Austrade Singapore
Let's talk fashion
Singapore is a natural first market for Australian exporters and is recognized as the gateway to Asia, With a significant presence of international companies and increasing numbers of tourists, Singapore is also recognised as market leader or ‘trend setter’ in the region.
The average Singapore consumer is highly discerning and generally very aware of international trends in fashion. They look for quality while at the same time expecting value for money, so good pricing and quality need to go hand in hand. Where branding is not strong, unique points of difference along with competitive pricing are crucial to success in this market.
What you need to know
There is no lack of choice in the Singapore apparel market. With a relatively free port and minimal barriers to entry for most goods, importers need only to pay a 7 per cent Goods & Services Tax (GST) for most imports into the country. As a result, the market is filled with international brands at various levels making it a very competitive playground.
Australian fashion has found its way into Singapore’s shores mainly through multi-label boutiques stocking a variety of brands in their collection. Labels like Tina Kalivas, Wayne Cooper, 18th Amendment, Jayson Brunsdon, Arabella Ramsay, Living Doll, Industrie and Shona Joy are among more than 40 Australian brands available in the market.
Australian fashion is sought after in categories like women’s ready to wear, street wear and denim. Australian swimwear has also made its way into department stores with brands like Seafolly, Watersun and Flippers.
Fashion trends and buying periods tend to follow European seasons. However, Australia has an advantage being able to provide apparel in opposite seasons to Europe. In addition, the Autumn / Winter Season in Australia, which has recently been promoted as ‘transeasonal’ to better match the use of lighter fabrics has better marketing prospects in hot and humid Singapore.
What’s in store
With plans to create two major new resorts by 2010 and its success in bidding for a Formula 1 race this year, Singapore expects to create a bigger buzz and is looking to bring the country’s retail scene to a new level. Australian brands can take advantage of these future developments by cementing a presence in Singapore at an early stage.
Let's talk commerce
Sellers must bear in mind that a product which is highly popular with consumers may not necessarily attract trade buyers. Attractive export pricing coupled with necessary marketing support (applicable where branding is concerned), is imperative in sourcing trade buyers’ interests.
Pricing should allow a trade buyer healthy margins not only for themselves but also retailers. As a guide, distributors use a 4 to 4.5 times multiplier on FOB export price to gauge rough retail pricing in Singapore while direct buys from retailers will see them putting a 2 to 3 times mark-up on the CIF Export Price. This will need to be addressed without having the resulting retail price too different to what is being sold in Australia because of the high number of visitors and students from Singapore visiting Australia.
By Mark Chau