In 2025, China is still on the top position among the leading apparel exporters to Australia. However, this dominance is being challenged by other countries. Latest trade data shows that while over half of all garments entering Australia come from China, its once firm grip is easing as retailers steadily widen their sourcing base. Australia’s apparel sourcing in India has also increased, along with other Asian countries like Bangladesh, and Vietnam.
Australia’s apparel imports rose 3.07% in January-June 2025, reaching $3.93 billion, up from $3.81 billion a year earlier, according to TexPro data. Imports from China also grew during this period by 2.84% to $2.31 billion, but the increase was slower than overall import growth.
China’s Lead Under Pressure with Apparel Sourcing India on the Rise
Despite retaining a stronghold of over 50%, China’s share of Australia’s apparel imports has shown a steady decline over the last three years:
- 61.80% in 2022 ($5.08 billion out of $8.23 billion total imports)
- 59.01% in 2023 ($4.44 billion out of $7.53 billion)
- 57.56% in 2024 ($4.53 billion out of $7.88 billion)
The first half of 2025 has continued this trend. According to analysis, this decline is a compound impact involving:
- Disruptions in supply chains
- Evolving trade agreements
- Efforts to diversify sourcing models
Emerging Alternatives
Other Asian suppliers have been steadily gaining ground:
- Bangladesh: $437.3 million (11.14%)
- Vietnam: $350.4 million (8.92%)
- India: $157.7 million (4.02%)
- Indonesia: $125.7 million (3.20%)
This shift reflects the ‘China+1’ sourcing approach. Retailers are still reliant on China but are establishing their production contacts in other markets that they deem cost-effective. This way, retailers spread the risk as they don’t have to depend on a single supply base.
For Australian retailers, this change isn’t just about chasing lower costs. With consumer spending still subdued and companies managing stock levels cautiously, there’s a growing focus on making supply chains more reliable and resilient over the long term.
China will almost certainly remain Australia’s largest supplier for years to come, but apparel sourcing from India and other Asian suppliers is gradually reshaping the sourcing mix into something more balanced and competitive.
Attribution:
Source: This summary draws from an article first published by Fibre2Fashion on 8 August, 2025.
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