Interview with Michel Abeysekera

Major structural and economic reforms (tariff reductions etc.) are almost complete for the TCF sector. It is the micro levers that need attention. For example, monitoring of product complies with Australian Standards, IP and copyright legislation, flexibility in the TCF labour regime, product safety and monitoring of labels and advertising claims on packaging to ensure false claims are not being made etc. Given the high volume of imports this presents huge challenges for local industry and creates an unfair competitive environment. There are also issues in skill shortages and access to qualified technicians / machine operators who can run new state of the art machinery. As Australia is a small market for such equipment, overseas machinery suppliers seems reluctant to provide technicians in Australia on a permanent basis. In the last four years, there has been a 28 percent decline in local manufacturing, jobs as well as trend is escalating in cloth manufacturing. It is yet to become clear that how detrimental this will be for emerging designers and local brands who have built loyalty through the ‘Made in Australia’ point of difference. Bricks and mortar retailers are finding it ever more competitive with the recent appearance of global brands entering in the Australia’s market. They are also competing with an online GST free under $1000 threshold given offshore brands a 10 percent advantage.

There are always opportunities for new entrants to join Australia’s market – as long as they have a unique proposition and have done their homework into what is required and what works. Australia has multiple sectors within the textile industry from defence and protective-wear to automotive, furnishings and construction, so there are still many opportunities available. There is no question with the low tariffs and Australian dollar trading above parity is making market conditions highly competitive. And, those companies who survived to do so because they have innovated and produced a value added niche product. Australia can no longer compete with the high volume cheap product. With a shrinking local manufacturing industry the successful textile companies are the ones that took a collaborative approach to grow both locally and internationally and that are now focusing on the safe use of chemicals. Additive manufacturing and 3D printing holds huge opportunities for Small to Medium Enterprises (SMEs) and will eventually reshape both the textile and apparel industry.

TFIA is working hard with both state and federal government to ensure the Australian TCF industry is a vital part. Some of the TFIA’s work includes collaborating with government departments such as Brand Australia and Austrade and participating in trade missions; the hosting of trade delegations to Australia and other promotional events. Showcasing a united TCF industry that works together to improve the entire sector and strengthening opportunities is a significant part of sector; as it is providing program support for new research and development, capital investment and skill development.

For the last 70 years, TFIA has represented the textile, clothing and footwear (TCF) industries in Australia. Below is a summary of various roles undertaken by the TFIA: Government: As the acknowledged voice of the TCF industry, TFIA provides advice to governments and their agencies - ensuring that member companies have input into the policy and legislation that affects their businesses. TFIA is able to provide counsel on understanding application, eligibility and guidelines. They may also on a fee-for-service basis assist member companies on submissions and applications for these assistance programs. Industry Support: TFIA assists all TCF stakeholders to be competitive in an increasingly challenging marketplace. This assistance is far ranging and customised to individual needs but can vary from things like a letter of recommendation, distribution of government bulletins to simple introductions and business intelligence through its networks. Standards Information: The Council is actively involved with Standards Australia and other government agencies offering members an advisory service on the most current requirements and regulations for manufacturers in industries. Commercial Services: Members can seek advice from TFIA on the following programs • AusIndustry TCF programs as well as State based and local government programs • Anti-dumping and countervailing investigations • Import credit schemes • Preferential trade enquiries (Fiji and New Zealand) as well as FTAs • Apprenticeships and traineeships • Tariff concessions • General customs and trade services • Business's intelligence and market reports We can advise members on where to source manufacturing, how to export, how to increase sales, create systems, increase performance, gain extra recognition, lobby government for funding or validate their businesses. Training Advice: The Council provides a Training Advisory Service and assists member companies: • By providing consultancy services to support workplace training, including: - Identification of workplace competencies and training needs analysis - Skills Audits - Development of training plans, training and career pathways - Advice on strategies for training, materials available and potential funding - Creation of effective workplace training infrastructure - Identifying apprenticeship and traineeships opportunities • By providing members with the opportunity to have input into training reforms and directions on a national and state basis. • By providing advice to members on developments • Through its role as a Registered Training Organisation, by tendering on behalf of TCF companies for government funds to support workplace training.

The apparel industry in Australia has experienced nearly 30 years of restructure. It is regulated by complex legislation and a rigid labour regime, which puts a heavy administrative burden on SMEs. Most apparel production is outsourced to Asia including China, India and the South Pacific. Areas where apparel opportunities are developing includes performance and sportswear, uniforms and niche fashion. For a successful apparel business, it needs to be agile and responsive with compelling products. As with the textiles, innovation and design technology are crucial. And a strong focus on product safety is must. From a design and fashion perspective, there has been a return to an interest in the artisan and an understanding in the importance of heritage design and production – focusing on the skills and the story behind the product – provenance.

Sustainability is the leading platform for new products and services and for a larger number of businesses in the Australian industry. The triple bottom line i.e. people, planet and profit, seems to be the key driver that predominates most sustainability strategies. The challenge is that with such a large number of Australian TCF companies producing off shore – compliance with ethical, environmental and product safety regulation becomes more difficult to manage. The TFIA is working diligently to assist the TCF industry in understanding the role of sustainability. It recognises that sustainability is a journey for companies and some are further down the road than others. Businesses and brands can do much to improve their progress and in turn it creates a sustainable industry with long term viability. TFIA holds events that focus on sustainability issues e.g. 'Plan for People', ‘Waste and Energy Reduction’ thereby ensuring sustainability is always at the forefront of the minds of people, working in this sector.

Australians love fashion. With over five major fashion events taking place across four States there is definitely a market for the business and celebration of all fashion stuff. Australia relatively a young country; its fashion scene is strong, though there is a need to clarify this sense of style within a global position – it is definitely more than swimmers and Ugg Boots! Australians like to support local designers but also love to access international brands – see the number of global brands who have recently opened stores or who send product to Australia as part of their online offering. There is a need to amplify the story behind Australia’s fashion – make it something for the local market to find easy and supportive. Australia’s designers need to work a little more on developing their story – their point of difference – especially if they are courting international consumer interest. Australian consumer continues to demonstrate well on technology front and likewise they are responsive as well and with the development of e-commerce and on-line shopping; Australian e-fashion market is one of the largest markets, globally. This creates an opportunity for local brands to take a sophisticated approach to e-fashion from an omni-channel perspective – ensuring its access is available across all the technology platforms wherever it is possible, for e.g. PC, Tablet, Mobile etc. Last year, a record of 1.2 billion units of apparel was imported in Australia. This leads to challenges for retailers and especially bricks and mortars businesses such as Australian department stores. People are shopping differently, especially when they can purchase offshore apparel brands online without paying GST. TFIA has a division to support fashion designers called the Australian Fashion Council (AFC) and its role is to promote and support Australia’s fashion industry.

Yes, China still remains dominant sourcing destination for Australia’s importers but there are other opportunities for Asian manufacturers to get a slice of that business. More recently, India, Bangladesh and Vietnam are becoming increasingly popular. What Australia’s business wants? It is a quality product at a price where they can be competitive. Sadly, many companies have negative experiences when they first begin the offshore journey, for e.g. late delivery, non-compliant or poor quality. Therefore, Australian companies tend to set up operations in their sourcing countries to deal with these issues. This creates opportunities for countries to target the offshore agencies and establish relationships.