Fashion sector must re-think or sink
MELBOURNE: Policies affecting the clothing industry require a dramatic shake-up to secure future growth, according to participants in the Government's TCF Review.
At the time of writing Professor Roy Green's TCF Review - commissioned in March by Minister for Innovation, Industry, Science and Research, Senator Kim Carr - had garnered 75 submissions. Among them, the submission from peak TCF industry body the Council of Textile and Fashion Industries of Australia (TFIA) claimed "favourable government policy" was essential to drive growth.
With regard to the TCF Strategic Investment Program (SIP) Scheme, a funding injection to 2010 was proposed to offset modulation - the practice deployed to ensure total grant payments for a particular year did not exceed allocated funds for that period. TFIA head Jo Kellock said "top-up" funding would enable companies to take advantage of a period of stabilisation and turn it into growth.
"Modulation is 'putting the brakes on' innovation and investment growth, as lack of transparency means applicant companies have no idea how much funding they will receive from the pot available. If the Government wants to drive growth it should take the brakes off."
Also recommended was a TCF investment facilitation and innovation program, designed to foster collaboration between diverse TCF industry players and operating separately from the SIP scheme.
Proposals also included funding linkages with international supply chains to drive the international profile of Australian fashion. "There is acknowledgement already that this is a strong and growing industry, with designers such as Sass & Bide, Collette Dinnigan, Jenny Kee, Akira Isogawa and Martin Grant achieving international acclaim."
The sector would also benefit from support for market research and development activities and extra funding for the TCF small business program from 2010 to 2015. Skills funding to master innovative technologies and processes was also proposed, as well as tax deductions for training expenses.
The TFIA also recommended funding for companies investing in innovative environmental and sustainable solutions and a certification and monitoring program to promote sound business practices.
The release of its submission this month followed a series of TFIA industry workshops in April, covering: consumer clothing; retail; design; uniform clothing; research, development and technology; education, training and skills; and the Sydney market.
Jo Kellock said investment in Australian branding garnered support at the consumer clothing workshop - which canvassed views from the industry players including the Homeworkers' Code of Practice, Pacific Brands and Just Group.
"The general consensus was that Australian branding was an effective way of tugging at the heart strings of the domestic market. What we need to do is build on that to make it 'sexy' to overseas markets."
Meanwhile the retail workshop had highlighted the dramatic evolution and re-definition of fashion retail in recent years.
"Retailers are no longer just about retail. They are increasingly moving up and down the supply chain," Kellock said.
Professor Suzi Vaughan, head of fashion at QUT and the fashion industry representative for the review's reference group, agreed a dramatic "re-imagining" of fashion retail and the industry as a whole was required.
"The outdated notion of TCF is still broadly manufacturing based, whereas the reality comprises retail, often with a design component. When you look at the success of Country Road, Cue, Witchery or Veronika Maine, these are all Australian retail brands that have made a great success out of strong design."
By Belinda Smart