Talking it up

As the Australian fashion industry becomes increasingly globally competitive, the concept of communication between all parties is taking on a higher importance. Samantha Docherty asks two fashion industry insiders how they successfully communicate.

Dominic Beirne, director of consultancy service Australian Fashion Partners, says productive communication requires a rethink of how the industry will operate going forward.
"One contract I worked on for a client required a re-think of how to deal with the company's trading partners. The client had been in the enviable position of having product in demand in the market. They were however experiencing stock-outs and having difficulty accessing both raw materials and production capacity in a timely enough manner to meet their customer's needs. Sales were being lost both domestically and internationally and credibility as a reliable supplier was soon going to diminish."
Instigating a process of forward planning and communication, Beirne and his client developed sales budgets at a financial level then translated those to product forecasts based on historical sales figures. Reviewing the numbers and increasing them slightly to allow for additional stockholding, Beirne's client also advised their service providers of the company's needs for the 12-month financial year period.
"As part of the annual forecasting we requested the trading partners' allocated space in their schedules to meet the mutually devised forecast. What we had in fact done was provide forward orders allowing the suppliers to invest in their business on the basis of 'guaranteed' returns. Rolling 12-month forecasts were given to suppliers based on monthly reviews of performance with the customers. Each month quantities would be reviewed, colours confirmed and any extra services locked in. The process of continual communication allowed the client to receive delivery on time in full and cope with the peaks and troughs of delivery to their customers.
"It doesn't matter about the size of the business, the locations were business is conducted and the facilities available within the business," adds Beirne. "The only thing that will make any process work is communication between people building relationships and gaining agreement on any proposed course of action."
Maintaining good stock levels and constantly monitoring the reaction to a particular retail group through constant feedback and great relationships with retail buyers are just some of the tools Baku Australia's co-director Tamara Bykerk accredits to the Australian swimwear company's successful management.
"Separates are the highest selling items at swimwear retail as they give the consumer so much choice. Despite their success, many swimwear labels do not supply separates or do not supply them successfully due to the logistics of having to keep such high stock levels. If something hits the stores and really takes off, we start re-cutting immediately in anticipation. We dispatch re-orders to our retail customers normally within 24 hours of receipt of their order."
Designing three labels within the company and selling extensively across Australia and New Zealand and exporting to Fiji, Singapore, Thailand, Malaysia, Hong Kong, Japan, France, Turkey, the UK and the US, Bykerk has recently appointed agents in France and Spain.
"Our sales agents are constantly advising us of what is selling particularly well and we move on those items straight away. We have implemented reliable formulas to predict sales in styles, prints and colours. This is based on what our indent figures are - which is usually a good indication as to what is going to work at retail, but not always - so we look at these formulas in conjunction with feedback."
Manufactured both on and offshore (predominantly in China and India) Bykerk ensures on-time delivery by making constant visits to all the factories.
"It is important to have a good working relationship here also. We put pressure on them with deliveries but also with quality check, which we regard as extremely important.
"It's essential to be very much organised with your patterns and fabrics to offshore factories as often delivery is two months after first samples are received. You have to be organized to ensure more frequent deliveries that maintain the high standards of quality customers expect from a Baku garment. We will not compromise on our quality just to have something new in-store."