Finalist Blue Illusion
A finalist in the 2004 TNT Ragtrader Retailer of the Year Awards, Blue Illusion has been retailing since the late nineties and now boasts around 30 stores nationally, as well as a successful wholesale business.
The label - owned and run by husband and wife team Donna and Danny Guest - is characterised by high quality beach and country women's apparel, accessories and homewares, targeting the 35 to 50-year old market.
While primarily an apparel specialist, Blue Illusion has also successfully carved a niche in the lifestyle sector through a product mix and shop fit out reflecting aspirational beachside and country living, with add-on lifestyle purchases including books, home accessories and jewellery.
The company has refined its lifestyle offer so well in fact, that suppliers regularly approach the Guests with requests to stock their merchandise, says Donna.
Seven years in retail has not diminished the Guests' hunger for innovation and re-invention.
"We always try to get in first with unique, differentiated product. We love the race."
"Our experience has taught us that the most important thing in retail is to be doing something different from your competitions," she says.
The store - which has already garnered a strong reputation for stand out shop fit outs -- has recently updated its fittings and interiors. It also operates a state-of -the-art retail technology system.
In terms of merchandise, the company stays on-trend through international magazines, twice yearly trips to the United States and the services of a UK-based fashion forecaster.
Blue Illusion clothes are made from 80 per cent natural fibres, guaranteed for easy care and wear and available in a size range from eight to 20, with the 12 to16 size range representing the bulk of sales.
The label is continually refining styling and shape, says Donna.
"The target for our pattern maker is that the pants should have 90 per cent fit," she explains. A good working relationship with offshore suppliers -- "We pay our suppliers upfront and we always pay them on time," -- is essential to produce quality product.
Blue Illusion boasts strong staff retention rates -- less than five per cent turnover a year -- and in the last 12 months has invested in the ongoing career development of its store managers, who receive ongoing coaching and are encouraged to treat their store as if it were their own.
The company prides itself on a highly professional approach to selling and prefers to recruit experienced store staff, says Danny
"We hold conferences with workshops and fashion parades at the [Melbourne] retail support centre. We also operate a buddy system across all its stores, allowing store managers and sales staff to pool their knowledge," he explains.
Store managers and staff are eligible for a variety of incentives, including cash rewards. "We like to mix them up, as this keeps staff motivated and fresh."
While direct marketing is the company's favoured form of promotion. -- the company is known for lavishly produced seasonal catalogues -- the past year has seen a move into consumer press advertising, with campaigns including a slot in lifestyle title Notebook.
Blue Illusion rewards loyal customers with Christmas and birthday cards including a $25 gift voucher. It also has a strong community philosophy and in the past 18 months has donated around $100,000 go to charitable causes.
With the possibility of expanding into New Zealand on the horizon, Blue Illusion looks set to dominate the aspirational, women's casual "grey dollar" market in Australasia, but while retail expansion and profit margins make the retail business viable, as far as the Guests are concerned, the brand is about much more than that.
"It's about creating something spiritual for our customers. We see the Blue Illusion brand and stores as a way to educate the customers in how to wear the clothes and how to live well."