One of the biggest decisions fashion brands face, is whether to manufacture locally and be Australian Made, or go offshore. There are pros and cons for both scenarios and it depends on such things as:
- Your budget
- Production quantities
- Timelines
- Product category
- Business goals
There is no one-size-fits-all solution as there are so many moving parts to consider in your decision making process.
Benefits Of local manufacturing
Local production manufacturing in Australia offers:
- Easier communication
- Faster turnaround times
- Easier quality control
- Smaller production runs
- Closer collaboration
For startup brands, local manufacturing of your garments in Australia can simplify the development process significantly.
Challenges Of local manufacturing
Local manufacturing may involve:
- Higher labour costs due to minimum wages
- Limited factory availability
- Smaller production capacity
However, many brands do choose Australian product development, sampling and manufacturing and are willing to pay more for:
- Flexibility
- Local support by businesses such as KJ Production House
- Australian-made positioning
- Being eligible for the Australian Made Campaign branding
Benefits of offshore manufacturing
Offshore manufacturing of your garments can provide:
- Lower unit costs
- Larger production capacity
- Broader fabric sourcing
- Specialised production capabilities
This is often beneficial for brands scaling larger quantities.
Challenges of offshore manufacturing
Offshore production may involve:
- Longer lead times
- Communication challenges
- Shipping delays
- Customs processes
- Freight and shipping cost blowouts
- More complex quality control
Managing offshore production requires careful planning and experience. Many individuals and businesses assume that this is the cheaper option. In many cases, this may not be true.
Which option is right for you and your new Australian fashion brand?
The best solution depends on your business stage.
Local production may suit:
- Startup Australian fashion brands
- Small batch brands
- Premium positioning
- Rapid product testing
Offshore production may suit:
- Larger volume brands
- Price-sensitive products
- Scaling businesses
- Businesses with bigger budgets
Final thoughts
Both local and offshore manufacturing can work successfully when managed properly. The key is understanding the advantages, risks and production requirements before making a decision. At KJ Production House, for many years Australian Made product development, sampling and manufacturing was our key approach. As we grow, we are currently exploring options to manage overseas manufacturers via KJ Production House, which could be a great option for some businesses and brands in the future.