Summary The Australian fashion industry has made enormous progress over the last 50 years, through changes in style and technological advances. The basic system has remained the same in the fashion industry, apart from all the changes. This fashion system, consisting of the components of the internal system of the fashion industry and the factors that influence them, constitutes the basic guidelines on what concerns the fashion industry. The Australian fashion industry has developed its own individual identity over the past 20 years, before it adapted looks that evolved primarily from Europe. The Australian fashion industry is mass market based, with some mid-range and diffusion line brands, as well as very few ready-to-wear brands and haute couture houses. structured around sales in physical stores and online, and promotion occurs mainly through television, magazines and word of mouth. As online shopping continues to become more popular and used regularly, fashion boutique stores will continue to shrink in number. time of year, it affects the Australian fashion industry because we are not in tune with the major fashion capitals of the world, New York, Paris, Milan and London. Factors that influence the fashion system include culture, location, environmental awareness, and government. Internal components of the system that are affected include stylists, the manufacturing process, sourcing and retail. The Australian fashion industry is smaller than major fashion industries around the world, but has the same goals and underlying systems. The main difference between them, however, is the government funding that the Australian fashion industry does not receive, unless… half of paper… is needed and wasted. Conclusion The Australian fashion industry, although small compared to global markets such as New York and Paris, function well with great success in the objectives they have attempted to achieve. Australia serves as a support network for other global fashion markets. We learn and gain influence and inspiration from capitals like Paris to base our trends and fashion on, following the global fashion system. Many of the global fashion markets, including the Australian fashion industry, enjoy high credibility in their industry, some more than others. This credibility and the value placed on the fashion industry by consumers themselves determine the success of the industry in terms of customer purchases, and changes in trends and styles are what keeps the industry moving. The fashion industry would not exist without changes and developments.