Fueled by the consistent growth in household disposable income, formal menswear annual revenue also steadily increases at 2.0 per cent rate in the past 5 years (2013-2018) (IBISWorld, 2018). The growth of this industry is due to both micro and macro factors, which is forecasted to continue raising in the next 5 years.

What is Included in Formal Menswear Retailing?
The market is segmented based on a great variety of suits, shirts, ties and jacket. Retailers also operate in different channels such as brick-and-mortar store or online store or a combination of both.
Formal menswear retailing’s revenue in 2018 reached to 355 million USD with a total of 385 businesses and 1930 employment.

Factors Driving Formal Menswear Retailing Revenue
1. The Increase in Office-based Work
IBISWorld (2018) also explained the rising in demand mostly comes from the growing prominence office-based jobs for men.

2. The Raising of Australian Consumers’ Wealth
Demand has been further boosted by the increasing wealth of Australian consumers. This also opens more opportunity for the industry because consumers are expected to wear formal attire in less formal settings.

3. The Declining Cost of Formal Menswear’s Production
Different from the past, suits are not something too pricy for everyone to buy. Due to the reduction of costs in formal menswear products, consumers are more motivated to purchase this type of product. One of the reason of this decline is because retailers directly source from off-shore manufacturers. This trend will be explained more below.

4. The Increment of Consumers’ Access to Information
Consumers have more options regarding men’s fashion and have to opportunities to access information online. While more and more companies offer free products or trial services for consumers, Australians also become more opened to try new product (Delloitte, 2018).

What Does This Mean to Industry’s Players?
1. Custom-made Suit is Added as a Popular Service by Prominent Players
Prominent industry players have added custom-made tailoring to their product ranges. Not surprisingly, consumers have been well receiving this trend. For example, Hugo Boss and Peter Jackson are leading brands in this industry. Besides, Formal Red is one of the long history players in custom-made suit market. The business has been dedicating its expertise in high-end suits for gentlemen in Melbourne.

2. New Players Are Attempting to Enter the Game
Due to the demand growth, new players are enticed to enter the industry. Meanwhile, players who are already in the market also looking to expand their store networks. This will make the industry becomes more competitive in the near future.

3. Retailers Cut Costs by Directly Sourcing from Manufacturers
As mentioned above, retailers have increasingly cut operating costs by directly sourcing from manufacturers. An article published in McKinsey (2014) stated: “With consumers unlikely to tolerate higher apparel prices, companies are forced to find other solutions to relieve margin pressure.” One of the most effective ways is directly sourcing from offshore manufacturers. Their research also shows that most apparel players are looking to move a portion of their manufacturing out of China and into some surprising new sourcing markets.

Conclusion
In conclusion, formal menswear retailing industry has been performing well and is expected to positively continue this trend in the next 5 years. While demand from consumers is increasing, brands are also finding more opportunities to exceed consumers’ expectation. This is a great chance for both new and current players to enter and thrive in this market.

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Contact information
Company name: Formal Red
Store address: 218 Nicholson Street, FITZROY VIC 3065
Website: https://formalred.com.au/
Email: [email protected]
Phone number: 03 9495 6299

About Us
Established in 2003, Formal Red has become one of Melbourne's most popular destinations for men's suiting and the first choice for the Grooms of Melbourne. We offer our clients an endless choice by offering three services under the one roof. Tailor Made, Ready to Wear and Suit Hire.

References:
IBISWorld 2018 https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/consumer-goods-services/formal-menswear-retailing.html
Deloitte 2018 https://www2.deloitte.com/au/mobile-consumer-survey
McKinsey 2014 https://www.mckinsey.com/industries/retail/our-insights/whats-next-in-apparel-sourcing