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.

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/

Sally Jones Lingerie

Sally Jones Lingerie is one of my favourite Australian lingerie labels. Sally's vision and knack with beautiful fabrics and laces ensures her place at the top end of luxury lingerie design in Australia and beyond. Her range includes bras, a variety of brief styles, camisoles, teddies, torsolettes, suspenders, bedjackets, babydoll nighties, chemises, longer length nighties, wraps and so much more. She also designs a range of accessories including lace gloves, eye masks, neck frills, garters, stockings, lace socks, and fans. But why categorise it all as lingerie when some of the pieces are versatile enough to be worn as outerware? Team the camisoles and bedjackets with jeans or evening pants for an after five outfit and, for the really daring, wear the longer nighties as a cocktail dress. Sally's designs are a must for the true connoisseurs of fine lingerie. Best of all, the pieces are manufactured right here in Australia so the prices are much more affordable than imported European lingerie. Whenever an occasion calls for beautiful lingerie, think Sally Jones. Your only dilemma is what to buy as you will be so spoilt for choice.

Below are some images from Sally's 2011 collection and also the press release:

HoneyMoon

Danielle

Romance

Natalia

Parisienne

Sienne

Mademoiselle

Tiffany

Willow

Tiffany

Sally Jones Logo

Press release 2011:

Since launching the label in 2004, Sally Jones has firmly established herself as one of the world’s top luxury lingerie designers, and is now stocked in prestigious boutiques and department stores in over 20 countries including France, Italy, Germany, England, Japan, USA and Australia.

Portraying her signature style in stunning combinations of French laces, embroideries, silks and tulles, Sally Jones’ 2011 collection features 12 stories, each reflecting a different romantic mood though unique colour and material pairings, including Giselle, Tiffany, Mademoiselle, Charlotte, Angel, Honeymoon, Parisienne, Natalia, Sienna, Daniella, Romance and Willow.

Sally is also renowned for her detailed accessories including garters, lace gloves, pearl necklaces and feather cuffs which compliment each collection.

Welsh-born designer Sally Jones said her label stems from a passion for luxurious lingerie, and a belief that one should never compromise luxury when it comes to wearing intimate apparel.

The philosophy behind the Sally Jones label is that lingerie is made to be beautiful and to make the wearer feel beautiful – Wearing luxurious underwear in the finest silks and laces makes a woman feel elegant and sensual and this translates to her outer confidence.

Sourcing the best European fabrics and using delicate hand finished pearl and jewel embellishments her vision for each collection comes to life, ultimately creating soft and feminine designs which translate from intimate bedroom apparel to indulgent sleepwear.

100% designed and hand made in Australia, the fine quality of the Sally Jones label is unparalleled across the world.

Web: http://www.sallyjones.com.au/

Facebook: Sally Jones Lingerie

Twitter: @sallyjones_au

For stockist information, visit the Sally Jones website or ring 61 7 55 767 317.

Love and Lustre

Love and Lustre, an Australian boutique lingerie brand famous for their underwear solutions including camisoles, knickers and slips, as well as for their gorgeous sleepwear, will be launching their first ever bra and matching knicker collection in Spring/Summer 2011. Extending up to a Size 16E, there will be a plunge bra, a contoured balconette bra and a non-contoured moulded cup bra. All are gorgeously styled with distinctive lace features yet retain Love and Lustre's signature style of being everyday functional items. Love and Lustre have spared no expense in ensuring the fit of this range including sourcing highly experienced bra patternmakers from Europe. So congratulations to Love and Lustre for their foresight in seeing the need for a quality Australian lingerie that fits the budget of most Australians. Who knows, if their bras become a hit, maybe they could even expand their sizing to take on the full cup market and challenge the UK brands to reduce their wholesale pricing in Australia. Love and Lustre bras are very reasonably priced between $59.95 & $79.95 retail. Products will be available from August 2011. For information on their stockists, contact Love and Lustre on 03 9429 0979 or visit their website at http://www.loveandlustre.com.au/

Ku Shu Shu Lingerie

Ku Shu Shu Spring Rose Camisole

Ku Shu Shu Silk Tales Camisole & French Knicker



Ku Shu Shu Ballerina Pleat Corset & Knicker

 Ku Shu Shu is a Sydney based boutique lingerie brand started by lingerie designer and patternmaker Judy Anderson. Judy began her career with Berlei over 20 years ago, and has since worked in England and the US before returning to Australia a few years ago. However, she has always had a yearning to start her own label and in 2009, Ku Shu Shu was born. Drawing on her passion for vintage clothing and vintage styles, as well as her obsession with the perfect fit and quality garment finishes, Judy has created a portfolio of beautifully designed plunge bras, matching knickers, a corset style strapless top with a built in bra, chemises, camisoles, french knickers and luxurious sleepwear. Her choice of fabrics includes stretch silks, tulles and velvet trims. Judy's love of nature also sees her producing limited edition silk camisoles, with her own floral artwork printed on the front, celebrating the arrival of each of the four seasons.

Judy's attention to detail is clearly evident in her lingerie pieces. While many silk garment manufacturers look for ways to cut costs in construction, Judy's silk chemises, camisoles and sleepwear have seams that have a single row of stitching as well as being sealed with another row of overlocking. Topstitching is used wherever possible and neck edgings are finished with self fabric binding, not simply folded over and stitched into place.

Some of Judy's designs are versatile enough to be worn as outerwear, not simply as lingerie. The silk camisoles and corsets can all be worn as tops and matched with jeans or skirts.

Ku Shu Shu is a truly beautiful Australian boutique lingerie brand - all timeless classic lines and finishes that are reminiscent of the quality of yesteryear lingerie garments. And because all the pieces are made in exclusive quantities, they are gauranteed to become future collectible vintage items, especially the placement print camisoles with Judy's own artwork.

Follow Ku Shu Shu on Facebook: http://www.facebook.com/kushushu
Read more about Ku Shu Shu at: http://kushushu.com/

Ku Shu Shu lingerie is available from the following lingerie boutiques:

DESIRE LINGERIE
Shop 13, No. 2 Collins Lane
Kiama NSW 2533
Tel: 02 4232 2770

MATILDA JANE LINGERIE & SLEEPWEAR
Shop 5, 155 Avoca St
Randwick NSW 2031
Tel: 02 9398 9431
http://www.matildajane.com.au/

WHITE IVY
Shop 2, 365 New South Head Rd
Double Bay NSW 2028
Tel: 02 9326 1830
http://www.whiteivy.com.au/

LYREBIRD LINENS
Shop 3, Olinda Terrace
47-53 Olinda Monbulk Rd
Olinda VIC 3788
Tel: 03 9751 2770
http://www.lyrebirdlinens.com/