Austrade
Austrade London senior business development manager Jemma McCowan offers aspiring exporters a lowdown on the United Kingdom TCF market.
The United Kingdom is a sophisticated and globally recognised fashion destination worth approximately $A100 billion in 2005. Clothing and footwear have become less of a spending priority because of falling prices for these products - although shoppers are buying far more in volume terms.
Discounting is rife in the ultra-competitive UK retail market for clothing and despite offering cut throat pricing, these retailers still offer design-led, on-trend product. According to statistics from UK Customs, Australian imports of clothing into the United Kingdom total more than $A20 million annually (and growing). Sass & Bide, Seafolly, Jets, Ksubi, Alice McCall, Zimmermann, Metallicus, Jayson Brunsdon, Alannah Hill and Spencer & Rutherford are some of the leading brands with an established following in this market. Newer brands currently making inroads into the market include Josh Goot, Julianne, Camilla, Lenny, Master & Margarita, Sahani, Ghost & Lola and Ginger & Smart.
Before you start
Do your research: Understand your target's business - their customers, labels, style and most importantly, how your range might fit into their store. Applying the "one in, one out" rule, think about "what will make your product so desirable as to take a proven range off the shelves"?
Getting the numbers right: A strong pound doesn't mean your label will have a pricing advantage. To start with, freighting your goods across the world adds extra cost, as does agent's commission (15 per cent) and higher retail mark-ups (up to three times the wholesale price). In addition, duties (12 per cent for clothing) and VAT of 17.5 per cent are charged.
Sorting out your pricing: Make it as easy as possible for the buyer to assess the viability of selling your range. Know the duties and taxes applicable to your range - you should be giving buyers landed prices in pounds (Delivered Duty Paid pricing).
A strong visual impression: Create an aesthetically grabbing website with pictures of your collection, show the sizes and colours available. Also have to hand PDF colour e-brochures, line sheets and e-pictures, but watch out that they do not crash someone's email because of the file size.
Talking to the Trade
When pitching to a buyer put the effort into preparing a good presentation to create a professional and enthusiastic impression. The best time to make an approach is between the selling seasons, roughly, March to July, or October to January. Buyers are generally a little quieter, but beginning to think about the new season. Also keep in mind most of the buyers prefer to deal with suppliers they already know and trust in their network. It is harder to get their attention through a cold call, and often very frustrating, as they infrequently respond to phone messages and email.
Finally, follow-up and follow through. If you receive a positive response from a buyer who asks for further information, don't forget to action the request! If you promise something, make sure you deliver.