many advanced economies, Australia’s per capita disposable income and expenditure have expanded by 9.8% and 3.5% respectively in real terms since 2008.
• In 2012, Australia was ranked 15 out of 183 economies on the World Bank’s Ease of Doing Business Index, meaning it is the fifteenth easiest place in the world to start and operate a local firm.
• Australia has an educated population: 99.9% of adults (those aged 15+) were literate in 2011, but suffers from skills shortages.
• In 2011, the population aged 45-49 in Australia had the highest average gross income: A$77,810 (US$80,259).

Topics include:

• Ease of doing business rating
• Corruption index
• Literacy rate
• Future challenges
• Natural resources
• Media consumption
• Consumer trends
• More

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Wooden Eyewear – Creative Marketing and Brand Positioning

Analyst Insight by May Ling Tham, Head of Personal Accessories and Eyewear, Euromonitor International

As the world celebrated Earth Day on 22 April 2013, we take a look at wooden eyewear and how this product strives to balance beauty, function and the environment.  In recent years, there is growing interest in spectacles made from wood, a material that many view as being eco-friendly and lightweight. While wooden eyewear has been around for some years, however, it is only in recent years that interest has spiked.

Circle Lenses Drive Demand for Contacts in Asia

 
In Asia, the shape of the contact lens market is changing due to demand for specific types of lenses. One such segment is circle lenses, a type of lens that covers an area larger than the iris, giving the appearance of a larger eye. Users wear these lenses to create a childlike, doe-eyed appearance similar to that of a Japanese anime character. This trend is very popular in Asia, but will probably not expand much beyond the area due to strict regulations on contact lenses in other countries.
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Picture: Valerie Bassi

Fierce Competition Expected in Eyewear as Latin America Anticipates Strong Growth

Analyst Insight by May Ling Tham, Head of Personal Accessories and Eyewear Research, Euromonitor International

Eyewear in Latin America posted a value CAGR of 3.5% over 2007-2012, slightly ahead of the industry’s global CAGR of 2.8%. As mature markets continue to inch towards saturation, eyewear manufacturers are eyeing emerging markets such as Latin America and Asia. Euromonitor International takes a look at some expansion activities in Latin America.

Brazil takes the lead

Within Latin America, Brazil registered the strongest performance in eyewear over the 2007-2012 review period. Brazil is the largest economy in South America in terms of real GDP, with a growing middle-class and enjoying higher than average GDP per capita. Thanks to a combination of the country’s ageing population, rising demand for prescription glasses and increased usage of eyewear as a fashion accessory, Euromonitor International expects to see continued strong demand for eye care and related services in Brazil over the forecast period.

Acquisitions Fast Becoming the Buzzword for 2013

Analyst Insight by Sulabh Madhwal, Personal Accessories and Eyewear Analyst, Euromonitor International

The Swatch Group acquired luxury jewellery brand Harry Winston in January 2013. Several global players operating across personal accessories and eyewear have also intensified acquisition efforts in early 2013, targeting specific markets rather than globally recognisable brands.

PPR SA

Global accessories revenues for PPR, one of the largest luxury players, were heavily reliant on bags and luggage in 2012. Boucheron and Girard-Perregaux were the only two jewellery or watch brands with notable sales in the calendar year. The company has started to address this situation as it acquired Hong Kong’s jewellery brand Qeelin in December 2012. Focused on two markets, in the form of China and Hong Kong, the luxury jewellery brand is likely to be followed by more jewellery and watch brands entering PPR’s portfolio in 2013. Another regional player acquired in January 2013 was Christopher Kane, catering to apparel and bags in the UK.

Luxury Goods Landscape: China

Benefitting from a fast-growing middle class and a fast-developing distribution network, sales of luxury goods in China have consistently outperformed the global market. Sales of luxury goods in China tripled in value in the 5 years to 2012 and by 2017 the country’s luxury market is set to double in value again. By 2017 it is set to overtake France, the UK, Italy and Japan, making China the second biggest luxury market in the world after the US.

The Importance of Home Markets to Spectacle Players

Analyst Insight by Sulabh Madhwal, Analyst - Personal Accessories and Eyewear, Euromonitor International

While global eyewear sales saw low single-digit growth in 2012, industry leaders Essilor and Luxottica are expected to post double-digit gains in full year sales. These performances were fuelled by their international operations, which contributed a majority share of both companies’ sales. We analyse the degree of influence that ‘home’ markets continue to have on global sales and strategies of the largest spectacle manufacturers in the world.

Digital Eye Strain Leads to New Eyewear Product

Analyst Insight by May Ling Tham, Head of Personal Accessories and Eyewear at Euromonitor International

As technology increasingly shapes the way we work, interact and live, it too poses a potential risk to our eyes. Digital devices are designed for close range usage, where eyes are required to constantly refocus and reposition to process content. Over usage of such devices can cause eye fatigue, irritation and vision problems. These symptoms are medically known as computer vision syndrome (CVS) or digital eye strain.

Sunglasses in 2013

Value growth of sunglasses in 2013 is expected to exceed that in 2012, increasing by a further 6% as compared to 3.8% from the year before. Growth will stem from consumers being more informed that sunglasses, apart from being a fashion accessory, can help protect the eyes and skin from sun damage. Growth is also due in part to expanding income per capita as well as urbanisation, lending to bright prospects at the luxury end in selected markets such as India and Russia. 

 

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