Close
 

From the runway to the register: how Fashion Week impacts on the economics of clothing retail

  • News
  • September 15, 2015
  • Sarah Dunn
From the runway to the register: how Fashion Week impacts on the economics of clothing retail
Image: World

Fashion weeks around the world have traditionally been a chance for clothing labels to show off their new collections to industry figures, specialist media and buyers. However, Mikellis says the purpose of Fashion Week has changed as fashion has democratised through the internet.

In the past, he says, consumers would never have seen the items on the runway until the next season because the lead time for fashion magazines was two to three months, but now the timeline has accellerated rapidly with the help of the internet. NZFW’s organisers have been obliged to introduce an open-to-the-public element called NZFW Fashion Weekend.

“From a New Zealand consumer’s perspective, fashion week is more about broadening and expanding the profile of the brand,” Mikellis says. “It still functions as a wholesale mechanism, with buyers attending and viewing the next season, but a marketing element has been added.”

Castles says a fashion show can cost anywhere between $20,000 to $100,000. He says World’s first and foremost goal is to capture new wholesale clients, securing orders from the collection on show to sell into those stores during the following season. He agrees with Mikellis that marketing and PR goals are also involved.

“The benefit would be different for each and every brand and would rely on what was most important to the brand at that particular time,” Castles says. “For instance when World last showed at NZFW in conjunction with the ‘NZ's Next Top Model’ finale show our main goal was media attention and with that episode being watched by over one million people, we were able to achieve that goal - our sights, however, were not set on local capturing new wholesale clients.”

Regarding the interplay of costs and return within a label or boutique itself, Mikellis says part of the business of being a fashion label is about building the reputation of the brand through product lines. Some of those lines will be more profitable than others, and some may even be loss leaders: “Most good lineups of fashion products, there’s different margins there.”

Factors affecting the margins on different products include where the product is made, how it’s made, and different consumer perceptions of value. Mikellis is reluctant to name any significant mismatches between a product’s value and consumer perceptions, but says mismatches “absolutely” depend on where its brand sits in the market.

Mikellis says simple items like t-shirts have a greater margin on them compared with more labour-intensive items such as fully tailored suits, which are less efficient to produce. In purchasing an expensive branded t-shirt, he says, people are buying the idea of their association with the brand.

This aspirational bent is most clearly seen in fast-fashion brand collaborations such as Alexander Wang for H&M.

World began in 1989 as a concept retailer offering a unique selection of fashion, beauty and ‘object d’art’ items, and has just opened a new store in Ponsonby. As well as clothing, it stocks imported perfumes and cosmetics, plus unusual items selected by designer and co-owner Francis Hooper. Castles baulks at the implication that there might be any kind of deliberate structure behind this mixture.

“The collaboration of these products in a World store is in no formal way structured [or] financially coherent - it is about our brand staying true to its ethos and aesthetic.”

He says fashion is still the most profitable line for World as “we are creating and retailing ourselves”. The beauty and ‘other’ categories are not as high in value, but are no less important to the stores’ overall feel. Castles says based on past performance, the beauty segment has the greatest potential to grow: “Whilst fashion continues to grow naturally, it is the beauty side to the business that has the potential to grow quicker as a variety of supplier can offer us an unchanging product line that continue to grow in popularity.”

Castles is philosophical about the reality of retailing items made to push boundaries, saying World will often design a line of clothes despite having an understanding that these items will be unlikely to be profitable.

“When we absolutely believe in certain items and love that they present a most honest version of our brand ideals - but realise we are unable to use our classic recommended retail structure - we simply adjust to make it work.”

World often works with specific clients in this capacity, Castles says, creating items which fill them with joy.

“If we were in it for the money, we are in the wrong industry!”

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Building transparency in your supply chain

  • Opinion
  • November 14, 2019
  • Vanessa Thompson
Building transparency in your supply chain

Brands are under pressure to become more ethical, but how does this pressure apply to Kiwi fashion retailers? Unravelled Consultants founder and director Vanessa Thompson explains.

Read more
 
 

Coastlands celebrates 50 years in business

  • Opinion
  • November 13, 2019
  • Jennie Gutry
Coastlands celebrates 50 years in business

Coastlands Shoppingtown in Paraparaumu is celebrating its 50th year in business. Coastlands 50th birthday event manager Jennie Gutry shares some reflections on the centre's early years.

Read more
 
 

Me|today pairing skincare and supplements launches

  • News
  • November 13, 2019
  • Sarah Dunn
Me|today pairing skincare and supplements launches

Consumers are often highly engaged with the brand that produces their skincare products, but less so when it comes to supplements. The idea behind me|today, a start-up selling paired product in both categories, is to leverage that engagement.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Michael Hill to offer lab-grown diamonds in New Zealand

  • News
  • November 11, 2019
  • Sarah Dunn
Michael Hill to offer lab-grown diamonds in New Zealand

Traditionally, prospective proposers should spend three months’ salary on an engagement ring. It should be a diamond solitaire, ideally one carat or bigger. However, in a market where many younger shoppers are struggling with student debt, concerned about housing affordability and suspicious of mined diamonds’ ethical credentials, Michael Hill has moved with the times and introduced an alternative.

Read more
 
 

Winners of the 2019 Westpac New Zealand Franchise Awards announced

  • News
  • November 11, 2019
  • The Register team
Winners of the 2019 Westpac New Zealand Franchise Awards announced

This marked the 25th year for the Westpac New Zealand Franchise Awards. Independently judged by the NZ Business Excellence Foundation, the awards are organised by the Franchise Association of New Zealand. Read on to find out the winners.

Read more
 

Yealands Wine Group appoints Tiffani Graydon as CEO

  • Who's Where
  • November 9, 2019
  • The Register team
Yealands Wine Group appoints Tiffani Graydon as CEO

New Zealand wine producer Yealands Wine Group has today announced the appointment of Tiffani Graydon as its new chief executive. Graydon has previously worked at Yealands in a GM sales and marketing capacity.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}