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Home / Business / Small Business

Bad day's shopping behind global lingerie business

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
13 Aug, 2010 05:30 PM4 mins to read

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Like some of the best ideas, the inspiration for what has become a multimillion-dollar business came from a dispiriting shopping trip.

New mother Lisa Ebbing was shopping for a nursing bra after the birth of her first child and couldn't find anything she liked among the drab, utilitarian range on offer.

So was born HOTmilk Lingerie, an archetypal story of a spare room business that became a global brand now sold in 35 countries but with a twist - new mum's lingerie that isn't shy.

The ambitious Tauranga company has got its range promoted by Playboy playmate Kendra Wilkinson, US reality TV personality Kourtney Kardashian and Oscar-winning singing star Jennifer Hudson.

Publicity from a controversial billboard campaign in 2008 hasn't hurt the business, now on the brink of a major expansion into Europe and the United States.

Ebbing says there's no way racy pregnancy lingerie and designer nursing bras are going to fundamentally change the way women feel, but they do make a difference.

"It's a small thing that's not going to solve the world's problems but it is a small thing that can help your self-esteem."

Her disappointing shopping trip in 2005 came shortly after moving from Queenstown to Tauranga, having quit her job as a film production manager.

"I was at home and I thought 'what am I going to do, there's no film industry in Tauranga so I'm going to need a new career'. You reach a stage where you get ideas all the time but with this one I thought 'I'm going to follow it through'. I was sick of having ideas but not actioning them."

She and her husband, Roly, spent a year developing the HOTmilk idea. The top floor of their Gate Pa home became an operations base, samples were made up by a Te Puke firm and on many days they worked through to the early hours of the morning.

When they decided to take the next step in the business they encouraged Ange Crosbie, a friend of Ebbings' since she was 16, to join the business as a saleswoman and take the prototypes around the country.

"Ange started in Invercargill and drove the whole length of the country knocking on doors. We were in 25 New Zealand stores straight away."

Crosbie became a fellow director and it was around then the women had to make a call - stay small or look around the world for opportunities. They chose to expand and their range is sold in 800 stores in Australia, Britain, Europe and the United States. The company aims to be in 2000 stores within the next two years.

"People stop at a certain point because of the commitment. Financially we ran at a huge loss for the first few years, not just in the business but personally as well," Ebbing says.

The company says turnover has reached about $6 million a year with 36 per cent of revenue from Australia, 22 per cent from Europe, 16 per cent from Britain and 10 per cent from the United States. Only 10 per cent comes from New Zealand.

"We want to make sure we are a global brand in any way possible. We've still got quite a way to go - we're not even half way."

To help with expansion, the company this month appointed a general manager, Scott Newton, a former accountant.

"There's very few men in the lingerie trade," Newton says. "With some of the conversations I have on a daily basis - sometimes I think 'am I saying this out loud'."

Early production was done in Auckland but, like much of the New Zealand garment industry, it has moved manufacturing to China due to the lack of local expertise.

Ebbing says Tauranga lawyers and accountants were brought in at an early stage and acted as a board. If she had to start again, she would get a specialist mentor in earlier.

"As Kiwis we have that 'she'll be right, we can do it' type attitude - which is fine and you carry on and can't ask for help."

She also advises those starting out to surround themselves with people who are smarter than themselves - "you will need help."

And she warns that once the adrenaline wears off it gets a bit tougher.

"It's no longer the fun stuff, it's more lawyers, accountants and bills. It becomes a different beast."

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