Australia's Fashion Industry Revival! What Does the Future Look Like According to Renowned Designers?

1｜Why a Revival Strategy is Needed Now

In recent years, Australia's fashion industry has been hit hard by increased U.S. tariffs, inflation, and logistical disruptions, leading to the withdrawal and downsizing of domestic brands. In response to this backdrop, the NSW Government unveiled the state's first comprehensive strategy on August 21, 2025. The objective is clear—to transform the industry from "aesthetic events" to a "profitable industry" by overhauling the entire system.NSW GovernmentGround News

2｜The Six Pillars of the Strategy and the A$750,000 Catalyst

The "Fashion Sector Strategy" of NSW aims to rebuild the backbone of the industry through the following six pillars.

• Fashion Hub: In collaboration with UTS (University of Technology Sydney) and the City of Sydney, a cooperative base for design to supply chain will be created.

• Smart Factory: The feasibility of an "integrated production base" that encompasses trial development, small-lot production, and distribution will be examined.

• Establishment of Export Routes: A system will be developed to allow young talents to conduct business negotiations at large overseas trade shows and showrooms (reports mention a permanent showroom concept in Paris).

• Skills and Education Review: TAFE NSW and UTS will lead the reskilling of human resources.

• Strengthening of AFW: Transforming the event into a "profitable event" by enhancing buyer attraction and international outreach.

• Collaboration with Cultural Institutions: Institutions like the Powerhouse Museum will expand audience engagement.
  Additionally, three funding programs for young and emerging talents (A$250k for export development / A$300k for First Nations support / A$200k for quick grants) will be launched, totaling A$750k to kickstart the initiative.NSW GovernmentRagtraderThe Australian

3｜The Lineup of "Big Backup"

The strategy's working group includes Alex Schuman, CEO of Carla Zampatti, and Edwina McCann, former editor-in-chief of Vogue Australia and News Corp, as co-chairs. Other notable members include Marc Freeman of Camilla and Marc, Anna Plunkett of Romance Was Born, designer Alix Higgins, First Nations representative Grace Lillian Lee, Lisa Havilah of the Powerhouse Museum, and Jaana Quaintance-James of AFC. The fact that industry, government, and academia are sitting at the same table is progress in itself.Ragtrader

4｜AFW: From "Showcase" to "Sales"

At the end of 2024, IMG, which had long operated AFW, stepped down, and the AFC (Australian Fashion Council) took the lead. The AFW in May 2025 was held for the first time under a non-profit model, attracting 320 buyers and over 1,300 industry professionals. The show structure shifted towards supporting wholesale. The NSW strategy's emphasis on strengthening AFW is to make the event function as a "business venue."Australian Fashion CouncilVogue Business

5｜How to Restore Domestic Manufacturing

To change the reality that 97% of clothing in Australia is produced overseas, a concentration of technology and investment is essential. In May 2025, the AFC, in collaboration with R.M. Williams, began developing a domestic manufacturing strategy. The NSW smart factory concept is essentially the "implementation version" of this trend, digitally uniting the quality and productivity of small factories and workshops scattered across the region, and aligning them with the commercial flow of small-lot, high-frequency production.ABC+1Australian Fashion Council

6｜Private Sector Tailwinds: Investment in Luxury

On the retail side, LVMH's luxury brand group is participating in the major renovation of Chatswood Chase. The phased opening will begin in October 2025, aiming to become the "next destination" between 2025 and 2026. As high-value consumption returns, there is potential for demand-supply synergy with policies that strengthen the supply side (domestic manufacturing/export).The Australian

7｜Social Media Reactions: Congratulations, Expectations, and Interest in Implementation

In conjunction with the strategy's release, NSW Government, AFC, UTS, Powerhouse and other related organizations posted on Instagram. The content conveyed commitments to "creating industry-wide hubs," "exploring smart factories," and "supporting young and First Nations talents," with comments expressing congratulations and expectations. There was notable support for returning to domestic manufacturing and investment in education, with interest in seeing whether the hub/factory concepts would be practical for the field.InstagramInstagram

8｜Key to Execution: Avoiding "Pie in the Sky" with KPIs

Over the three years from 2025–2028

, at least the following indicators should be monitored.

• Hub Operation Rate: Number of tenants, number of collaborative projects, number of successful business negotiations.

• Smart Factory: Feasibility of PoC→permanent establishment, improvement in quality, lead time, and CO2, reduction in average cost of small lots.

• Export: Amount of orders generated at showrooms and trade shows, number of new buyers.

• Human Resources: Retention rate of new employees and reskilled individuals from TAFE/UTS (6-month follow-up).

• Commercialization of AFW: Number of overseas buyers attending, order conversion rate.

• Social Impact: Outcomes of female employment (increase or decrease of 174,000 in NSW) and support for First Nations.NSW Government

9｜Risks: Labor Costs, Exchange Rates, and Supply-Demand Time Lag

Domestic manufacturing comes with high labor costs, and exchange rates can affect profits. To recover the initial investment in smart factories, a merchandise plan (MD) with high added value and fast turnover is necessary. Even if AFW becomes a "buying venue" for buyers, if the factory capacity cannot keep up, it will result in lost opportunities. Conversely, if factories are increased first without sales channels, it will lead to inventory. The lifeline of this strategy is to advance **policy (supply) × events (demand) × education (human resources)** simultaneously.Vogue Business

10｜Conclusion: Industrialization Beyond the Runway

The NSW strategy is not about appeasing field dissatisfaction with "subsidies." It is a blueprint to simultaneously launch business opportunities (AFW/showrooms in Paris, etc.), manufacturing infrastructure (smart factories), and human resource development (TAFE/UTS), creating a loop of design→production→sales→export domestically. Now that major players have committed, what is needed is KPIs and public verification. If indicators such as domestic production ratio, export value, and employment have moved in three years, it can be said that Australian fashion has shifted from a "showcase industry" to a "profitable industry."NSW GovernmentRagtraderThe Australian

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