Clothing stores are suitable businesses for Australian market.
Let's face it, formerly known "first world countries" becoming progressively the retail centers.
Almost the entire production is made in China, most of the service in India and the rest... are just consumer shops.
Unfortunately, Australia is not exception to this rule.
This is a good news for clothing store owners.
However, as with other attractive ideas, the competition in the clothing store industry is also strong. There are many brave entrepreneurs who try to run their own retail outlets. Nevertheless, the clothing store franchises are the biggest winners in the garment and shoe market.
Clothing franchises are not cheap. You can purchase a new site for $200K or an existing one for $450K. The clothing store franchises win not because of the better product but because they have the greater insight into the clothing industry. Distributors, designers and wholesalers prefer to work with larger companies rather than the independent outlets.
Clothing store franchises are all about location. You can make a lot of money in the busy shopping center or merely meet the day's end in the quiet suburban outlet. The clothing franchises (or independent clothing businesses) are not as simple as waiting for the customer to sell the product. You require a strategy to inflate and discount prices at the right time. The seasonal changes, new releases and the celebrity trends are just few aspects which will determine the price. The comfort, bulk sizes and practicality will further decide on how you will market and sell the product.
The sport clothing franchises are quite popular.
For starters, parents are more keen to invest into their kids rather then into themselves.
Sportsco and Athlete's foot are probably the best clothing franchises which offer sports gear.
Athlete's foot has been operating since 1976 and has close to 100 stores. Athlete's food is a shoe specialists, which delivers athletic and leisure footwear to its customers. During the last decade the company has showed an amazing growth.
Sportsco is a true sportswear clothing store franchise. The company has been operating for 25 years and offers own as well as outside brands.
The casual clothing franchises are our next choices. For starting entrepreneurs, the Franchy's Fashion Factory are excellent outlets. This clothing store franchise is designed to service high street urban and suburban street locations. What's more, the Franchy's Fashion Factory is pretty affordable. Individual, fully stocked franchises start at $25K. The company has a good product, large clientele and decent price - it is a great starter towards a potential success.
There are other specialised clothing franchises.
The Safety Shop is an example of the clothing store franchise, which offers safety boots, clothing, workwear and protective eyeware.
The Safety Shop does not have the easily sellable products.
A lot of the approved safety gear can be purchased from the major supermarkets and retailers.
However, the concept provides very good diversity for other clothing businesses you may already have.
Another specialised clothing store franchise is Aussie Disposals. Aussie Disposals sells outdoor and camping gear. Apart from camping clothes and the footwear, the company sells tents, camping accessories, fishing gear, etc. Aussie Disposals is a very good concept in Australia. Most of the merchandise is Australian-made and fits well into the outdoor lifestyle of Australians.
Generally, you will need about $250K to purchase a clothing store franchise.
Fortunately, the price will include the stock, fees and the fit-out.
It is not a bad idea to try to buy a "green" site (the term used by retailers to describe a new outlet).
These new and untested franchises often cost half the price of the established outlets. This is particularly true with the Aussie Disposals. The company charges about $250K for the new site and up to $550K for the established business. Generally, your clothing store franchise should bring you an annual net profit of 25%-30% of the total investment you dedicated into the business.