Thursday, August 16, 2007

Fashion In Philippines

The Philippines - a brand-new market for fashion

Australian export case study

Running BareAustrade client Running Bare Australia of Rosebery, NSW, is at full sprint with its women's active wear and swimwear brands in the Philippines.

The 50-person company, which began operations in 1983, exports to countries as far off as the UK, Canada, Japan, Hong Kong, and Dubai – in large part thanks to the global health and lifestyle boom, as well as their reputation for high quality products and excellent fits. Exports now account for just under a quarter of Running Bare’s annual revenue.

But it is the Philippines, and the nearby countries in South East Asia, where the company is finding new audiences for its lifestyle products.

With three brands – Running Bare, Wahine and Rival in its arsenal the firm has gained a foothold in the Philippines, with exclusive retail deals between two of its three brands and two of the nation’s largest department store chains.

The company's Export Development Manager, Sophie Morgan who is also a dedicated triathlete, ocean swimmer and ski paddler, said the Philippines is a growing market for Running Bare in South East Asia – with the help of Austrade.

"Customers in the Philippines and neighbouring Indonesia, Thailand, Malaysia and Singapore like our fits because they’re suited to their generally smaller builds. We design brands with all shapes in mind," Ms Morgan said.

"We've found that you can’t just expect to sell your product as it is in Australia. You've got to be prepared to adapt and change to succeed. We've made a size six adult size for the Philippines market and by going in at a competitive price point, it's paid off, with one of our swimwear brands, Wahine, already the best-selling in its category."

Eva Yazon, Austrade Manila Senior Business Development Manager, said of Running Bare's wins, "Austrade keeps its eyes on clients like these because South East Asian customers always look for brands that have won over consumers in nearby markets due to pricing and sizing advantages."

Austrade Senior Trade Commissioner for Manila, Alan Morrell, agrees adding that many export opportunities exist for Australian companies in the Philippines, a market that's not too big for small and medium enterprises.

"With a population of 85 million and 60 per cent of them under 30 years old, a thriving private sector and a consumer market of some 11 million, the Philippines is an ideal export destination for many goods and services, particularly food and beverage, wine, franchising, and education," he said.
Other export opportunities include ICT, cosmetics, art, health products, race horses and goat meat.

"China and India might be the hot spots of Asia at the moment; however low tariffs, concentrated consumer markets and a business-savvy population with good English skills make the Philippines an easier market to navigate. We’re experiencing many Aussie successes in this market right now," Mr Morrell said.

"The majority of Austrade clients visiting The Philippines say, 'This place surprises me. There's a lot of opportunities here'."

"There are currently 26 Australian fashion labels successfully doing business in Manila," Mr Morrell added.

Back at Running Bare headquarters in southeastern Sydney, Ms Morgan is keenly eyeing the future.

"Our vision for exports is limitless. We have our sights set on growing our business in South East Asia, plus countries in Europe, the US and other larger export markets. We also have four Running Bare stores in Hong Kong and two stores open in London, with a third about to launch," she said.

"The Philippines is a great place to start exporting. Although we've exported our brands overseas for quite a few years, we’ve found the Philippines to be an excellent place to learn about the Asian market. We’ve learned a lot by exporting and that's making us into a stronger business," Ms Morgan said.

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