From billion-dollar GDP contributions to shifting consumer trends, the Australian fashion industry is a dynamic economic powerhouse worth examining beyond the runway.
Key Takeaways
- In 2023, the Australian fashion industry contributed AUD 28.4 billion to the national GDP, accounting for 1.2% of total GDP
- The apparel manufacturing segment alone generated AUD 1.2 billion in revenue in FY2023, down 3.5% from the previous year due to import competition
- Fashion retail sales reached AUD 27.1 billion in 2022-23, with online sales comprising 22.4% of total sales
- The industry employed 250,000 people directly in 2023, representing 2.1% of total employment
- Fashion retail sector provided 180,000 jobs in FY2023, with 45% part-time roles
- Apparel manufacturing jobs numbered 15,000 in 2023, down 12% over five years
- 78% of consumers aged 18-34 purchased fashion online in 2023 survey
- Sustainable fashion preference rose to 67% among Australians in 2023, up from 52% in 2021
- Average annual fashion spend per capita AUD 1,250 in 2023
- Fashion exports totaled AUD 1.1 billion in FY2023, up 5.2% YoY
- Imports of apparel reached AUD 12.4 billion in 2023, 85% from Asia
- Key export markets: USA AUD 250 million, UK AUD 180 million in 2023
- 47% of fashion brands used sustainable materials in collections 2023
- Industry water usage totaled 1.2 billion litres in FY2023
- 35% reduction in carbon emissions targeted by 2030, 12% achieved by 2023
The Australian fashion industry contributes billions to GDP while navigating shifts in consumer trends and sustainability demands.
Consumer Behaviour
- 78% of consumers aged 18-34 purchased fashion online in 2023 survey
- Sustainable fashion preference rose to 67% among Australians in 2023, up from 52% in 2021
- Average annual fashion spend per capita AUD 1,250 in 2023
- 41% of shoppers bought fast fashion in past month per 2023 survey
- Online fashion purchases averaged 4.2 per consumer yearly in 2023
- 55% of women prioritized price over brand in 2023 buying decisions
- Gen Z (born 1997-2012) spent 32% more on athleisure in 2023
- 29% returned online fashion purchases in 2023, average return rate
- Brand loyalty in fashion dropped to 38% in 2023 from 45% in 2020
- 64% influenced by social media in fashion buys per 2023 poll
- Average basket size for fashion e-commerce AUD 85 in 2023
- 52% of consumers shopped sales/discounts monthly in 2023
- Vegan/leather alternative preference 23% in 2023 survey
- Mobile app usage for fashion shopping 48% in 2023
- Impulse buys accounted for 37% of fashion purchases in 2023
- 71% read reviews before buying fashion online 2023
- Seasonal purchases peaked at 60% in spring 2023
- Loyalty program participation 49% among fashion shoppers 2023
- Size inclusivity influenced 34% of purchases in 2023
- Subscription box fashion users grew 18% to 120,000 in 2023
- 39% of men increased fashion spending post-2022
- 76% of fashion waste recycled by consumers in 2023 self-report
- 68% of Australians aged 25-44 owned fast fashion items in 2023
Consumer Behaviour Interpretation
Australian youth are digitally savvy and idealistically shopping for a sustainable future, yet their online carts are still filled with fast fashion impulse buys, revealing a telling and expensive disconnect between aspiration and action.
Economic Impact
- In 2023, the Australian fashion industry contributed AUD 28.4 billion to the national GDP, accounting for 1.2% of total GDP
- The apparel manufacturing segment alone generated AUD 1.2 billion in revenue in FY2023, down 3.5% from the previous year due to import competition
- Fashion retail sales reached AUD 27.1 billion in 2022-23, with online sales comprising 22.4% of total sales
- The luxury fashion segment grew by 7.8% YoY in 2023, valued at AUD 4.3 billion, driven by high-net-worth individuals
- Total industry revenue for clothing retailing was AUD 25.6 billion in 2023, with a CAGR of 2.1% over the past five years
- Footwear retailing contributed AUD 4.8 billion to the economy in FY2023, facing 1.9% decline due to e-commerce shifts
- The Australian fashion market size was estimated at AUD 32.5 billion in 2023, projected to grow at 3.4% CAGR to 2028
- Textile manufacturing revenue stood at AUD 2.1 billion in 2023, with a 4.2% annual decline over five years
- Fast fashion segment sales hit AUD 12.3 billion in 2023, representing 43% of total apparel retail
- Independent fashion brands generated AUD 3.7 billion in 2022, up 5.6% from 2021
- The industry paid AUD 15.2 billion in wages and salaries in 2023, supporting economic multipliers
- Fashion e-commerce revenue reached AUD 6.1 billion in 2023, with 28% growth rate
- Second-hand fashion market valued at AUD 1.8 billion in 2023, growing 15% YoY
- Sportswear segment revenue was AUD 5.4 billion in FY2023, up 6.2%
- Bridal wear market size AUD 1.2 billion in 2023, stable post-COVID
- Children's apparel retail hit AUD 3.9 billion in 2023, CAGR 2.8% over five years
- Menswear segment valued at AUD 7.2 billion in 2023, growing 3.1%
- Womenswear dominated with AUD 14.5 billion in 2023, 52% market share
- Lingerie and underwear market AUD 1.1 billion in FY2023, up 4.5%
- Accessories fashion revenue AUD 2.7 billion in 2023, 5.8% growth
- Total fashion industry taxes paid AUD 2.9 billion in 2023
- Revenue per employee in fashion retail averaged AUD 245,000 in 2023
- Profit margins in apparel manufacturing averaged 3.2% in FY2023
- Cost of goods sold for fashion retail was 65.4% of revenue in 2023
- Marketing expenses for fashion brands averaged 8.1% of revenue in 2023
Economic Impact Interpretation
The Australian fashion industry is a tale of two wardrobes: while the luxury and second-hand sectors are thriving (thanks, high-net-worth individuals and eco-savvy shoppers), our local manufacturers are getting squeezed tighter than a pair of last season’s fast-fashion jeans.
Employment
- The industry employed 250,000 people directly in 2023, representing 2.1% of total employment
- Fashion retail sector provided 180,000 jobs in FY2023, with 45% part-time roles
- Apparel manufacturing jobs numbered 15,000 in 2023, down 12% over five years
- Women comprised 72% of the fashion workforce in 2023
- Average weekly earnings in fashion retail were AUD 1,250 in 2023
- Youth employment (15-24) in fashion was 28,000 jobs in 2023, 11% of sector total
- Full-time fashion jobs averaged 38.5 hours/week in 2023
- Turnover rate in fashion retail stood at 22.4% in 2023
- Indigenous employment in fashion reached 2,500 jobs in 2023, up 8%
- Casual workers made up 55% of fashion retail staff in FY2023
- Manufacturing roles declined by 1,200 in 2023 due to automation
- Designers and buyers numbered 12,000 in 2023, 5% growth
- Retail sales assistants in fashion: 95,000 jobs in 2023
- Managers in fashion sector: 25,000 positions in 2023
- Apprenticeships in fashion manufacturing: 1,800 active in 2023
- Unemployment rate in fashion industry was 4.8% in Q4 2023
- Migrant workers comprised 18% of fashion workforce in 2023
- Overtime hours averaged 2.3 per week in fashion retail 2023
- Job vacancies in fashion retail: 15,200 in Nov 2023
- Underemployment in sector at 9.2% in 2023
- 62% of fashion workers had vocational qualifications in 2023
- 45-54 age group largest in fashion employment at 28% share in 2023
- Regional fashion jobs: 45,000 outside major cities in 2023
Employment Interpretation
Australia's fashion industry is a quarter-million-person-strong tapestry where the vibrant threads of retail (heavily stitched with part-time, casual, and youthful labor) are trying to cover the bare patch of a shrinking manufacturing base, all while being deftly held together by a predominantly female workforce whose pockets aren't quite as full as the racks they stock.
Sustainability
- 47% of fashion brands used sustainable materials in collections 2023
- Industry water usage totaled 1.2 billion litres in FY2023
- 35% reduction in carbon emissions targeted by 2030, 12% achieved by 2023
- 62% of consumers demanded eco-labels on clothing in 2023 survey
- Textile waste generated 140,000 tonnes annually in Australia 2023
- Recycled content in new garments averaged 15% across brands 2023
- 28% of production used organic cotton in 2023, up from 18% 2020
- Microplastic shedding from synthetics: 500 tonnes/year from laundry 2023
- Zero-waste pattern cutting adopted by 22% of designers 2023
- Energy consumption in manufacturing down 18% since 2018 to 2023
- 75% of major brands committed to net-zero by 2050 in 2023
- Chemical pollution from dyeing reduced 25% industry-wide 2023
- Circular economy initiatives covered 40% of market value 2023
- Biodiversity impact: 15% of brands assessed supply chains 2023
- Repair services utilized by 31% of consumers in 2023
- Biodegradable packaging used by 56% of retailers 2023
- Scope 3 emissions reporting by 48% of listed fashion firms 2023
- Upcycled fashion sales grew 22% to AUD 450 million 2023
- Water recycling in factories reached 65% efficiency 2023 average
Sustainability Interpretation
While the industry deserves half-credit for good intentions on the sustainable materials front, it’s clear the road to actual eco-credentials is paved with consumer demand for labels, a mountain of textile waste, and a dishearteningly small pile of recycled content in our actual closets.
Trade and International
- Fashion exports totaled AUD 1.1 billion in FY2023, up 5.2% YoY
- Imports of apparel reached AUD 12.4 billion in 2023, 85% from Asia
- Key export markets: USA AUD 250 million, UK AUD 180 million in 2023
- Footwear exports grew 9.1% to AUD 320 million in FY2023
- China was top import source at AUD 4.2 billion for apparel 2023
- Trade surplus in textiles negative AUD 10.3 billion in 2023
- EU fashion imports AUD 1.8 billion, up 7% in 2023
- Australian brands exported to 45 countries in 2023
- Duty-free apparel imports valued AUD 8.9 billion under FTAs 2023
- Knitwear exports AUD 150 million, primarily to Japan 2023
- Import tariffs averaged 5.2% on non-FTA apparel in 2023
- Online cross-border fashion imports AUD 2.1 billion in 2023
- Vietnam supplied 22% of apparel imports AUD 2.7 billion 2023
- Export growth to ASEAN countries 12% at AUD 400 million 2023
- Luxury fashion imports from Italy AUD 450 million in 2023
- Domestic content in exports averaged 65% for apparel 2023
- Bangladesh imports AUD 1.5 billion, 12% of total apparel 2023
- Trade fairs generated AUD 50 million in export deals 2023
- India as emerging export market AUD 80 million growth 2023
- Second-hand fashion exports AUD 120 million to Asia 2023
- 92% of fashion production offshored in 2023, imports dominant
Trade and International Interpretation
The Australian fashion industry has become a world-class designer and marketer of its own identity, but it stubbornly insists on wearing clothes made almost entirely by its overseas neighbours.
Sources & References
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