Article by Corpwrite’s Vanessa Mickan appeared in Acuity Magazine 01 September 2015 

In the fickle world of fashion it seems one new trend is holding its footing – designers from down under are the new black. The fashion critics and retail buyers gathering for New York Fashion Week on 10-17 September are used to setting trends. But in recent years, a different type of trend has been emerging at fashion week: each season, more and more Australian and New Zealand designers are rocking the runway. They are garnering rave reviews, and they’re claiming their share of the mighty US$375b American apparel market.

The influx of antipodean designers shows that opportunities abound in the American marketplace – yet there are challenges in building a business on the other side of the world. Here, designers who have made it big in the Big Apple share what talented Australians and New Zealanders should know before buying a one-way ticket to JFK.

New York – gateway to the global fashion market

There are good reasons why New York is a magnet for designers, according to Ramon Martin, who set up the label Tome with his friend Ryan Lobo in 2011. Both Australians, they met while studying design at the University of Technology, Sydney, but when they launched their business, they chose New York as their headquarters.

“[In New York,] they’re very open to new talent; it’s basically what New York fashion’s based upon – there’s always that new guard of designers that are up and coming and doing something new and different. And that’s important for a young brand, to make sure that you’re working in an environment that is going to embrace what you do,” says Martin.

Tome’s rise to the top has been nothing short of meteoric. One minute dubbed an up-and-coming label, seemingly the next they were getting breathless reviews in Vogue, and celebrities such as actress-turned-designer Sarah Jessica Parker and Amal Clooney were being snapped wearing their garments. The turning point came in 2013. First, the pair won the coveted Ecco Domani Fashion Foundation Award. Their prize was the chance to debut at New York Fashion Week in February 2013.

“The exposure is huge,” says Martin.

“We’ve picked up accounts internationally in places that we would not have been able to make contact with if we weren’t in New York and showing at New York Fashion Week.”

The reason New York and Paris are fashion capitals is that the key players in the industry are there at least twice a year for fashion week, according to Martin.

“The amount of business that’s done in each of those cities can shape a brand; it can define a brand. It’s very, very important to be present in either one of those cities.”

Martin and Lobo were welcomed into the inner circle of New York fashion later in 2013 when they were named finalists in the prestigious annual awards run by the Council of Fashion Designers of America (CFDA) and Vogue.

“I think that for a young brand, the number one reason to set up in New York is that there is a structure here and a support system through the CFDA and through Vogue that encourages smaller businesses and younger brands to grow,” Martin says.

Dion Lee is another Australian who has had a rapid rise to the top. Straight after graduating from Sydney Institute of Technology, he debuted to great acclaim at Australian Fashion Week in 2009. Next he conquered London Fashion Week in 2012, and then he switched to showing at New York Fashion Week in 2013. He has established a secondary base in New York, believing that it helps localise the brand in the US market, as it is where a large part of the media and buyers are based.

“Australia is so far away and it really helps for the industry to have access to the brand,” Lee says.

On the impact of showing at New York Fashion Week, he says: “Watching the brand grow over the past few seasons has been extremely rewarding and we are really starting to see the cut through.”

But he cautions fashion week is not the be-all and end-all.

“Regardless of a runway show or a showroom presentation – in New York, London or Paris – the most important element is building a consistent international presence.

“There are so many talented designers from around the world, and I believe it takes time and patience to make it work,” says Lee.

For New Zealand label Stolen Girlfriends Club, the main barrier to expanding into the US market was the difference in the seasons between the northern and southern hemispheres, according to Luke Harwood, who established the company with his friends Marc Moore and Dan Gosling in 2005.

Harwood relocated to New York in 2011. The label, which has developed a cult following, would like to show at New York Fashion Week in the future but for now is focusing its resources on building its retail presence in the southern hemisphere. Having Harwood in New York has paid off, though.

“Playing in the epicentre of the world’s business and fashion hub opens relationships with key doorways, special projects, collaborations and partnerships at marketing and manufacturing levels,” he says.

By contrast, New Zealander Karen Walker, who launched her label in 1989, has shown that it is possible to be successful in the US market without relocating.

Walker’s label is stocked across the US by high-end retailers such as Nordstrom and Barneys, and she has a host of celebrity fans, including Lady Gaga and Charlize Theron. Meanwhile, the company remains headquartered in New Zealand, where Walker lives.

Yet she, too, believes that having people on the ground is crucial.

“We have agents, distributors and publicists in every market,” she says.

Walker has shown at New York Fashion Week since September 2006, though she feels that its relevance has waned in the past decade.

“We don’t see fashion shows as the most climactic part of what we do. We see them as one small part of the brand’s tapestry and positioning.”

An expansive market calls for strong branding

“Obviously the US market is huge. It eclipses the Australian market very, very easily,” says Martin, from Tome.

“And that’s a great thing in building a business out here: there is so much more potential.”

The US market is not just bigger; it’s also much more diverse, he notes.

“Our stores in Los Angeles, for example, are very different to our stores in Miami, that are different to New York, and they’re different to Dallas. You need to understand the different needs in each of those markets… and make sure either that you can accommodate all those different markets within the US or that you’re going to get really specific and actually go after one and own it.”

With increased market size come both opportunities and challenges, according to Harwood.

“A bigger population offers much larger buying budgets in the US market, which is great. On the flip side, you need to make sure you can meet the demand and handle expectations around deliveries and ordering,” Harwood says.

Lee has learned that in the US marketplace, precise brand positioning is crucial. While in Australia, a brand may cut across fashion categories such as “contemporary” and “designer,” says Lee, in the US, it needs to be very clearly defined.

“Retailers need to understand what brands you are positioned against and the price points that you are targeting.”

Collaboration and licensing – keys to international growth?

Lee sold a shareholding in his business to Australian retailer Cue Clothing Company in 2013.

“Partnering with Cue has really allowed me to build a strong foundation for the business in Australia, giving us the confidence to grow internationally. We now have three stores in Australia, plus online, which has allowed us to grow our buying power and really understand what works for our customers,” Lee says.

Tome, on the other hand, is 100% self-funded.

“Ryan and I have the advantage of having complete control over what we do,” says Martin.

“We get to make every decision along the way.”

Still, the pair have grown from forging relationships with the right brands, such as SJP, the label of Sarah Jessica Parker, who designed shoes for Tome’s US Fall 2015 collection.

“You reach a new audience when you collaborate with people, whether it’s Sarah Jessica Parker or anybody else for that matter,” says Martin.

“It just broadens the brand awareness, which is really, really important. And that plants the seeds for future collaborations and the expansion of different product categories.”

For Stolen Girlfriends Club, designing two collections for retailer Urban Outfitters, which has 238 stores in the US, Canada and Europe, has been a boon.

“They have been nice projects and have allowed a younger demographic and new customers to buy into the brand and look that they may have not always been able to afford,” says Harwood.

Licensing is another growth strategy the company would consider.

“Mostly we prefer to keep control and build categories and product from the ground up,” says Harwood.

He cites the brand’s jewellery line, which they prefer to keep control over because they achieve strong margins and have years of experience with the product. However, for product categories in which they lack experience – such as eyewear, handbags and shoes – licensing would make sense, according to Harwood.

For Karen Walker, licensing has enabled the company to expand its product range to include fine jewellery, eyewear, fragrances, handbags, homeware and even house paints.

“We believe that partnering with specialists is the best way to grow,” says Walker.

“We’re essentially an ideas company, and we believe in partnering with specialists who will bring their own expertise in a category to the table.”

Advice for thriving in the US market

Lee’s advice to those establishing businesses in New York is to take your time and make big-picture decisions. It’s a view shared by Harwood of Stolen Girlfriends Club, who encourages businesses tackling the US market to have objectives and be very clear about your brand positioning, stores and like-minded brands you would like to sit beside, decisions that should be aligned with the goals and vision for your company.

“When you have goals, you create a ‘critical path’, which becomes a business plan to some degree; you can see tangible goals taking place along the journey,” says Harwood.

“We have done it organically before in earlier stages of the business, and it does not always work out – you can have moments of breakthrough and brilliance, but in the end it’s fragmented business if there is no strategy towards an end vision.”

He thinks they went into the US market too soon, without a clear strategy for their global business, which was scattered around the world.

“Our general business infrastructure and team were too young and undeveloped to handle business expectations and growth. Hindsight is a beautiful thing,” Harwood says.

Karen Walker advises those entering the US market that it’s a lot more competitive there, and “you need to have a very strong idea and strong point of view”.

It’s important to “keep your eyes and ears open”, according to Tome’s Martin, who encourages new designers to learn as much as possible from others in the industry. He also advises those setting up shop in New York to strive for balance.

“You will work very, very hard, and you’ll do more hours than you ever thought were in a day, and it can be consuming,” he says.

“Take some time for yourself, don’t forget to take a vacation, don’t forget to go out there and see exhibitions or have fabulous dinners with friends and reconnect with the world.”

Looking to the future

As Karen Walker sends her designs down the runway for her 19th season at New York Fashion Week, for the mature brand the coming year is all about refinement of its existing business strategies. For the younger Australian and New Zealand labels, though, the primary focus in the near future is on strengthening their branding in the competitive US market.

“It’s about building something that more and more women can come to and buy our products, and become more and more familiar with what we do and how we do it,” says Martin. The company is also looking to grow its team and the number of stores stocking its products, expand its reach in Europe and try new categories, such as accessories.

Lee says: “We would love to explore a retail presence in the US, however, I think it is important to continue to build the brand before this point.”

His company, too, is working on adding new product categories.

Stolen Girlfriends Club’s Harwood sees how far the label has come.

“After ten years of all the successes and failures, these learnings and history now give us insight to stand firmly rooted in what the brand is about and what we do best.”

And with growth of 7-9% expected in the US apparel industry this year, brands that can successfully distinguish themselves in the US market have a bright future, long after the lights have dimmed on the runway at fashion week.