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(Last updated: 19 Jul 2007)
Trends and opportunities
The market
Retail sales of apparel, softgoods and footwear totalled approximately NZ$2.5 billion for the year ending December 2005, which equates to a NZ$617 per capita spend.
Australian products make up 19 per cent of imported apparel and 10 per cent of imported footwear. Australia’s share of imports has declined slightly, due to increasing competition from cheaper sources such as China.
Prices of overall imported consumer goods have fallen about 12 per cent between 1999 and 2004.
The climate in New Zealand is overall slightly cooler than Australia. There is a distinct market in the lower North Island and the South Island, for heavier winter clothing. To provide some comparison between markets, New Zealand fashion designers often say that their designs sell better in Melbourne than in Sydney. New Zealanders view Melbourne as the Australian fashion centre rather than Sydney.
Lower priced apparel is sold through discount chains, including, Farmers, Rendells and The Warehouse (the biggest general merchandise and apparel retailer in New Zealand).
There are mail order companies such as Postie Fashions and Ezibuy, which operate successfully at the middle price point with fairly conservative clothing. Pumpkin Patch, which began as a mail order business, is the dominant ‘label’ brand of children’s wear.
Groups such as Glassons, Max, Esprit, Portmans, Jean Jones, Jacquie E, Sussans and Katies cater for the middle-priced women’s apparel sector. Independent boutiques located in areas where these groups operate rely on brand exclusivity to attract customers.
Opportunities
The opportunity for Australian suppliers is in quality products, in niche segments, priced in the middle to upper market bracket, and specifically:
- street/surf wear
- club wear
- high fashion garments
- garments for fuller figures
New Zealand consumers are well aware of overseas trends and brands.
New Zealand is becoming well known for quirky fashion design from labels like Karen Walker, Zambesi, Kate Sylvester, Pumpkin Patch, Ice-breaker and Trelise Cooper.
Success in Australia does not guarantee success in New Zealand. Buyers don’t necessarily believe that all well-known Australian brands are appropriate to their customer base.
Competitive environment
Local labels tend to concentrate on either the budget, fashion-focused or top end of the market. Many designers now vertically integrate with their own retail outlets due to a decline in the number of independent boutiques and the continued pressure on margins.
Clothing at the lower to middle end is primarily sourced from South East Asia, Fiji or India.
Parallel importing is now legal in New Zealand.
Parallel importing allows any company to import brands that are already licensed to other New Zealand companies. Importers have been quick to take advantage of this change, with large chains, such as The Warehouse, importing brands on its own behalf. Designer closeout stores have emerged, specialising in parallel imported brands. Many of these imports come in from overseas clearance houses.
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