Impact of AI & e-commerce on Australia's fashion sector
Artificial Intelligence (AI) is embedded in every industry and is reshaping business as we know it.
AI is transforming Australia's retail and fashion sectors, empowering businessesâ€'big and smallâ€'with smarter marketing, personalised experiences, and efficient operations. As e-commerce growth continues post-pandemic, success now hinges on using AI mindfully to scale, connect authentically with consumers, and stay competitive in a changing landscape.
Australia has fast become one of the greatest adopters of AI, ranked 16th out of 36 countries in Stanford's AI Vibrancy Index and accelerated by well-developed cloud infrastructure and a relatively high digital maturity compared to other mid-sized economies.
The country's retail and fashion sectors are prime examples of key industries embracing AI in new and transformative ways; from streamlining logistics to personalising customer experiences, AI is fast becoming an indispensable tool in both physical and online retail environments.
Jenn Donovan, Director of Social Media & Marketing Australia and speaker at the upcoming Global Sourcing Expo, taking place at the Sydney ICC from 17 – 19 June, believes that - if used correctly - AI can quickly become one of the industry's greatest assets.
'AI is giving marketers in the retail industry a second set of hands – and sometimes even a second brain, ' she shares. ' It ' s helping us work smarter, not harder, by automating the repetitive stuff and giving us powerful insights into our audience ' s behaviour. '
One of its biggest advantages, however, lies in its accessibility, as Jenn explains: 'These tools aren't just for big businesses with big budgets – they're accessible and easy to use for time-poor small business owners.'
When it comes to deploying AI, Jenn adds that content creation is the easiest starting point for most small businesses. 'Whether it's blog posts, social media posts, website write ups, magazine write ups or website descriptions, AI is supporting small businesses in their marketing efforts.'
She points to tools such as ChatGPT, Canva, Opus Clip and Notion AI as some of the top platforms that should form part of every retailer's arsenal.
eCommerce Five Years On
The pandemic acted as a powerful accelerator for eCommerce growth. With lockdowns confining people to their homes, online spending surged to an unprecedented $50.46 billion in 2020 - a 57% increase from the previous year. By 2024, that momentum continued to grow, with eCommerce sales reaching AU$56.07 billion .
Olivia Carr, Founder and CEO of Shhh Silk and speaker at Global Sourcing Expo has witnessed, and been a part of, the eCommerce evolution. 'The past five years have accelerated a fundamental shift in eCommerce, from transactional to transformational,' she says. 'We've witnessed firsthand how customers no longer just seek products; they seek brands that align with their values, understand their lifestyle and deliver emotionally resonant experiences.'
She adds: 'We've responded by moving beyond simply selling silk pillowcases toward creating rituals and experiences that support rest, wellness and emotional reset.'
Speaking to AI in small businesses, Olivia notes that AI, when used mindfully, can help us elevate this experience through more intuitive service and storytelling.
However, faced with increasing operational costs, global competition and rising customer expectations some small businesses remain behind the curve.
Another key challenge lies in balancing growth with integrity. 'To scale social impact authentically, eCommerce brands must define a clear mission, embed it into their product and customer experience and hold themselves accountable.'
Looking ahead, as AI continues to evolve and embed itself within the retail and fashion sectors, Australian businesses – both big and small - are poised to benefit from smarter, more personalised and efficient operations.
Meanwhile, the sustained growth of eCommerce reflects a permanent shift in consumer behaviour that shows no signs of slowing. Success will depend on how well brands balance innovation with authenticity, embracing technology like AI to enhance customer experience without losing sight of their core values. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (HU)
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