Ragtrader regularly profiles shopping strips located in regional Australia. Here, Assia Benmedjdoub discovers how local retailers compete with major chain stores in Merimbula.
The seaside town of Merimbula is located 596km from Melbourne or 467km from Sydney. But it was a 30-minute drive which had Natalie Scott concerned about her bottom line five years ago.
Her boutique, 2 Sassy, was then based in the rural haven of Bega, just 30 kilometres away. She would watch in vain as tourists streamed into Merimbula over the summer season and left Bega for the cheesemakers.
“During the holidays, the local population booms from 5000 to 15,000,” she says. “The town is so close Bega, but we never got those sorts of numbers.”
So in 2008, Scott made the strategic decision to relocate her business to Merimbula. She secured a retail space by a busy intersection on Market Street, and is now in a stronger position to capitalise on the tourist trade. Scott invests over $70,000 in wholesale collections for spring/summer and $50,000 for autumn/winter stock.
The benefits of the move, despite a slight decline in the tourism market due to the current economic climate, are also less immediate.
“In Bega, I used to advertise in the local papers but now we’ve got this big window storefront which just gets so much attention,” she says. “Often we’ll change our windows every second day just to really promote that position.”
2 Sassy specialises in fast fashion labels with garments from Seduce, Levis, Cooper St, Ladakh and Wish. Scott is also in the process of securing mid-market labels Nookie and Flamingo Sands for coming seasons.
With the likes of Jay Jays, Just Jeans and Jeans West operating in the area, brand exclusivity has never been more important.
“There has been some controversy with that here,” Scott admits. “It depends on how loyal the sales agents are but there have definitely been some double-ups in the past. They don’t realise how small Merimbula is and will sell the same label to another boutique nearby. I didn’t used to ask for brand exclusivity in Bega but I am doing that now. I’m also really loyal to brands – I’ve had many of them for the last five years.”
Lynne Bryant, sales assistant at Everything Earthy, is equally dogged about maintaining a point of difference – not just for the sake of competition, but to attract that all-important tourist dollar.
The Market St store specialises in natural fibre garments, with labels such as Eco Wear and Earth Collection providing hemp, bamboo, silk and woollen options. Prices average around $100.
“We do things like local tourist pamphlets and paper advertisements to promote ourselves,” she says.
Meanwhile, Blush boutique, which opened just last year, targets the teens to 30-year-old category with brands including CKM and Lily White. The company also operates another store in the area aimed at the mature market. Called Desire, it offers brands such as Privilege, Clarity and Charisma with sizes ranging from 8 to 24.
Manager Justine Kidd says striped dresses, leggings and leather-look jackets have been strong sellers for autumn/winter at Blush. Prices start at $12.50 for basics to $100 for on-trend items. Despite having a similar product offer to the bigger chain stores, Kidd is not concerned about competition.
“We’re not too concerned with the big retailers because our prices are actually much cheaper and we have new stock coming in every two weeks,” Kidd says. “That’s why we decided to open here last year – because there was a real gap in the market for [value] clothes for younger age groups.”
Chain store Rockmans and independents Aquablu Resortwear, Leisure Time and Phantasea Resort Clothing are also located on Market St.
TCF Helpline
Industry organisation TCF Australia (www.tcfaustralia.com) advises independent retailers how to capitalise on Facebook and Twitter.
Q: How would Twitter and Facebook help me market my brand? (NB, WA)
A: Twitter is a form of blogging which is known as micro-blogging. It’s a service that enables its users to send and read messages known as tweets and this is sometimes described as the “SMS of the internet” because they’re text-based posts of up to only 140 characters. There are various ways you can use Twitter. Here are some examples:
• Distributing coupon codes, specials and sales items. Retailers such as Sportsgirl will often announce impending sales on their Twitter feed.
• As an alternative customer support option. For instance, customers who follow a brand can ask a question via Twitter. A brand representative can then send a response instantly and encourage feedback from other users.
• Recommendations on new products and upcoming company events. Are you holding a special styling workshop at your store one evening or introducing a new look for the next season? Let your customers know.
• Updated news with links to your website or blog. Many independent retailers and brands now have a blog where they share styling news and tips with their customers. Post a link to your blog to encourage traffic to your website and make customers feel like they are part of your business.
• Share the human aspect of the company. Have you got a new employee or sales assistant on board? Share it with your followers on Twitter.
Facebook can also be a highly effective business tool.
• Post professional or business casual photos to reinforce the brand.
• Market your products by posting discounts and package deals.
• Obtain a Facebook ‘vanity URL’ so that people can find you easily. For example, this can be www.facebook.com/yourbrandname
• Add your Facebook URL to your email signature and any marketing collateral such as business cards and look books.
• Combine Facebook with other social media tools like Twitter. For example, when someone asks a question on Twitter, you can respond in detail in a blog post and link to it from Facebook.
Visit www.tcfaustralia for more.