Before we talk about the trading season, can you offer some background on your labels?
Rebecca: Sistaco started in May 2011 as there was a gap in the market for affordable statement accessories which appealed to all age groups not just the younger generations. Our target market is not defined by age, but by a woman’s personality and values. Sistaco is currently available at around 60 national retail stores. This has grown tremendously after our showing in Sydney. It was the first wholesale show we’d exhibited at.
Natalie: The Azure by Natalie Centaine collection launched for the first time at Fashion Exposed. I design for real women aged 25 and over and cater for sizes eight to 16; easy resort-style fashion with a unique designer touch. It’s designed to be worn by the pool or dressed up for cocktail hour. The Azure collection didn’t set out to ‘conquer’ the world of fashion with outrageously new designs by rather to meet a ‘gap’ within the market of providing ‘real women’ with a beautiful, wearable and affordable designs. We are available in over 50 stores nationally and also in New Zealand and Japan.
Vanessa: We’re actually a retailer based in Western Australia and are expanding into wholesale for the first time. Funny, it’s usually the other way around isn’t it? We design our own shoes and make them in our own factory in China, so we thought it would be a good opportunity to take our products to the East Coast of Australia. Because we make our own shoes we can control the quality and we can produce them for other customers. Right now, we have two stores and we picked up about 28 wholesale accounts at the trade show.
Were you nervous about a trade show launch in this retail environment?
Rebecca: Although the current trading environment is uncertain for retailers we have found that the Sistaco product, due to its quality and value is saleable for our retailers no matter the purchasing climate. When the world was going through the GFC fashion editors were telling readers to update their wardrobes through the use of accessories rather than spending larger amounts on clothing. From the date we launched we have always had the same philosophy, every woman should be able to afford to make a statement, so our price point has always been the same.
Natalie: To launch a new label within the environment gave me the chance to see what the industry really thought. A nerve-racking risk to take but I am delighted with the overall feedback and business written at the event. Whist the economy is struggling I had to ensure my product was very competitive and of a high standard of design, quality and price. I believe buyers are now more than ever ‘budget’ conscious and are seeking value for money. I believe we were successful because the overall product was new, exciting and affordable.
Vanessa: We’ve never shown before so we have nothing to compare it to. But for us, because we just moved into wholesale, we were happy with the response. We have basic non-leather shoes starting at $59.95 retail and then go all the way up to $499 for leather winter boots so I think it can cover a lot of bases. We didn’t just take our spring/summer range, we took our current collection to see how buyers would respond and we sold out. We left a minimum amount of shoes at our own store in Subiaco and actually sold out for buyers who wanted to buy something for their store right now. We specialise in flats that aim to be comfortable but fashionable - they have double padding - and those were the ones that sold best.
What were some GFC-busting sellers for you Rebecca?
Rebecca: Prices range from $19.95 to $74.95 with our biggest sellers being our necklaces, our average price of $54.95 is our biggest seller, with most retail customers purchasing two items per transaction. Our number one selling product is the necklace known as ‘The Answer’ with 18-year-olds to 60-year-olds buying this product due to its all age suitability. This product can be found on our website. For us it’s not about the purchase price, it’s about the quality of the product and its saleability. Each collection is 40 to 50 pieces, with these being released monthly. Our product is available internationally with a number of countries previously ordering from us, including New Zealand, Singapore and America.
Natalie, this was your very first launch to market. Did your background prepare you?
Natalie: I studied fashion design and clothing production at TAFE NSW. I have extensive fashion retail and buying experience through my family owned boutique. The challenges that present themselves when trying to set up a new fashion label are endless. Most importantly, it was finding the best manufacturer who could provide beautifully made garments within my budget and work to deadlines. In truth this has taken me five years. I have endured many hiccups with previous manufacturers.
Sourcing good manufacturers is an industry-wide problem. Can you give me an example of some of the challenges in the initial launch phase?
Natalie: The 600 garments I had to completely reconstruct myself due to financial restraints! They were my first taste of how ‘wrong’ things can go. We received a delivery from Thailand of 600 beautifully embellished dresses which were all labelled small - large, however they were all XXXL when unpacking them. I had no choice but to remake them myself on my parent’s dining room table with my ‘first’ Janome sewing machine. After having done these alterations, which took me one month, I sold out within the first two weeks of taking them to market. However I have, like all designers starting out, have experiences all these problems but am determined to succeed. The easiest thing was making sales at Fashion Exposed because the hard work had been done, and the end result was beautiful.
Did the experience make you adapt your business strategy?
Natalie: I actually wanted to manufacture within Australia (this is still a dream). However the reality is offshore is at present more affordable. I found an internationally recognised manufacturer in India who assures fair trade to meet with me and look at my designs. Having done so he graciously came on board and offered me the opportunity to produce my full sample collection for this summer and showcase at Fashion Exposed in Sydney. I am blessed to have this company supporting me as he manufactures for major internationally recognised labels. Needless to say I am a tiny ‘fish’ in a very big pond.
Rebecca, this was your first trade show launch but you started in 2011. How did you set up your label in the beginning?
Rebecca: The brand started on Facebook, where our followers grew extremely fast, and orders followed suit. We then started selling at the local market to open up the demographic of our customers and had numerous enquiries from store owners wanting our product in their stores. From then on it has been a rapid growth, going from a mother daughter team to a brand with 13 staff within a year. It has been a lot of hard work but has always been worth it. We are about to start supporting charities who assist women in Africa, which was one of the key reasons for starting the business, and also where the sisterhood idea came from, in turn the label name, Sistaco. Having over 11,000 followers on Facebook now allows our message and philosophy to be heard and discussed. With this demand growing stronger we decided to direct part of the business into wholesale. Going to Fashion Exposed was a last minute decision which has proven successful not only for Sistaco but for the retailers who have picked up our label with numerous re-ordering within the first two weeks of selling our product.
That’s an extraordinary example of social media success.
Rebecca: Having the business owners being mother and daughter helped, with Chantelle being 18 and an active user of all social media. This was the foundation for a good beginning. Chantelle having an obsession with online interaction and an uncanny understanding of branding online saw the number of followers quickly reacting to the content being distributed through our page. Mix that with a great product and the success followed. I think too many brands get it wrong. You need to not just feed info or product to buy, but mix the two together in a clever well timed manner, and also give your followers a way to interact back with you directly.
What does your average fan look like?
Rebecca: Our most active users are definitely females under 25, with most followers being Australia based. However those who follow us but do not interact as often seem to be between 18-30. When the older bracket interact with us it is usually to purchase rather than start a dialogue. They usually purchase through redirection to our website or via direct contact with Chantelle using Paypal.
Natalie, you mentioned you had some international business. Is that a different challenge?
Natalie: The Azure collection was purchased at Fashion Exposed by Japanese buyers who have a chain of eight upmarket boutiques. New Zealand buyers also purchased the product, which was extremely exciting as it was my first ‘launch’ and I am thrilled to have landed international clients. The rules change only with export and no GST but extra freight charges which my savvy business partner (dad) handles! The garments that sold to Australian and the international buyers were predominantly crushed 100 per cent cottons and silks with embellishment in pastel garden shades which is what the summer collection focuses on. Prices were RRP$60 to $250.
Will this influence the direction of your next collection, given the response?
Natalie: Definitely, the Azure by Natalie Centaine collection will always draw inspiration from beautifully beaded trims and embroideries. The label is about upmarket resort wear with a unique feminine touch. Beautiful colours, embellishments and well cut flattering styles with always remain. Small steps first! I don’t want to get to big too soon so we are happy with our number of retailers at this stage and will hopefully grow these, also via website which we are working on at present time.
Some buyers can get quite nervous about brands launching their own online store, as it is a point of competition.
Natalie: Yes that is true! Our website will be only for the public to look at and then look up a supplier close by. No online sales will happen through this website, it is more a means of communication between current clients and new prospective buyers.
What advice would you give designers launching into this market?
Natalie: To launch a new label at a trade show is a nerve-racking risk to take, as you will, from this experience, understand how your label is received by industry. You must ensure your product is extremely competitive, a high standard in both design and quality and overall affordable. Market your label well. Launching a new label in a difficult climate is certainly tricky. Azure received a great response at our launch as we are an affordable designer label. We have however, not had prior experience in a thriving economic climate to compare to the current economy. We are happy with our results so far and we are planning for a bright future with small steps.
Ultimately the dream is to exhibit Azure by Natalie Centaine at Australian Fashion week, hopefully in the not too distant future!
Rebecca: Our ambition is to grow the business so it can have a positive effect on not only Australian women through our product and self development/inspirational direction, but also through the micro-loaning charities we are involved with. We want to be involved in something bigger than ourselves and being successful gives us the means to achieve that. Our advice would be to trust yourself, and have confidence in the direction of your brand. There is nothing more important than sticking to your direction and knowing what you want to achieve. When you know, you usually succeed.
Vanessa: We were well prepared. We bought our current collection as well as the spring/summer collection, which we will begin to deliver in August. We had some late winter indent orders for May as well. I think because we make our own shoes as well, we design, make and get the fabric ourselves, it meant we were different. We can control the quality and we can produce for other customers. Right now we have two to three collections a year but now with wholesale customers, we’ll take this to four to five times a year.
Meet the panel and brands
Rebecca Grugar - Sistaco co-founder
Sistaco is a Queensland-based accessory brand, offering design-driven jewellery at value prices.
Natalie Centaine - Azure by Natalie Centaine founder
Azure by Natalie Centaine is a resortwear label for women sized 8 - 16 with retail prices from $60.
Vanessa Takkar - Vangoh Shoes co-founder
Vangoh Shoes is a Western Australia-based footwear retailer, which recently expanded into wholesale.