Our editor Assia Benmedjdoub gives Ragtrader Members an exclusive weekly wrap of the market.
It's rated R.
R for revenue. R for reputation. R for retail-approved resale.
It's the word on everyone's lips as Mercedes-Benz Fashion Week Australia (MBFWA) prepares to kick off on May 12.
Resort.
From 2017 to 2018, MBFWA saw a 35% increase in international media attendance and a 5% increase in global buyer registration.
This is in part due to the event's restructured timeline, moving from the spring/summer selling season to lucrative pre-season.
Resort, much like pre-fall, sits on retailers' racks for longer than traditional seasonal collections with double the sell-through window before markdown.
Speaking to international buyers attending this year, it’s apparent the MBFWA restructure is a drawcard.
Browns buyer Holly Tenser is one such delegate.
"Pre-collection is always a very significant part of our spend. As a very general rule of thumb, we tend to invest up to 70% of our spend each season on pre-collection, unless a brand is known to be particularly strong in runway," she tells me.
An earlier delivery window means retailers are able to invest in greater depths, with more floor time to clear full margin sales.
And it's not just buyers who are reaping the benefits of this R-rated retail exercise.
Australian designer Dion Lee made a strategic move to launch resort way back in 2013, now his most commercially successful collection across the business.
Accounting for 30% of overall sales, he says it holds traction for both hemispheres, as it drops locally in October in time for the racing season.
The momentum continues into December as customers search for holiday wear, party outfits and gifts.
For We Are Kindred founder Lizzie Renkert, there has been a 500% return on investment for showcasing during the resort season.
"All of the international buyers come out here. I think that's why it's so great for us and it's the first of resort on the schedule so their budgets are fresh.”
That's not to say domestic designers will be heaving with orders for the entirety of the year.
As with all areas of retail, a solid logistical framework is vital to capitalise on potential trade.
"Other than the obvious seasonal differences, logistically we are unfortunately not able to be as reactive with trading in-season due to long shipping times," Tenser warns.
So before the week kicks off, it's important for designers to balance out the indulgence with a little G-rated exercise.
Good business planning.