Fashion Group International (FGI) global creative director Marylou Luther can be described as the eternal optimist, once quipping ‘why be in the red when you can wear it?’ during a trend presentation framed around the economic crisis.
But her summation of the fall/winter 2011/12 international collections, presented as an audiovisual package to audiences in Sydney last month, took a different turn: “Revolutions. Tsunamis. Earthquakes. Is it apolocalypse now? Are we arming for Armageddon? Is this the prequel to the end of the world?”
An ensuing panel discussion, which featured figures from the local creative industries, revealed Australia was not entirely immune to the geopolitical turmoil. Suzanne Grae buying general manager Suzanne Scozzi says that while the greys and sombre silhouettes of Karl Lagerfeld’s Chanel show wouldn’t trend locally for instance, there were implications.
“For Mrs Grae, sombre tones don’t really work because she wants colour, so I’m very happy to see lots of this on the catwalks,” she says. “But I do think that the environment has an influence on her bearing. We saw it in Queensland, particularly with the floods, for a period of about two months where people were definitely reluctant to outlay money and enjoy themselves with this disaster happening.”
While the womenswear chain is also recovering from recent earthquakes in Christchurch – its New Zealand flagship is expected to reopen in June – there is the ongoing challenge of China’s tightening manufacturing sector.
“Obviously the exchange rate at the moment is helping enormously,” Scossi says of working with suppliers in the market, which price in US currency. “But cotton is now more expensive than a denim jean ; it’s got more value than the actual jean. I think that without doubt, the Australian consumer is going to see higher prices in clothing. Depending on the exchange rate, it will probably be in the region of 15 to 20 per cent.
“It is very difficult because there really isn’t an alternative to China – it’s the expertise, the infrastructure, the logistics that has been 20 to 30 years in development.”
For home furnishings brand Kas Australia, the global trend towards technical fibres does not suit its strategy of providing fashion forward pieces priced between $250 and $300. Creative brand manager Ben David believes plaits, ruffles, beading work, high finishes and stitching can be worked to create looks under $1000, where “people won’t stray”.
“We found last year that the economic crisis did have a big effect ... people that had high ticket items really suffered,” he says. “We could see by the leases of shops that were coming up, it was pretty tough. But we also found that a lot of people wanted to nestle in their homes, so for us there were a lot more sales in accessories and bedding. We were worried that maybe we should go safer and go with a lot more nude tones but we went brighter and it’s working, this year especially. I saw some tribal, bohemian, gypsy patterns come through [for winter 2012] which are more applicable to the home division.”
For Leanne Whitehouse, director of education provider Whitehouse Institute of Design, the implications of recent events have had a more profound effect.
“Our business in Melbourne has grown enormously,” she says. “What took us 23 years to build in Sydney has come to that same size in Melbourne in five years. Interestingly, regional, interstate and international students want to go to Melbourne because I think it’s just that little bit calmer or safer. We’re expecting that the growth in Sydney will come in from part-time courses. I think everyone wants to go back and improve their credentials ... be recognised with an academic qualification.”
With major international brands such as GAP and Zara zeroing in on the Australian market, Scozzi believes innovation will also take place on the retail front. Suzanne Grae has changed its buying strategy in recent years, redesigning all garments and securing exclusive prints for seasonal collections. In-store merchandising strategies, such as pairing accessories directly with garments on hangers, has allowed consumers to make complete, trend-informed purchases. Buyers are now purchasing drops for October and November.
“I think because the world is becoming such a smaller place, we have to be far more innovative,” Scozzi says. “We see more and more each season that Mrs Grae wants to be in fashion and wants to have the latest trends. I know that there are a lot of designers and retailers from overseas now that have started to look here in Australia for what we’re doing, particularly from our designers because we’re almost ahead in some ways.
“Sometimes when we see the summer catwalk shows happening overseas, the likes of Sportsgirl can turn that on straight away. So we start to get it sooner than anyone else.”