Spencer & Rutherford MD Chris Michaelides

As the company he co-founded with his wife gears up for major change in 2008 Ragtrader talked with Chris Michaelides about the growth of an iconic bag and accessories brand. Interview by Belinda Smart.

How did Spencer & Rutherford (S&R) start and how has it evolved?
The brand was founded in 1999 when my wife Kim - a graphic designer by training - designed a vintage-style beaded silk evening bag for an advertisement. This was in the early 1990s and bags like that were very rare. Soon everybody wanted one; Kim put together a range and the rest is history. S&R incorporates stunningly structured and functional shapes highlighted by high quality Italian leathers, beautiful fabrics and trims sourced worldwide. Initially the focus was solely on fabrics highlighted in some instances by leather, but our S&R range now incorporates a range of materials sourced from Europe and highlighted with polyurethane.

Can you give us a snapshot of the brand's current market penetration?
S&R currently operates one retail store in [High Street Armadale] Melbourne. This has proven very useful in developing product as a result of a direct interface with our customer base. The brand also has a very loyal following throughout Australia and [while it's too early to disclose details] there are plans to expand our retail store brand presence.

What do the next 12 months hold for Spencer & Rutherford?
This is a year of consolidation for S&R in Australia, expanding its retail base nationally and developing its online presence for international customers. We will also be presenting a complete new range of luggage pieces and changing our release of handbag designs into more regular drops every 12 weeks rather than by season.

Word is that "green" will be strong in coming seasons. Any comment?
As well as the other changes we're implementing across the business, Spencer & Rutherford is also working with its suppliers, manufacturers, logistics and freighters to minimise its environmental footprint through consolidated and reduced movement of materials and goods here and abroad.

From a business perspective, what causes you to lose sleep?
Cheap imitations and copycats are our biggest problem; as well as [stories in the] financial press and government [measures] that currently threaten to scare the Australian public into recession. The second point we do not have much control over, but regarding the first we have taken steps to protect our brand's intellectual property by registering our designs, while also continuing to be innovative and creative regarding the evolution and design of our product.

How do you see the bag and accessories sector developing over the next few years?
High quality, well designed fashion will only be successful if it is innovative and true to its values. [A fashion business] must provide a valuable website and brand loyalty opportunities and keep customers updated with worthwhile information about its products, innovation and development.

How important are your staff to Spencer & Rutherford's success?
We remain a small boutique business and see the development and satisfaction of our staff as paramount.

What gives you and your staff a buzz?
The great satisfaction expressed by our customers about the uniqueness of our product and the comments they receive when they wear it. We receive fan mail from satisfied customers on a daily basis. In a perverse way the copying of our product congratulates us on our creativity and individuality, and of course everyone knows that wearing an "original" Spencer & Rutherford is the only way to seen! It reinforces our determination to be truly innovative. Kim's designs are all unique in terms of the shape and style, as well as the use of colour, diverse materials and final detailing and construction are all unique to her; we refuse to "product develop".

What makes Spencer & Rutherford unique?
Our beautiful product, the way it is presented in-store and delivered when purchased online, as well a sense of integrity and truth to our brand style and quality.

Looking into a crystal ball what do you see?
We are not about growth simply for the sake of it; it is our intention to retain the company as a boutique handbag, luggage and accessories design business, wholesaling and retailing our product in Australia and through selected opportunities internationally.

High quality, well designed fashion will only be successful if it is innovative and true to its values. [A fashion business] must provide a valuable website and brand loyalty opportunities and keep customers updated with worthwhile information about its products, innovation and development.

By Belinda Smart