Australia has a large, sophisticated and highly competitive fashion and clothing market. The industry is going through an important transition: traditional retailers are under pressure from rising costs and cautious consumers, while online fashion, activewear, direct-to-consumer brands, marketplaces and specialised niche brands continue to create opportunities.
A particularly important point is that Australia is heavily dependent on imported clothing. ABS data shows a substantial trade deficit in textiles, clothing and footwear; in May 2026, the deficit was about A$2.0 billion for the month.
Current situation of the Australian fashion & clothing market
The market can broadly be divided into:
- Women’s fashion
- Men’s fashion
- Children’s clothing
- Activewear and athleisure
- Streetwear
- Workwear
- Luxury/premium fashion
- Sustainable and ethical fashion
- Modest fashion
- Plus-size/inclusive fashion
- Shoes, bags and accessories
- Fast fashion
- Online-only/DTC fashion brands
- Second-hand and resale fashion
The overall market is healthy in terms of consumer demand but difficult in terms of profitability. Many established retailers are experiencing pressure. For example, Country Road Group reported its third consecutive annual loss in FY2026, while Culture Kings also experienced declining sales in Australia and New Zealand. These examples demonstrate that having a recognised brand does not automatically guarantee growth in the present market.
At the same time, some Australian brands are performing strongly, particularly businesses with a distinctive identity and strong digital/community marketing. Australian activewear is a good example: brands such as Lorna Jane and LSKD have benefited from the continuing shift toward comfortable, everyday athletic clothing.