Would you ever risk launching a brand on a shoe string capital base? Absolutely. I am all about taking risks and, put back into my experience, I asked ANZ for an overdraft and just went for it. You must be careful not to grow too big too soon as you have to have the capital to pay upfront for big orders and your manufacturing infrastructure must be running smoothly and be able to cope with the demand. You are better off to get help from family and friends in the beginning – being in fashion involves a lot of financial juggling. It’s best to get your brand established first before you look at bringing in investors because the more your turnover the better the deal will be for you and your investors. I would advise waiting for about five to seven years before talking to private investors.
How important is the physical location of your business? Location is so important especially when establishing your brand so be sure when setting up your stores that they are in high traffic or iconic locations. My flagship destination store is in the old Jackies Restaurant opposite Bondi Beach which was the perfect location for me at the time and my new head office is in Darlinghurst in Sydney which is so central. My stores are all in high traffic areas and our head office sits on a great corner destination (Stanley and Crown Street in Darlinghurst) which is very convenient and the perfect site for brand awareness.
How do you balance web, wholesale and retail distribution channels? We don’t undercut our stockists by selling cheaply online. Online is the way of the future but shopping in stores will always be an experience and we work hard to make our customers want to come into store by giving them style guides and having styling nights and special events. With online, you can see different global trends such as our US clients buying more tops as they love to wear jeans and younger clients are very into accessories such as head scarves and shoes. How online works well for us is that customers around the world can order, for example, a kaftan they saw Oprah or Kate Hudson wearing.
How do you manage demands for stockist exclusivity? It is important to be strong with boutiques and to put minimums in place. Be sure they are the right store for your brand so try to visit them and, if not, get them to send you photos of their store and the other labels they are selling. You don’t want to be merchandised in the wrong environment. Have a look on a map to see how far they are from a competitor who wants to stock you and, if possible, go for customers who have other stores as it makes your accounting and logistics much easier.
How many collections did it take to profit? I made a small profit almost immediately, but didn’t start to make real money until about three years ago and now I pour the profits back into growing the business.
Is it worth working for established companies before launching? A lot depends on your age and experience. I learned the hard way from my own mistakes, but I did have experience producing ads for John Singleton’s advertising agency, which made a lot of things easier for me. If you are studying, internships are a great way to get a feel of how businesses are run and the infrastructures and staff you need to put in place. It’s not just about being creative and designing - it is about running a business that you want to be profitable.
