Womenswear retailer Sheike has just celebrated 30 years in the business. Assia Benmedjdoub looks back at its markets-to-malls story.
If his response to the early 1990s recession is anything to go by, there's a good chance George Lazaridis is now 30,0000 to 35,0000 feet above the ground.
His womenswear brand Sheike had just celebrated its tenth year as a retail operator in Sydney. But faced with a drought of ideas to combat a downturn in the economy, Lazaridis ignored his own trade experience and took to the skies.
"I went on an overseas business study tour," he recalls. "It proved to be the turning point for the label because I came home inspired and motivated to evolve Sheike."
The brand's story officially starts in 1979, when the young entrepreneur secured his first retail site at Sydney's Centrepoint Tower. In the three years leading up to Sheike's bricks-and-mortar launch, he'd been a regular stallholder at Sydney's Pitt Street Market.
"This was a great introduction to the industry as I learnt a lot from a grass-roots level and ultimately laid the foundation for the business," Lazaridis says. "It's interesting, back then I remember selling bodysuits, jumpsuits and tie-dye clothing by the truckload - and with fashion trends coming back round, these are all the styles we are considering again."
Sheike's target demographic has remained unchanged since those days, with a focus on urban women aged between 18 and 35 years. Manufacturing is still predominantly based in Australia - with the exception of a few offshore partnerships - and consumers continue to expect updated collections structured around suiting, dresses, cocktail and casualwear.
Lazaridis believes the biggest change to hit the market in recent years has been an influx of competitors.
"In the '70s and '80s there was only a handful of fashion retailers and shopping destinations. Now, shipping centres are in every suburb and packed with retailers from every category. This increased variety means competition is fierce and your product must have a point of difference, especially given the current economic climate."
Referencing the lessons he learnt during the 1991 recession, Lazaridis has now put the emphasis back on brand image, positioning and marketing activities. As part of the retailer's 30th anniversary celebrations, its autumn/winter 2009 collection has already been rebranded to include the tagline 'Established 1979' across swing tags, shopping bags and other marketing collateral.
"The new branding addresses the label's extensive heritage while communicating a message of longevity during an economically challenging time," Lazaridis says. "Producing strong and innovative branding and in-store displays are a necessity for cutting through the cluttered retail environment."
The rebrand has rolled out across Sheike's network of 15 retail stores in New South Wales, adding to its fortnightly visual merchandising cycle. While the brand co-ordinates just two marketing campaigns over the autumn/winter and spring/summer season, new product is delivered to sites each month along with fresh updates and shopping features on its dedicated website.
Close to 100 employees make up the Sheike team across retail, marketing and head office.
"Like many retailers, we don't have a large above-the-line budget so when choosing advertising mediums we weigh up the fashion environment and target market fit versus the reach and cost," Lazaridis says. "Public relations is of key importance and we maintain and foster strong relationships with fashion media and stylists."
As a High Street retailer, trend-driven products at accessible price points are also integral to Sheike's positioning. Daughter Marie Lazaridis is head buyer for the brand and undertakes regular trips abroad to keep up with seasonal trends.
"Marie also utilises media sources such as fashion magazines, trend reports and online sites," father Lazaridis explains, adding most new season garments are priced between $70 to $200. "It's not all glamour and champagne though; her international trips often see her exhausted with long days scouring New York, Paris, Milan and London for the latest trends on foot. Still, it doesn't sound too bad, does it?"
Not according to the brand's optimistic autumn/winter 2008 collection. Tweed pencil skirts, ruffle detail cardigans and high-collared shirts make up the workwear offering while floaty dresses and faux-fur boleros target the eveningwear consumer.
"Sheike places a strong importance on family," Lazaridis says of Marie's role, with wife Sofia and son Phillip also holding key positions at head office. "The company culture reflects our family values [and while] we always receive offers to sell or franchise, this is not something I am considering at this stage."
As for the next 30 years?
"There is potential for growth within Australia and I will pursue these opportunities carefully to ensure. Right now, we have a few 30th birthday promotions in the
Thirty years: Three rules
George Lazaridis credits his success to three rules of retail:
1. Staff: Retail employees are the front line of the business because they interact with your customers. It's extremely important staff are knowledgeable and reflect the company's values.
2. Understanding your customer: Customer Relationship Management is also a key focus as it's important to reward loyal customers and understand their needs. This also creates direct marketing opportunities.
3. Having great product: The product must reflect an understanding of your target market in relation to price, quality and style.