A working holiday

Forget the headaches of home renovation. Try opening a store halfway across the globe. Assia Benmedjdoub delves behind the scenes of Hussy's move into Indonesia.

There aren't too many universal truths in the global retail game. Humbling then, that one of them has less to do with innovation and more to do with a great Aussie tradition. Builder's crack. Or the lack of it when it comes to pace.
"I paid an expat to work as a construction manager on the store while I was in Sydney - builders never tell the truth when it comes to delivery dates."

So says Marie Hatzis, the designer behind womenswear labels Hussy and Madame Marie. After a concerted assault on American retailers in early 2008 - where her 'Live to Love' and 'A Loving Memory Now Blooms' collections were picked up by the boutique Elizabeth Charles and department store Fred Segal - Hatzis decided to venture into the Indonesian market. Not on a supplier basis, but bricks and mortar style. 

"The promises that local builders make and do not deliver is one of the hurdles we faced - but this is basically the same problem worldwide," Hatzis says of her recently opened Seminyak store. "Overall, the experience was a lot more pleasant as Indonesians are very calm and understanding people."

Given her export arm stretches across 11 countries, many of which have similar retail formats to Australia, it may seem odd Hatzis chose Indonesia for her first international retail site. Not so, says the designer, who in keeping with Indonesian custom had her venture strategically sponsored by a Balinese local.

"We started thinking about expanding into the region about six months ago, particularly in Seminyak where some of the cooler, tastemaker labels (some of my friends) are beginning to seed, creating a strong shopping destination," she explains. "We are already selling to a great store in Jakarta but focusing on launching into the region through our flagship store."

Hatzis is in good company, with many high-profile Australian designers now boasting a presence in Indonesia. According to Austrade business development manager Tjut Devi, and as reported by Ragtrader earlier this year, Indonesian buyers continue to be the biggest spenders at trade events such as Rosemount Australian Fashion Week.

"Many Indonesians are luxury brand conscious but also interested in Australian fashion for its fresh and innovative appeal," she says, adding the country has an economic class bigger than the population of Australia. "Australian designers such as Melanie Cutfield, Sass & Bide, Willow, Kirrily Johnston and Jayson Brunsdon have recognised the market as an emerging hub for Australian design."

Profitable too. Hatzis expects the new store to contribute 15 to 20 per cent of the business's overall revenue in the first year. She says the company is preparing to make the most of peak retail seasons - from July to August and then December to January.

"We've set up a solid management structure within the store and contracted external personnel to implement the rollout of our international marketing strategies," Hatzis says. "I also have a full-time personal assistant that reports on the day to day operations and liases between myself and Bali."

The designer says local tourist magazines have already shown an interest in profiling the label, making the process of introducing herself to local consumers much easier. "Also, as we export all over the world, our global publicity strategies and marketing tools - such as our website and ever increasing database for our monthly newsletter - will reach more consumers than ever before."

Hatzis has already enlisted showrooms and publicists across London, Sydney and New York to maintain her global push. Current international stockists include Austique and Coco Ribbon in the UK, Villa Moda in Dubai and of her course her top-selling American stockists Fred Segal and Elizabeth Charles. That's not enough to satisfy Hatzis however, who's now reviewing franchise offers from Dubai and formulating her own international expansion strategies.

"We are in the process of implementing a global business plan which includes the development of more retail stores and business partnerships within Australia and overseas. There are also a few other [wholesale] accounts now interested in taking on the brand so watch this space."

By Assia Benmedjdoub