Clothing Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC F3713Revenue
$6.9bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
14,613
Businesses
2,487
Wages
$XXX.Xm
Clothing Wholesaling in Australia industry analysis
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.Despite some wholesalers sourcing their inventory from countries with lower production costs, the industry's profit margins have shrunk over the years. A high base year and rising price-based competition are the root causes. While the COVID-19 pandemic initially devalued demand from clothing retailers leading to a significant dip in revenue in 2019-20, increased government aid has played a huge role in raising disposable income and consumer sentiment in 2020-21. This created a surge in demand for clothing retailers, ultimately boosting orders for wholesalers. Industry wholesalers who had online platforms or catered to smaller retailers executing omnichannel strategies saw some profitability from this trend, which helped cushion overall losses in the industry's bottom line.Industry revenue is projected to decline at an annualised 2.2% over the five years through 2028-29, leaving the industry worth an estimated $6.1 billion. Factors like disposable income and consumer sentiment are set to improve, supporting demand at the retail level. Yet, the rise in online shopping and bypassing of wholesalers is to continue, challenging wholesalers. The bright spot for wholesalers could be catering to niche markets and providing higher-end goods.
Trends and Insights
- The Clothing Wholesaling industry is struggling as retailers increasingly bypass them, leveraging their global reach to source directly from low-cost manufacturers. This shift and small-scale producers selling directly to consumers via ecommerce are steadily eroding industry revenue.
- The Clothing Wholesaling industry responds directly to consumer preferences, replenishing retailers with in-demand apparel. This fashion-driven supply chain relies heavily on consumer spending trends to shape its product segmentation.
- The prevalence of wholesalers in New South Wales and Victoria can be attributed to these states' strategic locations. With most of these industry wholesalers importing from overseas, their proximity to major ports and airports optimises distribution and reduces transport costs.
- The Clothing Wholesaling industry is fiercely competitive, with wholesalers battling for those coveted licenses to distribute popular brands. Wholesalers carving out a niche in the market with quick, reliable service and competitive pricing stand to gain valuable repeat business.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 3.0 % over the past five years, to reach an estimated $6.9bn in 2023.
Trends and Insights
Downstream and upstream markets have been bypassing the wholesale function
- Wholesale bypass and online shopping trends have disrupted the industry's trade dynamics.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Shifts in sourcing and the popularity of online shopping are to dampen industry performance
- Global supply chains are set to improve, leading to more retailers bypassing wholesaling to source clothing directly from both local and overseas manufacturers.
Biggest companies in the Clothing Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Sunshine A Pty Ltd | 274.4 | |
Brand Collective | 205.8 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Men's clothing, Women's clothing and Children's clothing. Men's clothing is the largest segment of the Clothing Wholesaling in Australia.
Trends and Insights
The women's clothing segment faces challenges despite high demand
- Women's clothing, including dresses, sweaters and pants, forms the largest share of the industry earnings. Seasonality significantly impacts sales, leading women to replace their clothes more frequently than men.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Men's and Boys' Wear Manufacturing in Australia
- Women's and Girls' Wear Manufacturing in Australia
- Sleepwear, Underwear and Infant Clothing Manufacturing in Australia
- Clothing Retailing in Australia
- Knitted Product Manufacturing in Australia
- Leather and Leather Substitute Product Manufacturing in Australia
International industries
- Men's & Boys' Apparel Wholesaling in the US
- Women's & Children's Apparel Wholesaling in the US
- Clothing & Clothing Accessories Wholesaling in Canada
- Clothing and Footwear Wholesaling in New Zealand
- Clothing & Footwear Wholesaling in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Men's clothingWomen's clothingChildren's clothingInfants' clothingAccessoriesCompanies
Sunshine A Pty LtdBrand CollectivePurchase this report to view all 2 major companies in this industry.
Related Terms
VERTICALLY INTEGRATEDWHOLESALE BYPASSCLOUDIndustry Code
ANZSIC 3712 - Clothing Wholesaling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Clothing Wholesaling industry is struggling as retailers increasingly bypass them, leveraging their global reach to source directly from low-cost manufacturers. This shif...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The Clothing Wholesaling industry responds directly to consumer preferences, replenishing retailers with in-demand apparel. This fashion-driven supply chain relies heavily on...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The prevalence of wholesalers in New South Wales and Victoria can be attributed to these states' strategic locations. With most of these industry wholesalers importing from o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Clothing Wholesaling industry is fiercely competitive, with wholesalers battling for those coveted licenses to distribute popular brands. Wholesalers carving out a niche ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no dominant entities in the Clothing Wholesaling industry. Wholesalers often duplicate each other's inventory and discounting strategies, reducing their opportuniti...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Sunshine A Pty Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Brand Collective's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Sunshine A Pty Ltd, and factors influencing its performance in the industry
- Description and key data for Brand Collective, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Despite no direct government support, clothing wholesalers are influenced by any aid given to upstream manufacturers. The Federal Government’s push for trade liberalisation a...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wholesalers’ cost structures in various industries fluctuate based on their operational scale and product type. Purchases notably stand as the industry's heftiest expense, cl...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Clothing Wholesaling industry in Australia in 2024?
The market size of the Clothing Wholesaling industry in Australia is $6.9bn in 2024.
How many businesses are there in the Clothing Wholesaling in Australia industry in 2023?
There are 2,487 businesses in the Clothing Wholesaling industry in Australia, which has declined at a CAGR of 1.6 % between 2018 and 2023.
Has the Clothing Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Clothing Wholesaling industry in Australia has been declining at a CAGR of 3.0 % between 2018 and 2023.
What is the forecast growth of the Clothing Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Clothing Wholesaling industry in Australia is expected to decline.
What are the biggest companies in the Clothing Wholesaling market in Australia?
The biggest companies operating in the Clothing Wholesaling market in Australia are Sunshine A Pty Ltd and Brand Collective
What does the Clothing Wholesaling in Australia include?
Men's clothing and Women's clothing are part of the Clothing Wholesaling industry.
Which companies have the highest market share in the Clothing Wholesaling in Australia?
The company holding the most market share in Australia is Sunshine A Pty Ltd.
How competitive is the Clothing Wholesaling industry in Australia?
The level of competition is moderate and increasing in the Clothing Wholesaling industry in Australia.
