Young talent time

Paradise is not a term one would normally use to describe the sourcing, sampling, assembling, and distribution toils of running a fashion production department. But from the pristine beaches of Kuta, Nusa Dua and Seminyak or the terraced rice fields of Ubad, it’s difficult to find another word for the surrounds of Balinese-based agency Meniki Management. Founded in June 2008 by Australian-born Kylie Phipps, the firm works with domestic designers seeking to source product from the region as well as clients based in the USA, Germany, UK and New Zealand.

“As I had many established relationships with designers in that part of the world, I was always hearing about their difficulties trying to run their productions from Australia, not to mention the cost involved in having to fly over and check on the process,” Phipps says. “This led me to see a gap in the market for producing these collections. Since 2008, I have continued to grow and work with many more international designers from all over the world.”

Phipps launched the venture just months after completing her studies at TAFE NSW, where she undertook a three-year course in Costume and Textiles Design, gaining knowledge in garment construction, patternmaking and design. During her studies, she further developed these interests through assisting a Byron-based jewellery designer assemble and produce her own collections. Two months after relocating to Bali, she set up Meniki Management, which offers full production services to designers with existing labels. Phipps assesses their requirements, order quantities, output targets and current production pricing before recommending a suitable package. A minimum of six clients fill her production schedule per month.
“There was a lot of market research to find out what my clients really wanted and how I was going to provide them with the best service possible at the most cost-effective price,” Phipps reflects. “I had to learn a lot about the Indonesian culture and how to conduct business in their country; at times it took a lot of patience and understanding. A big part of my job is to integrate the Western mindset to create a peaceful working environment.”

The company currently works with six factories in and around Bali, and with some fabric suppliers based in Jakarta. Phipps admits there was a process of trial and error with manufacturers to begin with, but describes it as a ‘blessing’ now that trusted partners have been secured. A majority of her suppliers are garment manufacturers which can render silk, satin and lycra garments as well as basics in cotton, denim and rayons.

The real drawcard to the market, however, is craftsmanship, with locals creating handworked beading, embroidery and handpainting on silk as well as leather jackets, shoes, pants and bags. There are dying houses where designers can batch dye fabric, as well as create stone and acid washed looks and traditional handwork and crocheting.

“In Bali we are quite fortunate as there’s a lot on offer regarding production,” Phipps explains. “There was a phase in the beginning where we were challenged in finding the right factories I could depend on and there were a number of sleepless nights stressing over productions. But over the years, I’ve developed strong relationships with all core suppliers and manufacturers who I trust and know are always going to deliver a quality product on time and on budget.”

Phipps has a strong word of mouth presence in Australia, with the agent recommended to Ragtrader through several design sources. Menswear designer Premal Petal started investigating Balinese manufacturing options for his spring/summer 2012 collection and advises designers to do so via an agent. Petal nominates an avalanche of national holidays, high labour expenses and a lack of fabric as the key challenges for designers in Bali, as well as the importance of quality control.

“Don’t go direct to factory,” he says. “If you go through an agent, then the agent is responsible. You give her the specs and she goes to the factories and sees which is the best factory to give it to. She does all the fittings with us on Skype so we don’t have to send samples back and forth.”

Phipps says there are strict guidelines for all parties involved, from the manufacturer to the designer to the agent. Meniki Management works with several assistants and runners, as well as a handful of Sydney-based fashion consultants who keep Phipps abreast of the local market.

“The sampling phases are definitely the most challenging days for me,” she says. “Other challenges I’m faced with are making sure that all information from the designer is translated correctly. It’s so important for me to work closely with the designer so our vision of the collection becomes one. Getting the correct fit of the garment is something I take a lot of pride in - without a good fit, you don’t have a marketable product. There’s a lot of attention to detail when it comes to fitting a garment.”

Phipps’ experience in the region has seen her secure more established designers, commissioning larger orders and working with new materials. Meniki Management will soon overhaul its website to allow designers to follow production and learn more about the proudction management process.

“As most of my clients don’t live in Bali, there’s a sense of security knowing that they have a production manager on ground making sure all specifications and deadlines are met. If something goes wrong with production, I’m here to solve the problem in the fastest way possible. We are definitely in a new phase right now and I feel this venture is a huge stepping stone with endless possibilities.”

The final straw came in late 2009, when an order of goods arrived stuffed inside a series of battered suitcases. There had never been any direct communication between designer Valerie Tolosa and her Chinese-based manufacturer, but her sourcing agent assured her all processes had been above board. As Tolosa, a designer of 10 years with her own flagship store in Paddington, began sifting through garments in the wrong size and colour specifications, the threads behind ‘Sourcing Mate’ began to take form.

“We were dealing with an agent based in Australia who lived up to all the cliched stereotypes you may associate with an agent doing business in China,” Tolosa says. “Doing business in China can be a bit of a black box from the outside looking in, particularly if you have an agent who is hiding their costs. We were told that the suitcase was a ‘special delivery’ as it saved us from paying any import duty. That was their last delivery to us.”

Tolosa and her business partner Antony Stockdale have been managing their own  offshore production ever since. Sourcing Mate is a collaborative effort between Valerie Tolosa Fashion Group and The Republic, an investment and business system consultancy.

“We had trialled several different manufacturers and regions before setting up so we weren’t going in blind,” Tolosa reflects. “The first thing we did was find someone on the ground - an international business manager for one of our manufacturers. All of our business dealings with her had been professional and above board. The next challenge was going to China to find new factories. At one point, we were literally walking out of meetings with one firm and knocking on the door of others located opposite. The results were more miss than hit but we did find a couple of manufacturers of major US labels, which we would have never discovered otherwise.”

Sourcing Mate currently has 25 clients on its books, with a list of 45 recommended factories in Guangdong, 25 in Hunan and 15 around Shanghai to choose from. The firm offers a range of services, starting with a simple package of sourcing suitable manufacturers based on style, quality, price, quantity and turnaround time. Tolosa’s partners in China provide clients with photos, updates and a quality control service along the production process, with three pricing options offered based on garment quality. There is also a 10-day tour for designers interested in researching the market, with scheduled visits to key fabric suppliers, factories and accessory providers.

“Initially we visited factories in the major centres but pretty quickly it became evident that to find businesses that met our requirements [small runs] we needed to leave the big cities and go into the regional areas,” Tolosa says. “Businesses in the smaller cities are more likely to accommodate and prioritise your business, in addition to offering more competitive pricing due to lower land costs and a cheaper labour base. The other price variable is order quantity. We are beginning to leverage our client base to improve the quality or lower minimum order quantity while holding the price.”

A majority of the factories Sourcing Mate partners with offer made-to-order clothing, however the firm is also able to source custom fabric patterns and design services and has recently branched into non-fashion product. Tolosa understands the tight-knit nature of the Australian fashion industry and is exercising caution across production management.

“Sourcing Mate has very specific guidelines about how to brief in your range to a factory and we gladly hold your hand through this process if required,” she explains. “If something is made exactly to the brief then the liability falls on the designer, however this is almost where the process breaks down. Our team in China is visiting your factory throughout all phases of production, hopefully heading off any potential issues before they are actualised. Once a faulty garment arrives in Australia it is a big problem, so we try to avoid that scenario. Without our credibility and the trust of our clients we are out of business.”

Tolosa adds that every client has the opportunity to deal directly with their factory or use her team as a conduit for dealing with suppliers, something she learnt from her previous experience.

“Bridging the gap between Australian clients and Chinese manufacturers is a never-ending challenge. In China, you can get almost anything made as quickly as you like, as long as you are willing to pay for it. On the flip side, you can always get something made cheaper if you don’t care about the quality. So it is always possible to find a better price or a quicker turnaround time, but there are other pieces to the equation, such as quality and value. We are in the business of helping people conduct business across cultures and countries in a clear, transparent and trustworthy manner.”