Apparel market in Australia
Australia is New Zealand’s largest and most established export market for fashion, taking close to 80 percent of total apparel exports.
Compared to many other countries Australia is coming through the global financial crisis relatively well and a number of New Zealand apparel exporters have commented that their Australian market sales are holding up well given downturns in other markets in the United States and Europe.
New Zealand apparel is seen as offering unique, innovative design and has a reputation for high quality. Awareness of New Zealand fashion has been boosted by the success of some of our leading designers in the market and by New Zealand Fashion Week which attracts a significant number of Australian buyers and media.
Getting your product into market
The Australian market is more exposed to competitive pressure than New Zealand and new entrants should be prepared for a stern test of their capabilities.
Having a point of difference and establishing a sought-after brand are key success factors in the crowded Australian marketplace.
Establishing a direct presence in Australia can be an expensive strategy. The use of agents or distributors may be a more realistic market entry strategy for a company with limited capital. Some new designers may start by selling direct to selected stores and building up interest in the label. Other options include a franchise operation.
In terms of physical distribution, New Zealand companies need to take into account the size of the Australian market. The distances between the major centres are large which means servicing clients in those areas can be more costly both for yourself or your agent e.g. freight can be expensive for small orders or returns, as well as travel costs to visit buyers.
Regulations
New Zealand (NZ) has a Free Trade Agreement (FTA) with Australia called Closer Economic Relations (CER) and therefore no tariffs apply to any apparel or footwear manufactured in NZ. However tariffs do apply to goods manufactured in other countries.
Opportunities
There are opportunities to grow apparel exports to Australia such as knitwear, sports and outdoor wear, corporate apparel, streetwear, children’s clothing, and fashion for plus sizes.
Opportunities also exist with specialist retailers for childrenswear, outdoor wear and knitwear.
