Designer prices out of favour with consumers
NATIONAL: Australian designers have been forced to re-evaluate their pricing strategies in the wake of tougher trading conditions, an industry forum has revealed. Global economic uncertainty was at the forefront of a panel discussion at Fashion Group International's biannual trade seminar last month.
Panellist and iconic frock designer Matthew Eager said he had already seen a concerted shift away from premium-priced garments. Eager currently wholesales one ready-to-wear and one diffusion line to select boutiques throughout Australia and New Zealand.
"[Consumers] are still buying dresses [but] they're looking for value and longevity," he said. "I think for us, our ideal price point is between $300 and $400 - once it gets too close to $1000, you can just forget it."
Fellow panellist and ready-to-wear designer Joe Farage said although the previous financial year had seen profits rise by 30 per cent, there had been a slowdown in consumer spending in the past six to eight weeks. Ironically, sales across the brand's five retail stores in Melbourne and Sydney had not drawn the same level of revenue as regular trading periods.
Farage remained confident the brand's emphasis on corporate apparel would see it trade through tough conditions.
"A good 60 to 70 per cent of our customers buy for business attire - there's a certain standard you have to maintain in the workforce and I think that's why we've enjoyed solid growth [for the first half of the year]," the Sydney-headquartered designer said. "I'm pretty confident about the economic climate, but having said that I do believe the next 12 to 18 months are going to be tricky."
Panel facilitator and fashion blogger Patty Huntington believed classically inspired brands such as Farage and Armani, which recorded a net profit rise of 66.2 per cent for the last financial year, would continue to perform well during difficult periods. She said consumer spending had shifted favourably towards garments that offered value-for-money, quality and longevity.
Viscous Threads designer Ivan Gomez agreed and noted items such as detailed jackets and quality knitwear had outsold "safer" styles over the autumn/winter 2008 season.
"People ultimately want value for money," he said. "They don't want something safe they can get from anywhere because when we're doing safe, they're buying cheap imports anywhere. So why would they buys your shirt for $80 when the can get one for $40 or $25?" The Fashion Group International Fashion Flash seminar was staged at Sydney's Sofitel Hotel on July 29.
By Assia Benmedjdoub