Three industry heavyweights weighed in on Spring/summer 2011 at a recent trend seminar in Sydney. But it wasn’t all catwalk talk, Assia Benmedjdoub reports.
In the weeks following Prince William’s engagement to Kate Middleton, sapphire rings began taking pride of place in the stores of society jeweller Nicola Cerrone.
The industry veteran, who once supplied mid-market retail giants such as Prouds and Angus & Coote, knows a thing or two about meeting demand.
But his approach now is much more grassroots than that of his previous clients.
“One of the biggest problems we have in Australia is service,” he explained at a recent spring/summer 2011 presentation by Fashion Group International (FGI) Sydney.
“This is a problem I had for many years and it was a hard feeling for me, because when I used to look after my customers, I would do it the way I wanted to be treated. What I do now, I have four stores and I have put a reception in front of my door.”
Each day, the reception keeps a record of who comes in to the store, how long they were there, what they came in for and who looked after them. In addition to solving Cerrone’s customer service dilemma, this level of accountability also had other benefits.
“In the morning, I look at the record and immediately act according to what my customer wants, what they are looking at,” he said. “Right now, there are all these ladies walking in and wanting a sapphire ring because of all the interviews about [Middleton’s engagement]. So what happens? We act on it because you have, immediately, the report.”
His comments came during a panel discussion moderated by Ragtrader, which featured Cerrone, Woman’s Day fashion director Jo Ferguson and Lovable head designer Jonathon Yeomans.
While all three highlighted Jil Sander’s use of popping technicolour and 1970s Yves Saint Laurent as key commercial looks for Australia, it was more practical trends which stirred debate. Namely the entry of international brands into the local market – and how domestic retailers could better compete with them.
Customer service was forefront.
“What it means is that retailers need to step up and make women actually leave their home, go into a store and have a nice experience,” Yeomans said. “With the dollar being so strong, we’ve noticed a real impact in underwear because it’s like every woman has just discovered Victoria’s Secret [online].”
As a brand which operates under wholesale giant Gazal, Lovable has little control of how its intimate apparel is sold, fitted or merchandised in-store. However, by increasing the number of injection ranges sold throughout the year, Yeomans believes extra fire has been added to the standard 12-month lead times for lingerie.
“We’re finding our department store customers wanting more injections throughout the season and wanting them on an exclusive basis,” he said. “I find, working with a buyer that way, does cut out a lot of timing and we can probably get from concept to shop floor in a three- to four-month period. We do about four per season and we utilise these kind of ranges to act on faster trends.”
Due to production minimums from Asia, which can be 2000 to 3000 pieces per style and colour, Yeomans said it is difficult to offer the same service to Lovable’s local network of 300 boutique clients.
“We tend to do a range for the department stores and a range that goes to independent retailers, so in a sense, they are getting a point of difference. What we have seen is most of our manufacturers, with the US coming into Asia, that the minimums are going up, prices are as well. It’s not as easy as it used to be.”
Cerrone said ‘tension’ in wanting to open up his own business saw him break from wholesale clients.
“About 80 per cent of my business was selling to Angus & Coote and Prouds and all the boutique stores around Australia – that was millions of dollars per year. Now I have about 10 per cent of my business is wholesale. All that [mass market base] is gone. That’s why I had to open all the four stores, to keep me going with the size of my own business.”
Growing competition in the middle market has worked to Cerrone’s advantage, he claims, with investment purchases recording the strongest growth.
“The low-end jewellery market has gone quiet but the trend is, now, there are certain people in Australia who are making a lot of money, and they are not buying $10,000 diamonds, they are buying half a million, $200,000. That is what is happening in my business.”
As for those which operate in the mass retail environment, Ferguson, who is a celebrity stylist as well as a publishing executive, believes it could see a new emphasis on local design.
“I think it’s also going to make other companies step up and not copy so much what we see overseas. It will be nice not to have that mass of trend and I think it will filter through a little bit more finely. It’s good for me and for the magazine, because I can introduce more labels to our readers.”