Local knit brand heads north

MELBOURNE: Veteran knit supplier LMB Knitwear has branched into the consumer market with the launch of export-friendly brand Otto & Spike. Otto & Spike's first collection - priced $30 for a beanie to $100 for a scarf, with average price-points around $40 to $60 - launched into the Australian retail market for winter 2008. However the brand's strategy had always been to export, said Alasdair MacKinnon, the consultant brand strategist who wrote the blueprint for the brand.

"Our first market will be Canada for reasons of climate, language, culture and regulatory similarities," he said, adding entry would be timed for the northern hemisphere autumn/winter season, with instore test marketing planned for November.

The move marked a radical change in direction for LMB, he said. With a history spanning 40 years, for the past decade the company had produced knitted goods for Australian and international brands including Quiksilver, RipCurl, Mambo, Adidas and Nike, but had been forced to re-invent itself as brands exported their knitwear programs elsewhere.

Every stage of Otto & Spike's development had been carefully designed to position it for export, MacKinnon said.

"We identified from the outset that markets outside Australia were crucial to the success of a brand focused on premium woollen knitted accessories.

Our early research highlighted the depth in this segment in the northern hemisphere. We developed a MySpace [presence] right at the start as a way to begin engaging with consumers and retailers overseas." Otto & Spike also owed its break into export to Austrade's export development program, MacKinnon said.

"Austrade's assistance was sought early as we knew that their knowledge and experience is an irreplaceable resource to company in LMB's situation. Austrade have been really supportive." Over the long term, international expansion would allow for unique partnership opportunities and line extensions for Otto & Spike, MacKinnon said, as well as boosting the sales potential of each collection.

"In addition there are competitor brands that we would like to really take on. Going into export also brings with it a sense of adventure. We get to go head to head with those brands into their native markets; this also sort of inspires and spurs us on. We want to win."

By Belinda Smart