Thinking of Buying a Tailor Business in Australia? Here Are 3 Vital Questions to Ask

The Australian tailoring and clothing accessories industry generated $1.51 billion in revenue in 2024, with profit margins averaging 6.9%. The sector employs about 7,898 people across 2,065 enterprises.

Revenue has declined by 5.2% annually over the past five years due to rising import competition and fast fashion, which has reduced demand for tailoring services. However, revenue is projected to stabilise, with modest growth of 0.1% annually through 2030, supported by demand for high-quality, niche, and ethically produced garments.

1. Is the Business Financially Resilient Amid Import Competition and Fast Fashion?

Why It Matters

Tailors face significant pressure from cheap overseas imports, particularly from China, Bangladesh, and Vietnam. Fast fashion trends reduce demand for long-lasting, custom-fitted clothing. Survival often depends on focusing on premium, bespoke tailoring and sustainable fashion, where customers are willing to pay a premium.

What to Check

• Profitability – Compare against the industry’s 6.9% margin.
  
  

• Revenue stability – Assess reliance on seasonal events (weddings, formalwear) versus steady everyday alterations.
  
  

• Cost base – Review wage and rental costs, which weigh heavily on small tailoring businesses.
  
  

• Product positioning – Evaluate if the business competes on price or focuses on quality and ethical production.
  
  

2. Does the Business Have Strong Market Positioning and Brand Recognition?

Why It Matters

With more than 2,000 tailoring enterprises in Australia, competition is fragmented and intense. Tailors that survive and grow typically secure loyal clientele, build strong reputations for quality craftsmanship, and leverage online platforms to attract new customers.

What to Check

• Reputation – Examine customer reviews, repeat client base, and brand loyalty.
  
  

• Client mix – Identify reliance on corporate clients, retail partnerships, or one-off alterations.
  
  

• Location – Assess accessibility to fashion-conscious or high-income markets.
  
  

• Marketing strategy – Consider use of social media, ecommerce, or ethical fashion certifications.
  
  

3. Is the Business Positioned for Future Trends in Fashion and Sustainability?

Why It Matters

Consumer demand is shifting towards sustainable, locally made, and ethically sourced clothing. Advanced technologies such as textile 3D printing and computer-aided design are also transforming tailoring, enabling greater efficiency and customisation. Businesses that embrace sustainability and innovation are best placed for long-term success.

What to Check

• Sustainability – Verify use of eco-friendly fabrics, ethical labour practices, and certifications (e.g., Ethical Clothing Australia).
  
  

• Technology adoption – Review use of CAD systems, automation, and innovative tailoring tools.
  
  

• Service diversification – Assess offerings such as alterations, bespoke tailoring, or fashion accessories.
  
  

• Export opportunities – Explore potential to reach Asian markets, where rising middle-class demand supports high-quality apparel.
  
  

Ready to Invest in a Thriving Tailor Business?

Despite challenges from imports and fast fashion, tailoring businesses that focus on premium, sustainable, and personalised services continue to attract loyal customers.

Success depends on financial resilience, strong brand positioning, and alignment with future fashion and sustainability trends.

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