Local fabric firms doing it tough

Emerging designers are sourcing materials directly from the Asian market in a bid to counteract the recent spike in fabric prices.

The Council of Textile and Fashion Industries of Australia (TFIA) confirmed the weakening Australian dollar had driven up the cost of imports by up to 30 per cent. Pressure on domestic supplies had also intensified in the wake of several fabric firm collapses, including the recent fall of high-profile supplier Smouha and Sydney-based wholesaler DPK Fabrics.

Industry sources said existing fabric wholesalers had now looked to promote sales growth by offering discounts on upfront payments. This had not swayed new generation designer Kylie Hawks, who had already prepared for her first sourcing trip to China's Zhangzhou province in June.

The Sydney-headquartered designer said she could no longer afford to source imported fabrics such as Japanese lyocell from local fabric agencies. Hawks said the collapse of Alexandria-based company Fabrics One had also placed a strain on local supplies.

"Given the size of my label, I'm wary of using fabrics here which have a recognisable print or fine detailing. Because the variety is not as broad as it is overseas, who's to say a bigger brand won't purchase the same style and roll it across a number of stores? I can't afford to look like I'm on the back foot."

Womenswear designer Gary Bigeni said while he would continue to source fabrics onshore, he now imported silks directly from a manufacturer in China. He claimed cost savings amounted up to $12 per metre when compared with local rates.

"I'm using silks jerseys and silk cottons as my basics for next season because it turns out to be the same price as 100 per cent cotton here," he said. "Because they make the fabrics themselves, there's also no risk of them running out once you've made your samples and confirmed your orders."

TFIA executive Jo Kellock said economic conditions had placed local fabric suppliers under intense pressure.

"It's indicative of how different areas of the supply chain are feeling price pressures from the economic crisis. When there's a shortage of sales, it's very difficult for [fabric] wholesalers to secure trade credit on the back of invoices."

"When this finance isn't extended to them, businesses aren't able to re-order fabrics for the next season and supplies and variety inevitably run short."

The TFIA was campaigning for greater Federal Government assistance across the textile, clothing and footwear industry.