Ragtrader regularly investigates how key shopping strips in regional Australia are faring. Here, Melinda Oliver looks at trade in the country town of Bendigo.
Described by one store owner as the "Chapel Street of Bendigo", the mix of fashion boutiques, art shops and cafes on Bath Lane injects a city buzz into the country Victoria town. Bath Lane retailers compete with nearby department stores including Big W, Target and Myer, as well as numerous mid-market fashion chains for business.
Sheridan White is a long-term retailer on the strip, with her 13-year-old store MonaLisa by Sheridan a destination for mid- to high-end Australian brands. Alice McCall, White Suede, Rachel Gilbert, Maurie and Eve and Manning Cartell are among the designers on the
racks. White says winter trade was quiet, but the arrival of spring stock has stirred up much more business.
"People are sick of sales; they want to see something new," she says. "I always introduce a couple of new labels each season."
White says her customers have become more discerning in recent seasons. They are buying fewer pieces, but more frequently, rather than spending on a completely new outfit in one hit. They are generally happy to pay $200 for a designer dress, $200 for denim jeans and $100 for a casual top.
MonaLisa by Sheridan and other businesses on Bath Lane benefit from close proximity to the Bendigo Bank headquarters and a popular gym. However, White would like to see parking options improve, as well as a standard decision regarding Sunday trade amongst retailers. She says they all need to open for mutual support, or not at all.
Karlene Whatley of Days of Leisure womenswear store says she has also noticed a shift in customer habits in recent times. Her more mature clientele is seeking younger looks, so Whatley is shifting her buying to accommodate this need and stay ahead.
She says trade on the street has been mixed, with competition coming from major retailers that are often on sale. However, she says the challenging environment means her team are more enthusiastic about providing good customer service. "It makes us work harder," she says.
Mum and Bump owner Bronwyn Hollingsworth has run her maternity wear store on Bath Lane for three years, after initially establishing it as an online business. She says her competition comes from local department stores which stock maternity wear basics. However, she specialises in boutique brands such as HOTmilk, Ripe Maternity and Pea in a Pod to provide a point of difference.
"We try to stock Australian-owned brands and have a lot of brands from Melbourne.”
The foot traffic on Bath Lane and the ability to set her own business hours are strong advantages of the location, she says.
"It has a good Saturday trade. Lots of cyclists come along for breakfast at the [nearby] Green Olive Cafe.”
Hollingsworth would like to see more public toilets and parking in the area as many of her customers travel from out of town.
New to Bath Lane, the owner of unisex boutique Red Door, Karen Sutherland, benefits from double street-front windows due to a corner location. Sutherland opened in March, replacing a former menswear store with a trend-driven offer for 20 to 35-year olds. She has found trade very unpredictable throughout winter, with customers mostly attracted to sale shopping.
"When you take the sale sign down, people stop coming in," she says.
This trend has encouraged her to "think outside the square" to keep business thriving. She says Facebook has proven a great way to grow a customer base and she sometimes offers discount incentives of 10 per cent to fans of the store. Hosting in-store evening events and fashion parades at local venues are all part of her strategy.
Red Door stocks brands such as Joveeba, Nobody, If Toby Could Talk and Mr. Nashville. Sutherland says she is very strict about not offering product that can be purchased nearby, but she recently found another store was supplied with the same skirt from a brand.
"I emailed the supplier to tell them not to do that again," she says.
Nearby retailers also benefit from the attraction of Bath Lane. Around the corner in Hargreaves Street, Jodie Fisher has run childrenswear store Milt & Joe for two years.
The store stocks designer and independent brands such as Big by Fiona Scanlan, Tommy Rocket, Munster and Heavenly Creatures. Fisher says her clients are predominantly local mothers or grandmothers, who spend on average $50 to $70 at a time.
Bendigo is located approximately 150 kilometres north west of Melbourne and is home to a population of around 93,000 people.
TCF Help line
Not-for-profit industry organisation TCF Australia assists small fashion businesses across the country. Its latest TCF Helpline column addresses key issues for brands looking to manufacture in Asia.
TCF Australia receives many requests from designers and across Australia looking to source suppliers and manufacturers from Hong Kong and China. Where possible we can provide linkages for firms and/or networks they can access for the information required.
We also host buying missions every six months to Hong Kong Fashion Week (with assistance from the Hong Kong Trade and Development Council in Sydney) to support Australian firms with sourcing and make contact with potential suppliers in the region
Q: What are minimum order quantities (MOQ)?
A: It depends on the complication of designs and materials/fabrics used. Generally, manufacturers accept minimums of 500 pieces per style or less or in some cases more. Hong Kong fashion designers that have their own brands can also work as OEM manufacturers to help overseas designers. This means a Hong Kong designer can manufacture designs for an Australian label – using their local network of contacts and suppliers – and the label can then retail these designs under their own brand.
Q: What about issues with intellectual property?
A: There is generic protection from
the Hong Kong government. Designers should ask manufacturers to sign a non-disclosure agreement (NDA).
This way the designer can protect themselves before showing any designs to the potential manufacturers. The NDA should be drafted by their solicitor or you can contact TCF Australia for a draft.
Q: How do we know the manufacturers are reliable in terms of their background, product quality and financial background?
A: In order to boost buyers’ confidence with suppliers, the Hong Kong Trade
and Development Council established Quality Control (QC) suppliers’ credentials with their certificates verified by various third party organisations. You can find these on the council’s online portal www.hktdc.com. It also recommends that designers/buyers hire a quality control company to conduct QC on their behalf before shipment. Lists of QC companies are available if needed.
For more visit www.tcfaustralia.com