The Australian clothing industry has put on the image of being more fashionable and Australia has reportedly become the world’s third biggest clothing market after the UK and the US.

According to Euromonitor, Australia’s clothing market will enjoy a moderate growth during the five years from 2012, with the compound annual growth rate reaching 0.4%. It is lower than the Asia Pacific region, whose growth rate was estimated at about 5.8%, but higher than North America and Western Europe.

The Australian clothing market has drawn the attention of some international retailers. Following Zara and Topshop, which filled the market gap by supplying affordable quality clothes from Europe, H&M is also planning to enter the Australian market next year.

Local clothing brands are adapting to the fast-fashion model created by these chain stores, as many consumers in Australia are keen on American and European fashion. On the other hand, the presence of global retailers has injected new energy into Australia’s clothing industry and increased the flow of shoppers.

Overall speaking, quality outdoor clothing and sportswear are popular with Australian consumers, in particular fitness wear and yoga clothing.