(Last updated: 13 Sep 2010)

Introduction

Shared history, shared language and a significant population base make the UK an attractive market for Australian fashion companies. However, because the UK offers favourable trading terms to other EU members, fashion companies from non-EU countries such as Australia have to be more competitive, more innovative and more appealing to succeed.

We can provide you with information and search tools from which you can begin to do some preparatory self-research and market comparisons with other goods occupying the shelf space you wish to target. We’ll also provide you with some tips on how to develop your UK market entry strategy plus details of key UK trade and consumer events.

Note: Items marked with are available to registered users only. Not registered yet? Join now!

Steps to success in the UK

1. Get a market overview and prerequisites for success  – a market overview plus combined experience from exporters, agents and buyers to help new brands to the UK understand what the market expects so that you can make an informed decision about whether the UK is the right market for you and whether you are ready.
2. Research stores and competitors – lists online resources to research key stores to help you focus your sales efforts on the right stores that are appropriate for your label.
3. Learn more about agents, distributors and determine your market entry strategy – an outline of different options for market entry and distribution.
4. Prepare your pricing model: what to include and how to build one – to help you understand how UK import/excise duties, indicative margins/mark-ups and VAT will affect your product’s UK shelf price and tips on price benchmarking.
5. Labelling and sizing – an overview and links to key areas of legislation relating to labelling and sizing in the UK.
6. Finding and working with UK agents, distributors or buyers – this will help you consider the various elements of working with UK partners including tips on pitching. and ongoing support, list of major trade shows and buying seasons in the UK.
7. FAQs on fashion to the UK – lists the most common questions exporters ask.

The market

The UK clothing sector is worth around $71 billion, a third of which is imported. Imports are growing at 13 per cent, one-third of which come from China, Hong Kong and Turkey.

Clothing sector breakdown:

• womenswear – 53 per cent
• menswear – 26 per cent
• childrenswear – 20 per cent
• accessories – 1.6 per cent

(Source: Euromonitor)

Opportunities

The UK clothing sector is extremely competitive, however, niche opportunities exist in the following areas:

• innovative design and fabrics
• high quality, high end products
• designer-wear
• swimwear
• surf/streetwear

Of course, success is not a given, strong marketing materials, solid production and supply history in Australia, and lots of persistence are required to succeed.

In textiles, there are opportunities for fabrics and textiles that are of high quality, innovative and competitively priced. Applications include contract furnishing fabrics, clothing fabrics and home textiles.

Tariffs, regulations and customs

Value added tax (VAT) is levied on all clothing and textile products at the full 17.5 per cent. The exceptions are childrens' clothing and shoes, which are VAT free.

Some textiles from Australia will require an import license. Get your importer to check with the Department of Trade and Industry (DTI).

Textiles and textile products made in third countries may be subject to quota, licenses for which are usually granted on a first-come-first-served basis.

Safety or protective clothing is covered under the Europe-wide CE Mark law, the Personal Protective Equipment Directive. Any product fitting under this legislation must go through a testing process and must be marked with a CE Mark before being offered for sale in the UK or Europe.

The UK is part of the harmonised trade system of the European Union (EU). Common Customs Tariff is applicable to goods from non-EU countries, including Australia. Before shipping any goods to Europe, you should obtain a written customs duty ruling from the UK customs service. These rulings are called Binding Tariff Information (BTI). Getting a BTI is free and will prevent any conflict over customs or excise duty.

Links and industry contacts

Fashion-related resources

Association of Suppliers to the British Clothing Industry – www.asbci.co.uk
British Footwear Association – www.britfoot.com
British Interior Textiles Association – www.interiortextiles.co.uk
National Children’s Wear Association – www.ncwa.co.uk
Sports Textiles – www.sportstextiles.com
Sports Textiles and Footwear Association – www.thesportslife.com
The Textile Institute – www.texi.org

Government, business and trade resources for the United Kingdom

British Standards Institute – www.bsigroup.com
Directgov – www.direct.gov.uk/en/index.htm
European Union Portal – http://europa.eu
HM Customs & Excise – www.hmrc.gov.uk
Trading Standards – www.tradingstandards.gov.uk
UK Statistics – www.statistics.gov.uk
UK Trade and Investment – www.ukti.gov.uk/export.html

Media

Drapers Record – www.emap.co.uk

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.