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Designer fashion market in Australia

Australia is New Zealand’s largest and most established export market for fashion. It is an attractive first market for designers given the size and nature of the retail sector, the relative ease of doing business and the duty-free status of New Zealand manufactured apparel.

New Zealand apparel is seen as offering unique, innovative design and has a reputation for high quality.

The Australian market is competitive with fashion labels targeting all segments of the market.

Some niche sectors in the apparel industry are forecast to grow faster than others including:

  • boutique designer fashion market in inner city Melbourne and Sydney
  • sportswear and surf wear
  • children's clothing.

It’s estimated that department stores account for around 40 percent of total clothing sales, small independent operators 20 percent and the rest coming from franchised and chain stores. Women’s clothing is estimated to account for 40 percent of total retail clothing industry revenue; headwear, hosiery and accessories for 25 percent and menswear 20 percent.

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Getting your product into market

Being innovative and establishing strong brands are key to success in a very crowded marketplace.

Most New Zealand fashion labels sell through an agent or distributor, although new designers may start by selling direct to selected stores and building up interest in the label.

The majority of fashion agents in Australia are state-based which means designers may need to appoint several agents to achieve desired coverage.

New Zealand designer fashion is sold mainly through upmarket independent boutiques and department stores. While the Australian retail sector is large compared to New Zealand, designer labels can quickly reach saturation. The higher the price-point the greater the exclusivity required to maintain brand desirability.

In terms of physical distribution, New Zealand companies need to take into account the size of the Australian market. Distances between major centres are large which means servicing clients can be more costly both for yourself or your agent.

The Australian buying seasons for designer fashion are April-May for spring and summer and September-October for autumn and winter although in general buying times are creeping forward.

Regulations

New Zealand goods are given preferential treatment and can enter Australia duty free under the Australia New Zealand Closer Economic Relations Trade Agreement, provided they meet criteria under the Rules of Origin test.

Opportunities

  • There are significant opportunities to grow designer apparel exports to Australia. Opportunities also exist in a range of niche apparel sectors such as knitwear, sports and outdoor wear, corporate apparel, streetwear, children’s clothing, and fashion for plus sizes.

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