Talking Heads - Club 21 general manager Michelle Curtis

Around 12 months ago Singapore-based luxury brand giant Club 21 began pro-actively driving a re-aligned offer to Australian consumers. A year on, Ragtrader caught up with the company's Melbourne-based general manager Michelle Curtis to see how the market was biting. Interview by Belinda Smart

Club 21 owns a suite of international luxury brands but one of the most significant for the Australian market so far is Georgio Armani's ready to wear brand Armani Exchange (AX). How is AX travelling?  

Firstly we are following on the back of our successful spring/summer 07 season, which resulted in over achieving on both budget and sell through. This confirmed that the changes we recently implemented with AX in the Australian market were spot on. The change to our overall strategy really came into effect as of autumn 07, with the product buy being specifically tailored to the Australian market. The buy was more suited to the Australian lifestyle, which is very relaxed and is also one in which colour, texture and fabrication are very important. 

How has consumer perception of AX evolved in recent years?

The international customer that knows AX is educated about the brand. However until recently I think Aussie customers were probably confused as to where AX fitted into the Giorgio Armani (GA) portfolio. Their perception of the price point was also confused. We are now seeing a new awareness that AX is the entry point into the GA brand. Prices start as low as $59 for a logo tee to $350 for outerwear while the average price is around $130.

How many outlets does AX operate across Australia?  

Four; two in Sydney (Westfield Bondi Junction and King Street Sydney) and two in Melbourne (Chadstone and Melbourne Central shopping centres).

Is there room for expansion?

Yes, there is room for expansion, but the AX brand is not suited to every market, shopping centre and strip in Australia and in fact in 2008 Club 21 will concentrate on launching its second brand into the Australian market - CK Ready To Wear - which will have three stores open by April. We are currently focusing on getting this newborn brand settled into the market, while continuing to drive the solid results through AX. Regarding AX there is still room for more stores in both the Melbourne and Sydney markets. We will launch into Queensland in 2009/10 and we will review the Perth and New Zealand market over the longer term. 

What are the biggest current challenges for the AX brand and how will you deal with them?

The key challenge is to increase AX's brand awareness [in Australia] - a journey we started back in 2006. AX’s product mix gives it a unique point of difference in the Australian market, and we will continue delivering this message through our localised buys and strategy suited to the Aussie customer and lifestyle.

How do Club 21's brands fit into the Aussie retail scene?

I think the Australian customer is more brand conscious than ever before, and the expansion of many international brands over the next three to five years will only continue this education. These customers are looking for an experience with a brand that is unique yet approachable, offers a variety of merchandise and accessories, is of the highest quality and is still affordable.

How do you see AX developing over the coming years?

To answer that, all you have to do is look at the new markets, categories and projects [designer Georgio] Armani is undertaking, which are all about progress into uncharted territories. AX will continue to mature in the Aussie marketplace and expand its existing store locations over the next few years.

How important is HR and staff training to the success of the AX brand?

Very important, Club 21 wouldn’t have achieved what it has to date without a great team of people so training at all levels is imperative. We are very focused on training our people and arming them with the tools to coach their teams to succeed. We also have a very solid succession plan to date and only want to continue this. Our teams are passionate, well looked after and are exposed to great leadership across the entire business.

How long have you been in this position at Club 21, who was your predecessor and what was your most recent previous role? I have been with Club 21 Australia as general manager now for two and a half years. I have no predecessor as the role was a new appointment to the Australian office, although there was however a national operations manager, who is no longer with the business. Prior to joining Club 21, I was located in Sydney and working for Oroton Group as national retail operations manager for three years.

What's the best thing about working for AX?

AX is accessible. It is a designer brand at an affordable price point, young minded, and unique; both as a brand and as a product. Most importantly it’s about the culture we have here in the Aussie team.  They are a very down to earth bunch of talented people. A few other things stand out about the brand; AX is a new entrant in the market, but has fantastic potential, as it offers a great line of internationally styled clothing targeted to the Australian market, both male and female, across a broad spectrum of ages.

By Belinda Smart