Innovations in the textileindustry comprise of both; product innovation wherein new products aredeveloped and process innovation giving cost reduction, and improved quality. Australianclothing industries have been the first among the Western countries to face opentrading arrangements and internationalized markets. Fabric industry is a partof their retail trade division. Activities related to clothing, and itsmarketing remains a major part of the country's economy and an important sourceof employment especially in the urban areas. The Australian clothing market isfragmented based on their income, gender, age, body type and aestheticpreferences, and are further defined by lifestyle preferences.
Australian Fabric Industry:
Fabric industry in Australia is one of the major domestic industries both in terms of supply for domesticconsumption and exports. The reason behind this is the availability of vastland stretch for producing natural fibres, innovation in technology and adequatefinance for the same. Initially textile industries in Australlia weremanipulated by a few key players in each segment. But downstream, the industrybecame fragmented with many small businesses.
The total population of Australia is only one third as that of UK whereas; the land area is 30 times larger. The size of itsclothing market is only one seventh of its size. This makes the Australianmarket thin in size as to international standards. Australia has a causallifestyle and moderate climate. This has an effect in the spending pattern ofAustralians, making them to spend less on clothing; comparatively with otherWestern countries. During 2005-06, the clothing retail turnover wasapproximately $10 billion AUD.
Cost structureof the Australian Fabric Industry
Australia lies in the southernhemisphere, and its seasons are just opposite to those of Europe. This puts Australia 'six months behind' in the global fashion trends. The fast fashion trend ofEurope takes a long time to reflect in Australia. As, its location is close toAsia, it has enabled Australia's firms to access China's mass producingcapacity with cost effectiveness. As a result, much of the textiles sold inAustralian markets are from China.
Renowned Brands:
Australia has a large number ofsmall businesses involved in clothing retail. A sizable proportion of clothingis sold in lifestyle stores that combine both clothing and sports products. Retailoutlets like Rebel Sports, Ray's Outdoors, Mountain Designs, and Kathmandu are examples for this. Brands like Van Heusen, Midford, Bracks, Paramount,Nautics, Maui & Sons, Mambo and SMP brands are also popular. Women's wearbrands like Rochford, Contempo, Voodoo Dolls, Playboy, French Kitty, Itsu, andIvory, and mens wear brands like Roar, Town & Country, Crusty Demons, Hope& Glory, Blueprint, and Globallocal have a substantial position in themarket.
Woolen Industry:
Australians have compassion with wool. 25% of the woolen fabrics produced worldwide; come from Australia. With a small proportion of population, and improved methods of sheep breeding, most of the wool produced in Australia is exported. During the early ages, woolen fabrics were sold in unsystematic or speculative ways like selling through private contract in country towns or on the road into Melbourne and Sydney. Later, during the 19th century, sale was done by auctions developed with the support of wool brokers.
The woolen industry of Australia generates approximately $3.5 billion in export revenue. It provides employment for more than 100,000 wool growers, brokers, and exporters. New South Wales is the main wool producing state having over 36% of the flock, followed by Western Australia which accounts for 22% of the flock. Victoria shares 19% of the woolen market, and then it is South Australia with 12%. Most of the wool is sold through public auction system and held at one of the five major wool selling locations situated around Australia. The Australian Merino, that produces heavy fleece and fine wool, contributes to 75% of all the woolen fabrics manufactured, 12% are from the cross breeds of Merino and xBorder Leicester, 9% by dual purpose breeds used for both meat and wool, and the remaining 4% make other types. Vast majority of Australian wool is being converted into yarn through the worsted processing system.
However, the industry is also being targeted by the animal rights people asking to boycott Australian wool by global retailers. The Australian Government is being persuaded by these people to ban the live exports and animal husbandry practice of mulesing.
Alpaca Fleece:
It is a natural fiber similar to sheep's wool. These are natural fibres obtained from Alpaca. This silky, fibre is admired for its light weight, soft and luxurious features. In Australia, they are available in 12 different shades like black, brown, brownish black, blue black, fawn, white, silver grey, and rose-grey. The original fibre of the animal itself is a colored fibre in beautiful hues and can be spun in their natural state making an undyed product. These days, people generally prefer to have natural products. Processing, carding, spinning and weaving of alpaca are very similar to that of wool. Due to the successful manufacture of alpaca clothes there is an increased demand for this fibre exceeding the native products. It is more preferred as an outdoor sports wear due to its light weight, warmth, and comfort.
Cotton Industry:
Australia contributes to 12% of the global exports of cotton. Their cotton fabric industry is mainly reliant on exports selling almost 95% of their annual production in the global market. 80% of their cotton is grown in New South Wales, and remaining in Queensland. Australian cotton is being admired for its virtues and gets a premium over most competitors in the global market. During 2007, global demand for cotton surpassed its supply, of which Australia's cotton was sold for three years in advance. Major Key players of the cotton fabric industry are Namoi Cotton Co-operative Ltd, Queensland Cotton Holdings Limited, Auscott Limited, and Dunavant Enterprises Ltd.
The history of Australian fabric industries reveals the fact that clothing industries does not diminish due to high wage economies. Australian textile fabric industry has contributed to 5% of the total value added manufacturing in Australia. Their fabric industry is undergoing a rapid transformation manipulated both by regional economics and advancements in technologies.
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