The event management firm that owns Australian Fashion Week, IMG Events, has refused to comment on rumours that the yearly fashion trade show has been put up for sale.
The rumours were initially reported by the Daily Telegraph late last month, with the story indicating that the asking price was $1 million. The story was then reiterated by the Daily Mail, which shared rumours that AFW “struggled to maintain its once respected reputation”.
Speaking exclusively with Ragtrader, IMG’s APAC fashion events and properties VP and managing director Natalie Xenita said the firm doesn’t comment on rumours.
"We're really proud to continue to support the Australian fashion industry," she said. "We had a successful 2024 event, and we're already in planning for 2025.
“We know it's a challenging time. And we know the event has an extremely important role to play in continuing to reach global audiences for the fashion industry here and celebrating the local community here as well.
"We're very excited for the future."
The sale rumours come amid a strategic review launched late last year by IMG’s parent company Endeavor Group in the United States, which led to the overarching company entering into a definitive agreement to be acquired by Silver Lake, a technology investment firm, in partnership with the Endeavor management team and additional anchor investors in April this year.
Under the terms of the agreement, Silver Lake will acquire 100 per cent of the outstanding shares it does not already own in Endeavor, other than rolled interests. Endeavor stockholders will receive $27.50 per share in cash. The transaction is expected to close by the end of the first quarter of 2025.
The rumours also come as Endeavor’s annual 2023 revenue in events, experiences and rights fell by US$18.9 million (A$27.92 million) to $2.17 billion. In the first quarter of 2024, this segment’s sales fell by $55.9 million compared to the first quarter of 2023.
Endeavor claimed the event segment’s revenue was primarily impacted by a decrease of $90 million from the sale of IMG Academy in June 2023, as well as by the timing of media rights associated with certain biennial events that took place in the first quarter of 2023 that did not occur in the first quarter of 2024. These were partially offset by increases in other events in the quarter.
AFW 2024 was held in May this year and would not have been part of these results.
How successful was AFW 2024?
Despite allegations that AFW 2024 was “officially dead” - as reported by the Daily Mail - Xenita said key ROI indicators prove otherwise.
This year, there were 59 live events, 28 returning designers, six First Nations designers and 12 new designers, with the event broadcast live online to over 100 countries. However, Xenita confirmed there were fewer international buyers this year compared to last year.
“We still had a strong attendance from international buyers from the major outlets like Net-A-Porter and Le Bon Marché. We had revolve. We had Moda Operandi, we had Harvey Nichols.
“From a global media perspective, we had Vogue Runway who reported really strongly on quite a few designer shows this year, which was really great. So I guess it's quality, not necessarily quantity as well.
“So, despite the fact that yes, international buyers were down, having that high calibre of outlets that did attend is incredibly important.”
Xenita added that after the borders reopened post-COVID in 2021, AFW did see a jump in international attendance compared to pre-pandemic. While international attendance was down this year, she said the overall attendance at AFW 2024 is still well ahead of pre-pandemic levels.
“That really demonstrates there is strong support from the fashion industry for the event and a strong appetite for Australian fashion, which is really encouraging,” she said.
“International attendance is always going to be impacted by those economic conditions and global economic conditions. Travel costs are still really high. And what we are seeing now and since the pandemic is that, rather than these buyers sending a few people from their teams, they'll only send one person.
“Maybe that is also why we've seen a bit of a drop in numbers. But the calibre of the actual retailers themselves is still there.”
AFW also generated an increase in media coverage this year, with Isentia reporting an uplift of 20 per cent of total audience reach year-on-year representing nearly $100 million in advertising space rate (ASR) value.
“Last year, the media coverage was up 184 per cent,” Xenita said. “So to come off the back of such a strong year last year and still have another double-digit increase in media coverage was a real success for the event this year.”
Consumer ticket sales were also up from last year by 14 per cent, according to Xenita, adding that the expansion into consumer shows has unlocked an additional ROI for designers.
This strategic shift towards consumer integration began by asking designers if they wished to open their shows to consumers. In 2024, AFW decided to run two shows for select runways, with the encore being for consumers.
“First and foremost, we're a trade event, we will always be a trade event,” she said. “The trade outcomes are obviously the priority. All the consumer integration has been done in a really sensitive way so that it is representing additional value for the designers.”
IMG has been managing AFW for nearly 20 years. Xenita said the fashion industry has constantly evolved through that time to meet the needs of the industry.
“For us, that has evolved over the years too. From changing venues, watching the live stream, introducing on-site showrooms - trade showrooms and then virtual showrooms as well during the pandemic - and then also consumer integration.
“They're just some of the ways we've evolved the event, but we're continuing to listen to the feedback from the designers and the needs of the industry as well and making those adjustments to the event accordingly.
“For instance, since 2021, when the event returned after being cancelled in 2020 due to the pandemic, we have waived the designer participation fees, which has been an ongoing thing. We initially did it because of the tough conditions that the designers were facing during the pandemic, but we've continued to waive those fees in appreciation of all of the challenges facing the Australian fashion industry.”