Credit to haileyxstudios on YouTube for finding and sharing info on this costume, including pictures of it prior to and after completion.
Psycho Teddy, an animated bear known for the song named after him, had an animatronic costume. Jo Woodcroft Creative was involved with creating it.
The first blog post is here, and the second one is here.
The first blog post was made on the 17th of July, 2008. They mentioned they were animating a new single at the time, and that the mascot will be appearing in Australian shopping centers during the school holidays. The blog post has a photo of a large, brown maquette, and a picture showing what fur textures a 3D model of Psycho Teddy has (likely for reference when making the costume). The blog post also has two photos of the unfinished costume.
The sunglasses are a reference to the music video for Psycho Teddy's cover of "You Should Be Dancing". The company began referring to Psycho Teddy as DJ Teddy Z instead, around the time they released that cover, and the later blog post from the 4th of August, 2008 refers to the head of the costume as a "Teddy Z head".
The later blog post had an image of the completed suit being worn at Sony, but it was not archived on the Wayback Machine, and I don't know if the one from Jo Woodcroft's website is the photo that was used.
haileyxstudios on YouTube shared a photo of the completed costume from a newspaper, which they were sent. The second photo is from Jo Woodcroft Creative's website.