If the words ‘Australian fashion‘ conjure up images of beachwear and surf brands, your thoughts wouldn’t be far from where our reputation lies worldwide. Labels such as Billabong, swimwear business Seafolly and aussieBum are considered global rather than Australian, and lead the world in summer styles.
Other brands are designer-led with names such as Collette Dinnigan and Akira Isogawa leading the pack, and the designers behind popular brands like Sass & Bide and Ksubi becoming darlings of the celebrity world when they entered the scene.
“People overseas see us as quirky, unique and different with a relaxed lifestyle, which is why swimwear and resortwear does well,” describes Ashan Winslow, founder and director of Australian Fashion Exchange (AFX).
Paula Rogers, industry liaison at The Council of Textile and Fashion Industries of Australia (TFIA), agrees: “Australia does swimwear as good as, if not better than, anyone else. We’re good at lifestyle products and surf brands; people see that as part of our culture.”
New exporters
For emerging designers selling to that image, leveraging that reputation is an advantage, but for others, doing business overseas needs to come back to the basics.
“Research is the key: understand your product and customer and where will it be best positioned and received,” suggests Winslow. This research should take into account cultural barriers and adaptations in different countries, for example, climate may dictate aspects such as the type of fabric to be used.
He advises that designers must understand the costs involved, including packing, shipping, insurance, delivery time frames and duty when quoting the wholesale price, to arrive at an appealing retail price with the required margin. “Sometimes smaller labels may need to sacrifice margin to create opportunity,” he adds.
Pricing is also important when it comes to adding the duties and taxes you may encounter in various international markets, says Rogers: “All those duty considerations will define the cost to market and affect whether you can compete.” She suggests that fashion businesses interested in exporting should start selling online. “One of the benefits of online is you get to understand what that market wants at a low cost, it’s a soft entry. It’s not going to give you full market penetration, but it’ll give you a taste.”
Making connections in the industry will also help in that regard, she adds. “Invest your time to meet people in that market at every level you can. Talk to industry bodies, talk to as many people as you can not about selling your product, but about understanding the market.”
Both AFX and TFIA have cluster programs that help emerging designers band together to leverage collective bargaining power, for example to share contributions to expensive operations such as running a photo shoot, or pitching in money to set up an e-tail site.
Existing exporters
While choosing an agent to represent a label is a popular method of going global, Rogers says there are other ways to be successful in an overseas market. “I would be more inclined to be more hands-on and carefully select some trade shows where I felt that the buyers I want to target would be there. Or I’d look at the market and do hard market research, going to the country and having a good look around,” she says.
Travel is a good idea, agrees Winslow, who says those already exporting should look at consolidating existing relationships and establishing a point of contact for overseas customers. “The ongoing relationship with stores will ensure longevity; it is no good making a sale and hoping that this will last forever. Communication and relationship building will ensure that stores will pick your range over another competitor in many cases.”
He further suggests increasing your production capacity in line with increasing your marketing at this stage to grow the brand.
Advanced exporters
As a relative minnow on the world’s catwalk, the Australian fashion industry needs as much help as it can get to gain maturity in the sector. There is therefore a strong call for more advanced exporters to mentor emerging designers. AFX and TFIA both have programs that encourage this type of interaction and community building.
“Mature exporters are the biggest asset for new designers looking to expand to overseas markets. Mentors are essential in the nurture process and finding someone who has already walked the path can provide tools in the decision making process for a new designer looking to embark on an export journey,” says Winslow. “Designers need to be industry-minded rather than purely business-minded.”
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