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  

4 Tips To Build Your Wholesale Accounts

Clothing label Flo Dance is stocked in Myer, David Jones and Macy's. Here, founder Felicia Palanca shares her tips for growth.

1. Strong brand identity  I think largely we have built our brand ID on the back off my credibility as a performer in the Australian ballet. We have a very clear brand vision as a result of that and always stay true to it. We ensure seasonally we have great photography to help communicate our brand story to not only retailers but consumers, and wherever possible, we try to bring Flo to life in unique ways. Seasonally for example, I conduct ballet classes in the childrenswear section of David Jones, which has been hugely successful to help reinforce the authenticity of our brand. We are always consistent with our messaging – online, in social media, POS, advertising and so on.2. Relationship Building Don't be afraid to  network and reach out to your contacts. You will not only meet great people but also  potentially great customers. It is really valuable to ask other business owners/mangers in similar fields for their advice and also share yours with them. You also need to do a lot of homework to land a big new account and be prepared to take risks. With Macy’s for example, we did a lot of preparation and research initially, to first identify the gap in the US market that we could help fill and then to learn about the buying team. Our pitch was meticulously prepared. We then took a pretty big risk flying over to NY to see them. Timing was undoubtedly another factor in our success with Macy’s, as was leveraging what we had done here with our great Australian retailers (David Jones/Myer).3. Invest in Marketing SupportRetailers need to see how committed you are to your brand, particularly in new or international markets. Whilst funds can often be tight for small businesses, we think it is really important to give the brand every chance through strategic marketing support. To support our Myer business, we have always invested significantly in POS and catalogues. In the US, we have engaged a local PR agency to help build the brand with influencers and press to drive awareness and credibility. Finding the right people to help you is often hard but instrumental to your success.4. PersistenceIf you have a lead follow it through to the end. Be considerate: don't badger but also don’t give up. In my experience, a strong direct lead is often the best way to reach out to a potential new client. We also try and make it as easy as possible to work with us – eg complying with their systems can often be so time consuming initially, but is essential. Partner with the right people on e-commerce, logistics and PR both here and in international markets to give the brand every chance of succeeding in a new retail environment. Finally, remember to celebrate the successes, as they are always the result of a lot of hard work! 

Lola Ramona - shoes with attitude

Gitte Sandquist loves to stand tall. “I can wear 10cm heels all day without any discomfort,” assures the Danish dynamo whose label Lola Ramona effortlessly lives up to its catchline, Shoes with an Attitude.Stripes, dots and bows; the licorice-all-sorts palette and aura of vintage romance – it’s impossible to ignore those eye-catching confections.The Copenhagen-based label is bound to exert its traffic-stopping impact at Fashion Exposed NOW. Since its launch in 2006, Lola Ramona has won devotees worldwide and they are spoiled for choice – loads of heels, flats and boots, plus equally arresting handbags.Frustration was her catalyst, explains Gitte. “I couldn’t find shoes I liked – good-quality ones that weren’t boring – so I decided to create my own.“I was still working as an agent for several international companies when I started Lola Ramona, so when our designer Christina Hanquist joined me nine years ago, we’d get together at my studio around 5pm and work into the night.“My husband (goldsmith Erik Sandquist) was great. While Christina and I were working, he’d cook dishes like chili con carne for us.”An early partnership with long-established Danish footwear company Sanita promised great things, but the Global Financial Crisis dealt a punishing blow and Gitte decided to go it alone. .“It was a terrible time and affected even Denmark’s major banks, but luckily Lola Ramona survived and we’ve done well in recent years, especially since we opened our own factory in China,” she says.“Using different factories for small orders is always a hassle, so it’s great to have control. A fantastic woman runs the factory. I call her my soulmate.”Quality leathers, pampered comfort (“we add an extra layer of padding”) and striking detail on heels and insoles are among Lola Ramona’s key footwear features. So are the whimsical names that identify the designs.There’s canny reasoning behind Elsie Strut, Stella Lollipop, Cecilia Spats and Co. “I got the naming idea from Levi’s,” confesses Gitte. “Consumers know exactly how say, a pair of Levi’s 501 jeans look and feel, and that sort of instant recognition is important with footwear, especially when you’re buying online.”I used a different process for our brand name. I wanted something that sounded like a real girl and could be pronounced in all languages. That’s how Lola Ramona was born. She’s feminine and distinctive.”Years of experience gained through working with giants such as Sweden’s H &M and America’s Levi Strauss, and later as an independent agent representing international brands including Lacoste, Paul Smith and Caterpillar, have served Gitte well since she founded Lola Ramona.Family members have also made valuable contributions and not just through their cooking skills. “My 93-year-old grandmother has a basement full of wonderful stuff she’s kept for decades and I have lots of fun digging around in it. Great for inspiration!”A small retail store attached to her office in Copenhagen is Gitte’s only concession to bricks and mortar. The real action happens on Lola Ramona’s award-winning online store and new product lines may soon be enjoying that global reach.“Not clothes, but accessories such as gloves, hats and scarves,” reveals Gitte Sandquist. “The problem is finding the time to develop them. Right now we’re so busy, things are just crazy, but I’m not complaining.”To find out more about Lola Ramona, please contact Judy Williams, Australian & New Zealand distributor at cast.away@xtra.co.nz  

Need financing? Read this first

With the vast range of business loans and business cashflow products available to SME's these days, obtaining extra funds to pay for the day to day costs of your fashion business or additional cash to finance growth is less of a headache than it was a few decades ago.The type of finance you chose will depend on your business and what would best suit your business' needs. The biggest challenge is not the process of filling out an application and sitting down with your bank manager or finance provider but actually arriving at a decision.There are infinite loan and finance options available for businesses and it can be a bit daunting when trying to translate the finance jargon to make a significant decision for the benefit of your business.When choosing your business financial solution, it's vital to keep in mind that most lenders will have a number of terms and conditions as part of the loan. However, with some research and careful planning you can avoid a few of the traps that catch out unwary business owners.Not so candidIf you decide to go down the path of using a broker, then you should watch out for brokers that demand up-front fees before your business loan is secured. These brokers are looking for a quick sale and extra cash through your payment of their service fees. In fact they can charge you hefty amounts without securing your business loan at all. You would shop around to find the best fabric supplier for your fashion line, finding a broker that is cluey about business finance is worth some comparative consideration also. When you're conducting this search it's important not to feel pressured; find a broker that is prepared to listen to you and answer ALL your questions.When the honeymoon's overThe allure of a sale sign outside a clothing store can be enticing to customers and can help drive more store traffic. Some finance lenders will adopt the same principle and promote a low introductory or honeymoon interest rate to help entice borrowers. Whilst the low interest rate on the big sign in the window looks attractive, it's the small print of the terms and conditions and the cost of the loan when the interest rate reverts to the standard rate that should draw your attention.  There's almost always a catch too, so there are typically some restrictive options as part of the deal - offering business borrowers little flexibility or incurring penalty fees if their circumstances change.Cheap at twice the priceThe features of a loan are just as significant as the interest rate. It's essential to know exactly what is included in a loan's terms and conditions and how fees will be structured over the life of the loan. If you're unsure, you should ask your lender to explain the finer points. For additional peace of mind, you should talk to your solicitor or accountant. There may be a fee for their advice; you could save thousands in unknown fees and interest over the course of your loan. Think of taking out a business loan as you would about making a major purchase for your fashion company that contributes to the success of your business.Administration feesAdministration fees can pop up unexpectedly, often at the end of the application process, so read every loan contract thoroughly so you understand what the entire cost of the loan is before signing on the dotted line. Incidental fees for transactions, delayed or early repayments, monthly statements and account keeping fees can all add up to increase the total amount owed.Breakin' up is hard to doIf you've agreed to a fixed-term or a fixed-rate with a lender, you'll find that early repayment or break fees are normally applied. If you do need to break the loan's terms or repay it earlier than previously agreed, most probably you'll unfortunately be faced with a fee.So be sure to ask about the terms and conditions before signing up for a loan, as well as what kind of penalty you may have to pay if you do want to pay it out early. Saying this it would be worthwhile considering whether the cost of maintaining the loan to its full term actually outweighs the cost of the penalty fee before breaking the term.Don't despair. With so much choice finding the right loan for your business is fairly simple as long as you are willing to shop around and do some research. Just remember: take time to consider all your options, don't be afraid to ask questions, and always read the small print.