Two in five Australians say finding sustainably made items is important to them, according to a joint fashion report between the Australian Fashion Council (AFC), the Australian Retailers Association (ARA) and Afterpay.
Despite the growing trend in sustainable shopping, 60.1% say it’s too expensive, 47% say it’s difficult to find sustainable brands and two-thirds (40%) say there aren’t enough Australian sustainable brands.
The ‘Australian Fashion’s New Era’ report suggests that the heightened focus on sustainability has led to a sharp rise in recommerce, with over two-thirds (67%) of Australians saying that they’ve bought or sold second-hand clothing and 17% reporting that they resell garments on platforms such as eBay, Depop and Facebook.
Meanwhile, nearly half (45.8%) of Australians are buying at least one item of clothing every month, with price being their top consideration when shopping (83%).
The report assesses how the fashion industry has changed since 2020. AFC CEO Leila Naja Hibri, who wrote the foreword for the report, said it comes amid a shifting macroeconomic climate.
“At a time when the industry is facing inflationary pressures, combined with shortages of skilled workers and materials, we need to transform outdated business models to better support a thriving, resilient industry,” Hibri said.
“Australia has long overlooked the economic power of its fashion and textile sector. Fashion contributes more than $27.2 billion to the national economy and employs over 489,000 people, 77 per cent of whom are women.
“This report reflects an exciting opportunity to achieve a socially, environmentally and economically prosperous industry that better serves our fashion workforce and the Aussie consumer.”
The report also covers the growing diversity and inclusivity sector of the fashion industry, noting that 13% of Australians are more likely to purchase from brands that offer gender-fluid products.
However, more than a quarter (27.2%) believe that Australian brands don’t offer enough in the way of gender-fluid fashion.
Women are more comfortable crossing gender lines, with almost half (44%) saying they’re likely to purchase clothing and accessories that aren’t explicitly for females, while 26% of men say they are likely to purchase items that aren’t explicitly for men.
Meanwhile, 40% of Australians report that they struggle to find clothes in their size in some brands. Although, more than six in 10 (61.6%) Australians believe that Australia’s fashion campaigns and runways are somewhat more inclusive than counterparts overseas.
According to ARA CEO Paul Zahra, fashion retail has had a rollercoaster ride over the past few years, with current challenges across cost-of-living, supply chain pressures and shifting consumer habits.
“Despite the challenges brought about by the pandemic, the industry has shown resilience and adaptability to achieve strong results,” Zahra wrote in the report.
“One trend becoming increasingly important in the fashion industry is circular economy initiatives. Consumers are ever more conscious of their environmental impact, and this is reflected in their purchasing decisions.
“Brands that align with their views and values on diversity, equity, and inclusion (DEI) and sustainability are more likely to attract and retain customers.”
Zahra added that retailers with flexible return policies are also performing strong.
“The nature of the fashion industry means that clothes don’t always fit perfectly, and customers appreciate the option to return items hasslefree,” he wrote. “Brands that offer free and easy returns are more likely to build customer loyalty.
“Businesses that best respond to emerging trends and changing habits will be best placed to navigate these challenging economic times.”
The report was released as part of Afterpay Australian Fashion Week.