The business of fashion

Pieter Stewart,founder and managing director of NZ Fashion Week. Photo / Supplied

Believe it or not there's more to Air New Zealand Fashion Week than sipping Moet and checking out what the front row is wearing - although that is lots of fun. Fashion Week has its serious side too; its fundamental reason for being is to grow new markets for our designers and provide them with a platform to reach local and international buyers and media.

Air New Zealand Fashion Week gets under way for the ninth year on September 21, at a time when the economic pressure is on designers more than ever.

For a country where the fashion industry is constantly challenged by a small local market and the distance of new markets, Fashion Week has played an incredible role in the awareness and growth of our top designers. Founder and managing director Pieter Stewart discusses what Fashion Week means.

What changes have you seen in the NZ fashion industry over the past nine years?

It was a very different industry when Fashion Week began nine years ago. Four designers (Zambesi, NomD, World, Karen Walker) had just shown at London Fashion Week which, apart from individual initiatives, was the first major launch of New Zealand fashion into the international arena.

The key exporters were the larger companies like Verge and Hart, and only a few designers had a recognisable profile, even locally. Now many of our designers are household names, are stars that everyone wants to see and meet. The bulk of designers now showing at Fashion Week don't know what it is like to not have such an opportunity to create brand profile and reach an international audience.

What opportunities does the event give designers that they might have missed if it didn't exist?

Collectively the industry is strong, and the newer designers get huge advantage from the experience and advice of the more established designers who have done the hard yards, learned what works and what doesn't over many years. I believe the opportunity to show a collection to a wide fashion audience, the opportunity to meet directly with international buyers, agents and media in an exciting and vibrant atmosphere is something the industry now takes for granted.

NZ Fashion Week is only one small part of a designer's year, but used wisely it can be a serious help to the designers. Not only has it helped to unite designers, it has also provided a united platform for stylists, makeup artists, hairdressers, publicists, buyers and the like. It has put fashion on a par with other industries, as one to be taken seriously.

Designers all have different key objectives for doing FW. Can you explain what these are?

Depending on the focus of a designer's business at the time, some do FW in order to launch their collection internationally or nationally to media and buyers, some simply to keep their profile out there, some to host their strong customer base and others to take advantage of the still and video footage for their look books and marketing.

Usually it's a combination of several reasons.

Designers have come and gone from FW over the years. What do you think is the secret of the fashion labels that have maximised what the event has to offer?

Fashion is a business like any other industry, and some survive while others don't. Being a creative business it suffers from the usual difficulties of cashflow expansion, but those who develop a strong business base to begin with are more likely to be able to stage their development sensibly and strongly. I encourage designers to take advantage of all the add-ons that FW offers such as their still shots, videos, setting up meetings with key media and buyers. For a designer to set up a shoot for themselves would cost way more than their FW fees, so they need to milk it for everything it's worth.

What are the mistakes designers have made in the past that others can learn from?

I can't really comment on the individual business of designers as I'm not privy to that information. We create the platform for them to promote and sell - but one observation is building that strong base, not trying to export to the world straight off.

Get NZ and Australia strong first and then look further afield, because exporting especially to the Northern Hemisphere is not easy.

What are the challenges in the current economic climate that you see the industry facing?

Designers are no different to anyone else in business right now - it's tight and tough. We want designers to be here next year, not to stretch themselves to the limit and make it even more difficult for their business. I have been impressed by the number of designers that recognise keeping their profile out there is really important, especially if they have shown regularly for a few years - they have built up their brand, used the marketing advantages and don't want to go backwards.

So as we suggested earlier this year, they have thought outside the square to keep their involvement with FW, but not necessarily to show individually on the catwalk. Some designers are doing half group shows half the price, half the number of garments - but still showing, keeping their profile, able to take advantage of all the fashion week opportunities, but not stretching them to an uncomfortable limit.

Next year FW celebrates 10 years. A real milestone. Where do you think the future lies for the event?

I believe there will be major changes and opportunities for our designers in the next few years particularly as the Asian market is developing so fast. At the moment there are very few multi-brand stores in most of Asia apart from Japan, but they will come as the consumer tires of either the top international brands available everywhere in the world, and the cheaper brands. Our designers need to be ready and poised to take that new market.

Asia is is a fast growing market with 40 per cent of the world's population living there. Fast fashion value brands like Zara and H&M all trade well. These markets are right on our doorstep and, with China expected to be the largest market for luxury goods and accessories by 2015, it is an area that should be tried next.

It is a difficult market, however, so my advice to designers is steady as you go! Places which are developing fast also include India, Vietnam, Phuket, Macao and Dubai.

But it is early days. What would be best for New Zealand designers is more quality multi-brand stores and there are few of these at this stage in Asia.

Designers such as Karen Walker and Cybele, who travelled recently to Tokyo to throw a press party, thanks to her Air NZ Export Award, are making in-roads into Japan. How important is this market?

In Japan, shopping is a lifestyle for them. Interest in and exports from New Zealand are growing steadily, but it's essential for a designer to be represented by a showroom there that can handle their sales, PR and communication. I believe, if designers just concentrated on their NZ, Australian and Japan markets, they could do immensely well. We can compete on price in this market, but the clientele is petite, so often sizing is a major issue.

What about Europe and the States?

In the UK and Europe it is difficult for NZ designers to get traction. The reason is very simple, I believe - our clothes end up far too expensive. A garment is sold at wholesale price, then freight and duty is added, then the mark-up of the store - the norm of which is 270-370 per cent - the garment ends up at Armani prices. A limited number of our designers can fit with those stores selling other international labels, but high price demands extremely high quality and everything else like on-time deliveries, editorial backup - it's just incredibly difficult for them to get real traction and keep it up.

In the US, a number of our designers are getting tracking and being picked up by showrooms. The West Coast is particularly good for a number of our designers, freight is less than getting to Europe, duties vary according to fabrics, and mark-up is around 220 per cent which is better than the UK.

It's important that our designers develop a strong brand DNA - an individual brand message. Some already do - you know a garment is from Zambesi, Nom D, Paula Ryan, Trelise Cooper, to name a few. This is important because how else are you going to stand out from the masses?

How important is it to support and nurture young designers coming through?

It is extremely important. There are a number of experienced designers who now mentor young designers. We have also modified our requirements for new designers to show at FW - we used to insist that they be "export ready", but clearly we need to nurture that new breed of designer who is just starting to wholesale in NZ if we are to find the emerging designers of tomorrow.