Understanding Business Will Help Grow Design

Understanding Business Will Help Grow Design Beyond A Hobby

New Zealand designers keen on cutting it on the international stage need to get to grips with the business side of fashion, or risk never growing their business beyond a 'hobby', panelists at the Westpac Workroom said today.

Created for designers, the Westpac Workroom is an industry focused discussion forum featuring local and international experts who gave insights into how New Zealand designers can grow their business both locally and internationally.

The audience of over 50 people included leading New Zealand designer Liz Mitchell, Wayne Conway from Kate Sylvester, industry representatives from FINZ and visiting international buyers such as American-based Elizabeth Charles.

MC'ed by Stacy Gregg, fashion commentator and editor of Runway Reporter, the hour long discussion took advantage of visiting experts here for Air New Zealand Fashion Week including Brian Long - International publicist; Christopher Blomquist - editor Sportswear International; Jo Farrelly - former Top Shop Marketing Director. They were joined by Pieter Stewart - Managing Director, Air New Zealand Fashion Week; Susie Walker - Industry spokesperson; and Barry Squires - Head of International Business, Westpac.

Pieter Stewart, Air New Zealand Fashion Week Managing Director, kicked off the discussion saying that the week had been a great success with fantastic shows.

"This is a good time to stop and think about the business side of fashion. It's all about being realistic. For example, designers need to consider simple business facts such as price points and look to markets where their price points fit," says Pieter.

Westpac Head of International Business Barry Squires concluded the panel discussion by recapping the importance of sustainable growth, consistency and market position - all common threads that the other panelists had touched on.

"If you aren't making money then you are doing it for a hobby. Get advice and understand the risks.

"It's also important to be consistent. Before you make a deal know that you can follow through. The first order you miss will be the last order you get so it's important to know the supply chain process so that you can deliver," says Barry.

Jo Farrelly, former Top Shop marketing director commented that events like the Westpac Workroom set Air New Zealand Fashion Week apart from other international fashion weeks.

"At London Fashion Week there has been talk about mentoring programmes and running seminars for the designers. Here in New Zealand you are actually doing it, it's great and other countries should be looking to New Zealand for ideas like this," says Jo.

Top tips from the Westpac Workroom for New Zealand designers trying to make it in the overseas market:

1. Plan for growth - don't oversell before you can deliver and be sustainable in your growth. Establish momentum in New Zealand before you go out to the rest of the world. It's important to understand the supply chain process before you make any promises.

2. Branding and market positioning - having a vision for your brand will make it easier to make decisions for the next steps to success. Start by identifying your market fit and where your label fits into that market. Think about your most aspirational customer or the store you would like to be stocked in - but be realistic! Obtain market input to give you a sense of reality.

3. Brand signature - don't be afraid to have a signature item or identify something that you stand for and be strong in the delivery of that. Designers can get cut through by picking something and become known for it.

4. Editing your collection - have the confidence to edit your collection and be concise. Less is more and you can't be everything to everyone.

5. Quality - choosing high quality fabrics and high production standards are key. Quality will continue to be important.

6. Communication - when exporting to new markets talk to people in that market who are involved in the business. Work the relationships that are built at events like Air New Zealand Fashion Week. Communicate with them all year round and keep them in the loop on relevant developments with your brand.

7. Be focused on the business side of things - because if you aren't it's only a hobby! Look at the simple business facts, for example when considering exporting a garment to the UK that sells in New Zealand for $100, consider by the time you add export duty, mark-ups etc it could end up costing $700 in UK. Understand the risks involved - New Zealand is one of the most volatile markets in the world in regards to currency fluctuation. Understand the stores you are selling to. Have a business plan.

ENDS

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