Australian fashion is internationally renowned for its casually elegant aesthetic – and many brands have already taken their collections to the global stage chasing the unparalleled opportunities for growth that lie beyond domestic borders.
By the end of 2024, the global fashion ecommerce market is projected to reach a staggering $1.19 trillion. Australia currently represents less than 1% of this market, with other regions showing significantly higher revenue potential: the UK is more than five times the size, and the US generates nearly a fifth of global online fashion revenue.
While international expansion has become a strategic imperative for Australian brands, increasing competition, skyrocketing advertising costs and shifting consumer preferences make direct-to-consumer growth extremely challenging.
The world’s biggest ecommerce platforms have rapidly evolved to give brands an alternative route to enter new markets, reach new customer segments and grow their revenue at scale.
The dynamics of a digital-first market
Digital marketplaces have emerged as the dominant force in online retail with more than 60% of all online spending now occurring on these platforms.
Alongside giants like Amazon, leading fashion retailers – including Macy’s, Nordstrom, John Lewis, Bloomingdale’s and Selfridges – have expanded their third-party brand capabilities to build their own online marketplaces, with longstanding brand recognition and major digital investments delivering significant market share.
Driven by these marketplaces, third-party ecommerce will continue to outpace direct-to-consumer growth with a forecasted 11.7% CAGR for third-party ecommerce between 2023–2028, compared to 6.6% CAGR for first-party channels.
But marketplace models come with significant challenges for brands. The internal resource required to operate marketplaces can be overwhelming, and high commission fees, tax regulations, technical integrations and logistical challenges can prevent brands from realising their potential for online growth.
Having experienced these issues firsthand, the founders of Refined Networks set out in 2021 to provide brands with a simpler path to marketplace expansion, and the tools to scale their businesses in key fashion markets.
An end-to-end solution for online growth
Refined Networks was founded by Sune Bjerregaard, Ian Wallis and Ben Barnett, who have overseen international expansion for various fashion brands, including Forever New, Levi’s, Topshop, Whistles, and Tiger of Sweden.
“Our platform takes away the complexities of global marketplace expansion, giving brands access to an extensive network of online platforms in the UK, US and Middle East,” says Sune Bjerregaard.
“Signing one contract with Refined Networks enables brands to trade on multiple platforms. They send us one set of product data and imagery – we adapt them to meet each platform’s specifications. As soon as the product arrives at our in-market warehouses, we handle fulfilment for every online order.”
Brands are also able to fulfil local orders from their own website using the same stock pool held for marketplaces, multiplying sales opportunities, reducing stock risk, and improving the ecommerce experience for international customers.
Understanding cultural nuances & customer demands
Sune Bjerregaard also highlights the hands-on, collaborative process that Refined Networks has developed as a key driver for growth.
“Our commercial team is made up of former buyers from John Lewis and Selfridges, as well as international directors, merchandisers and digital trading experts who have scaled major fashion brands.”
Their expertise is supported by the company’s proprietary technology platform, which brings together sales data from every brand and platform to deliver actionable insights that drive day-to-day trading and performance.
“With a firm understanding of the nuances of each marketplace, and the product preferences and purchasing behaviours of their customers, we can guide brands on the range they put into the market, ensuring their efforts are as profitable as possible while maintaining their distinctive brand positioning.”
More than 50 businesses have already partnered with Refined Networks to date, including Benetton Group, Lindex, Soeur, Aspinal of London and J.Lindeberg. While the potential rewards of marketplace expansion are undeniable, 38% of ecommerce brands still trade on only one marketplace and a further 10% don’t sell on marketplaces at all.
This presents a massive opportunity for the Australian fashion industry to capitalise on a significant shift in consumer spending – and claim its share of the global online fashion market.