Industry heavyweights have warned Australia\u2019s fashion sector is facing a perfect storm that threatens to collapse iconic brands like a \u201chouse of cards\u201d, crushed by cost-of-living pressures and global online giants.<\/p>\n
It comes as household Aussie fashion brands go under at a rapid rate, with Cue, Veronica Maine, Betts, Wittner and Jeanswest entering administration in the past 18 months, following the collapse of Mosaic Brands the year prior \u2013 the giant behind Katies, Millers, Noni B and Rivers.<\/p>\n
Renowned Australian fashion designer Alex Perry revealed he was forced to shift his business focus overseas to stay viable, warning domestic labels are being choked by heavy taxation and soaring operational costs.<\/p>\n
\u201c(You have to) find where your place is. I\u2019ve found that my place in business, unfortunately, is not home. It\u2019s every other country,\u201d Mr Perry said. \u201cIf I hadn\u2019t done that, I wouldn\u2019t have a business today in Australia because it can\u2019t support my business.\u201d<\/p>\n
Falling consumer spending was compounding the pressure on local retailers.<\/p>\n
\u201cWe\u2019ve got a real cost of living crisis and people are really feeling it. Anything that is a luxury spend or anything that\u2019s not necessary, people cut back on,\u201d Mr Perry said. \u201cFashion is one of those things. People tighten their belts.\u201d<\/p>\n
Australian Fashion Week founder and ORDRE Group CEO Simon Lock warned the retail carnage will only deepen as global online platforms target Australian shoppers.<\/p>\n
\u201cIt\u2019s a real combination of things, and quite frankly, unfortunately, I think it\u2019s only going to get worse,\u201d Mr Lock said.<\/p>\n
\u201cWe all saw the impact that Shein had, and the other international cross-border retailers who see Australia as a prime target because of our high spending capacity.\u201d<\/p>\n
Shoppers are also backing calls for a crackdown on foreign e-commerce platforms.<\/p>\n
New research by the Growth Intelligence Centre found 56 per cent of Australians polled support a \u201cfast fashion tax\u201d on ultra-cheap giants like Temu and Shein to protect local stores.<\/p>\n
To survive, Mr Lock urged Australian retailers to focus on brand value and in-store experience rather than competing on price.<\/p>\n
\u201cDon\u2019t focus on a race to the bottom on pricing because the Australian industry will never win on a race to the bottom. It\u2019s all about adding value to your brand,\u201d he said.<\/p>\n
Mr Lock stressed that physical stores must evolve into places of experiential \u201ctheatre\u201d to entice shoppers back into brick-and-mortar locations.<\/p>\n
He highlighted Byron Bay surf label McTavish as a masterclass in retail theatre \u2013 where stores offer coffee, hospitality and community rather than a hard sell \u2013 while pointing to powerhouse label Zimmermann as proof that clever local brands with a distinct identity can still flourish.<\/p>\n
Retail experts said middle-market labels were caught in a trap between changing habits and high physical store costs.<\/p>\n
Retail Doctor Group CEO Brian Walker said legacy retailers were facing a brutal reality as consumer preferences evolve away from traditional office attire toward casualwear.<\/p>\n
\u201cThe customer essentially has moved faster than the retailer,\u201d Mr Walker said. <\/p>\n
\u201cThe traditional tailored corporate wardrobe became less central. Fashion became more casual. <\/p>\n
\u201cAustralian retail isn\u2019t killing these brands at all. What\u2019s happening is their customers are progressively withdrawing permission for them to exist in their old form.\u201d <\/p>\n
Queensland University of Technology marketing professor Gary Mortimer said remote working habits and inflexible commercial leases were also accelerating the wipe-out.<\/p>\n
\u201cI don\u2019t think we can discount the impact of work from home where even if you\u2019re working from home two days a week that\u2019s two days where you\u2019re not necessarily getting dressed up to go to the office,\u201d Professor Mortimer said.<\/p>\n
\u201cOne of the biggest costs are wages, but also rent and lease costs. Many of these stores are tied into five or ten year leases, which means if you\u2019ve got 60 stores across Australia and 20 of those stores are running at a loss, you can\u2019t just exit those locations.\u201d<\/p>\n
Despite his frustration, Mr Perry admitted fashion couldn\u2019t expect special treatment when the government was grappling with broader community issues.<\/p>\n
\u201cI don\u2019t know that we can put our hands up and have a boo-hoo moment. It\u2019s like, \u2018Oh, you\u2019re not looking after the fashion industry\u2019, because they\u2019re not looking after a lot of industries,\u201d he said. \u201cWe\u2019ve got more important things with youth crime on the streets and people being unsafe. You just keep your head down and keep working.\u201d<\/p>\n
He pointed out that iconic labels started on grassroots launch pads that are far harder to come by today.<\/p>\n
\u201cI remember Zimmermann used to have a stall at the Paddington Markets. They started in that way, and now they\u2019re arguably the most successful Australian brand,\u201d Mr Perry said.<\/p>\n
\u201cThat would be a very different story for a young designer starting today. I don\u2019t know how they begin because we don\u2019t have these multibrand stores. I don\u2019t know that the environment here is conducive for them.\u201d<\/p>\n
The Back Australia series is supported by Harvey Norman, Ampol, Bunnings, Qantas, AAMI, Journey Beyond, Gippsland Critical Minerals and News24.<\/p>\n","protected":false},"excerpt":{"rendered":"Industry heavyweights have warned Australia\u2019s fashion sector is facing a perfect storm that threatens to collapse iconic 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