Garland & Garland co-founder Phoebe Garland discusses COVID-19 and the impact on wholesalers.
Think back for a minute, if you can tear yourself away from the latest self-isolation Netflix binge, to 2008.
We were right in the financial thick of it with the GFC. Superannuation was in freefall, people were panicking and losing their jobs.
The banks were looking precarious.
One of our biggest labels, which wrote millions at the time, was a leisure label targeted at retirees and the over 60s.
We were smack bang in the middle of selling, and as can be imagined, retailers were worried retirees would not be able to access their super – and as a consequence the indent orders started to drop drastically.
Sound familiar?
One retailer wanted to cancel a substantial indent order several months after cut-off date. Too late, he was told.
He wasn’t too happy about that.
We were down about 30% in sales.
But then the CEO of the company we were representing made a gutsy move.
He realised these retailers were overly cautious and had potentially under bought; so, he proceeded to punt on one million dollars’ worth of in season stock in this belief – the buyers had under bought and were going to need it.
And yes, the season rolled in, trade was back stronger than ever, and we asked that reluctant retailer – ‘did he sell the stock’? He replied, ‘I was left with nothing’. The company that backed the stock was similarly not left with one single, solitary garment.
Our sales figures ended up being higher than ever which was dumbfounding considering the general financial doom and gloom.
Obviously, retail has now changed; it’s far patchier. I am not suggesting any manufacturer should necessarily back that much stock. But if you are a fashion label, to be ill prepared for in season buying is naïve.
Why?
Because it’s been illustrated that it’s what retailers are requesting more and more of. Even more pertinently, it’s a good way to ensure you get paid faster too because of the demand of trade equals higher cash flow.
There are simple facts to be faced within the current economic environment. Fact.
There will be a lot of money going into the economy propping up small business and employees.
There is no way the Australian government wants small business to fail, the cost is too simply too high. Fact.
The donations and government contributions to the 2019-20 bushfires is also going to start being disseminated. When rebuilding starts, this will inject a lot of money into the economy.
And also, fact. Australians are a funny bunch.
We live in a country with sunshine, sand and sea. We hate being indoors, and we definitely don’t respond well to bad weather – one look at Sydney traffic in a rainstorm will tell you that. Okay, perhaps there’s an exception to the rule… the Mexicans south of the border – yes Melbournians, I am looking at you!
So, with the threat of total mandatory lockdown on the immediate horizon, it is my belief that after 14 days, Australians will be climbing the walls to get out and about – even if only virtually – with money in their pockets.
Preparing for COVID-19’s impact is going to involve strategies of diversification for everyone – and part of that will be collaborations between wholesalers and direct to consumer setups, enabling conversion to greater online retail business.
For small independent retailers, this is forcing you to step out of your comfort zone of being a local retailer and relying on just local trade.
Look at the enormous digital success the ‘Buy from the Bush’ campaign gave to small retailers in towns of less than 2000 people, where they were shipping over 80 orders a day to all over the country and overseas.
Just a week ago, our Summer 2020 indent sales were down significantly, and we were very stressed; and yet, in the space of a week we recovered 80% of our shortage due to diversification.
This included focusing on major online retailers in specialist categories with a strong existing loyal customer bas.
It has provided us with breathing space, some much needed relief, and given rise to quiet optimism.
As they say, ‘it’s not over until the fat lady sings’.
In this instance, if she’s singing, whether it’s online from isolation, or in the glory of a newly re-opened Opera House, just remember – she’s going to need something fabulous to wear. So keep calm – and purchase on.
