Promising bags of distinction
Internationally Spencer & Rutherford is doing for Australian bags what Leona Edmiston and her ilk have done for the humble Aussie frock, as Belinda Smart reports.
Spencer & Rutherford; even the name has an age-old ring of heritage and exclusivity about it. But in truth, this rising star of the international fashion universe - the creation of Kim and Chris Michaelides, now creative director and managing director respectively -- was first unveiled relatively recently at Australian Fashion Week in 1999.
Even then, the brand seemed marked for success, quickly garnering interest from major clients including New York-based retailer Henri Bendel and Lane Crawford in Hong Kong. According to Chris Michaelides, this early success can be attributed to a combination of winning factors.
"Spencer & Rutherford design, manufacture, wholesale and retail their collections using a combination of premium fabrics and leathers which themselves are expensive, rare and unique. Furthermore the handbags are designed totally in-house without the use of a product developer, which allows them to be completely authentic."
In short, Spencer & Rutherford offers a luxury brand to the domestic market that is further enhanced overseas by an image of Australian exoticism and exclusivity. The brand's quirky, individual style has been shrewdly leveraged for the overseas market, pointing to a strong balance between creative drive and commercial savvy.
"The Spencer & Rutherford limited edition collection takes the brand's unique quirkiness one step further by only producing a limited number of certain styles which are then distributed internationally, creating a product that is 'rare' which for the accessory lover makes it a truly covetable item."
This combination of good fashion and business sense is doubtless the reason why, since that first flush of success at fashion week, the brand has experienced steady and strong year-on-year growth. In turn, allowing it to continually refine its product offering and gaining it considerable international clout for an Australian brand.
In June last year Spencer & Rutherford's first European showroom opened in Berlin, providing a base for Australian and international customers and media representatives alike, while this year will see the launch of an e-commerce website. But, according to Michaelides, the most exciting recent step for the company is increased penetration into that commercial colossus, the US market.
"Previously we employed several agents spread throughout the US to capture as much of the market as possible, but we found this increasingly difficult [to manage]. Now we are sending our own sales team over to attend the shows and visit stores, which has been much more successful and I believe will grow the US market for us much more effectively."
Aside from the US, the brand also has a major presence in Canada, the United Kingdom, Ireland, Germany and Scandinavia, with accounts also held in Spain, Italy and France. Meanwhile the winter 2007 season looks set to welcome the addition of the Czech Republic to its growing list of export targets. Part of the brand's success is owed to its successful and consistent brand image, Michaelides claims.
"Exceptional seasonal imagery is used both domestically and internationally to keep the brand essence clear and top of mind for consumers. Spencer & Rutherford also attends trade shows domestically and around the world which also provide a strong wholesale presence in the marketplace."
In the medium to long term Spencer & Rutherford plans to expand and consolidate its product base to include a broader range of luxury luggage, and to grow the name to become Australia's premiere luxury handbag collection.
But, as Michaelides points out, maintaining that balance between the creative and the commercial will be vital to the project.
"I think the biggest challenge for any Australian designer is cash flow that allows the business to produce for domestic and international seasons, which is quite different to balancing for the southern hemisphere alone. We would like to continue our ownership of the company without outside investment, so careful planning for the future is essential."
By Belinda Smart