What's been your journey in terms of growing your business in Australia?
We launched our collection in Australia and New Zealand at the same time, because we knew we needed both markets to reach the minimums required to manufacture in China and to achieve some economies of scale.
Research was a key part of our strategy before we launched the business - we felt confident the Australian market was ready for our designs, but they were quite different for the New Zealand market, so we used focus groups to confirm we had a product that appealed to the customer we were targeting. We also spent a lot of time on the ground in both markets studying our competition and establishing who our retailer base would be.
Our strategy in Australia was to initially appoint one central distributor who would take us into NSW and Victoria so we could manage the growth for both parties and then take on extra states as the business could manage it. Using a distributor also created a simple business model for us because sales, distribution, collection and customer service are all handled remotely on the ground there.
We now have distribution in all the Australian states with our product sold in 130 stores there. I still feel there's untapped growth for us in Australia, though, so we're working on growing our existing accounts and increasing our distribution base.
What have been some of the major challenges for you in terms of growing Loobie's Story?
The biggest challenge has been trying to keep up with the growth, especially from an infrastructure and human resourcing point of view. We started the company in a spare room in our house, showing the range to retailers out of our living room, but we moved fairly quickly into the office suite where we are now. But after two years we're having to move again to bigger premises and we've taken on extra staff.
It's always a balancing act to make sure we're not over-committing ourselves and that each step we take is well thought out and benefits the company as a whole.
Brent are I are totally hands-on in the business, which has been really demanding on us, but working as a husband and wife team has definitely helped us share that pressure. We can support each other when we need to and make sure we take regular, sanity saving holidays. Each week we also make sure we look at the bigger picture so we're staying on track and keeping on top of any potential threats or challenges.
Dealing with China also presents some ongoing challenges, particularly around reaching ever increasing minimum orders and dealing with longer lead times. We've found building strong relationships with our suppliers, visiting them often and being prepared to spend time with them outside of meetings all helps to strengthen the business relationship and help us secure our supply chain.
You're a New Zealand fashion industry veteran. What's been the biggest change you've seen during your time in the industry?
Not sure if I love the veteran tag, but yes, I've been in the industry for quite a few years! The biggest changes have most definitely happened in the last five to six years. The GFC, which we thought would pass and that we'd return to the 'good old days', has actually created a new business environment that's a lot more challenging than anything else I've experienced.
I think the growth of online shopping and the trend for vertical retailers to be almost constantly in sale has created a new consumer mentality. Independent bricks and mortar retailers have to work so hard to maintain their turnover and margin against pressures that they haven't faced before, so it's critical our product has a point of difference and 'wow factor' to compete against the more generic price-pointed offer of the vertical chain stores.
What's a key piece of advice you would you have for a young designer with global aspirations growing their own label today?
Don't ever underestimate the value of 'on the retail floor' experience. Even though you are designing a beautiful product, someone - or preferably multiple someones - have to want to buy it. Having that retail experience helps you to put commercial realities at the forefront of any decision, whether it's a design one or a business one.
Coming up in Small Business: How do you figure out what to pay yourself as the owner of a business? What are some of the different guidelines you've used and why? If you've got a story to tell on the topic, drop me a note: nzhsmallbusiness@gmail.com.
