Think Consulting Group director and former Supre international brand manager Catherine Taouk presents a no holds barred take on why Australian brands are losing their way.
Today, there is an increasing number of iconic Australian brands in the fashion sector that have lost or are on the path to losing their way.
This decline of brand equity and loyalty is due to a combination of outdated business models, tired branding strategies, lack of product and service innovation, soaring rentals, a rapidly changing face of technology, high staffing costs and exciting new international brands entering our competitive fashion space.
One of these stagnating brands is SUPRÉ, which traded its way of voluntary administration in the early 2000’s.
A distinguished brand, SUPRÉ quickly rose to the forefront of the youth fashion and lifestyle market.
Historically, their model was constantly evolving, adapting and had characteristics of a true brand innovator.
This quick-to-market brand had a real connection with the market it competed in, and enjoyed unrivalled brand loyalty amoungst its consumer base.
Today, stripping all those attributes back, we find a company that sells a product for a price; it has certainly lost its lust and desire.
However SUPRÉ is not alone.
Sadly, Lisa Ho, an iconic Australian brand, was put into administration recently after enjoying 30 years at the high-end brand in women’s fashion.
From opening runway shows with rats to models jumping into Sydney harbour, the struggling cutting edge and popularly celebrity endorsed fashion house Ksubi struggles to stay afloat amidst financial pressure and a growing leadership vacuum.
Set amongst the Bleach Group, also boasting brands such as Insight and Something Else, this once extremely profitable and thriving business has yet again been caught between the incongruent forces of creative flow and outdated management strategies.
Billabong, which started from humble beginnings in 1973 by Gordon Merchant, has certainly been bracing itself as a brand in turbulent waters in the midst of a number of potential takeover and refinancing deals.
Today, refinancing deals and the appointment of a new CEO has been positively received by investors and the market as a whole.
However, this doesn’t take away from the fact that Billabong is underperforming in Australia, which opens up questions relating to business strategy, buying processes and ultimately the brand.
One of the key, identifiable pressures making waves in this sector are international brands like Zara and Top Shop, run like well-oiled machines and benefitting from having world class supply chains and inventory systems.
Their product is undeniably ‘cool’, innovative and cutting edge, fast-to-market and exciting for Australian Shoppers.
In a world where consumer loyalty is driven by choice and convenience, global etail brands like ASOS, Net-a-Porter, Shopbop and Urban Outfitters (Australia being their second largest online market outside of the US), are sweeping our hard earned Aussie dollars offshore.
They are launching aggressive marketing campaigns that include successful lures such as free international shipping to entice the local market into finally being able to shop the High Street without having to manoeuvre international security measures.
These brands share in their business foresight, as the etail market is set to soar in the next few years valued to be worth $27 billion in Australia by 2016.