3 Ways Boutiques Are Fighting Back

Want to arm your boutique with the right tools to succeed? Here are three examples of how to fight back against the big-end of town.

1. Use your online toolbox

Joy Hysteric founder Mel Tan was at a crossroads when the global financial crisis hit her network of brick-and-mortar stores. Tied to an onerous store lease in the Gold Coast, she credits social media and eCommerce for leveraging her risk across multiple channels. "I was utilising social media to promote the boutique on MySpace, way before Instagram came about. Our online sales saved us."

2. Listen to your customer

Parlour X owner Eva Galambos stocks some of the most luxurious brands in the market, from Valentino to Vetements. But her early days in the boutique business taught her the importance of balancing her tastes against her customers'. Some of her first labels were progressive offers from London, including Vivienne Westwood. "It was too radical for Sydney and Australia. We were still quite conservative. You can start to develop creative ideas around bringing the market what they’re wanting but still holding your original vision."

3. Do the maths

With a background in finance, My Chamelon founder Giselle Farhat understands the importance of crunching numbers. Even with the right marketing and brand strategy, metrics are crucial to the boutique trade. "Planning and forecasting is key. Reflect on the past but look to what is next, plan your cash-flow and try to keep your costs to a minimum with no wastage." 

Tax Tips For Retailers

H&R Block director of tax communications Mark Chapman has some tips for you when it comes to tax time for your store. Running a business is hard enough without getting caught up in the complexities of the tax system.So, to make things simpler, H&R Block has produced a beginners’ guide to the tax deductions all retail businesses should be looking to claim.Purchases of stockEverything that you purchase to sell in your store is tax deductible as a cost-of-sale. In addition, you can also claim for associated costs of getting stock delivered from suppliers as well as other costs of sale such as delivery charges to customers (if you pay them rather than the customer), packing, etc.If you travel to trade fairs to examine new products, those costs are also deductible.Write-off any lost, damaged or obsolete stock before the year end in order to claim a tax deduction.Immediate write-off of capital purchases Through until 30 June 2018, your business can claim an immediate tax deduction for all capital purchases which cost less than $20,000, rather than writing off the cost over several years. That could be a great way to refresh your store and generate some extra cash flow. To qualify, your business must be a small business (ie, with an aggregate turnover or less than $10 million.Amongst the items you could look at claiming are the following:

• Cash registers and other POS devices
• Delivery vans
• Store fittings and fixtures
• Computers, laptops and tablets
• In store security systems
• Accounting software

Advertising and marketing costsAdvertising and marketing to sell stock, gain publicity and hire employees is all tax deductible. Costs incurred in entertaining clients and suppliers, sadly, are not deductible.Property costsRent, mortgage interest, rates and land tax for your business premises are all tax deductible.Salary and superannuation expensesYou have to pay staff wages and you also need to contribute compulsory superannuation payments for everyone on the payroll. All those costs are tax deductible. If you can get your June quarterly super payment in before 30 June, you might be able to accelerate that deduction into the current tax year (the actual deadline is in July, after the next tax year has started).Tax expensesAll tax and accounting related expenses should be tax deductible, including the cost of hiring a bookkeeper prepare your business records, having tax returns or BAS prepared and costs associated with attending to an ATO audit or objecting to a tax assessment which you think is incorrect.Fringe BenefitsEmployers can generally claim an income tax deduction for the cost of providing fringe benefits and for the Fringe Benefits Tax (FBT) they pay on those benefits. A fringe benefit is a benefit provided to an employee (or their associate) because that person is an employee (or a former or future employee) and can include items such as cars and car parking spaces.Business InsurancePremiums you pay for business insurance are generally tax deductible provided they are connected to your business’ capacity to earn an income or to protect its assets.This means that premiums for workers compensation insurance, professional indemnity insurance, fire damage, theft cover, public liability insurance, loss of profits and commercial motor vehicle insurance are all tax deductible.Premiums for key person or key man insurance, a type of policy which offers a benefit payment when an important company employee is incapacitated and no longer able to work, can also generally be claimed as a tax deduction provided the key person cover is was taken out to protect your business’ revenue.Reorganising your business tax-freeNot a tax deduction as such, but a tax relief that applies to small businesses, the government has recently introduced new measures which allow businesses to reoganise themselves without incurring unexpected income tax consequences, such as capital gains on asset transfers. This is particularly valuable for new and expanding businesses which are looking to change their legal form to allow greater asset protection for the owners or greater freedom to expand, for instance by changing from a sole trader to a trust or company.Finally….The above guide is a brief overview of what your retail business should be claiming. As a general rule-of-thumb, any cost incurred in generating income for your business is deductible, either straight away or over time.If you need help getting your taxes right, it’s always best to talk to a tax adviser like H&R Block.Assia Benmedjdoub, Editor, Ragtrader Magazine

Meet The Buyers: Mareile Osthus

In this series, we meet industry buyers from across Australia and New Zealand. Here, The Iconic chief category manager Mareile Osthus reveals the power of independent brands.How many womenswear labels does The Iconic stock?​Currently, we stock more than 600 womenswear brands and the number increases each week. We want to make sure that we have something for all of our customers in ANZ, bringing them the best local and international brands.What are some of the best performing niche/independent labels?We are very proud of every single brand we are able to offer to our customers, but a few of our more niche brands that are well-received by our customers are: FLYNN, ATP, Loeffler Randall, Chimi Eyewear, Jerome Dreyfuss, Linda Farrow, Georgia Alice and Manning Cartell.What about in the accessories space?Accessories are driven by the consumer’s need to convey individuality and is one of our fastest growing areas, particularly regarding handbags, jewellery and sunglasses. Some niche brands within the space which our customers love are Reliquia, By Charlotte, Brie Leon, Johnny Loves Rosie, The Wolf Gang and Shevoke.​How do you source new brands - where do you find them?We source brands from all over the world, from Europe to the US as well as more local brands we find in the ANZ region. Our teams are constantly travelling to find the best brands for our customers; we just came back from a Europe trip to London, Paris and Milan, and acquired 60 new brands. We are looking forward to being able to offer these brands to our customers very soon.What do you look for when you're buying?The first thing we do is listen to our customer. In an online business, it's easy to see what our shoppers are searching for. We then combine this with our trend buyer’s knowledge to assess what customers want to shop in the future, as there’s even a chance they don't even know it yet.What tips would you give to designers for attracting the attention of a buyer?It's usually important to show the point of difference to the customer, so what makes your product different from others?There are so many great brands out there and the online shopping space is such a competitive environment so its important to stand out. One area that The Iconic is deeply committed to is social and environmental responsibility, and it is something we are seeing is also becoming increasingly important to our customers.​What are some best performing trends of the season?This season we are selling a lot of fake fur jackets, leopard print, printed boots, slides, hoop earrings, jewellery with religious motifs, cat eye sunglasses, cross body bags, slogan tees, blazers and pink, lilac and wide leg trousers.What do you predict will be the best trends next season?Pink, pink and more pink, fluro colours, more animal prints, silk, natural fabrics, turbans, visors, coloured sunglasses, top handle bags, sunnies and micro bags. The latter look fab, even though they might not be very functional! Footwear is heading in two different directions; on one side we will be heavily influenced by Kim Kardashians perspex-style shoes and barely there footwear, and on the other, we will be wearing very simple-styled mules and sandals in earthy-toned leathers and fabrics.​What is the best part about being a buyer?I’ve always liked the excitement of trends, at the same time as optimising the portfolio in regards to timings, shares of sub-categories and big bets on top items. It has to do with a lot of analytics as well as gut feel and this is an unbeatable combination. It is very rewarding as a buyer to see your product selection come to life and sell well, as it means you are satisfying the customer which at the end of the day is our number one objective. It is really important to be customer centric in all decisions to ensure you get the best results!What is the most challenging?Juggling the past, present and future is always a challenge. The uncertainty of the popularity of trends is the most challenging part of our business. We buy about six months ahead, with the risk of not knowing exactly what will happen next season and how the the market situation will be, as customer needs can change very quickly and they can be difficult to predict.As a buyer, you need to be ready to switch heads at any given time. Whilst looking ahead to capture the next trends, you must also look back at the last six months to analyse and determine what should be purchased in the future, whilst also looking at current trade, drive opportunities and mitigating risks.Assia Benmedjdoub, Editor, Ragtrader Magazine 

How To Stitch Up Your Fashion Label So You're Built To Last

Fashion lawyer Julian Blanchard reveals how to build your brand for long-term success.

The industry has never been more dynamic and active at a grassroots level.Brands like Spell and the Gypsy Collective are doing great and are attracting a fierce loyal following and the attention of celebrities like Margot Robbie, Miley Cyrus and Delta Goodrem.The key for newcomers in the industry, as well as well-known brands, will be stitching things up right at the backend.Here are seven critical points to consider when launching and growing a business in the fashion industry:Initial structuring: Things to consider are the risk and tax implications of operating as a sole trader or through a company or a trust.Trademarks: Registering a trademark gives the owner exclusive rights to use the mark on the class of goods (class 25 for apparel) and simplifies the enforcement process if someone tries to rip off the brand. Each country has its own trademark regulation.Counterfeits: There are two types of counterfeit issues – cheap imitation products, often manufactured in SE Asian countries, which can sometimes be stopped at the border by lodging a notice with customs; or legitimate traders who imitate a brand’s designs rather than coming up with their own original work – if the imitation involves breach of copyright, or a registered design, then it should be dealt with initially by a “cease and desist” letter.Labelling: Country of origin and care instructions are the mandatory laws regarding labelling.International expansion: There are several ways to tackle overseas markets – you can appoint a person in the foreign country as your sales agent; appoint someone as your distributor or set up your own operations in each country. Each comes with pros and cons. Funding: Once the business grows to a certain size, there are a few options to access capital and grow bigger – these include getting funds from a bank, from venture capitalists crowdfunding or an equity investment. Exit: You’ve grown a brand over a number of years and now you want to get a significant pay out – some options for the next step include sale to another founder, a management buy-out, trade sale or initial public offering.Many fashion businesses get into trouble and in many cases, the issue could have been minimised or avoided altogether with the right legal advice before the trouble started.A stitch in time saves nine. I’ve seen designers accidently sail too close to the wind and somehow rip off someone else’s design. They got pulled up for it and then needed to respond to a cease and desist.I’ve also seen employees steal confidential data and then you have to try to keep, or put back the genie in the bottle – it can turn messy pretty quickly.Some things are unavoidable, but with the right advice it’s not difficult to avoid or remediate these kinds of issues.Julian is a lawyer with 30 years’ experience. Notably he spent seven years as Billabong’s first global in-house lawyer. He then went on to work with fashion brands like Byron Bay clothing and fashion label Afends; motorchic Deus ex Machina; global eyewear brand Epokhe; surfwear company Vissla; fashion powerhouse One Teaspoon and boho chic Spell and Gypsy Collective. To purchase a copy of Fashion Law: The Complete Guide, (RRP$49.50) visit www.blanchardlegal.com.au