Future of Apparel industry in Australia

Future of Apparel industry in Australia

The Australian apparel industry has faced several challenging over the past years, with intense competition, cautious consumer spending, and higher rent costs affecting overall profits and revenues of the business. The national economic uncertainty over the past years has made consumers cautious about spending.

Australia apparel industry is a competitive market. Internationally, Australia is best known for its outdoor clothing, beachwear, urban wear and high fashion apparel. Currently there are more than 2,000 companies export fashion and over 5,000 fashion labels in Australia. The range of activities involved in bringing clothing and related products to the market remain a major component of the national economy and an important source of employment in Australia.

Due to low labor-cost countries in South Asia such as Bangladesh, Pakistan, India, and China were able to export their products and compete with other companies. In order to compete and survive, Australian apparel companies developed offshore outsourcing activities.

The South Asian countries dominate the Australian import market due to its low cost. Formerly, Australia has high selling prices for apparel products. These higher prices were reflective of the mark-up of the distribution chain which is influenced by the higher labor costs and smaller volumes.

The name of Pakistan is among the top countries where the major apparel brands of the world run their overseas production and manufacturing processes. A company name zega apparel which manufactures cut and sew apparel is based out of Mississauga Ontario Canada, but produces goods from Pakistan.

Some Australian companies have experienced extreme paradigm shifts that have encouraged them to outsource their apparel manufacturing. Through outsourcing a company can focus on its resources, both financial and human, on the areas that increase profits and revenues. With the production outsourced, companies can increases its revenues and profit margin through a better focus on sales and marketing.

Apparel manufacturing companies like Zega Apparel, Stylus Apparel and Vapor Apparel provides various customization options to clothing companies worldwide and through their sound communication system they can provide the best quality customize products to their clients according to their requirements by following strict guidelines given by the company or brand. With the advent of Internet and Ecommerce many apparel factories in the countries like China, Pakistan, Bangladesh and India has built up a thorough communication channel that allows clients, brands and apparel companies worldwide to order. With a good understanding of the apparel manufacturing business, Australian brands and companies has built a good online reputation and communicate with foreign companies with ease.

The Australian Apparel Industry revenue is expected to expand at a compound annual rate of 3.3% over the five years, with growth largely driven by the expansion of online sales channels according to the IBIS world report.

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