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insideretail.com.au
I s s u e 2 2 6 2
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News
Super Retail’s plans to conquer ChristmasRetailers should take advantage of the uplift in online shopping this holiday season. p5
Feature
The art of the brand ambassadorCan a celebrity make or break your business? Here’s how to get it right. p12
AnalysisWoolies’ wage woesThe supermarket is sorry, but it’s the third time they’ve got it wrong. p8
In this issue
Tigerlily set to unleash major transformationThe iconic Australian brand reveals all
the details of its upcoming rebrand..
2 insideretail.com.au
To celebrate the Australian designer’s 20th anniversary this
year, the Tigerlily team is preparing to unleash a complete
rebrand, featuring a new tone of voice, direction and product
evolution.
The transformation will involve advertising and social media
campaigns, an e-commerce relaunch, a collector’s edition Tigerlily
newspaper in Australia, updated stores and next month, a brand
new flagship store at Melbourne Emporium. All will be revealed to the general public on November 19 and rolled out across Australia
and New Zealand.
“After 20 years of travelling with customers, we’re ready for our
next adventure and for us, the second evolution of the brand is
about a new perception of what it means to be sophisticated, fun
and playful,” CEO Chris Buchanan told Inside Retail Weekly.
“The world is changing, customers and tastes are changing and
everyone needs to evolve. We’re not going to be the last to do a
rebrand, so this is really a celebration of our 20th anniversary year.
This process has been a 12-month journey, it’s very organic, we’ve
considered our heritage, our values and for us, it’s about getting a
cohesive message across all our touchpoints. That starts with our
communication, tone of voice, product, messaging and in particular,
our campaign.”
Tigerlily’s 12-day countdown campaign, which began last week,
reveals a letter a day, standing for a different brand value. For example, T for “travel” and Y for “you”.
“You don’t go to Tigerlily to discover a piece, you go to take it
away with you on a journey, a holiday, an experience. We’ve been
going on holidays with customers for 20 years. Our pillars are about being adventurous, optimistic and travel. We make clothes to make
memories in, to dance in, swim in and discover – clothes that make
you smile,” he said.
Beyond swimwear
While Tigerlily began as a swimwear brand spearheaded by model
Jodhi Meares and has been well-loved for its printed bikinis and one-pieces ever since, 80 per cent of its sales actually come from
ready-to-wear. It’s a common misconception that Buchanan and his team are focused on turning around as part of the rebrand.
From pre-fall 2020, Tigerlily will begin delivering two collections per season to better meet the needs of its international customers.
One collection, known as ready-to-wear will feature more elevated, contemporary designs at a higher price points, Buchanan explained. The other range, called the Holiday Edit, will focus on swimwear and overswim.
“I think everyone remembers Tigerlily as a swimwear brand, but
for 15 years, we’ve been a clothing brand. There’s no better way to
celebrate 20 years of being one of Australia’s most iconic brands
than to start a new journey and really create some clarity around
who we are and what we do,” said Buchanan.Part of the rebrand is for Tigerlily to show the world that not only
is it a fun and playful brand, it also offers sophistication and an elevated product with a high level of design, Buchanan said.
“What makes us unique is that we’re not fast fashion. Everything we do is very considered. We pride ourselves on our craftsmanship.
We have an incredible team of illustrators and textile designers,”
he explained. “Every print is hand-drawn, every fabrication is exclusively made, every trim is bespoke. We’re very proud of our
design and it’s not very common when you look at the high streets
around the world.”
In a dramatic move last Friday, iconic designer brand Tigerlily wiped the contents of its entire Instagram feed, marking the start of a new journey for the 20-year-old business. By Jo-Anne Hui-Miller
Tigerlily prepares for its next adventure
NEWS
T is for travel: Tigerlily unveils its message one letter at a time.
3
A new store experience, on- and offlineIn December, Tigerlily will unveil its new luxurious Melbourne Emporium store, which has been inspired by exotic faraway locations and glamorous hotels, reflecting the brand’s values around travel, exploration and experience. Existing Tigerlily stores will also undergo a refresh, featuring new in-store packaging with
the revamped logo.
Meanwhile, the business will relaunch a mobile-friendly website next week, with new functionalities and an improved customer
experience, heralding the next evolution of the business. It will
also feature new sustainability icons, which will provide customers
with an easier way to make informed decisions during the buying
process.
“Our website is a classic example of why brands need to rebrand and evolve. Our site needed to evolve. It will now have a modern approach to web design, which has been in the works for
six months and comes with additional functionality, in particular
click-and-collect,” said Buchanan. “We’re very proud of the artistic direction of the new site and through the new customer experience
being digital and mobile-first, you’ll really see the identity come to life.”
Tigerlily goes global
Prior to 2017, Tigerlily did not hold any international trademarks, but
since that has been resolved, the company has been working on
overseas expansion and has partnered with Selfridges in the UK,
Shopbop in the US and Bloomingdales in Dubai. Meanwhile in the US, the brand is continuing to increase its
presence in the US and has just secured an exclusive partnership
with a yet-to-be-announced major retailer, which will launch in
January next year.
Earlier this year, Tigerlily opened its first New Zealand standalone store in Newmarket and launched an online store specifically aimed at Kiwi customers.
“We also recently partnered with a major fashion icon to launch
our pre-fall collection in Europe, which has been a key area for growth over the past 12 months,” revealed Buchanan. “Combined with our brand relaunch, and more elevated product, the demand
for Tigerlily in export markets has never been stronger.”
A pioneer in sustainable swimwear
As one of the first brands in the world to bring to market a commercial recycled swim offer, Tigerlily launched its first annual Consciousness Report this year, outlining its sustainability
achievements so far, such as using compostable bags made from
100 per cent biodegradable materials. It has also reduced its air
freight by 41 per cent, saving 14 tonnes of carbon emissions.
The report also outlined the brand’s goals for the future, such
as moving towards 100 per cent sustainable sourced viscose and
rayon fabrics by the end of 2020 and replacing its current garment
polybags with a fully compostable option across all production by
the end of next year.
“Sustainability is a brand value and remains our primary
commitment. Today, we remain one of a few global leaders in
sustainable swim production,” said Buchanan. “Last year, 69 per cent of our swim was recycled, for pre-fall it is 90 per cent. This is a
commitment we started six years ago in early 2014.”
According to Buchanan, brands need to constantly evolve, especially now, when customers can access great retailers from all
over the world from the palm of their hands.
“I’m an optimist. People complain about retail, but I believe that if
you have a great product, you will always succeed,” he said.
“Consumers haven’t stopped shopping, they have more options
than ever before and we are constantly challenging ourselves to
make the best product that we can, be that in terms of our design
or our commitment to sustainability – we always put product first. If you don’t have a great product, you don’t have a brand.”
“The world is changing, customers and tastes are changing,” said Buchanan.
IRW
NEWS
4 insideretail.com.au
Custom uniform business Cargo Crew has taken the next
step in its ongoing evolution, opening its new showroom
and headquarters in Bundoora, Victoria. The 4500sqm space, which consists of the purpose-built retail
showroom, open-plan offices, warehouse, production room and embroidery centre, was fitted out to help push the business into the next decade of its life.
“We are very much a brand-driven business,” Cargo Crew
founder Felicity Rodgers told Inside Retail Weekly.
“I think that we’ve always focused heavily on how we
communicate our brand to the market, and obviously our online
presence is something that we take great pride in, so the showroom
is basically focused on continuing that journey.”
The new space is equipped to fully merchandise the range of
base pieces the brand sells, while also allowing customers to utilise
curation and customisation options in-store, guided by trained
uniform stylists.
“If customers come and visit the showroom, we have a
whole pegboard area where people can choose the products
they like, place them on the wall and mix them up into different combinations,” Rodgers said.
“It’s really a chance for us to inspire our customers by having the
space and the set-up to be able to display the product and really
inspire them and show them what a uniform can look like when it’s
put together.”
And while the bulk of the business is aimed at corporate clients,
Cargo Crew has no minimum order values and sells single-piece
orders online. Meanwhile, the new showroom is open to the public Monday to Friday, allowing it to function as both a wholesale uniform platform for business as well as catering directly to
consumers.
“Customers can get on board, and technically can buy our shirts
and chino pants at wholesale prices,” Rodgers said.
“That’s our focus. To design and produce all the product directly
in our factories. We don’t have middleman agents.”
From humble beginnings
The move to a new headquarters is the third in the last eight years,
with the growth of the business necessitating larger spaces to
service its customers, which are spread across 80 countries.
When the business was founded in 2002, however, it was really
only servicing businesses in Melbourne. “My background is in fashion; I studied fashion at RMIT and had
a label pretty much straight from graduation with a girlfriend from
uni,” Rodgers said.
“During those days, we used to do wholesale to fashion boutiques
around the country and were often approached by businesses
about designing a contemporary uniform for their brand.
“It was through those experiences that the idea of Cargo Crew
came to life. Initially, we were very focused on custom made,
bespoke uniforms. We experienced with our clients how difficult it was to constantly have to make custom-made uniforms, reorders,
and replenishment, when the uniforms aren’t available in stock.”
“So, in 2012, we launched Cargo Crew as a stock range that
we developed and keep stocked in our warehouse, and we also
launched online.”
According to Rodgers, the key was to offer a wide enough range with enough variety, while also allowing a select amount of
customisation in the trim, embroidery and colours of the uniforms
that will define a brand. “I think having a more condensed offering that is very focused on
contemporary design and functional fabrics creates a much easier
process for the customer,” Rodgers said.
“If they have the option of designing something from scratch,
there is a sentiment that it becomes too hard. So it became about
ensuring our range appeals to a wide variety of businesses and is
adaptable enough that it can work across industries.”
Workwear business Cargo Crew has expanded into a new headquarters, warehouse and showroom, with an emphasis on its customisation offer. By Dean Blake
Workwear brand Cargo Crew ups the ante
NEWS
IRW
Cargo Crew’s new showroom allows it to display its full range to businesses and consumers alike.
5
Australian retailers are well positioned to take advantage of
the expected uplift in online shopping this holiday season,
showing increasingly mature approaches to the rash of sale
events in the lead-up to Christmas and utilising click-and-collect to
capture last-minute shoppers.
This is according to James Johnson, regional director of
customer success and retail practice at Salesforce, a global
software company which surveyed more than 10,000 global
consumers, including more than 2500 in Australia and New Zealand
about their holiday shopping behaviour.
The survey results, released in Salesforce’s latest Connected
Shoppers report, together with sales data from the likes of Walmart,
Woolworths and other major retailers that use its platform, confirm the industry has reached a tipping point when it comes to peak
season.
“Three to four years ago, December was the largest month, but
with the rise of Black Friday and Cyber Monday, November is now the key trading month,” Johnson told Inside Retail Weekly.
While there has been a good deal of hand-wringing over the
margin lost to discounting, Johnson said he has spoken with a wide
range of retailers that are taking savvier approaches to the sale
events than in years past.
“Whereas previously it was a blanket site-wide offer, now it’s more targeted and considered, whether from a product assortment
perspective – purchasing products specifically for those events – or being more restrictive around the promotional conditions,” he said.
Brian Townshend, Super Retail Group’s general manager of omni-retail digital capability, told Inside Retail Weekly major sale events
are an important part of the company’s overarching peak season
strategy.
“They not only represent a huge opportunity to acquire new
customers and obviously convert those people and drive sales, it’s
starting to impact their buying behaviour as well,” he said.
“Black Friday has become so ingrained in the consumer calendar, there will be a significant slowdown in the run-up to those events, because people are less inclined to buy in the four or five days before, and then pile in hard.”
According to Salesforce, 47 per cent of global shoppers said they
will only buy items on sale this holiday season, and 60 per cent of Australian and New Zealand shoppers said sales or promo codes
will influence their holiday purchases.Super Retail Group, which owns the Supercheap Auto, BCF,
Rebel and Macpac brands, has started to factor this behaviour into its merchandise planning and buying, Townshend said. While the
retailer previously selected the items it wanted to “hero” during the
sales from its existing range, it’s now building its peak season range
around its sale “heroes”.
“The strength of our brands and our relationship with suppliers
means we’ve got some amazing deals,” he said.
Click-and-collect set to soar
Looking beyond the November sales, Salesforce is predicting a 20 per cent increase in online shopping in the ANZ region this holiday
season. That’s higher than the 15 per cent increase it expects to see
globally.
Johnson said retailers that offer click-and-collect will benefit the most from this bump, due to Christmas falling on a Wednesday this
year. Customers will be more likely to place a last-minute online
order on the Friday before Christmas if there’s an opportunity to collect it in-store, he said.
“There’s a competitive advantage in executing it well, and the
timeliness of the options to pick it up,” Johnson said.
Townshend agreed that online shopping will be critical to Super
Retail Group’s Christmas trading. “Absolutely, more customers will be buying online,” he said,
noting that the company has taken steps to improve its fulfilment ahead of peak season.
Supercheap Auto now offers 30-minute click-and-collect; BCF and Rebel offer two-hour click-and-collect; and Macpac launched click-and-collect for the first time over the weekend.
“As you get closer to Christmas, buying with confidence that you can get the item delivered on time is paramount,” Townsend said.
“Online sales actually drop off the closer you get to Christmas, and click-and-collect goes up.”
Christmas shoppers are now less inclined to buy unless items are on sale.
New data confirms the old peak season is a thing of the past. One retailer has adapted by getting smarter about discounting and online shopping. By Heather McIlvaine
How Super Retail Group plans to win Black Friday (and Christmas)
IRW
NEWS
6 insideretail.com.au
Catch launches pop-up in
Target Highpoint
Nike brings popular personalisation
service to Australia
Revealed: The 20 coolest retailers
in Australia
Mass luxury: Inside Ikea’s latest designer collaboration
Coles launches grocery
subscription service
Amazon Australia succumbs to
buy now pay later surge
Vicinity divests $195 million of retail property
All Ziera stores likely to close
Checking in: Here’s what Hotel
Chadstone means for retailers
Newsflash: There’s no longer a retail status quo
This week’s top 10
Our most read stories from the past week at insideretail.com.au.
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Comment of the week
“Ziera must have the most talented of
designers and one has to pray these
craftsmen and women keep their job.
Their customer service has been second
to none, and staff actually understand the product – something which is
becoming rare these days.”
Robin - Ziera falls into administration
months after announcing digital shift
Nike brings in personalisation
We’re celebrating retail cool
Nike has brought its popular “Nike By You” customisation service to Australia to the newly
redesigned Melbourne Central store, which opened two weeks ago. The service allows
customers to personalise their Nike sneakers
and apparel by printing and engraving their
chosen initials or phrase on items, as well as
choosing their own coloured shoelaces.
“Having the ability to personalise your Nike
sneakers and apparel is something that we’ve
seen resonate globally, and we’re excited to
be giving our consumers the opportunity to
connect their style and creativity to Nike,” Ashley
Reade, Nike Pacific general manager, said in a statement.
Nike was an early mover in the personalisation
trend in retail, launching its NikeID service
in 1999. The founders of Shoes of Prey, a
design-your-own-shoe brand that launched in
2011 before closing down last year, explicitly
referenced Nike in their pitches to investors.
Brands like The Daily Edited and July, which allow customers to monogram their products,
indicate that customisation continues to
resonate with shoppers.
“We look forward to delivering uniquely
personal and innovative experiences with the
best of Nike product and services to Australian
consumers,” Reade said.
From international conquerors and social entrepreneurs to category
disruptors and fashionable trendsetters,
Inside Retail has just revealed the 20
Coolest Retailers in Australia.
The inaugural list celebrates the most
innovative retailers across a range of
categories in both e-commerce and
bricks-and-mortar, as well as emerging
and established brands.
The list was compiled by the Inside
Retail team with consultation from
industry experts Matt Newell and Danny Lattouf from The General Store.
Newell called the list a celebration of
the art of retail.
“There is always room for one retailer
to be the cheapest, for everyone else
there is creativity,” he said. “The brands
who can stitch together inspiring
experiences with enough X-factor to get
customers shopping with their hearts,
instead of their heads.”
To download the report, visit:
insideretail.com.au/20coolest
IRW
NEWS
7
Alipay opens up to touristsInternational visitors to the Chinese mainland can now for the
first time access and use Alipay, the mobile payment and lifestyle platform used by more than 1.2 billion people worldwide, the
company has announced.
A special international version of the Alipay app is now available
for download for both iOS and Android devices, enabling visitors to register with their overseas mobile phone number to access the Tour
Pass mini program.
Visitors can then use their international debit or credit card to load Chinese yuan (CNY) onto a prepaid card provided by Bank of Shanghai, and immediately begin using Alipay’s mobile payment
platform to dine, shop, travel and play.
The app also allows visitors to access lifestyle services, such
as hailing taxis, booking hotel accommodation and purchasing
train tickets.
The minimum top-up for each card is CNY100 ($480), with the maximum balance capped at CNY2000 ($5800). The card is valid for 90 days, after which any remaining funds will be
refunded automatically.
Alipay is the most popular digital payment platform in China, and
is used by 87 per cent of people between the ages of 18 and 69, however access to the app has always required a Chinese bank
account and phone number, making it inaccessible to short-term
overseas visitors.
Giordano reveals new look in DubaiHong Kong-based apparel brand Giordano has revealed a new-generation store design in its renovated store in Mirdif City Centre in Dubai.
The 2000sqft store has maximised space for product displays and
customer interaction, including wider entrances and larger, more
comfortable fitting rooms. Energy-efficient LED lights have been installed, minimising the
store’s carbon footprint.
Following more than 25 years of brand growth, Giordano, which is listed on the Hong Kong exchange, has opened eight new stores this
year and plans to roll out the new design concept across the Middle East. It is also expanding to new markets in South Africa, Mongolia, France and Mauritius.
Vietnam’s stars to launch UniqloUniqlo has signed up a raft of Vietnamese celebrities to launch its much-awaited first store in the country.
Uniqlo Vietnam will make its debut on December 6, opening in a three-level, 3097sqm space previously occupied by a Parkson department store. It is located opposite the local flagship stores of rival chains H&M and Zara.
The new store will be the Japanese apparel brand’s largest in
Southeast Asia.
To support the opening, Uniqlo has launched a campaign video
“Elevate Everyday” to introduce LifeWear to Vietnamese consumers, emphasising how the label is suited to local climate conditions
and lifestyle.
The video features a cast that includes well-known artists, models,
designers and sports people. While the cast are from different backgrounds, the video shows how LifeWear suits their own unique lifestyles.
Starbucks NYC hits the acceleratorStarbucks has opened the first-ever Starbucks pickup-only store in New York City’s Penn Plaza. The new store allows customers to
place and pay for their order on a new app. Customers can track the
progress of their order on a digital status board and then pick up
their beverage and food items directly from a Starbucks barista.
In designing the new concept, the company began with a
prototype in its support centre in Seattle, coming up with a design
and method that made buying a coffee fast and simple but also gave baristas room to work and allowed for interaction between them and
their customers.
One opening day observer, a reporter from Business Insider, said
she believed that Starbucks Pickup would be perfect for regular
Starbucks customers who want to grab their coffee and go. But she found the system unwieldy and confusing for casual customers
and walk-ins.
Selfridges enters fantasy worldSelfridges has entered the Christmas retail advertising fray with
an alternative take on the genre. “Future Fantasy: A Christmas for Modern Times”, a short film starring actress Noomi Rapace.
The film was conceived by American artist Daniel Arsham and directed by Kanye West’s long-time collaborator and friend Nabil
Elderkin. Alongside Rapace, it stars personalities from across the creative industries and popular culture.
It shows in a coolly stylised, edgy and, in parts, abstract way,
Christmas celebrations now and 1000 years from now – and the
holiday remains through the ages about family, friends and
good cheer.
Selfridges’ rare foray into film advertising heralds the unveiling of the brand’s grand-scale omnichannel Christmas campaign, officially launched with the unveiling of the stores’ windows on October 17. IRW
Around the globe
NEWS
Selfridges’ Christmas campaign kicks off with a star-studded movie.
ion
rs
Mass luxury: Inside Ikea’s latest
Vicinity divests $195 million of
Newsflash: There’s no longer a
8 insideretail.com.au
ANALYSIS
The Fair Work Ombudsman had every reason to be “shocked” at recent admissions by grocery giant
Woolworths that it has shortchanged employees by up to
$300 million.The regulator, Sandra Parker, was not just shocked that
Woolworths had joined that long list of major companies found to
be underpaying staff – a list that has included such stalwarts as Wesfarmers, Super Retail Group, Michael Hill Jewellers, Domino’s Pizza and 7-Eleven.
It was more even than what she described as the “massive scale”
of the breach of Australian workplace laws.
What made the breach so outrageous to her was that this
latest disclosure was the third major wages issue involving the
supermarket giant.
When employees are worse offThe retailer has previously tested the regulator over trolley
collection contractors exploiting workers for the supermarkets.
Subsequently, Woolworths was found to have shortchanged
some employees in an enterprise bargaining agreement (EBA) which it had negotiated with the Shop Distributive and Allied
Employees Association (SDA), a deal that failed to meet Fair Work Act requirements that no employee should be worse off than previously under any new agreement.
Woolworths is yet to fully quantify the current underpayments
of salaried staff against entitlements under the Grocery Industry Retail Award, but the retailer estimates the shortfall on wages to be
between $200 million and $300 million, and says it believes that the underpayments date back to 2010.
Woolworths claims that the underpayments were detected
under a review following the implementation of a new EBA for its supermarkets and Metro stores.
However, the Retail and Fast Food Workers Union claims that store employees discovered and reported the underpayments.
Woolworths casual staff and the union also identified the discrepancy that left some employees with lower wage entitlements
than they had before a new EBA was signed off by Woolworths and the SDA.
Moving beyond self-disclosure
The Fair Work Ombudsman has indicated that the office will conduct an investigation in relation to Woolworth’ self-disclosure
and “hold them to account for breaching workplace laws”.
The investigation is expected to check whether employees of
other Woolworths businesses were also underpaid – that would
include workers at Endeavour Drinks, Big W and Dick Smith.Woolworths CEO Brad Banducci has indicated the company will
itself undertake checks of its other businesses to ensure they also
have not breached workplace laws.
The regulator will also want to determine that there are not
more than the 5700 employees Woolies has identified as being shortchanged, including people who no longer work for the
company.
Parker has expressed frustration at the number of large
companies that have not classified staff correctly, or have not paid overtime or penalty rates or completed annual pay reconciliations
where they are required.
Woolworths’ mea culpa – an unreserved apology for “letting
down its team” and back payments with interest for affected employees – may not be enough to avoid penalties, future audits or
other compliance checks.
Parker says that while the regulator encourages corporates to
cooperate with it to rectify breaches, “they must understand that
admission is not absolution”.
“Companies should expect that breaking workplace laws will end
in a public court-enforcement outcome,” she warned.
“Companies and their boards are on notice that we will consider
the full range of enforcement options available under the Fair Work Act, including court-enforceable undertakings and litigation
where appropriate,” Parker said last week following the
Woolworths announcement.
Being sorry is not enough
While many of the instances of underpayment of wages and
entitlements have not been deliberate, Parker is adamant that
non-compliance with workplace laws results from ineffective governance combined with complacency and carelessness
towards employee entitlements.
In 2010, the Fair Work Commission started an award modernisation program, yet the retail, fast food and pharmacy
awards all remain complicated because of casual and part-time
employee arrangements and complex staff rosters that incorporate penalty rates.
However, some of the companies like Woolworths, have
negotiated enterprise agreements that create new provisions
or modify the relevant industry awards to suit the operational
demands of the business.
That is one of the things that truly puzzles the Fair Work Ombudsman – how a retailer can fail to meet the provisions it has negotiated itself.
The Fair Work Ombudsman has expressed shock and dismay that another major retailer has systemically underpaid its employees – and for Woolies, this is not the first offence. By Jared Dickson
Three times unlucky for non-compliant Woolworths
IRW
9
Inside Retail Weekly: Tell me the story of how Dresden Vision
launched.
Bruce Jeffreys: We started the business in 2015, after working
a year-and-a-half on the manufacturing system. Quite simply, we
wanted a glasses system that was super-convenient and super-
strong from a customer perspective, doing away with fragile frames
that are easy to break with great optics and were really affordable. That’s what we set out to achieve.
We started with a blank sheet of paper and redesigned the
entire product from scratch. In essence, what we hope to do is
make glasses that are really dependable and are easy and fast
to purchase. Our experience of the current retail situation is the opposite. It’s slow, it’s confusing, it’s not transparent.
IRW: How did you go about creating these glasses?
BJ: We essentially built a team of people who didn’t have experience
in the optics industry and we tested a lot of the assumptions
behind why things are done, and we came with a different system that mirrored what the customer needed and less about what the
industry needed. That’s an ongoing process. It’s a hard thing,
especially as the business is growing in different countries. It does sound cliched, but we continually have to be focused on
the customer.
Fundamentally, the massive difference in the glasses is that we
have our own modular frame system that we actually manufacture, in
which every part is interchangeable and every part can be replaced.
If you break a part, we have a lifetime warranty on the frame, so
we can replace any part. And the modularity of the system means
it’s very quick to fulfil. Most of our customers have a prescription and can get a pair of glasses in 10 to 20 minutes. That’s a radically
different model. We are positioning the product as something you can access on a day-to-day basis, rather than as a long-drawn-out
purchase.
IRW: How have you made the glasses affordable?BJ: The first thing is you have to completely rethink the supply chain. We’re not in the current prescription frames supply chain,
we built our own. It’s super-efficient. So if you think about a regular prescription frames supply chain, not only do they have lots of
SKUs, but they are continually changing and updating. What we’ve
done is actually just present the customer with one system of
frames, which has led to massive cost advantages and also, just
advantages from our ability to fulfil.
IRW: Sustainability and purpose also play a large role in the
business, right?
BJ: It’s embedded in what we do, it’s who we are. We don’t
understand why something so important as prescription glasses
GoGet co-founder Bruce Jeffreys may not have had experience in the optics industry, but it didn’t stop him from creating a simple eyewear buying process for customers and launching an eyewear brand. Here, we chat with Jeffreys about international expansion, sustainability and disrupting the optics industry. Interview by Jo-Anne Hui-Miller
From the source: Bruce Jeffreys, Dresden Vision
Q&A
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10 insideretail.com.au
– something people need to live – should be made as crappy and
fragile. It doesn’t suit a lot of customers. We had no idea how many
people don’t have access to glasses because of the way the current
industry works. And I’m not talking about poorer countries, I’m
talking about Australia. A lot of people who need them don’t have
them. We just thought to ourselves, “Why, in 2019, is this necessary
product not available?”
As a manufacturer, we set out with the goal of being a completely
closed loop and having no waste from our process. When we make
the frames, there’s zero waste. We achieved it a year-and-a-half ago.
It’s been a huge success for us to get to a point where we can make
a pair of frames in a really super-efficient way and we can basically incorporate recycled product into our process.
Our partnership with Sustainable Salons is a dramatic example of taking shampoo and conditioner bottles from hair salons and fully
recycling them into a final product. We’ve invested really heavily into setting up our manufacturing to be future-ready. It’s about getting
ahead of the curve because consumer sentiment is changing. They
expect things to be manufactured responsibly. We’re really excited
about the small role that we can play in showing that products in
the future can be not only sustainably made, but help solve all these
problems we have with plastic waste.
Sustainability goes throughout the whole business. Essentially, we’re top to bottom, trying to work out how to reduce waste
because the more efficient we are, the more affordable our product is and the more people we can serve.
IRW: A lot of people still like to try their glasses on before
buying them. How does that work with your online store?
BJ: What’s amazing about what we’ve achieved is by having this one
modular frame system, it works for a wide range of people. It simply
means that unlike a regular e-commerce site where you’re choosing
from lots of different styles, you don’t have that choice with us. Effectively, we’ve simplified the glasses buying process and it can
be confronting for a lot of customers. We’ve chosen the frame and
there’s hundreds of colours you can choose from, but ultimately,
we’ve simplified it and we hope that makes it easier for us to sell online.
IRW: How would you describe the current optics market
right now?
BJ: It feels like a 150-year-old business that hasn’t changed – that’s
how I see it, fundamentally. And what counts as “innovation” in the
market isn’t innovation in any other market – it’s seen as business-
as-usual. I guess it as an extremely conservative industry and ripe
for disruption.
They’ve always had new entrants because there are low barriers to
entry, but there’s not much change to the actual model and how it’s
distributed.
IRW: What would you say are some of the challenges in
the sector?
BJ: Ninety per cent of the challenges are not to do with optics and
are to do with just having a business in Australia. They’re the same
challenges as other retailers. We’re a vertically integrated business,
so our challenges are much more around how there’s rapid change
in the economy and the way that landlords and retail spaces are not
keeping up with these dramatic changes
Customers are the same, whether they’re online or offline. But most of the thinking out there is that if you have online customers,
you treat them differently, but for us, we’re working hard to integrate the experience so it’s the one experience. That’s really hard to do.
IRW: Tell me about the in-store experience at Dresden Vision.
BJ: It’s fun and easy. I think most customers find it surprising because if they’ve bought glasses in the past, they think it’s more
complex than it is. What we’ve done is remove a lot of mystery
behind the product. We hope that it’s empowering for customers.
What we like to see is when the customer understands what they
need. In a lot of other experiences, they’re just getting sold what
the retailer thinks they need. We genuinely try to cater to what the
customer needs.
Dresden’s mission is to sell glasses in a no-fuss,
straightforward, trustworthy way.
Q&A
11
They walk into our stores and they’re able to choose what
they need in a very no-fuss, straightforward, trustworthy way,
so they know they’re being sold stuff that they understand. Most importantly, once they’ve got the glasses, they can repeat order them easily if they need a second, third or fourth pair. It’s
a straightforward process. To me, that’s the most important
experience from a customer point of view – to relax.
It might be buying a pair of glasses for a child and at the moment,
it’s a daunting process. They’re expensive and the kid will probably
break them. At Dresden, it’s more fun because the kid can choose
a colour they want and have some ownership over it. The parent will
pay less than normal and know there’s a lifetime warranty on that
frame. If the kid breaks them, they’ll just replace it.
We have the same frame style in four sizes from XS to L and basically the arms, face and lenses can be swapped, so you can
turn those clear prescription glasses into prescription sunglasses.
If you want, you can swap your arm colours, then the front of the
frame. That’s the system.
IRW: You guys recently launched into New Zealand.
Whereabouts are your stores at the moment?
BJ: Basically, we’ve got seven stores in Australia and we’ve also opened up in New Zealand and Canada and we’re growing fast
there. New Zealand is early days, but we’re off to a good start. The key thing we’ve demonstrated is we’re fulfilling the same customer need there as we are here. That’s the stage we’re at. We tested the
market and saw that there is a market and we’re now working out
how to distribute ourselves across the country.
We opened up a store in Toronto in April last year, which has since
grown to three stores. Again, we’re at the early stages at testing
market fit and we’ve successfully developed a really loyal customer base there. It’s been a real success. We built Dresden to be globally
scalable. New Zealand is a fantastic country, but not a great test of
global scalability because it’s so similar to Australia. Canada was
a good test of our ability to deploy a shoe-manufacturing fulfilment retail system in another hemisphere. We’ve learned a hell of a lot of
what works and what doesn’t work.
We’ve entered the international market and we’re excited. We
think we could operate anywhere in the world, so now we have to
work out how to do that, especially from Australia. We’re trying to
get some processes and systems in place to support that growth.
It’s all manufactured in Sydney and we’re an exporter.
Online is a huge part of the business too. Our product was that it was designed to buy online. That’s how we approached it.
Dresden Vision’s frames are modular but the glasses come in hundreds of different colours.
Q&A
IRW
Most of our customers have a prescription and can get a pair of glasses in 10 to 20 minutes.
12 insideretail.com.au
Elyse Knowles and Myer; Jessica Gomes and David Jones; Liam Hemsworth and OPSM. The list of celebrities intertwined with some of Australia’s biggest brands goes on,
with brands seeking to leverage the fame, trust and credibility that
goes with some of Australia’s hottest properties. And this is a trend
that isn’t going to change any time soon.
The question is: What will work for your brand? And how can you
take advantage of this trend if you don’t have six or seven figures to spend in your marketing budget? And if you do, what should you be
thinking about?
Here are a few key factors to consider when exploring how a
celebrity can help take your brand to the next level.
What is your objective?
Reach, reach, reach. This is the number one goal for many
marketers. But it’s important to think beyond that. What do you actually want from your ambassador? What do you want them to
communicate to your customer base? And what do you want them to
do? For an ambassador to have maximum impact, it’s great for them to have a clear “reason for being” so consumers can understand
what their role is and you can utilise their personality in the right way.
Getting a clear focus
Once you are clear on the objective of having a brand ambassador,
this will help inform your strategic approach and have a greater
clarity on how you use them. The hard and fast rule is: less is more.
Rather than having a long laundry list of deliverables and trying
to cram everything in across all of your channels, consider doing
fewer activities but with a greater depth. For example, having a greater presence in the retail environment and a good amount of PR
exposure may be two areas you opt to focus on. This will ensure you
deliver sufficient cut-through with your respective audience versus trying to do too many things and risk getting lost. You can only do so
much based on time, resources and budget.
Consider what is essential and what is just “nice-to-have”. When
you start separating them, you’ll be surprised at how you can fine tune your efforts to get the best bang for your buck and attract the attention of your valued (and prospective new) customer base.
The search for credibility
Reputation is particularly pertinent when it comes to working with
a third party so it’s important to find a personality who shares your brand values and can be a living extension of them. Ultimately,
this personality should be someone with the credibility to elevate
purchase consideration among your target audience.
The key is understanding what your core audience and customer
base think of your proposed personality right now. It often pays to
do a solid comprehensive media analysis as well as a digital media
When picking someone you would like to be the face of your brand, there are a handful of considerations to keep in mind. By Adam Freedman
The art of the brand ambassador
FEATURE
13
or
analysis through social media and message boards to look at active
conversations. This can be invaluable in aiding decision-making and
understanding what people think.
An additional theme of discussion that comes up when assessing
prospective talent is if they have been up to “mischief” previously,
does that automatically mean you can’t work with them? The answer
is no. It is worth considering what actually happened, how serious it
was, when this was and what the sentiment around it is or was – but
don’t dismiss them immediately unless you absolutely have to. If
the incident was a legal or criminal issue, for example, it would be
different to being involved in a sporting controversy or making an outspoken comment which both have the potential to be leveraged
smartly.
Ultimately, do your research and ensure you are fully aware of
their background and shared values.
Exclusivity vs non-exclusivity
Celebrities’ fame means they are consistently in demand. In a
talent pool that is not as large as other markets, this can mean
your desired talent is working with a number of brands and
businesses already.
The key is understanding how many and how recently they have
worked with other brands in your category or a similar category. In
short, if a prospective talent has worked with a competitor or other
like-minded brand in the past six months, it’s best to avoid them, as
this will compromise brand recall and the ability for your brand to
own the association outright.
If your desired talent is working with more than three brands
simultaneously, it is also worth considering how much cut-through
you can have if people are going to see this person elsewhere
consistently.
To generate maximum impact from an ambassador, it’s often
best to have some form of exclusivity in play to protect your brand’s
interests and ensure you carve out sufficient white space to attract your target audience. You may have to pay more for that but it’ll be
worth it when considering return on investment at the end of it.
Picking the talent
So finally, how do you choose the all-important figure – or figures? Three critical points to consider are: relevance, authenticity and
personality. What story does your proposed talent have to share –
or what are they already known for sharing? Does your brand DNA
align with their personality and expertise? Do they have a “voice”
that is known and people want to hear from? Unless the talent can
tick all of those boxes – regardless of how famous they are and how
big their reach might be – they are not the right fit for your brand.Take a step back and think of yourself as a consumer and
consider if the link feels natural or forced. If you find a personality that feels like the butter to your bread – particularly if your team or
your agency has a strong PR nose for finding people on the cusp of fame (perhaps uncovering a rising star who has attracted speedy
attention via social media) or finding people with unusual or untold stories – you may be on to your winning match.
It’s important to have your checklist in play before you proceed
with any form of talent discussion, as without it, you’ll find yourself in one big minefield – and that could be costly in more ways than one. Follow the checklist carefully and your brand could certainly be reaping the rewards in next to no time.
Adam Freedman is head of consumer at Red Havas and has
consulted numerous brands and retailers across Australia and the
UK on their marketing and communications strategies.
IRW
FEATURE
Jessica Gomes: David Jones has been able to leverage the model’s fame, trust and credibility for its brand.
14 insideretail.com.au
Transitioning back into the work environment after extended
time off due to illness can be daunting. Many workers look forward to their return to work, citing stimulation, social
opportunities and a wage as their primary reasons. Despite this,
some individuals may feel overwhelmed, which can result in
anxiety, heightened levels of stress, and poor physical and
mental health.
There is a diverse range of illness and injuries that can result in
extended time off work, including cancer, injury to limbs, a stroke, and some mental health conditions. Advances in medicine have
resulted in increased treatment rates, and higher levels of positive
outcomes for patients. And while many individuals are able to return
to work, and continue in their pre-existing role, it is important to
recognise that side-effects of initial treatments and/or medication can be ongoing and debilitating.
Without appropriate support and management as they transition
back into the work environment, many workers are at risk of
becoming disengaged, and experiencing poor physical and mental
health outcomes.
Registered psychologist Sarah Alwyn says it’s particularly
important that the individual and their supports (families, colleagues
and health professionals) recognise the impact that a serious illness
can have: “Advances in medicine and effective treatments have enabled people with serious illnesses to return to work and resume
some type of normality in their weekly routine. However, this return
to work takes on a new form of normal; the physical, psychological and emotional impact of a serious illness reframes a person’s sense
of self, contributing to the way in which they function at work, as well
as other contexts of life.”
It is essential that the individual, their health professionals, and the
business all work together to identify and assess risks, and make
adjustments that are reasonable and necessary to a worker’s tasks
and responsibilities. Any adjustments required may be obvious in the
case where there is, or has been, a physical illness or injury, however
it can be significantly more difficult to identify how best to support workers who have had time off due to mental health disorders, such as depression, schizophrenia or addictive behaviours.
Open communication is key
Psychologist Justine Alter has worked with a number of
organisations that recognise the importance of supporting their
employees who are experiencing, or at risk of, poor mental health.
“As we break down the stigma of mental illness, we are seeing
more people needing support to stay at work. While the onus was on
Welcoming back an employee after a long sick leave can be tricky, and it’s important to recognise that it can’t just be business as usual. By Rachell Bugeja
Back to the 9-to-5
FEATURE
15
the individual prior, we have seen a shift in workplaces taking on the
responsibility to do more,” she says. “There is enough evidence to
show that supporting people at work reduces the stress associated
with illness. For many, remaining or getting back to work quickly is |a lifeline and aids tremendously in their recovery.”
Alwyn recommends that businesses utilise a return-to-work plan
when a worker has had time off work due to illness. A plan usually outlines the duties and tasks that the worker will be responsible
for, and any workplace supports and any modifications that are to be provided to assist them in their role. They are designed to help
a business meet their duty of care, and ensure that the safety and
wellbeing of the worker is protected.
“The most important points to consider include: using a
consultative approach with the worker and their medical team,
developing a clearly documented return to work plan, timely review
sessions with the worker to promote discussion and reflection about the worker’s progress and to determine if amendments are required
to the return to work plan,” Alwyn says.
Alter agrees: “Besides duty of care being ‘the right thing to do’, it goes without saying that having an empathic manager at a time of
illness will significantly impact the person’s journey and recovery.”Any employee returning to work after illness is likely to need
continued practical and emotional support. Considerations should
include practical (ie. will they need to attend ongoing medical
appointments?), and emotional (ie. how will they manage any
feelings of anxiety?). A work environment, however familiar, will
always undergo change – in staffing or procedures – and a returning employee may require additional support to assist as they navigate
the changes that have occurred in their absence.
It is equally important that there are supports in place for
other employees involved in this transition process, and Alwyn
emphasises that communication is key.
“It is important to be mindful of existing workers who have often
had to readjust and take on extra duties to accommodate the
absence of their colleague,” she says. “Openly communicating with existing workers and acknowledging the various ways they have
been impacted is a positive way to reassure workers they are valued
and appreciated.”
Failure to manage the transition appropriately can result in other staff feeling pressure to commit to job sharing, modified hours or additional training to accommodate an absent or returning
employee.
Keeping the lines of communication open will help, and it’s
important to normalise discussions around physical and mental
health. Managers may not want to appear intrusive, while a worker may feel embarrassed and not want to overshare. It is vital that
employees are able to have conversations with the business early
on in the process – it helps to set up expectations around what
extended leave means for the individual worker and the business.
“It is imperative to provide support early, and have open
conversations right at the start. As with any transition, if you ask the
hard questions and have the tough conversations early the outcome
is likely to be more positive and the transition smoother for all. Have
a plan that you can tweak as needed,” says Alter.
What a workplace can do
� Develop and implement policies and procedures that encourage
discussion and open communication; � Lead by example; have managers “normalise” discussions
around the importance of good physical and mental health; � Consider the impact on others in the business, particularly
those employees who may be required to modify their hours or
duties to cover the role of the employee who is absent; � Any changes made within the business, or to the role of any
individual, should be routinely monitored to ensure that they
remain relevant and effective.
Rachell Bugeja is project administrator at Transitioning Well, which
helps shape and support parental leave, work-life and mature-age
transitions and provides services to fit the needs of organisations and employees. Visit: transitioningwell.com.au
IRW
FEATURE
Returning employees will need the support of both management and colleagues.
The physical, psychological and emotional impact of a serious illness reframes a person’s sense of self, contributing to the way in which they function at work.
16 insideretail.com.au
RetalesSome of the Christmas elves appear to be gremlins this year, and Woolies is feeling the effect. The supermarket giant’s festive stubby holder reading “Merry Christhmas” in big jolly red letters was quickly recalled and whipped out of sight.
But not quickly enough. Images of the holders have appeared online and now, reports New Idea magazine, some shoppers are
campaigning for their comeback.
“Come on, Woolworths, put them back! Bit of the old Aussie Christhmas fun and a collector’s item,” Woolies shopper Graham wrote.“You got to sell them now, most would see the funny side of the spelling,” another added.
“They still look pretty good and everyone knows what they were meant to say so no problem. Sad so much waste,” wrote another.
“No it’s right, you slur your words when you’re drunk,” another shopper joked.
Responding to the suggestions, a Woolworths spokesperson replied that they would think about it.
Likely to close across Australia and New Zealand as part of Ziera’s liquidation.
The net emissions targeted for 2050 by Qantas, with a cap to be
put in place as of 2020.
Flight Centre’s expected half-year profit, down from
$140 million last year.
The amount of customers left unsatisfied by delivery options
in Australian retail.
The amount spent on Alibaba during the first minute and eight seconds of Singles Day 2019.
The drop in CEO confidence on last year, due to global events such as the Hong Kong protests, Brexit, trade wars and climate strikes.
45 stores
$90m-$110m
47%
Zero
US$1 billion
21%
Source: Ziera
Source: Alibaba
Source: Worldcom
Source: Qantas
Source: Flight Centre
Source: CommBank
FIGURES
17
Property group Vicinity Centres has announced it has divested from two retail properties worth a cumulative $195.5 million, which will be used to pay down debt.
Vicinity’s 25 per cent stake in the Mt Ommaney Centre, Queensland, sold for $94.5 million to YFG Shopping Centres, while Corio Central in Victoria sold for $101 million to IP Generation.
Due to the timing of the properties’ settlement dates, Vicinity is forecasting a 2¢ per security impact on its earnings, and has
adjusted its expected security guidance accordingly – from 17.8¢ to
18¢ per security to 17.6¢ to 17.8¢ per security.
“The sale of these non-core assets is in line with our strategy
of focusing our portfolio on market-leading destinations,” Vicinity Centres chief executive Grant Kelley said in a statement to the ASX.
Following the divestments, Vicinity’s portfolio has a 76 per cent greater average asset value, and 35 per cent stronger comparable specialty store sales productivity, according to Kelley.
Vicinity had so far divested from 37 non-core assets for a total of $3.3 billion, at a combined 0.7 per cent premium to book value. The proceeds have been utilised to acquire $1.1 billion worth of properties, which have since grown in value by 12.3 per cent.
South Australia’s premier shopping precinct Rundle Mall is unveiling a new creative identity as it heads into the peak
Christmas trading season, reinvigorating its logo and brand
elements.
The new brand embraces the mall’s most renowned icon – the
Spheres sculpture, commonly referred to as the “Mall’s Balls” – and introduces a new tagline of “Expect it all”.
The new look is now online and featured in the Christmas
windows along the length of the mall. It will then follow in Rundle
Mall’s Black Friday, Christmas and Boxing Day campaigns.
Rundle Mall features more than 700 retailers spanning international and national brands, flagship stores and independent boutiques and traders. The new identity was created by South
Australian creative agency Simple Integrated Marketing, which was appointed by Rundle Mall on July 1.
It comes as the City of Adelaide puts the finishing touches to the upgrade of Gawler Place, one of the busiest streets in the Adelaide CBD carrying 25,000 pedestrians into Rundle Mall daily. The upgrade includes new footpaths and roadway, lighting, public
seating, tree planting and spaces to socialise.
Vicinity sells off two shopping centres
Rundle Mall unveils new look
IRW
The mall’s most renowned icon – locally known as the Mall’s Balls – is the focus of the new design.
PROPERTY
18 insideretail.com.au
Contact us
Super Retail appoints general counsel
Super Retail Group has announced the appointment of Rebecca Farrell (pictured) as group general counsel and company secretary, effective February 3, 2020.
Farrell will be a member of the executive leadership team, and will lead the company’s legal, company
secretarial and compliance functions, including
responsibility for sustainability, risk, and health
and safety.
Farrell joins Super Retail Group from IAG, where she was acting group general counsel and company
secretary. She joined IAG in May 2018.She has more than 20 years’ experience advising
boards and senior management in roles for IAG, Amcor, Westpac, Vanguard Australia and the Future Fund.
She graduated with a bachelor of laws degree, first class honours, from Monash University in 1994. She also has a BA from Monash in Japanese.
McDonald’s sacks CEO
McDonald’s CEO Steve Easterbrook (pictured) has been sacked after confirming he had been engaging in a relationship with an employee,
contrary to company policy.
McDonald’s bans all romantic relationships between managers and direct and indirect reports.
In an email to staff, Easterbrook – who is divorced – said he agreed that it was “time for him to move on”,
given the company’s values.
The British businessman first joined McDonald’s in 1993 as a manager in London, and was appointed CEO in 2015.
Easterbrook’s severance package had not been released at press time.
According to Yahoo Finance, Easterbrook made US$15.9 million ($22.9 million) in 2018 – that’s 2124 times the median employee salary.
Australian Fashion Council appoints CEO
The Australian Fashion Council has appointed Leila Naja Hibri (pictured) as its CEO-elect. She will succeed the current CEO, David Giles-Kaye, in February 2020.
Naja Hibri, who until recently, was the general manager at Australian fashion
accessories label Helen Kaminski and a member of the board of directors of HKJC,
a Tokyo-based joint venture company with Yagi Tsusho
Ltd, has a background in economics and accounting and over 15 years’ experience in luxury and premium
brand management and development across APAC,
Europe and North America. She has worked with organisations such as Arthur
Andersen, The United Nations, Prada and Luxottica and led teams in Sydney, Auckland, London, New York, Hong Kong and Tokyo.
Naja Hibri has been actively involved with the AFC since its inception and has been on its board
since 2018.
EDITOR Jo-Anne [email protected]
ONLINE EDITOR
Heather [email protected]
JOURNALIST Dean Blake [email protected]
CONTRIBUTORS
Joyce Abaño, Jared Dickson,
Norrelle Goldring
SUB-EDITOR Margaret MacNabb
GRAPHIC DESIGN Pablo Colombi
ADVERTISING Amir Engler (02) 8224 [email protected]
Fontini Yourelis (02) 8224 [email protected]
Level 10, 51-57 Pitt St.Sydney NSW 2000 PO Box R217Royal Exchange NSW 1225 Telephone: (02) 9901 1800
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IRW
Appointments
PEOPLE
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