NATIONAL: UK retail giant Next is the latest international player to charge into the Australian market, with its trend-driven Lipsy label set for release in summer 2010.
The company, which operates over 500 UK retail stores for its fast fashion brand Next and 180 franchised stores internationally, will distribute Lipsy nationally on a wholesale basis.
It is part of a two-and-a-half year expansion drive, with Australia added to recent moves into Europe, Canada, North America and the Middle East.
The company reported that exports now comprise around one-quarter of Lipsy’s annual net revenue, which is forecast to exceed $80 million this year.
Lipsy European sales and marketing coordinator Anna Lindberg said the brand has approximately 600 international stockists, including department stores Harrods in the UK and Galleries Lafayette in France.
“Our three-year growth strategy [for Australia] is to have at least 150 doors selling the brand, with the inclusion of one major department store,” she said. “We will be selling four ranges a year. Our design team will work hard to tackle the ‘reverse seasonality’, offering the right product for the right season.”
Lindberg said the brand will offer the same lead times to Australia as it offers its European customers, to ensure the product remains on trend. It will create around 80 styles per seasonal range, tailored exclusively to the Australian market.
Known for its fun and feminine party dresses, the label is now stepping up its offer of casual day apparel. Approximately 95 per cent of the collection is manufactured in China, with retail prices for dresses ranging from $115 to $260.
Lipsy will be represented locally by Sydney-based agency Krites Fashion Brand Management. It is currently selling the initial range, which will hit stores in November.
“It is still very early stages to confirm which retailers will carry our range, but our sales strategy relies on a network of quality boutiques and local merchant websites for the time being,” Lindberg said.
The brand will be marketed primarily through public relations and will exhibit at the Fashion Exposed trade fair in Melbourne from August 29 to 31. Lindberg said the company has no current plans to open Lipsy stores in Australia. While the brand operates an e-commerce service, she said product offered online will be different to that provided to domestic retailers.
Lipsy was launched in the 1990s and was purchased by Next in 2008. As reported in Ragtrader’s July 30 edition, Next recently failed in its bid to take on a Melbourne-based boutique label (Nest) over trademark similarities. The company has no formal plans to launch a Next branded store in Australia.
Topshop, Coast London and Gap are among a wave of international brands to enter the Australian market in recent times, with Zara parent company Inditex confirming it will also launch a store here by 2011.
Melinda Oliver