This post is from my store website but I thought I would post it here as well>

This post is intended to be an informative piece on the costs involved in developing an Australian clothing label. Not mass produced, Asian made, rebranded garments that are available in discount stores, but an actual clothing brand whereby the majority of product development takes place here in Australia.

When trawling through various forums, especially discussions on clothes shopping, a common theme seems to be value for money. Quite often posters will share information on sales, specials, and store offers. There is the occasional lament about the cost of goods and the seemingly huge mark-ups of goods manufactured in Asia for a fraction of what they are sold for in Australian stores. Also, why are similar goods so much cheaper in countries like the US and UK, even with added postage costs. What with the high living costs in Australia, maximising the value of hard earned dollars is perfectly understandable.

Despite the questions, there is very little information on the expenses involved in the development and manufacture of an Australian clothing label. So let’s review some of the reasons why clothing seems to be so expensive in Australia. Before we begin, I would like to make it clear that I am in no way attempting to justify prices. My purpose is to explain the costs of manufacturing garments and especially Australian designed garments which are manufactured off shore. My knowledge comes from my own personal experience with owning a clothing label.

Firstly, Australia’s population is a fraction of that in the US and UK and, as such, our purchasing power from Asian manufacturers is considerably lower. With our smaller purchasing quantities, the price of garments is significantly higher per piece.

However, the setup costs of producing a garment style is the same, regardless of quantities ordered. Such setup costs include patternmaking, fabric design and print fabric testing, sample making, bulk fabric printing, possible product revisions if the initial samples are not to expectations, and associated administrative costs. These costs need to be absorbed into the wholesale pricing of a garment. The proportion of setup costs in each garment is higher if production is in smaller quantities than in larger quantities. So when you are shopping for brand name products, and compare them to cheaper products from the discount stores, you are also paying for quality control measures that may not be available in cheaper products.

The wholesale cost of a garment also needs to incorporate sales agent fees – most labels use independent agents in each state to pre-sell their products as this works out to be a better fiscal practice than sending staff around the country. Agent commissions are normally around 10-15% of the wholesale price of a garment.
Importing into Australia is not a cheap exercise. Aside from a numerous handling charges and freight costs, there is a 10% Customs duty imposed on all imported goods where the bulk value is above $1,000. Over this is the 10% GST charge – GST is calculated on the value of the goods plus customs duty. All these charges add approximately 40% more to the value of the goods and must be paid before the goods are released.

Hypothetically speaking, a garment that costs $10 from China, may easily become $30 before it even leaves the designer or wholesaler. The wholesaler then applies a small margin – very little in most cases (wholesalers rely on bulk sales to make their profits rather than per garment) – and retailers have their own markup – usually 100%.

I have also read comments of the high mark-ups and how retailers have had it “good” for so long. Unfortunately, the costs of running a retail store in Australia can be exorbitant – rent, wages, insurance, utility costs, advertising/marketing, banking costs, store setup costs. I think most Australians would agree that Australia is a high cost country to live in but those costs filter through all sectors of the community. Where exchange of money occurs, there is a indirect or indirect impact on transactions occurring elsewhere. At the end of the day, most retailers make very little out of a 40-48 hour working week. If they manage to take home a salary that is similar to what they would earn as a paid employee in a retail store, most would likely consider that as a good measure of retail success. Sadly, I think those opportunities are few and far between.

So why haven't labels gone back to manufacturing in Australia? To keep the answer simple, it's because of the demand for cheaper goods that so much of our manufacturing is now offshore which in turn has been detrimental to available jobs, skills and modern garment making technology in Australia. Also, with our higher labour costs, domestic production still costs more than offshore production. It means Australian produced goods with a higher retail price but with lesser refinements in the finished product.

Lastly, I am going to  comment about sleepwear. For whatever reason, sleepwear does not hold the same value, from a consumer point of view, as outerwear. Let’s say, hypothetically, you purchase a cotton tee and a short for $35 each. You would consider these to be of average cost. However, a pyjama set retailing for $70, that uses the same amount of fabric and takes the same amount of labour to produce, would be deemed over priced by many. The reality is that a sleepwear item from a brand label is comparable in manufacturing costs to an outer garment. Both branded sleepwear and outerwear follow the same development, quality control and manufacturing processes. Sleepwear from discount stores cost less because they void many of the steps used by the brand labels. Going from comments I’ve heard regarding fabric shrinkage, dye leech, poor stitching and overall fabric quality, my guess is that there is very little or no quality control measures in place for these garments. So next time you purchase a branded Australian sleepwear label, you should be confident of receiving a quality product that should last much longer than a cheaper product from a discount store.

Last month, a French researcher made the controversial  announcement that women did not necessarily need to wear a bra and that they might actually be doing more harm than good to the bust tissue. HeProfessor Rouillon, a sports scientist from the University of Franche-Comte in Besancon in Eastern France, concluded that a bra could ‘prevent supporting tissues from growing’, and that breasts might be less likely to sag without one. Using a sample of 150 women, who were told not to wear a bra for varying lengths of time, he measured their busts over a 15 year period using callipers and a slide rule.

From Mail Online:

http://www.dailymail.co.uk/news/article-2307278/Women-better-bras-say-scientists-took-FIFTEEN-YEARS-inspect-womens-breasts.html

The women were asked whether they suffered back pain or felt restricted carrying out daily tasks when not wearing a bra. 
He said: ‘The first results validate the hypothesis that the bra is not needed. Medically, physiologically, anatomically, the breast does not benefit from being deprived of gravity.’ 
Professor Rouillon said he believed the ‘absence of a bra could keep breasts in shape’ and prevent back ache.
He explained: ‘The decision not to a wear a bra appeals to women in terms of comfort and aesthetics. Contrary to popular belief, the breast does not fall, but tightens and lifts, and the quality of the skin improves.’ 
Professor Rouillon said 42 per cent of the women ‘felt discomfort’ for the first three months of not wearing a bra, but then it disappeared. None were in pain, however, nor were they hampered from doing daily activities – including sport.

Despite his findings, Professor Rouillon said women should not get rid of their bras. His study only involved a small number of women and the long-term effects of not wearing a bra are unknown. 
Indeed, previous research has shown that women who do not wear a sports bra while exercising could be damaging their breasts.
The ligaments which support the breasts are not elastic, and can be irreversibly stretched when the breasts bounce during repetitive or high impact sports.

From my experience, sagging breasts are as inevitable as the ageing process, what with gravity and the daily metamorphosis from lactation demands, the only difference being that it seems to happen quicker to some women than others. I've also seen a lot of sagging, bra-less busts, in my capacity as a bra fitter, and I have to say that it does not look attractive. In addition, it does nothing for your outerwear - you could be wearing a beautiful top but the visual effect is ruined if your bust is hanging round your waistline.

I would argue his assertion that being bra less does not hamper activities such as sport - ask any heavy breasted woman whether she could  jog without a bra and she would tell you otherwise. However, some low impact activities for short periods may offer only minimal discomfort.

I would also argue his point that bras cause backache - yes I agree that in some bras, the shoulder straps are just not wide enough to provide sufficient comfort to the weight of the breast. I also hear women say they want thinner straps because they like to wear strappy tops or dresses. Finding a happy medium between function and fashion can be quite a dilemma. However, an effective bra strap can be the critical difference between pain and no pain. Sometimes shoulder cushions can also help - you sit these on your shoulders and place the bra strap over it. The effect isn't instantaneous - after all your neck and back muscles have cramped up over a long period so they will take a while to ease off and may require some massaging - but you will fee the difference after a while.

On a lighter note, there are some humorous responses to the article which gave me a laugh - all from men of course!

New lingerie collections

Last weekend was the annual Fashion Exposed Trade Fair in Sydney where many fashion designers, wholesalers and importers got together at Darling Harbour Convention Centre to display their next season's wares and hopefully engage with their buyers to secure indent orders. While most of the suppliers I deal with opted not to hold a store at the Fair, many used the opportunity to showcase their wares at other locations. Like many of my fellow retailers, I love viewing new stock and there are so many brands out there producing goods that really have that WOW factor. Now I know this blog was begun on the premise of showcasing Aussie brands but there are so many beautiful international brands that I really need to get my impressions out there' So here are some I saw:

Affinitas and Parfait - a US owned lingerie company that specialise in the lower mid price point. Specialising in everyday lingerie wear and bridal, the Affinitas label extends to a DD and the Parfait label extends to a G cup. Very affordable and the pieces can be worn all day. Go down a cup size - their cup sizing is on the larger side as is most US brands.  http://affinitasintimates.com/

Recco Lingerie - only some of their sleepwear will be available in Australia but it's all so gorgeous! Yes, it's a little bit more expensive than the sexy sleepwear you find on online stores but I fully believe you get what you pay for. The microfibre fabrics had a beautiful feel, the trims added that special extra and the designs are just stunning. http://www.recco.com.br/sensual

Lou - this French lingerie brand is on par with Simone Perele if not better. Just slightly higher in pricepoint but still affordable, the pieces are sexy and sensuous, fashion forward, and designed for the woman who is comfortable with her body or who that naughty inner girl that is just waiting to be exposed. http://www.lou-paris.com/

Cake Lingerie - the only Australian owned maternity lingerie brand. Still focused on fashion but their pieces are tending towards everyday basics in line with market demands. If you a a big cup girl and have been struggling to find a seamless bra that you can wear with fitted tops, then look no further - Cake Lingerie has the answer. They are also introducing a line of winter sleepwear with breastfeeding capabilities. http://www.cakelingerie.com/

Update on the Aussie sleepwear label scene

Wow, haven't posted for ages!

So what's the news on the Aussie homefront?

2012 was an eventful year for Australian sleepwear labels. Let's see what I can list here...

The sisters who started the Pickles & Loop sleepwear label sold their business to the owners of Schrank, a Melbourne based sleepwear import group. Pickles & Loop offers youthful, fresh, fun look without compromising on comfort. You can find their items in Myers and specialty boutiques.

Jethro and Jackson, another Aussie owned sleepwear label, was purchased by Simon De Winter, owner of the Fine Lines Lingerie Group. Jethro & Jackson is another funky sleepwear label, available in Myers, and their prints are original and funky.

Lovable was fully absorbed into the Bendon Group and is technically now New Zealand owned.

Love and Lustre, Papinelle, Deshabille, Clemetine Designs and a few others are still going strong despite the downward trend in sleepwear and lingerie sales last year.

Dilly Lane Sleepwear was started with the concept of providing bust support sleepwear to the fuller figured. This winter, they will be entering the plus size sleepwear market with sizes extending from XS to 6XL (size 26).

What I love about these labels is the emphasis on natural fibres - pure cotton, pure silk, silk/cotton blends, cotton/viscose (viscose is made from the processed fibre of tree pulp). We spend so much of our lives in sleepwear, our skin deserves nothing but the best that Mother Nature gave us.

Australian Retail Selling - Charging Customers to Try on Clothing & Footwear

http://www.smh.com.au/act-news/the-ugly-side-of-online-shopping-20120411-1wq5q.html

This piece of news isn't new news - it's been reported several times before but, every time it surfaces again, journalists seem to treat it as a new phenomenon. Well, there's no news to report so lets hash out the same old same old again, after all the bills won't pay themselves. Like all who work on contractual or freelance arrangements, the income is never steady and you have to look like you're still in the game to get more work.

As for comments from readers, you get the usual mash - those who are a bit better informed about the actual costs of running a retail outlet and those who assume they know something about it. In my opinion, if you don't have first hand knowledge of the real costs of running a business, then you're better off being silent rather than sounding silly which, to me, is what a lot of them do. Starting out in retail, after years in a paid job, was a major revelation and huge learning curve for me even though my parents had always been self-employed and I had some knowledge of how tough it was working for oneself.

So for those of you who think being a self employed retailer is easy, allow me to share with you some of my pearls of wisdom as a clothing retailer, whatever it's worth:

• A successful business takes at least three years to build - just have a bricks and mortar presence will not drive customers through your doors - even when they know you are there, it may take ages for someone to even come in and browse. And I emphasize the word "browse".
• For that reason, make sure you have the funds to see you through the first three years and never assume that your sales will cover your costs.
• You will need funds for insurance, rent, advertising, an accountant, stock, utilities, staff, internet access, website costs if you run a website.
• The costs of running a website is not as cheap as some may think. Sure, there are cheap hosting services but the service reflects their price. Also, if you have many products, cheap hosting services will cause your site to run slowly and this frustrates potential customers who are then likely to look elsewhere.
• Make sure your mark up costs are reasonable - it needs to cover the wholesale cost of the product, 10% GST, but also be affordable.
• Your target market is people who will become your returning customers - work out who these will be, what they are looking for from a specialty shop such as yours, and stock accordingly.
• Consider s loyalty card system - there may be startup costs but it's worth it.
• Research whether there are any viable buying groups you can join to get discounts on wholesale stock. Often these also offer non-trade benefits.
• Wholesale costs for clothing are much more expensive in Australia than in the UK or US - that's because we are a much smaller population with smaller production needs so manufacturers will demand higher costs per unit. We don't have the buying power to negotiate costs in the same way a US wholesaler would. We also pay GST on imports over $1,000. There are also other costs involved in wholesaling that pushes costs up eg agent fees, freight, admin costs.
• Some UK lingerie brands set higher wholesale costs to Australian retailers than to UK & US retailers - when I asked why, my sales rep. was unable to give me a logical explanation. This brand has a large advertising budget for their UK operations but spends little or none in Australia. Unfortunately for the Aussie retailer, their products are excellent and not stocking them would not be a good business decision. Also unfortunately for the Aussie retailer, their products can be purchased from online UK stores at a much cheaper price, even with freight, than in Australia. Catch 22. As a retailer in Australia, that means having to deliver high service standards because this is the only means by which we can retain customers.
• Other UK brands sell through Australian importers who are then responsible for the promotion of the brand into stores and in the media, hence the markup costs.
• Focus on quality brands not available in the larger stores. That way you will not be competing with them or have to tolerate their constant discounting.

I'm going to stop here because I could run on forever on this topic and bore you to tears. So more next time I post...

How to find the perfect bra fit

If you are well endowed in the bust area, you should get yourself refitted for a bra every couple of years or so. Why? Because age, lifestyle and weight changes can all have significant effects on your bust size and breast shape and a bra that may have fitted well a few years back may no longer be the right fitting bra anymore. Most retailers offer bra fitting as a free service and it's well worth the investment in time. A well fitting bra minimises shoulder, neck and back pain, gives the bust a nice shape and allows your outerwear to flatter your overall look.

I won't go into details about how to fit a bra as there is sufficient material on the web, as well as lots of Youtube videos on the subject. Instead, I will give you the benefit of some of my knowledge gained as a qualified bra fitter:

• If wires push out from your bust, rather than sitting flush against the breastbone, it means the wires are too small or that your bust is quite full in the middle. Try a wider wire bra or try a bra with a lower front wire.
• If your bust is heavier at the sides, try bras with a side sling as these encourage forward projection of your bust rather than letting your bust slide towards your arms.
• If you have more bust tissue on the lower bust, try a 3/4 cup or a 1/2 cup (balconette) bra. if you use a full cup bra, you may not able able to fill out the top of the cup.
• A heavy top bust? Try full cup bras. These are higher in the middle but they will support you better.
• Chafing at the centre from wires digging in? Try lower cut bras as the wire does not come up so high at the breastbone.
• Breast tissue at the sides spilling from the cups? Look for bras with a higher wire. Panache tends to make bras with a higher side wire, Freya bras tend to have lower side wires.
• Too much back tissue? Try the back smoothing bras that are now available on the market - eg Berlei Back Smoothing Bra.
• Straps digging into your shoulders? Go for bras with a wider shoulder strap or, better still, a padded shoulder strap. You can also purchase pads that fit around your shoulder strap. 
• Find wires dig in uncomfortably no matter what bra you try? Unwired bras maybe the answer for you but look for ones with a side sling as these give a large bust a better shape. There are some great brands on the market such as Royce, Aviana and Elila. The only downside is that these bras tend to be higher at the centre, to compensate for the lack of wire support, so low neck clothes will require a camisole or a camisette to hide the bra.

A certified bra fitter will be able to help you find the correct bra for your shape and needs and most lingerie boutiques have a good selection of bras to choose from.

Where to find a short cotton dressing gown or kimono wrap?

I have searched all summer for a lightweight cotton dressing gown, with short sleeves and no longer than just on the knees, without success.  All of our Australian sleepwear brands - including Pillow Talk, Love & Lustre, Deshabille, Pickles & Loop & Peter Alexander - had only longer length robes with 3/4 or full length sleeves. Why is it that short sleeve and shorter length dressing gowns are not available? Surely with our hot summers the retailers would be begging the brands to be more accomodating? Or is it because the brands are simply not listening? While they all offer fantastic styles in beautiful cotton prints, please consider our climate in your designs.