Business Analysis Valuation

ACCT5910 Business Analysis & Valuation

Group Project Cover Sheet

We declare that all syndicate members contributed equally to the completion of the Project except for:

_______________________________ whose estimated contribution was ___¬¬¬¬-_______% *

(Name of student)

and

_________________________________ whose estimated contribution was ___¬¬¬¬-_______% * (Name of student)

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Student Name Student Number Signature

1 Jiahao Chen 3295626

2 Wenwen Cao

3 Chengrong Bao

4 Ke Zhi

5

ALL syndicate members must sign this statement

* This percentage (an amount less than 100%) will be the percentage of your syndicate's project mark awarded to the named student.

Industry analysis

The Australian apparel industry can be categorized as relatively small, competitive and well-serviced by domestic manufacturers. Because of increasing pressure from imports, competitive retailing stores and drop in prices, apparel retailers are looking for new strategy to gain a market share. Some companies have differentiated their products by specializing and offering only a single item, such as sportswear. Some sell product that is unique in the market. Most of the companies have moved to the mid- to high-end of the market.

This industry is very competitive. Currently there are more than 5,000 fashion labels in Australia and over 2,000 companies doing export. The local brands compete with each other by using their own advantages and strengths to occupy their market share as much as possible. Domestically, due to the fact that consumers would require them in their daily lives, the demand for clothing is price-sensitive, which results in a high buyer barging power.

Presently, entering free trade agreements with China, Malaysia has become an important issue for local clothing manufacturers. Although existing tariff reduction schedules would be protected by these agreements, the whole industry concerns more on non-tariff barriers and intellectual property issues.

In current prices, based on observations from Australian Bureau of Statistics, Clothing, footwear and personal accessory retailing decreased by 0.1% in February 2011. The trend estimate dropped at Clothing retailing (-0.1%) but increased for Footwear and other personal accessory retailing (0.1%) by industry subgroup. The seasonally adjusted estimate went up for Clothing retailing (2.0%) and went down for Footwear and other personal accessory retailing (-1.0%).

Therefore, we have reasons to expect a positive trend in the retailing industry with the promising in the economy.

Country Road Limited

Company background

Country Road (CTY) is dedicated in the business of selling fashion apparel, accessories, home wares and home furnishings. The products are sold mainly in its retail stores, major department and specialty stores. With 60 retail stores, 80 concession outlets, and over total 2000 employees in Australia and New Zealand, CTY has regained control of the market and become