Australian Fashion Industries Macroeconomic Situation
Migration patterns in Australia and policies have been changing in the recent decades due to imbalances in international development. This is not just because of the numbers but international immigrants who come to Australia and changed many workers who are skilled and few reunions of the family where there are more temporary students and workers and and government introduction of new categories of visa to be able to fashion outcomes.
Changing age structure
Australian fashion industry is able to create more employment opportunities to more that 50,000 skilled professionals in merchandisers and fashion designers. It has been investing heavily in the industry by having designer wear that are readily available in the market and shopping malls and there are many customers who are interested and exposed to the products of the industry.
Australian population by marriage
In the recent decades, a demographic hallmark shows global fertility decline due to the help offered by international movement for family planning where couples have been helped in countries that are developing to be able to transform and have a good timing of the number of children they want to have according to their choice by using methods of birth control.
There has been a case for lowering barriers to population movement buy advocating for market liberalization. National borders have become more permeable. The consequences of national identity and population composition are reviewed and the way Australia responds to the forces have major future on future political role in the region. Australia is in a position of responding with policies which are sound with data and research to help in formulating the policies. (Press, 2004).
This is a review and illustration of the relationship that exist between balance of payment and inflation and exchange rate of currency. All income and expenditures should be balanced where the income available should be able to meet all the expenditures that are incurred without having deficit in finances. The changes in general interest rate should be able to determine the way goods and services are supposed to be priced in Australian fashion industries.
Australian had to borrow money so that they can be able to pay for the oil which contributes increasing borrowing requirement and materially contributing to annual deficit. Due to the difficult in reducing the standard of living, people struggle to maintain their standard of living. Australian fashion industries work very hard to provide for high prices for oil that is very essential and export more of its finished products to repay the loans plus the interest charges instead of making their economic capability better and increase standards of living for its people.
When the general interest rate increases, lenders get increased profits internationally and within the country. this also makes the cost for borrowers to increase leading to inflation to the extent where loan interests increases costs and increase in inflation increase profits in big measure that the costs. Inflation increases the purchasing power of money where people in Australia will have too much but very few items to purchase.
Deficit in balance of payment is changed from deficit to surplus by invisible earnings which are high. Australian fashion industry can still invest more than payments surplus through investment abroad using foreign assets. When spare cash is available, it is possible to repay loan, invest abroad and get increased income. If the currency is weak, its purchasing power also becomes weak which makes it buy less making its prices increase. Devaluation of currency makes exports abroad cheaper and more payments for imports.
There is Australia plan that require young men and women who are unemployed to work in public assistance exchange which interferes with hunting for job in fashion industry making it a slave labor. The new program called work for dole sweep street and mow retirees who are paid $400 every month in unemployment assistance. The work requirement is fashion industry will become harder to get the needed skills due to less time for looking for fashion job and working for something that is alien to someones interest. (Centner, 2007)
technology help in developing skills in constructing and designing garments to professional level where it prepares students for pathway to fulfill their career in fashion design and get more employment opportunities. When new improved technology is used, it will create room for innovation and good quality products will always be produced that satisfies the needs of all potential customers and increase profitability of the fashion industry.
This is the process of promoting interdependencies and connectivity among many societies around the globe which have significant increase in depth, tempo and scope and transforms aspects of life for the Australian fashion industries. Globalization applies to contemporary phenomena and expanding interdependencies where the fashion industry will be able to market its products globally and increase its sales.
Internet help in online communication where Australia fashion industry use it to advertise its products globally. The advertisement persuades people to buy the products due to how they are described and their use to many people. The language used to communicate is very important and an experienced person is requiring making advertisement that will attract large number of people to purchase the products.
The vibrant fashion industry in Western Australia has clothing in wide range and related businesses. Small to medium size industries are found in regional and metropolitan areas. The employees are required to do the work of illustrating the fashion and patternmaking so that people can see that the fashion illustrated is matching with the one delivered to them for sale and is well labeled in the right quality. (Press, 2004)
Political and Legal
There is government commitment in long term programs for liberalizing trade in the Australian fashion industries. A wide range of positive incentives are given for the fashion industry to finance its productions and become internationally competitive. The fashion industry is supposed to operate legal business that is registered and pay the tax it required by the government to pay from the profits made.
The process of reducing import tariffs was began in 1987 where current tariff phase down to 2000 program that was set in 1991. The present government endorsed the phase down resulting to maximum rate of tariff where it was 25% in 2000. The pause in tariff is a broader package that encourages restructuring and greater international competitiveness with similar producing industries.
Care labeling ensure there is adequate and appropriate information for the consumers for them to be able to make fully informed purchases about caring costs, procedures and cleaning associated with purchase of textile and clothing products. This ensures there is prolonged life of products, there will be no damage to products in the course of care treatment and care givers know the proper and suitable treatments.
Product safety standards
It is mandatory to have standards for the safety of product in the review report of the committee on Australia standards. Consumer agencies have been concerned about the proper prescription of the products and this approach was proposed by department of industry. The care symbols used should be adequate and a balance between prescription and certainty of the consumer. (Tauris, 2007)
This is the beliefs and shared values of the people of Australia. some people may belief that the products are of high quality and purchase more of it making the industry to advance while other may not prefer to purchase their product from the industry. The willingness and ability to pay for the products depends of beliefs and values of customers.
The social and environmental global director told PETA that a clear briefing developments and terms of sourcing had been given not to use merino wool that are sourced from places where there is application of mulesing practices and there is rejection of Clip-mulesing by internal policy and another material should be selected unless there is clear confirmation that mulesing practices have been stopped.
Global warming has been weakening fashion industry in Australia. There has been no much difference between seasons anymore and overall trend moves towards warmer weather. the fashion industry rely more on delineated seasons to be able to sell apparel of different types but there cannot be wearing of flip flops in the whole year which makes sale of cloths to drop. Warm weather will always affect the styling and designers use.
Australian fashion designers maintain presence of brand by beginning to show trans-seasonal collections which help in and get more customers in northern hemisphere. Any designer has a lot of work for running different seasons and to ensure the brand remains competitive. Many of the products have turned out to be trans-seasonal which in fashion industries.
There are times when the weather is warm and consumers demand for cloths is very low. The industry makes fewer sales of its products because they are not needed in large quantities. During this time, employees are laid off because of lack of money to pay them their salaries and very little work to be done in the industries.
Reduction in natural resource
There is common myth of reduction scheme of carbon pollution being concern for only the big businesses. This may not be true because this scheme affects every organization, individual and businesses. Australian fashion industry should ensure that if it emits green house gas in significant amount, it is supposed to purchase permit for the carbon dioxide it releases.
Target market choices and attitudes
China is the biggest market that is emerging for the products of Australian fashion industry although there is still limited number of customers in their evaluation of to local brands that lack exploitation. Customers in countries that are less developed favor brands and products from countries that are developed because they have positive attitude towards the products due to the belief of them being of good quality. (Riley, 2007).
Australian fashion industry is very significant due to its high quality production that satisfies the needs of its customers. It is able to compete with other industry in the same line of production because ensuring that it gets customers from around the world that is willing and able to purchase its products all the time. (Ibp, 2005).