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Clothing manufacturing
Business start-up guide
Clothing manufacturing
industry overview
Operators in the clothing manufacturing industry buy
fabrics and materials from textile producers, then cut
and sew these fabrics to make clothing items. The
clothing is then sold to retail and wholesale firms for
resale to customers.
The manufacturing industry has declined over the past
decade. This decline is mainly due to greater
outsourcing of manufacturing to countries with lower
production costs.
Starting or buying a clothing manufacturing business
involves many essential steps. These steps include
purchasing equipment, establishing yourself as a
brand and marketing your products.
This guide explains how to start a clothing
manufacturing business in Queensland. It will help you
understand the challenges and opportunities of
entering the clothing manufacturing industry so you
can make good business decisions.
Getting into the clothing
manufacturing industry
Before you start a clothing manufacturing business in
Queensland, you need to understand how the industry
works and what things you may need to consider in
your planning.
Finding a competitive edge in
Queensland’s clothing
manufacturing industry
In Queensland, there is strong competition from
international clothing manufacturers who compete on
price because they have lower labour and production
costs. However, there are ways you can give your
business a competitive edge.
If you manufacture clothing for a niche market and
establish yourself as a recognised brand, you can
compete with less well-known brands manufactured
overseas.
Your competitive edge can also be in technological
innovations or being energy efficient and using
sustainable design principles. These factors can help
build your reputation and bring you loyal customers.
Key success factors for a clothing
manufacturing business
To start a successful clothing manufacturing business,
you need to:
establish yourself as a recognised brand
access niche markets
have marketing expertise
hire a skilled workforce
access the latest available technology and
most efficient techniques
be able to expand your operations in line with
demand
be able to access retailers who can sell your
clothing
be able to export your clothing.
Clothing manufacturing industry
entry barriers
The major barriers to entry in the clothing
manufacturing industry are the high costs of branding,
advertising, equipment and distribution. Start-up costs
may be high, as equipment and machinery needed to
manufacture clothing can be expensive. You should
also be aware of ongoing costs, such as advertising,
which is essential in terms of attracting and retaining
customers.
(Source IBISWorld, March 2012)
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