Australian Market Report
November 16, 2012
The following is a brief report on the Australian Market and Wortleys by principal Ben Wortley.
The Australian furniture industry continues to have a tough time, with continued weak consumer sentiment reducing consumer spending on non-essential items. The well documented Australian “two speed economy” created by our sustained mining and resources boom, has not greatly benefited the general retail community for a number of reasons. Primarily, those that are benefiting from the high incomes tend to be working on a “fly in fly out” basis and hence are not spending money on their homes, as are there for only a short period of time…..put simply they are spending their high disposable income on larger ticket items like cars and travel…not furnishings!
Wortley Group has continued its focus into segments where there is either growth or greater protection from the current market challenges. Our aim is to provide the highest level of service through our highly trained Account Managers, and distribution systems.
Whilst the retail furniture market is tough with continued price pressure with the dominance of cheap imports, there are signs of recovery in the commercial segment with more activity in the hospitality, resort, apartment markets. Coated products have increased in popularity in this segment where clients are looking for low maintenance and high performance solutions. Wortley has been in the forefront in this category, and have just launched an amazing array of coated products boasting resistance to bleach , alcohol and even acetone!
Textile trends in Australia continues on a more conservative trend of plain linen looks, in a neutral pallette, however clients are now accenting with bold multi coloured patterns. Wortleys are catering well for this category, offering beautiful textured plain looks, that also possess remarkable durability, all locally stocked in our Melbourne distribution facility.
The drapery market is showing some signs of growth with a potential move away from blinds and shutters to a more feminine and homely dressing of the window. This has been reflected with our growth with Ashley Wilde products, a brand which is gaining a strong foothold in this segment.
Our leather business which has been an integral part of the company’s 60 years history, continues to expand and grow, as clients seek consistency and quality from their leather supplier. Wortley’s now offer over 500 leathers to the Australian and overseas markets. Our expansion in the interior design segment has been intentional, and now a substantial part of the business, marketing internationally renowned brands including Duralee, Highland Court, Ashley Wilde, Linwood, plus Tasman and Gosh leathers.
The growth the company has enjoyed over the past three years has been driven by an unwavering focus on marketing quality products and brands, and working closely with our clients who look to us for consistency in supply and service. Certainly, the outlook is cautiously positive, and if the world circumstances stabilise, Australian consumer confidence will return and the industry will begin to expand again! —Ben Wortley