Clothing Wholesaling in Australia - Industry Market Research Report

Undersold: Rising wholesale bypass and falling demand from department stores hem revenue

The Clothing Wholesaling industry has struggled with declining revenue in recent years. Clothing retailers are circumventing wholesalers by leveraging their global reach, instead directly tapping into countries like China and Vietnam, known for their low production costs. Small-scale manufacturers have also started using ecommerce channels to sell directly to consumers, completely bypassing the traditional wholesale route. Weaker demand from retail outlets, particularly department stores, has further pulled down industry earnings. Although, the COVID-19 pandemic has been a silver lining, with some large retailers localising supply chains amid global disruptions, benefiting wholesalers to some extent. Despite this, the industry's revenue is tipped to dip at an annual rate of 3.0% over the five years through 2023-24, rounding off at $6.9 billion, including an anticipated 3.9% drop in the current year. A stronger Australian dollar is influencing consumers to buy overseas in 2023-24, as are recovering supply chains and improved shipping times.

Industry companies wholesale clothing by purchasing stock from clothing manufacturers and then selling the garments to retailers, generally with little or no development of the items. Most industry wholesalers perform sales and administrative activities, such as establishing relationships with manufacturers and retailers to ensure a reliable supply and demand of stock, marketing and advertising their products, and transporting and storing stock.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.