NATIONAL: Australian designers have remained resilient in the wake of a softening export market.
Analysts at market research firm IBISWorld have predicted high to mid-priced fashion exports would decline over fiscal 2009, despite a fall in the Australian dollar. According to industry researcher Raghu Rajakumar, global financial instability meant demand for lower value-added products from China, Vietnam and India would be stronger in markets such as the US and Europe.
"During an economic slowdown luxury purchases such as high-priced fashion usually hold up reasonably well, with the wealthiest consumers still able to afford what they want," he said. "This is not expected to be the case for some of Australia's prime fashion export destinations over [the current financial year]."
Manufacturing exports in the footwear category were expected to fall by 3.7 per cent, men's and boy's apparel by 6.5 per cent and women's and girl's by three per cent.
Indonesian boutique Velvet, which specialises in premium Australian designer apparel, confirmed it had lowered its purchasing budget for the next season. Owner Yana Handali said while the drop in Australia's dollar had created a more favourable exchange rate, conditions in the market meant this would not translate to stronger orders.
"The outlook remains depressed - a reason that is compelling us to be more cautious with spending. That includes lesser spending on imported clothes, which falls into the luxury category."
However, many Australian designers have remained hopeful about a growth in exports for the next season. Victorian-headquartered label Nevenka had already reported a seven per cent growth in sales for its autumn/winter 2009 collection and extended its selling period by a month.
Director Rosemary Masic has also brought her public relations activity in-house in a bid to become more competitive. Nevenka is stocked in six Myer department stores, 30 national boutiques and exported to five countries throughout the world.
"We predict our autumn/winter sales to increase by 10 per cent this year," Masic said. "There's a lot of fear in the air and while we've found it hard to grow our business with new customers, our current clients have supported us well. We've had strong interest from New Zealand."
Brisbane-based swimwear label Jamu had also recorded steady growth in its export market, with founder Lydia Leong having just returned from a seven-month business trip in London.
"The results from my trip have been amazing and it is likely that I will [now] spend half a year there and the other half in Brisbane."