Clothing and footwear repairers are expected to record a surge in demand over the five years through 2012-13, with industry sales rising by an annualised 5.4%.
Unlike traditional retail trade services, demand for clothing and footwear repairs has been driven by a lack of consumer confidence and a softer retail market across the domestic economy as a result of the financial crisis of 2008.
Mounting uncertainty about the stability of domestic markets and household finances led to a shift in consumer trends towards greater usage of clothing and footwear repair services. Industry demand over the past five years has also been driven by the growing popularity of up-cycling, whereby old clothing garments are transformed into new items. Trading conditions across the clothing and footwear repair industry were also influenced by trends in disposable income, interest rates and population growth.
Industry sales are set to rise by 5% to $540 million over 2012-13. Demand for clothing and footwear repair services will benefit from the reputation operators have established with consumers over the past five years.
Sales will also be aided by a projected rise in interest rates, which will lead consumers to make greater use of repair services as opposed to buying new products. Demand is also likely to be driven by the growing popularity of up-cycling clothes to turn older items into new garments.
Clothing and footwear repairers are projected to post steady growth over the next five years, with sales rising from $553.5 million in 2013-14 to $624.1 million by 2017-18, or by an annualised 2.9%.
Demand for the industry's services is expected to be largely driven by the downturn in consumer sentiment over this period. Sales growth for clothing and footwear repairers will also be fuelled by rising interest rates and volatility in disposable income levels.