“We significantly expanded our sales into the US this year and set up an office and warehouse in Los Angeles. We have established some very significant accounts with large US department stores such as Neiman Marcus and Anthropologie and have over 200 beautiful independent boutiques and multichain stores now stocking our labels.
“We also commenced sales into South Africa with our Talisman and The Shanty Corporation labels. We are looking forward to building our business further there in 2019.
“2018 saw a significant increase in our staff numbers. Particularly in production and design personnel, warehousing staff and the associated administration support that is required.”
Of course with growth like this come many challenges, adds Hooper, and the biggest ones are funding, worsening credit conditions and the demise of the Australian dollar.
“Money is tight, manufacturing costs continue to rise sharply and there is a tightening of dollars from the banks at the top right to the end customer. This ‘trickle down’ effect has created pressure all around in Australian wholesale and retail sectors.”
Online has also been a huge challenge to traditional retailing but Hooper firmly believes bricks and mortar is here to stay. “Nothing will ever beat an amazing retail experience. Being in an actual store with a real person and leaving with a beautiful product that makes you feel happy. Engaging with a person who gives you professional guidance and advice and helps deliver what you are looking for is something very special that online can’t replicate.”
That being said, she admits that social media and online have changed shopping habits forever. “It has required a complete re-wiring of our advertising and promotional brains in business today.
“It’s still a very big ‘unknown’ for many retailers and many wholesalers. Learning to navigate the waters and leverage it for commercial and tangible results will continue to be a daily learning curve.”
In today’s extraordinarily competitive market price is still key, but the product must be exceptional value for the best possible retail advantage and extremely good quality.
“We base our decisions on pricing, value and quality. Also, diversity, innovation and being at the forefront of a trend are uppermost in our considerations. We know our customers and we design and develop accordingly. We are not slaves to ‘here today and gone tomorrow colour palettes and directions’, but our labels have always been underpinned by our love of colour and how we build stories that will slip automatically into a retail store―without the buyer having to think about it. We do the work.”
Hooper’s tips for wholesalers:
• A very good eye to curate through the sea of product that can be designed or developed.
• Adequate capital to get through the lag time of the seasons and to be able to innovate with new product from season to season.
• Find a niche―retailers see a lot of replication of product and are always looking for something new.
… and retailers:
• Know your customer, know your customer and know your customer.
• Never buy for yourself, the biggest mistake retailers make is letting their own preference determine commercial decisions.
• Employ wisely… your staff can make or break you. Your business will only be as good as the people that represent you.
Meet Holiday Trading & Co at stands DA12, DC12 and DD5 at the upcoming AGHA Sydney Gift Fair at Sydney Olympic Park (23-26 February 2019). Entry is free for industry professionals. Visit sydneygift.com.au for more information and to find out how you can attend this trade event.
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