Adam Beydoun
New Directions
New Directions is a key supplier of retail packaging solutions.
We are introducing a whole new range of 100 per cent recyclable cheap Kraft bags in six different colours and three different sizes. The purpose of these is that it allows our clients to still be bright, colourful and fun when packaging products while being environmentally friendly and cost effective. These bags will be priced very close to the cheapest bags on the market which are the Brown and White Kraft bags. As the online retail market is growing bigger and bigger every day, we are keeping up with the trend by introducing new foldable-rigid garment boxes available in two colours. These add to our collection of flat packed boxes and the difference between these and our current range is that when they are constructed they become rigid boxes, similar to our current gift boxes, which will withstand the Australian Post postal service and arrive to the end user intact without any damage, keeping the garments inside in the condition they left the store. We also offer a custom printed ribbon product which allows our clients to purchase our stock plain unbranded products with minimum orders being only one carton of anything and then dress it up with their own branded ribbon.
David Hannay
Shop for Shops
Shop for Shops is a leading provider of retail shop fitting and display solutions.
At the start of the year, Shop for Shops took the decision to reduce 95 per cent of our retail prices. We also reviewed our loyalty scheme and significantly reduced the spend thresholds required for customers to qualify for these discounts. During this process we have been especially conscious of lowering the prices on consumables that our customers use everyday – like bags, hangers and ticketing. We have also seen a growth in demand for display systems like our freestanding Maxislot range that do not require a tradesperson to install. We put this down to the obvious installation savings and a growing desire for flexibility in short-term leasing situations. It’s not all about discounting though. Even in this tight market we’ve been able to launch our new brand, publish our free 200+ page catalogue, grow our custom products business through the developing relationships and good work of our China office, and continue to provide a free measurement and store design service for all shop fitting projects.
Nikki Silverthorne
Kooey
Kooey is an iconic local swimwear wholesaler.
The economic downturn is something that has affected most businesses and designers need to treat fashion as a business not just a creative pursuit. We are always working to improve both our business and manufacturing processes to grow within the current retail climate. With so much generic and low-quality product available a demand for well-made relevant product has emerged. We have certainly tried to be more aggressive with our pricing but it can be difficult while keeping the manufacturing in Australia. Currently Kooey is 100 per cent Australian made and owned. The Australian market is relatively small, so another step we have taken to address the retail climate is working on new market distribution in the US and UK. It’s about producing innovative products and positioning them well, at the correct time to meet real market needs. We have also developed our resortwear to be more wearable on a day-to-day basis and not just cover-ups for the beach. This has opened the door to a wider range of retailers.
Robert Bryant
IBISWorld
IBISWorld is a global trade information firm.
Increasing wages in China and high input prices due to strong cotton and synthetic prices have put cost pressures on the industry. It is estimated by IBISWorld that wage costs within the clothing apparel industry in China have increased as a percentage of revenue from 9.32 per cent in 2006 to 10.26 per cent in 2010. The growth in wage costs as a percentage of revenue suggests manufacturers are under growing pressure to pass these increased costs onto consumers. As yet, Australian retailers have resisted any pressure to increase prices. Rather, prices have actualy fallen as retailers turn to discounting as a way to entice customers. The strong Australian dollar has also protected domestic prices. The retail price of footwear and clothing as measured by the Australian Bureau of Statistics Consumer Price Index in March 2011 fell to its lowest level since June 2000. Over the year the retail price of clothing and footwear contracted by 1.3 per cent. This means increased costs have yet to be passed on to consumers.