In conversation with Ragtrader.com.au, footwear entrepreneur Jo Mercer reveals scaling plans for her new label Matilda Life in a bid to champion local manufacturing.
What key learnings did you uncover when launching Matilda Life amidst the pandemic?
During the pandemic, Australian businesses were really struggling and I wanted to support them. There were many skilled and talented Australian manufacturers and in order to keep these businesses alive and thriving, we needed to invest in local manufacturing.
It made logical sense to buy from an Australian company if we could, not just to support local jobs and industries, but also to ensure that we had a consistent and reliable supply chain.
From an environmental perspective, it doesn’t make sense to be shipping products around the world if we can manufacture them here.
How did it compare to launching your eponymous label Jo Mercer?
With Jo Mercer, we had private equity. My business partners and I invested a bit of money into the brand, but the majority of it came from private equity. We also bought an existing business out of administration and then rebranded it.
This time, I haven’t bought an existing structure. I am investing my money into Matilda Life and starting from scratch. I feel very positive about it!
What key factors led the brand from its inception to opening its first store this year? Do you have advice for other emerging labels?
From the start we had planned to open a store, we just couldn’t do it during the pandemic. It’s very challenging to build a brand purely online, especially when it’s a high-quality lifestyle brand like ours. People want the ‘touch and feel’ experience before buying.
My advice for emerging labels is to be true to the brand you’re trying to create. Try and really stick to the core values of your brand. Be very focused on what you’re doing and do it well. Don’t forget to be patient – it takes time to build a successful brand.
How many stores do you plan to open in the future? Have you identified other locations?
Our long-term goal is to open between six and 10 stores. We won’t look at identifying those stores until we’ve traded in Armadale, Victoria, for at least 12 months.
At the moment we are focused on understanding our customers’ response and appetite to the brand. We want to see what works and iron out any issues before we expand.
Regarding local manufacturing, are there key challenges in the Australian fashion manufacturing market?
The biggest challenge is finding skilled workers. The people doing it well are in high demand, so it’s a limited workforce.
Which products are easier to manufacture here? Are others more difficult?
Shoes are the most difficult product to manufacture locally. They require skilled workers and the workforce was decimated when the government reduced tariffs in 2000. It led to a mass exodus with most factories closing or moving abroad.
Clothing and jewellery are easier to manufacture locally. Australia can’t compete with low-priced high-volume fashion. We can, however, be competitive with high-quality production using high-quality materials.
We work with very vibrant and creative jewellers, who make gold and sterling silver pieces locally, with real stones like opals and sapphires.
What is the strategy for selecting retailers in Matilda Life's wholesale arm?
While we’re not in a rush, we would eventually like to supply our range to smaller, high-end boutiques that share our core values.
There also seems to be a market for Australian-made products in Asia, the United Kingdom and America. But first, we will focus on Australian wholesale opportunities and then we will look abroad.
Have there been any developments in your online/digital space at Matilda Life?
Community is really important to us. Now that we have a physical store, we want to continue cultivating a strong brand that resonates with Australians online and offline. A part of this process is educating people on the importance of supporting and buying from Australian-made businesses.
We also want our digital presence to speak to our sustainability commitments. We want customers to understand and share our pledge to look after the planet, including this beautiful country we are privileged to live in. We track our progress in this space on sustainabilitytracker.com