Thinking of Buying a Bicycle Clothing Business in Australia? Here Are 3 Vital Questions to Ask
The Australian fitness and athletic clothing industry, which includes specialised cycling apparel, is valued at $4.1 billion in 2025, employing 11,477 people across 1,949 establishments.
Profit margins average 6.7%, generating $276 million in profit.
Revenue is projected to grow at an annualised 3.3% through 2031 to $4.9 billion, driven by the ongoing popularity of activewear, growth in recreational sports, and rising participation in cycling and outdoor fitness.
However, competition from discount retailers and online-only brands is intensifying, making brand differentiation, technology, and customer engagement essential for sustained profitability.
1. Is the Business Financially Sustainable and Profitable?
Why It Matters:
Cycling apparel businesses rely heavily on discretionary consumer spending and lifestyle trends.
Profitability depends on balancing high product quality with manageable operating costs while maintaining consistent demand through branding and niche market focus.
What to Check:
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Revenue sources – Assess reliance on cycling-specific clothing compared with broader fitness or athleisure lines.
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Profitability trends – Compare performance against the 6.7% industry benchmark.
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Cost structure – Wages account for about 16.6% of revenue ($681 million), while purchases and rent make up a significant share.
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Pricing strategy – Evaluate ability to charge premium prices for moisture-wicking, aerodynamic, and performance-focused gear without overexposure to discount competition.
2. How Competitive is the Business’s Market Position?
Why It Matters:
The sector is highly competitive, with large brands like Lululemon, Rebel, and JD Sports dominating retail channels, while niche cycling brands rely on technical innovation and online engagement.
Smaller independent operators often succeed through personalised service, club partnerships, and technical expertise.
What to Check:
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Target demographic – Cyclists aged 35–54 represent a major consumer group for premium gear, valuing quality and durability.
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Brand partnerships – Review supplier relationships with performance brands such as Rapha, MAAP, or Castelli.
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Omnichannel strength – Assess e-commerce integration, loyalty programs, and digital fit tools to retain repeat customers.
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Geographic positioning – Stores in NSW, Victoria, and Queensland capture most of the national cycling market due to high population and income concentration.
3. Is the Business Aligned with Industry Trends and Future Growth?
Why It Matters:
Cycling participation has risen alongside broader fitness and sustainability trends.
Consumers now expect premium materials, style versatility, and sustainable sourcing in their activewear purchases.
What to Check:
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Sustainability credentials – Verify use of recycled or ethically sourced fabrics, aligning with growing environmental expectations.
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Technology and design – Evaluate innovations in compression wear, thermal regulation, and aerodynamic tailoring that enhance performance.
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Market adaptability – Confirm readiness to pivot between high-performance sportswear and casual cycling lifestyle apparel.
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Competition readiness – Ensure differentiation through service, product exclusivity, or local community engagement to resist pressure from major online retailers.
Ready to Invest in a Thriving Bicycle Clothing Business?
With the continued expansion of fitness culture and rising demand for premium, functional, and stylish sportswear, bicycle clothing businesses in Australia have promising prospects.
Success will depend on aligning with sustainability trends, embracing digital retail strategies, and targeting Australia’s growing base of active, health-conscious consumers.
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