Rant and Ramble: "The Next Six Months"
Geoff Merz
(New Zealand) – 20 August, 2007
Here we are, heading into the final quarter of the year, which heralds the
onset of worries regarding summer deliveries and the tail-end of winter-related
woes. How I envy the industry that isn't having to pick what the season will be
like for winter 2008.
Will the exchange stay up? Will consumers actually dip into their pockets for
apparel? And, worst of all – what prices are the retailers going to demand?
In the course of general chitchat, we hear all sorts of stories … some true …
some false … some trending towards the malicious. And, in this industry, a lot
that bring smiles to peoples faces regardless. Nevertheless, there are a great
many changes going on at the moment. Within the textile and apparel sectors, it
looks like further contraction across manufacture and retail alike.
The addition of new Australian retail outlets in the New Zealand market is
cranking up the competition. Slowly but surely, the independents are being
squeezed out. And, the large Kiwi chains are sourcing more-and-more product
directly.
With the loss of independent retailers, New Zealand designers have less
chance of getting their product out on the market. Similarly, the loss of CMT
operators and the skills required to manufacture in New Zealand will cause
further changes and difficulties.
There’s always the internet, but event that’s getting more complicated and
expensive to buy into. Besides, a whole, much larger, generation doesn’t shop
online. Personally, I believe that you actually have to see, touch and try on
garments before you buy them. Maybe it’s an age thing? I haven’t got my head
around the X-and-Y generations either, and am not looking forward to meeting Z.
What do we do after them anyway? Do we go back to A again?
People seem to be increasingly influenced by the media in their purchasing
choices, as they don’t have the time to go from store-to-store to see what looks
nice in the windows and compare everything on offer. Marketing is already a
major expense included in the rents of most major shopping malls. But, while
offshore clothing chains and international brands can probably spread the cost
across their global operations, New Zealand designers and the independents
can’t.
New Zealand is a small market. And, there needs to be a lot more cooperation
between designers, manufacturers and retailers if the apparel industry is going
to survive. We could always design here and manufacture offshore … as a large
number already does. But, while it provides a faster way to go global with
product, are we really willing to pay the ultimate price? -
(Geoff Merz)
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