In this op-ed, RMIT fashion industries expert Dr Carol Tan asks local fashion retailers how they thrive in a challenging retail landscape.
The Australian fashion industry is under immense pressure. Mosaic Brands is grappling with creditors, while Ally Fashion has announced the closure of over 50 stores. Both David Jones and Myer are reducing their floor space. Economic uncertainty and declining retail sales are being compounded by the rise of online and ultra-fast fashion retailers like Shein and Temu.
However, some fashion entrepreneurs are thriving. For instance, Radical Yes, an Australian fashion brand known for its durable and stylish flat shoes designed for modern women, has seen a 17 per cent increase in online sales in 2025, contributing to an overall boost in sales.
There are lessons here to be learned by the big brands on how to be more customer-focused, values-based, agile, and, ultimately, successful. Here are five key lessons that fashion retailers can draw from successful entrepreneurs in the industry.
1. Build a Customer Focused Mindset
Building genuine relationships with customers is crucial for success. Kerryn Moscicki, the founder of Radical Yes, has always believed in treating customers as partners in the creative process. Listening to customer feedback and incorporating it into their designs transformed Radical Yes into a community of creative women who felt deeply invested in the brand. This approach created a strong sense of belonging and loyalty among their customers, making them feel like an integral part of the brand's journey.
Brands need to communicate with their customers to understand their diverse needs and lifestyles, particularly with respect to the product development process. Radical Yes gains insights into customer preferences and behaviours through various channels. Conversations in retail stores provide invaluable direct feedback, social media interactions help them understand style choices and engage on a personal level, and website feedback offers insights into online experiences and product preferences. This multi-dimensional approach allows Radical Yes to create products and experiences that truly meet the diverse needs of their customers.
Lyn McPherson, who has operated in the fashion industry in various businesses for over 30 years and director of Thread Group Australia, identified that brands need to understand what true service is. This starts with the internal team understanding the need to provide exceptional service. For example, implementing an easy to navigate IT program that offers tailored capability, providing quick responses to customer requests.
Similarly, Aidan Clarke, co-founder of 2XU and founder of SA1NT, the world's first single-layer motorcycle ‘unbreakable’ denim brand, which combines fashion and the protection needed for riding stated, “To any brand struggling with traditional retail, I would ask, What do you do in store to enrich your customer experience, to stand out differently and disruptively, or surprise and delight?”
2. Live and Breathe Your Core Values
Staying true to core values is another key lesson. Radical Yes is guided by four core values: Creativity, Communication, Consideration, and Community. Kerryn explains that these values are not just words on a document but are integral to their decision-making and daily operations. Creativity involves embracing curiosity and flexibility in everything they do, from designing products to solving everyday challenges. Communication is about maintaining open and honest dialogue with the team, suppliers, and customers. Consideration means prioritising thoughtful design and sustainable practices, while Community focuses on building connections and supporting various educational and not-for-profit initiatives. These principles act as their 'decision-making' compass and are revisited regularly in their daily huddles, weekly work in progress meetings (WIPs), and team ideation sessions for problem-solving.
Jess and Stef Dadon, founders of TWOOBS, a certified B-Corp company, also emphasise the importance of values in their business practices. Values are ingrained into everything they do. They explain, “These are not boxes the brand needs to tick, or values that are just discussed during the onboarding process and then never revisited again. They are the brand, and they sit behind every internal conversation, every business decision, every campaign.”
They have built their brand on transparency and trust. They have shared their journey openly, including their mistakes. This transparency created a strong bond with their community, fostering trust and loyalty. Jess and Stef believe that this honesty has been crucial in building a loyal customer base that feels connected to the brand's mission. This approach is particularly important in a time when global trust is extremely low.
“There is no shortage of cheap products on the market at the click of a button, so, connecting with the hearts and minds of consumers through speaking to their values has never been more important. Figure out what you care about, speak about it with passion, and let your customers see your humanness.”
3. Embrace Ethical, Social, and Sustainable Practices
Social, ethical, and sustainable practices are key to the growth of any business. However, brands need to be very careful that they are not engaged in greenwashing. Lyn McPherson from Thread Group Australia believes that having an ethical, social, and sustainable focus is key to the growth of any business. “If this is not at the forefront, you will be left behind. You need to make sure that you are walking the talk.”
This needs to be integrated into the culture of the business internally for it to reflect in all other facets of the business. Fashion brands need to think of business as “Business for good, as opposed to business for business sake.” These practices should be integral to the business culture, ensuring that the company stays relevant and forward-thinking.
Jess and Stef of TWOOBS recall how their commitment to the environment was solidified after attending a 2019 climate rally in New York City. This experience led them to redesign their product and business model with a strong environmental focus. They believe that creating eco-friendly footwear designed for longevity is not just a business strategy but a moral imperative.
Similarly, Outland Denim, a company that was founded with a mission to provide sustainable employment and training opportunities to women who have been victims of human trafficking and exploitation, has built its reputation on sustainability and ethical production.
Founder, James Bartle, emphasises the importance of purpose in design, stating, “Something that we reiterate to our designers season after season is - You need to tell me why this product needs to be in the market? Why does that pair of jeans need to be created? If you can't answer that question, then I don't believe it should be in existence. In fact, I would even go as far as saying, if you can't answer that question, you're actually part of a problem.”
4. Experiential Retail
Despite the rise of e-commerce, providing a unique in-store experience can attract and retain customers. Aidan Clarke of SA1NT highlights the appeal of experiential retail. For example, their head office retail store attracts customers through a fun environment and display of classic cars and motorbikes. Customers are able to try on sizes, relax with a drink on the couch, take in the scenery, and chat with fellow motorcycle enthusiasts. This keeps customers flowing into a remote, low foot traffic location.
The performance of their SA1NT HQ store has encouraged them to consider more similar pop-up locations. Aidan believes that enhancing the in-store experience to stand out and delight customers is essential for success in the retail industry. This approach not only attracts customers but also creates memorable experiences that foster loyalty.
5. Adapt and Innovate
In times of crisis, adaptability is crucial. Innovative brands are continuously learning, pivoting, and exploring new ways to engage with their customers. Continuous innovation is key to staying ahead in the market. Lyn McPherson believes that brands “need to investigate how they can leave the world with a better footprint than what is often currently being considered”.
For example, innovation can mean encouraging mills to experiment with different fabric mixes or using repurposed fabrics, rather than using a new fabric every time. Similarly, innovation in fabrics is what made SA1NT the business they are today. SA1NT jeans are engineered to be impact and abrasion resistant. Dyneema, the world’s strongest fibre, is woven into their motorcycle pants, giving the fabric a 6-second slide time, protecting the rider’s skin if they fall off their motorcycle. SA1NT is the world's first single-layer moto denim.
Overall, fashion brands that are successful in today’s competitive market are values-led and cultivate strong communities around their products. These brands maintain closer communication with customers, both in-store and online, allowing staff to gather valuable feedback and understand what resonates with their audience.