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Where do most Australia's & New zealand's Clothes come from? Are clothes manufactured in Australia & New zealand? - Synerg

Clothing Manufacturers in Australia and New Zealand: Where Do Most Clothes Come From?


Clothing manufacturers in Australia still exist, mostly small workshops in Melbourne and Sydney, but they make only a tiny share of what Australians wear. Local production accounts for around 3% of the market, and the rest is imported, mainly from China, Bangladesh, Vietnam, and India. New Zealand follows the same pattern. This guide answers where most Australian and New Zealand clothes come from, whether clothes are still manufactured locally, and how brands in both countries choose between local and overseas production.

The short answer: Are clothes manufactured in Australia? Some are, but local production is only around 3% of the market. China supplies close to 60% of Australia’s apparel imports, followed by Bangladesh, Vietnam, India, and Indonesia. Under the Australia-India trade agreement, Indian clothing now enters Australia duty free, as do garments from China, Bangladesh, and Vietnam under their own agreements. New Zealand also imports most of its clothing, with small local makers focused on premium and merino ranges.

Where Do Most Australia’s Clothes Come From?

The table below shows Australia’s top five apparel suppliers in the first quarter of 2024, the latest detailed breakdown available, and their duty access.

Country Share of Australian Apparel Imports Duty Into Australia
China About 59% Zero under the China-Australia agreement
Bangladesh About 12% Zero as a least developed country
Vietnam About 8% Zero under regional trade agreements
India About 4% Zero under the Australia-India agreement
Indonesia About 3.5% Reduced or zero under regional agreements

Australia’s standard duty on clothing is 5%, but most of the main suppliers now pay nothing. Australia’s apparel and clothing accessory imports reached around AUD 13.9 billion in the eight months to February 2025. China’s share has been slowly falling as brands diversify, with Vietnam gaining most; India’s share is small but has room to grow now that the 5% duty is gone. Always check current figures with Australian trade statistics.

Are Clothes Manufactured in Australia?

Yes, but on a small scale. Clothing manufacturers in Australia are mostly small and medium workshops in Melbourne and Sydney producing samples, short runs, uniforms, and premium or locally made ranges. High wages and rents make volume production uncompetitive, so most garment manufacturers in Australia focus on speed, small quantities, and the “made in Australia” story. Brands that want proof of fair local production can look for Ethical Clothing Australia accreditation. If you are searching for clothing manufacturers in Sydney Australia, expect sampling studios and small-run makers rather than large factories, and the same is true of Melbourne. Many of the best clothing manufacturers in Australia also manage offshore production for their clients.

Are Clothes Manufactured in New Zealand?

New Zealand has a small clothing industry too. Clothing manufacturers in New Zealand are mostly boutique makers in Auckland, Wellington, and Christchurch, along with specialists in merino wool garments, a natural strength given New Zealand’s wool. Even well-known New Zealand merino brands produce much of their range overseas, and like Australia, New Zealand imports most of its everyday clothing from Asia. Are clothes manufactured in New Zealand at volume? Rarely; local production suits premium, wool, and short-run ranges. For brands comparing clothing manufacturers in New Zealand with overseas options, the same trade-offs as in Australia apply.

Local or Overseas: How Australian and New Zealand Brands Decide

Factor Clothing Factory in Australia or NZ Overseas Manufacturer
Cost per garment High Lower, with zero duty from most main suppliers
Lead time Short Production plus about three to five weeks by sea
Order size Very small runs possible Minimums per colour, such as 300 pieces
Best for Samples, uniforms, made-local ranges Core collections, knitwear, kidswear at volume

When you compare clothing suppliers in Australia and overseas, judge them on landed cost, reliability, and sample quality, not just the factory price. Apparel manufacturers in Australia are ideal for testing and top-ups; overseas partners carry the core range. Many Australian brands also research clothing manufacturers Australia Reddit threads for peer experiences, which are useful as long as you verify every supplier yourself.

Our Experience With Australian and New Zealand Brands

We work with brands across Australia and New Zealand, including Novile, an Australian and New Zealand corporate clothing company that places its corporate orders with us. Corporate and uniform orders show why overseas production works for this market: consistent quality across repeat orders, branded trims and labels, and pricing that suits large staff programmes, now with zero duty into Australia for Indian-made garments. Australian brands can see our pages for t-shirts for Australian brands, hoodies for Australian labels, kidswear for Australian brands, and ethical clothing manufacturing for Australian brands.

Our recommendation

Use local clothing manufacturers in Australia and New Zealand for samples, small runs, and made-local ranges, and an overseas partner for core collections. With zero duty on Indian garments into Australia, compare India on landed cost for cotton knitwear, kidswear, and corporate orders. Our knit orders start at 300 pieces per colour per style, take 75 to 90 days from purchase order to shipment, and are inspected to AQL 2.5.

Frequently Asked Questions

Are clothes manufactured in Australia?

Yes, but only around 3% of the clothing Australians buy is made locally, mostly by small workshops in Melbourne and Sydney. The rest is imported, mainly from China, Bangladesh, Vietnam, and India.

Where do most Australia’s clothes come from?

China supplies close to 60% of Australia’s apparel imports, followed by Bangladesh at about 12%, Vietnam about 8%, India about 4%, and Indonesia about 3.5%.

Are clothes manufactured in New Zealand?

Some are, mainly by boutique makers and merino wool specialists, but New Zealand imports most of its everyday clothing from Asia.

Is there import duty on clothing into Australia from India?

No. Under the Australia-India Economic Cooperation and Trade Agreement, the 5% duty on Indian clothing was removed, so qualifying Indian garments enter duty free. GST still applies.

How do I choose clothing manufacturing companies in Australia or overseas?

Use local makers for samples, short runs, and made-local ranges, and overseas manufacturers for core collections. Compare on landed cost, reliability, and a real production sample.

Karthik Shan - The Synerg

About the Author: Karthik Shan

Karthik Shan is the founder and CEO of The Synerg, with 20+ years in the Tirupur textile hub. He publishes practical playbooks for brands on fabric GSM, costing (CM/CMT), AQL quality standards, and export-ready production.

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