Between the lines: Stripped-down Bendon takes on world

By DITA DE BONI Bendon's emergence as the sole survivor of Ceramco Corporation's cluttered business portfolio could finally provide the company with a maxi-booster to success.

From now on, Bendon Group will face international markets clad only in its cotton, lacy, seamless and leopard-skin undergarments. Stripped away are the old Ceramco's mineral concerns and a multitude of defunct companies. And gone are Bendon's manufacturing production lines from the New Zealand landscape.

Remaining is a design company still moving its brands towards the middle-premium end of markets in Australasia. Going into Britain, Bendon's trump card, "The Body" Elle Macpherson, has the entire weight of international success resting on her tanned, bony shoulders. But can one superbabe deliver success for Bendon?

While it would be tempting to see the story of Ceramco as parallel to the story of New Zealand manufacturing - an example of how to succeed with a focus on exports, innovation, and international celebrity-enhanced branding - the fact is that it has taken many years for Ceramco to do what some believe it should have done years ago.

Established in 1946 by brothers Ray and Des Hurley, the original company helped free Kiwi women from the shackles of boned corsetry and other sadistic foundation garments by introducing stretchy fabrics and straps.

The brothers sold their innovative, but mass-produced, underwear business to Ceramco Corporation in 1987, and soon the new parent was driving expansion into Australia.

Macpherson came on board in 1989 - undoubtedly a marketing coup without rival for a smallish Kiwi producer looking for overseas recognition.

But Ceramco had always been a company with diverse aspirations.

At the time it absorbed Bendon, it was involved in overseeing a chaotic group of businesses, including whiteware appliances, consumer electronics, catering and business supplies.

Slowly Ceramco replaced several extraneous businesses with just a few.

It experienced a share price boom with the introduction of Macpherson's lines (and happily entertained analysts and brokers with eye-popping lingerie shows), but the mid-90s saw depressed retail activity and stock service problems dog profits.

While China Clays was Ceramco's lifebelt during Bendon's troubled times, it struck trouble when Asia went into recession.

The Asian difficulties were compounded when Ceramco thought it would blitz the region's concrete construction market in 1996 by buying amorphous silica business Microsilica, just before the worst of the economic slump hit.

Turbulent personnel conditions at the top of Ceramco have not helped matters, either.

After three years of profit improvement, a depressing but necessary manufacturing move overseas, the divestment of all things mineral, and a concerted attempt to move the Bendon brand into the premium market, shareholders must be holding their breath that the group will fulfil the promise that innovative design and sexy product can deliver.

And hoping their bank accounts get fat before Elle does ...