Australia's fashion exports

In the cutthroat world of fashion, innovative design and strong branding are driving global markets, and Australian designers are leading the way.

The global fashion industry is tough—competitive and constantly evolving—but Aussie success stories such as Collette Dinnigan, Sass & Bide, Zimmerman and Akira, as well as many emerging Australian labels, are putting their stamp on runways around the world.

However, the statistics available on fashion’s contribution to exports are modest at best. The Council of Textiles and Fashion Industries of Australia (TFIA) estimates that the clothing manufacturing industry contributes $1.03 billion (2005–06) to the Australian economy, with around 6.8 percent (or $250 million) in total sales contributing to our exports.

New Zealand is by far the most significant country of destination for Australian clothing exports ($124 million in 2005–06). Figures in millions for other major destinations in the same period: Hong Kong ($30.1), UK ($18), US ($15).

But clothing represents just 1 percent of total manufacturing in Australia, and broader fashion sectors, such as accessories and footwear, aren’t even accounted for in the figures.

Many businesses in the fashion field are manufacturing offshore, with good commercial reasons for doing so. “A good international brand needs to be able to deliver large quantities of product, on time and at the right price, and you need a large manufacturing facility that’s extremely competitive in the global supply chain,” says Rob Sutton, national manager for consumer products at Austrade. But some specialist collections are still being produced in Australia, and in some cases by hand.

Mary Gualtieri, regional director of Fashion Group International’s Sydney chapter, says most niche or specialised products are manufactured locally as it’s easier to control the quality and manage smaller quantities and short production lead times, but she says most high-volume product is manufactured offshore to take advantage of better cost structures.

Brisbane-based design label Easton Pearson—established by Pamela Easton and Lydia Pearson in 1989—has been exporting its vintage ranges of womenswear for almost 10 years, using a combination of local and offshore manufacturing. Their garments are highly detailed, handcrafted and embroidered, primarily using natural fibres. The co-directors design all the decorative detail and patterns on the textiles, using artisans in India, Vietnam, and China to execute the work. The garments are then manufactured in the Easton Pearson studios in Brisbane.

On the other hand, seamless underwear label Nearly Nude, was developed in 2005 by Lucy Hosken, who intended to use an Australian manufacturer but found there was no one who had the machinery needed to produce her garments. She required the use of special Italian weaving machines that Chinese manufacturers also used, so was forced to manufacture offshore. “And of course China was going to be cheaper [than Italy] and it was easier for me to get there,” she says.

Designing Innovation

With more than 2,000 active fashion exporters delivering their goods overseas, export growth has been evident across the whole supply chain—from the cotton-grower and wool-maker through to designers and garment producers—but our innovative design sector has showed the most strength in recent years.

“There are a number of different specialty sectors and we’re now developing niches in different areas of expertise,” says Austrade’s Rob Sutton. “Australia is a design leader worldwide now, and that’s something Australians can be very proud of. If you look at the people who are producing outstanding modern design around the world, Australia is right up there, and people frequently ask us how we did that. I think it comes down to the great education that young designers are receiving in Australia. We’ve got a tremendous education platform, we’re very creative, we have a youthful lifestyle and outlook, and I think that’s the relevance to modern consumers around the world.”

Fashion Group International’s Gualtieri agrees. “Australian fashion is well regarded for its creativity with a constant flow of new emerging talent,” she says. “Australia has its own unique interpretation of fashion trends. International trends have some influence but, predominantly, our fashion is designed for the Australian market. Our colour palettes and fabrications are attuned to our climate and lifestyle.”

The Australian lifestyle is alluring, with our summer and spring collections proving most popular overseas. Swimwear and surfwear are strong exports—one only has to look at the enormous success of aussieBum and Billabong—as are other key sectors such as lingerie, ready-to-wear, evening wear, menswear, womenswear, and accessories.

The Aussie outback lifestyle has proved just as popular as our beach culture, with the likes of RM Williams and Driza-Bone becoming renowned overseas.

“Australian fashion is really making a difference, and the exciting thing is that fashion categories appear in newspapers and magazines on a daily basis around the world,” says Sutton. “People read about it as part of their everyday life, unlike some of the heavier industries. Fashion is a great leading story about Australia and our lifestyle, and it helps with our brand positioning.”