The day started off with the Plenary which discussed the reasons behind Australia's stable market growth despite challenges in the retail sector hosted by the ever so entertaining Zara and Troy Swindells-Grose of Humour Australia.
The Plenary opened with one of the most inspirational speakers of the day, Gillian Franklin. She is a determined, passionate and persistent woman with a commitment to supporting women in business. Her own company, the Heat Group, turning over approximately $130 million in retail sales annually, proves her reputation as a successful business owner. Yet despite this, Franklin is a humble woman dedicating her time to empowering women in business.
One of the key points she spoke about was the issue of women in business, and as a member of many male-dominated boards such as the Australian Formula 1 Grand Prix, she recognised the importance of gender equality within the workplace. However instead of approaching this gender issue as an gender issue, she approached it from an economical standpoint, stating that women contribute more to the economy than men.
The second half of the Plenary focused on the topic, fashion today: the good, the bad, the .... featuring some of the most high-profile members of the retail industry in Melbourne today:
- Vicki Stirling of Sunrise Junction, a fashion industry brand and business development consultancy company
- Michael Wittner, co-CEO of Wittner shoes who I'm sure all of you living in Australia have heard of
- Helen O'Connor, designer of Thurley
- Elysha Sullivan, senior buyer at Levi's Menswear in Australia
While they all came from different backgrounds of the retail industry, it was interesting to hear the different opinions and views on Australia's retail industry today.
A range of topics were discussed such as whether a traditional in-store shopping experience was more valuable than e-commerce retailing and integrating the use of social media into retail which all fell under the umbrella term of retail consumer habits.
Everyday I'm bombarded by advertisements whether it be emails from websites or shops which are having sales or have just stocked new pieces for the season ahead, the consumerist nature of our society is engraved in our sense of entitlement to have more - whether this concept of 'more' is quantitative or qualitative, we feel a sense of need and necessity to have it. Companies and marketing teams recognise our need for more and prey upon that, however it's not all bad for us consumers out there, we are becoming more educated about retail consumer habits too!
Thurley's Helen O'Connor pointed out that David Jones used to do one big sale season annually which lasted for around 6 weeks however have completely restructured this program. The reason behind this? Consumers are becoming more educated and as a result, David Jones found that consumers would shop more during this season and because things are discounted to the lowest of lows, it would continue to eat into their profit margin. She also spoke about the dangers of educating the consumer.
A range of topics were discussed such as whether a traditional in-store shopping experience was more valuable than e-commerce retailing and integrating the use of social media into retail which all fell under the umbrella term of retail consumer habits.
Everyday I'm bombarded by advertisements whether it be emails from websites or shops which are having sales or have just stocked new pieces for the season ahead, the consumerist nature of our society is engraved in our sense of entitlement to have more - whether this concept of 'more' is quantitative or qualitative, we feel a sense of need and necessity to have it. Companies and marketing teams recognise our need for more and prey upon that, however it's not all bad for us consumers out there, we are becoming more educated about retail consumer habits too!
Thurley's Helen O'Connor pointed out that David Jones used to do one big sale season annually which lasted for around 6 weeks however have completely restructured this program. The reason behind this? Consumers are becoming more educated and as a result, David Jones found that consumers would shop more during this season and because things are discounted to the lowest of lows, it would continue to eat into their profit margin. She also spoke about the dangers of educating the consumer.
The relationship between a consumer and supplier therefore can best be described as a game of deceit.
We, consumers, know when the sales are going to come, it's predictable because they're based upon seasons. At the end of a season a sale will occur in order for the store to clear their stock and make room for new stock and while retailers are of course still making a profit, it is much less than what they would've made if the items were priced at full price and not sale prices.
However, many of the high-end stores such as Prada recognise this issue. I've been told by the manager at the Prada store in Chadstone that Prada sale seasons are extremely unpredictable and that the store only finds out a day before the sale starts. Whether this is true or not, this marketing tactic ensures that they are able to minimise the loss in their profit margin.
Michael Wittner of Wittner shoes also highlighted the importance of wording when it comes to marketing. On the Tuesday, Wittner ran a one-day only promotion as an homage to MSFW Industry day, declaring that customers would recieve a $20 bonus on full priced items. The key word being, bonus. As the use of the word bonus carries a much positive connotation than discount, the consumer feels as though they are being granted $20 for free and let's be real, who doesn't love a freebie? It's cheeky but it works.
Vicki Stirling of Sunrise Junction also spoke about the importance of the retail experience for a consumer. That retail is not simply about the product anymore however encompasses a whole range of factors. Through the use of social media for example, customers can be made to feel a part of the retail experience and brand. For example, Wittner and many other stores' use of Instagram in which users are encouraged to post photos of their shoes from Wittner and hash-tag them with #Wittner, it's now about building a community and building an intimate relationship between the consumer and retailer.
Also, Pop Up shops. Why are they a thing all of a sudden? Pop Up shops in the same way build an much more credible relationship between the consumer and retailer, while also feed our mentality of needing more and needing it now. Pop Up shops are non-permanent retail locations and for brands, this works extremely well for both consumer and retailer. Pop Up shops are often placed in locations which are easily reachable by consumers and often do not contain full-priced items but sale items. For the retailers this method works extremely well because for Pop Up shops they do not need to design any extra pieces or introduce new stock, it is simply utilising old stock in a new location. Yet because Pop Up stores are non-permanent, it creates a sense of urgency for the consumer - that you'll miss out if you don't go and visit straight away. Promotional and collaborative events as well as the all too popular "limited edition" label work in more or less the same way.
However, many of the high-end stores such as Prada recognise this issue. I've been told by the manager at the Prada store in Chadstone that Prada sale seasons are extremely unpredictable and that the store only finds out a day before the sale starts. Whether this is true or not, this marketing tactic ensures that they are able to minimise the loss in their profit margin.
Michael Wittner of Wittner shoes also highlighted the importance of wording when it comes to marketing. On the Tuesday, Wittner ran a one-day only promotion as an homage to MSFW Industry day, declaring that customers would recieve a $20 bonus on full priced items. The key word being, bonus. As the use of the word bonus carries a much positive connotation than discount, the consumer feels as though they are being granted $20 for free and let's be real, who doesn't love a freebie? It's cheeky but it works.
Vicki Stirling of Sunrise Junction also spoke about the importance of the retail experience for a consumer. That retail is not simply about the product anymore however encompasses a whole range of factors. Through the use of social media for example, customers can be made to feel a part of the retail experience and brand. For example, Wittner and many other stores' use of Instagram in which users are encouraged to post photos of their shoes from Wittner and hash-tag them with #Wittner, it's now about building a community and building an intimate relationship between the consumer and retailer.
Also, Pop Up shops. Why are they a thing all of a sudden? Pop Up shops in the same way build an much more credible relationship between the consumer and retailer, while also feed our mentality of needing more and needing it now. Pop Up shops are non-permanent retail locations and for brands, this works extremely well for both consumer and retailer. Pop Up shops are often placed in locations which are easily reachable by consumers and often do not contain full-priced items but sale items. For the retailers this method works extremely well because for Pop Up shops they do not need to design any extra pieces or introduce new stock, it is simply utilising old stock in a new location. Yet because Pop Up stores are non-permanent, it creates a sense of urgency for the consumer - that you'll miss out if you don't go and visit straight away. Promotional and collaborative events as well as the all too popular "limited edition" label work in more or less the same way.
At the end they very quickly touched on the issue of sustainability and environmental factors which have either resulted from or are effecting the Australian fashion industry, Vicki Stirling condemned the fast-fashion industry and it's impacts on manufacturing in Bangladesh. I then heard a woman behind me complain that people choose to buy commercial fashion because they'll only wear it for a season and it'll be out of fashion. And so to all of you who may be on the same train of thought as her, please read my post entitled "fashion is a waste of money".
Finally, for your own sake as a consumer, be smart about your consumption.
This will unfortunately be my last post as a part of MSFW! I have had the most amazing time during this week but there's still one day left to go! Don't forget to head over to the Hub in Melbourne City Square where there are a lot of exciting and free things!
Finally, for your own sake as a consumer, be smart about your consumption.
This will unfortunately be my last post as a part of MSFW! I have had the most amazing time during this week but there's still one day left to go! Don't forget to head over to the Hub in Melbourne City Square where there are a lot of exciting and free things!
Images courtesy of Hobo photography.
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