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Target Australia has selected one designer to create a capsule collection and receive a financial grant of $25,000.

Sydney graduate Rachael Zheng has been presented with the prize package.

The opportunity is part of the 2015 National Graduate Showcase – an initiative of the Virgin Australia Melbourne Fashion Festival.

Zheng said she is delighted with the win.

"The opportunity to design a commercial collection with Australia’s biggest retailer, with financial support, doesn’t come along often – I am pinching myself," she said.

"Every young designer dreams of a retailer giving them a shot to launch their career.

"I can’t wait to show customers my designs, developing the collection from concept to final product in this collaboration with Target."

Her collection, LILT, is inspired by geometry and consists of easy-to-wear, loose fitting garments splashed with bright and bold shapes.

Zheng’s capsule collection for the ‘Designers for Target’ program will be available later in 2015.

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