Australia, Fashion Industry Explores Digital Sourcing as India Trade Expands

SYDNEY - Dec. 20, 2024 - PRLog -- The 2024 implementation of the Australia-India ECTA has spurred Australian fashion retailers to explore direct manufacturing partnerships in India.

Trade projections show growth targets, with Indian textile and apparel exports to Australia to increase from USD$392 million to USD$1100 million over the next three years.  Eliminating customs duties under ECTA has created new opportunities for Australian fashion retailers to optimize their sourcing strategies.

The southern hemisphere's seasonal buying patterns are reshaping traditional manufacturing schedules," notes Kuntal Amin, Vertical Head (Fashion & Home Textiles) at rivexa. "India's established manufacturing infrastructure and growing sustainability credentials attract Australian buyers."

Sourcing apparel from India

India's manufacturing sector has become more accessible to international buyers following trade policy updates and initiatives like 'Make in India.' Market data shows increasing interest from international buyers exploring supply chain diversification. During this time, 95% of Indian imports headed towards Australia are tariff-free, a number that will likely rise to 100% by 2026.

Digital sourcing platforms are playing an increasingly important role in this trade interest. These marketplace platforms encompass supplier verifications, logistics integration, secure transactions, and quality assurance protocols for easier global apparel trade.

These digital platforms implement manufacturer verification systems, including site audits and compliance checks, to address supply chain reliability concerns. The direct-to- manufacturer model offers enhanced transparency in pricing and compliance documentation while facilitating access to verified manufacturing networks.

Sustainability goals:

"There is a clear shift in sourcing preferences," observes Amin. "Australian consumers' sustainability concerns directly influence buying decisions at the manufacturing level."   Australian fashion market data reveals an evolving consumer landscape where environmental considerations influence purchasing decisions.

While fast fashion retailers hold a strong market presence, industry reports show a growing consumer demand for transparency in production methods and environmental impact. Additionally, practical factors like quality and price points also drive buying patterns.

Supply chain diversification:

Recent supply chain disruption in Bangladesh has led global retailers to reassess their apparel sourcing strategies, with delays and communication issues affecting production timelines. Meanwhile, rising labor costs and trade complexities in China are prompting fashion retailers to explore diverse manufacturing partnerships.

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Tarang Shah
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