Australian fashion retailers lower prices and expand the beaches to fight against the invasion of international retail

 Australian fashion retailers have finally started the influx of international fashion retailers like Zara, Gap and TopShop react, according to a study by Morgan Stanley.

Research has shown any deployment of shops were slower than expected, competitively priced international brands is currently recovering from the Australian landmark.

World, Zara, Gap, Topshop, Hollister, Miss Selfridge and Michael Kors brands estimates already established in Australia and Morgan Stanley that these businesses generate revenues of $ 260 million in the 12 months to June 2013.

On their heels are H & M, Uniqlo and River Iceland. Morgan says 2018 sales of international retailers Stanley to $ 2.1 billion, will expand 6.5% of the Australian clothing market is.

But Morgan Stanley has found the Australian fashion retailers react by lowering prices of the past year and reduce price premiums on their colleagues.

Compared to 12 months ago, analyzed 19 of the 42 national retailers Morgan Stanley, the shelf price reduction on women's clothes in the last 12 months.

Only six brands have higher prices for global brands that have, on average, prices held largely similar to last year and charging a premium on the Australian market, with numerous awards charging 30% more expensive than abroad.

"Our analysis of the women's clothes that national retailers lowered prices and extended ranges to compete with global brands," analysts Crystal Wang and Thomas Kierath said in the report.

"But despite price cuts, domestic retailers still significantly more expensive than the incoming global brands. As the dominant global players to expand their presence in Australia, we expect these price increases to reduce."

Brian Walker, CEO of the Retail Doctor Group, said he believes SmartCompany global brands are in Australian retail is not so fruitful over time, as expected, that both Australia has the highest rents and wages costs in developed countries.

"I think what you see is a flagship strategy is largely supported by online, I do not think you see these international businesses in every corner," he said.

Walker says international brands are charging more in Australia in part because of freight costs and secondly, because of the lack of competition with Zara identify the Australian market as one of their highest 67% Gross margin markets

"If Australian retailers lower prices and line extensions that could give the response to the competition, but it could mean that they were profiteers," he said.