Sport's retailers big bullies?
BRISBANE: One of Australia's leading suppliers of sublimated apparel has been forced to bring all garment manufacturing processes in-house, citing unreasonable demands from major sportswear retailers as the key reason.
Brisbane-based company Colorscreen Print, which specialises in screen printing, sublimation and digital printing for leading brands such as Nike and Reebok, said the past five years had seen a surge in major retailers demanding unreasonable prices for replica on-field playing garments.
In a paper submitted to the Federal Government's textile, clothing and footwear review, managing director Brett Shepherd argued sportswear retailers were now in a position to dictate price points that bore no reflection to the cost of production. As a result, he claimed several domestic manufacturers of on-field playing uniforms had gone out of business in recent years.
"The powers exerted by the retailers has forced Colorcorp to absorb all cost pressures and continually reduce its prices (whilst the retailers maintain their margins) putting greater, ongoing pressure on our design and manufacturing teams to seek new ways to meet these price points," Shepherd noted.
He claimed since the company began producing on-field playing uniforms seven years ago, the price for jerseys had fallen from $50 to $45. The price reduction was significantly greater once that company factored in the rate of inflation.
"In this environment, Colorcorp would not have been able to remain in business without undertaking the necessary investment and research and development initiatives to progress its expertise in leading sublimation and digital printing technologies," Shepherd wrote.
The company is currently in the process of investing in further manufacturing initiatives, bringing all garment manufacturing processes such as embroidery and sewing in-house. This "high risk proposition" aimed to offer retailers a one-stop-shop for apparel and would work to compliment Colorcorp's printing and pressing processes.
"Colorcorp does not believe it has any alternative strategies given the small margins the company has to work with to meet the demands of international brand names," Shepherd said.
Established in 1979, Colorcorp currently employs 90 staff and maintains a 5000 square metre factory in Stafford, Brisbane.
By Assia Benmedjdoub