DHL Express aids New Zealand apparel exporters
New Zealand is a country renowned for quality, natural fi bres. Wool, raw hides, skins and leather are just some examples of goods that are in demand. Combine the quality of these natural fi bres with the reputation New Zealand has for providing fresh and innovative designs, high-quality products and excellent customer service, and it is no surprise that New Zealand textiles and apparel are in hot demand internationally.
“In 2008, Statistics New Zealand repor ted New Zealand’s contribution to the global apparel industry as $1.77 billion. This is more than double the contribution of the New Zealand wine industry, which generated $766 million in 2008,” says Phil Corcoran, national sales manager for DHL Express.
“The New Zealand textile and apparel sector also contributes to the stimulation of the local economy. In February 2008, the sector employed more than 15,000 people across approximately 2000 businesses, and throughout 2008, the apparel industry (the biggest employer of the sector) earned approximately $150 million in export receipts.”
Recognising the contribution this sector makes to New Zealand’s economy, DHL Express launched its Fashion Export Scholarship in DHL Express aids New Zealand apparel exporters 2008 with the aim of identifying New Zealand’s best up-andcoming fashion exporter and assisting them in achieving international growth. The winner of the scholarship would receive international freight to the value of $10,000 and coaching in freight and logistics from DHL Express, as well as a tailored export mentoring package from Fashion Industry New Zealand (FINZ) and an annual FINZ membership.
Fashion designers who had been exporting for less than four years were invited to complete an offi cial application and submit a design portfolio, which was judged by fashion industry leaders. Entries were judged across a variety of categories, including design, marketing, business and export.
Stolen Girlfriends Club
Marc Moore, Dan Gosling and Luke Harwood, designers of New Zealand label Stolen Girlfriends Club (SGC), were the inaugural winners of the scholarship in 2008, and the trio wasted no time in taking advantage of it, working closely with DHL Express to launch the label in foreign markets. “The scholarship allowed us to realise our business goals,” says Dan Gosling.
SGC had entered the DHL Express Fashion Export Scholarship with the specific aim of achieving growth in foreign markets. They planned to realise this goal by building brand awareness and sales in Australia, Japan, Hong Kong, China, Singapore and Dubai, and securing sales and press agents in the USA.
The team found that the support provided by the scholarship took the pressure off the business and enabled them to push their export expectations further. “We were able to send samples to buyers instead of sending look books (photo samples), giving us an advantage as buyers could then see and feel the clothes,” Dan says. “DHL Express really came to the party with effi cient distribution of these samples.”
Export success
Since winning the scholarship, the designers of SGC have achieved a number of business goals. “The last two years have been amazing,” Dan says. “We’ve entered the US market, and taken samples over to China. We’ve secured sales and press agents in the UK, Europe and Japan, and achieved a growing customer base worldwide. We’ve even been approached by the iconic UK retail chain, Topshop.” The label is now sold in the US, Australia, the UK, Japan, China, Singapore, Hong Kong and Dubai, as well as being picked up by one of the most popular online retailers, ASOS. “We have taken our label all over the world, and seen our clothes on the backs of some infl uential celebrities, musicians and style icons, including Beyonce Knowles, Juliette Lewis and Agyness Deyn,” Dan adds.
It seems the DHL Express Fashion Export Scholarship was simply the beginning for these successful exporters. SGC is now aiming to take its label to new markets in Asia and Scandinavia, and to secure a distributor for Asia by 2011.
A fashionable recovery
The global fi nancial crisis in 2009 had a very real effect on the textile and apparel industry. Fashion weeks around the world were scaled back, and several wellknown fashion labels reported fi nancial diffi culties. DHL Express’s New Zealand textile and apparel customers weren’t immune either. The volume (in kg) shipped out of New Zealand declined in 2009 compared to 2008 fi gures.
But while volumes declined, DHL’s textile and apparel customers were able to stem some of the negative impact of the crisis by consolidating their shipments. “Customers sent fewer shipments, but the weight of each shipment was noticeably heavier,” Mr Corcoran says.
But while consolidation was an effective cost-saving initiative in 2009, it isn’t an effective long-term strategy for companies wanting to compete in international markets, Mr Corcoran adds. “New Zealand’s remote location is one of the greatest challenges for textile and apparel businesses based here. Having the hottest new item on the shelf is critical to the success of any business.
“To be competitive, New Zealand textile and apparel exporters need to get to stores in Australia and beyond ahead of local manufacturers. Holding off on shipments to send a consolidated package is in confl ict with what the sector demands,” he says. The good news is that there is evidence to show the sector is regaining volume in 2010.
For further information, visit www.dhl.co.nz