Foreign fashion brands eyeing Australian market
A string of high-end international retail brands are looking to set up CBD flagship stores on the east coast, including Italian designer Brunello Cucinelli and Venezuelan-American fashion and fragrance designer Carolina Herrera.
The brands are eyeing Australia as one of the safest investment destinations in the Asia-Pacific region, despite a string of retail administrations here and the looming entrance of Amazon.
Brands looking to set up in Australia include Venezuelan-American designer Carolina Herrera, known for designing wedding dresses for Caroline Kennedy and for Bella in the Twilight movie.
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Italian designers Brunello Cucinelli and Roberto Cavalli are also looking for space, as are French leather goods house Goyard, shoe empire Hogan and fashion and jewellery brand Marni.
Global brands will typically look to establish retail stores in Melbourne and Sydney — starting with whichever offers the first leasing opportunity, says CBRE head of Victorian retail leasing Zelman Ainsworth. He recently visited Hong Kong and Singapore with CBRE’s head of retail brokerage leasing, Leif Olson, to meet representatives of global retailers.
The Chinese tourists coming to Australia, which is the primary luxury customer, has consistently been growing at double digit levels each year
“The feedback’s been that Australia’s one of the only markets in Asia-Pacific that’s consistently growing year on year,” Ainsworth tells The Australian.
“It’s a politically and economically safe country to do business in. The Chinese tourists coming to Australia, which is the primary luxury customer, has consistently been growing at double digit levels each year.”
The interest from international retailers comes after the local arm of British clothing chain Topshop went into voluntary administration. Several local chains have also collapsed since Christmas, including Rhodes & Beckett, Herringbone, Payless Shoes and Pumpkin Patch. The local retail sector has been preparing for the entry of US-based e-commerce juggernaut Amazon and grappling with sluggish sales growth.
A handful of international retailers are expanding successfully, with Swedish giant H&M last week announcing it would open at Stockland centres in Queensland’s Townsville and Rockhampton and would soon bring an online presence to Australia.
It is critical that international retailers understand the Australian market and adapt to the local seasons and culture without diluting their own brand, Ainsworth says.
He says between 300 and 500sqm of floor space gives luxury retailers an opportunity to showcase all their lines under one roof, although some are taking multi-level fit-outs as large shopfronts became more scarce.
Prices for retail space in Australia look affordable compared to other global cities, another attraction for offshore brands, he says.
This article originally appeared on www.theaustralian.com.au/property.
