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 

Poupette St Barth

When Hurricane Irma slammed into St Barth in the French West Indies last September, the media swooped on the shocking damage sustained by Eden Rock, the luxury hotel owned by Pippa Middleton’s in-laws and patronized by the rich and famous including Tom Hanks and Jennifer Lopez.But winning greater sympathy from locals was the plight of one of the idyllic Caribbean island’s icons:  Monique Giraud, known to all by her teenage nickname Poupette (“little doll”).  Almost five months on, she is still dealing with the aftermath of the hurricane.“It badly damaged Poupette’s home and our company headquarters in St Barth’s capital, Gustavia,” says Alice Bennahmias, the New York-based head of sales and marketing for Poupette St Barth.She has been Giraud’s right-hand woman since the label synonymous with delectably feminine resort wear was launched in 1995. Today, it’s an international favourite, especially in its key market, the United States – retail outlets coast to coast - though it has a strong following in Europe (“mainly France, Germany and the Benelux countries”) and has recently expanded to Asia.  Happily, production was not affected by Irma.“Our collections are all hand-made in Bali,” says Alice. “We have a fantastic team of craftspeople who use traditional techniques for dyes and embellishments, so every garment is unique.  Our primary fabric is high-quality viscose. We also use pure silk and have recently introduced an ultra-fine cotton.”The emphasis on sustainability is an important feature, though Poupette St Barth’s essence is captured by the company logo: the frangipani. The fragrant tropical beauty delighted Poupette Giraud when she first arrived on the island from her native France in 1979 and her easy-wearing dresses and separates combine St Barth’s relaxed lifestyle and French joie de vivre.Also French chic.  Despite the profusion of vibrant colours and styles that range from tunics and jumpsuits to skirts and shirts – also some fetching lingerie – there is that innate Gallic classiness about each piece.“Everything, including the fabric prints, is designed by Poupette. She is a true, self-taught natural,” says Alice, who moved from Paris to St Barth with her architect husband and their new-born baby not long before Poupette St Barth made its debut in a stylish boutique on the grounds of famed restaurant, Le Tamarin.“Poupette was still importing furniture from Bali and India when we arrived and I was soon bored,” adds the sales and marketing chief. Little wonder. Suddenly, the young high flyer who had worked for the United Nations found herself coping with motherhood on a Caribbean island which may have been magical – “like an unspoiled Saint-Tropez with a Bohemian spirit” – but lacked challenge for her.Then she met Poupette Giraud and the grand adventure began. “The label was a hit from the beginning and Poupette and I have worked together since she created her first collection,” says Alice. “We have a very loyal clientele including celebrities who holiday in St Barth where we have our flagship store.“As well we have a store in East Hampton, New York and two in France – Cannes and Saint-Tropez – plus some 80 other retail outlets across the globe.”That figure is likely to grow after Fashion Exposed Now, not least because of the latest enticements from Poupette St Barth.“We’ve just launched our first swimwear range and it’s brilliant,” reveals Alice Bennahmias.Visit poupettestbarth.com for more information about this stunning label.