Fashioning a Name in Overseas Markets
 

Thu, May 13, 2010
The Business Times
By Jaslene Pang


SINGAPORE'S small and medium enterprises (SMEs) in the fashion industry are all geared up to make their mark in the global fashion world.

While some like alldressedup and Individual Expression (I.E.) already have presence overseas, others like Vol.ta are looking to reach out to a bigger regional market.

Singapore has groomed a group of fashion retailers and designers who are export-ready and are looking forward to taking their products and labels to markets beyond Singapore's shores.

'Our fashion SME players are at varied stages of export-readiness - they range from internationally renowned designer names such as alldressedup and Raoul, to up-and-coming labels such as I.E. and Vice & Vanity,' said IE Singapore's retail division's divisional director Lee Puay Min.

Homegrown designer Wykidd Song, who has presence in Hong Kong and Shanghai and does trade shows in UK and the US, said: 'Fashion is international.'

Another Singaporean designer Ben Wu, who has two shops in Singapore and presence in New York and Paris, talks about his expansion plans to China in the coming years.

'China is a good market... The rest of Asia is still resting on global sentiments for the economy, and the Asian spending is not as vibrant yet,' explains Mr Wu.

Vol.ta is another fashion-based SME looking to expand overseas for the first time. But its designer Jerry Ang has his eye on Malaysia, Indonesia and Thailand.

When asked about his confidence in bringing the Vol.ta brand overseas, Mr Ang said: 'Vol.ta is already very popular among Indonesians here.'

The Singapore textile and apparel industry currently comprises some 600 companies and hires nearly 9,000 workers locally.

According to International Enterprise Singapore (IE Singapore), although the current fashion powerhouse and key market lies in North America and Europe, Asia is set to be the future top market destination for the fashion and retail industry.

In 2008, Japan, China, South Korea, Australia, Taiwan, Singapore and Asean make up a combined purchasing power of 260 billion euro (S$461 billion) for apparel and footwear.

IE Singapore said the Asian fashion market size is projected to grow at 5.4 per cent compound annual growth rate from 2008 to 2013, compared to 2.1 per cent in North America and negative 0.7 per cent in Western Europe.

With its strategic location in the heart of Asia and cosmopolitan culture, Singapore is 'well-positioned to capture this growth'.

However, the reason for expansion does not solely lie in trying to capture bigger markets. The lack of support from fellow Singaporeans is also a push factor for these SMEs to spread their wings overseas.

I.E.'s director and designer Dennis Lau said: 'Many Singaporeans are not proud to wear things made or designed by Singapore designers and it seems that most of the coverage in the domestic media is dominated by international brands with huge advertising budgets.

'Having a rather small home market is also rather detrimental for many business to have any kind of scale,' he added.

I.E. was founded in 2000 by Keith Yap and has since found its way in Singapore, Thailand and Japan, with designs exported to France, Spain and Turkey under private labelling.

Mr Wu shares the same sentiments as Mr Lau. 'Fashion is hard to sustain in Singapore,' he said.

He added: 'We were once a British colony, and I think that is why we have this perception that the whites must be talented... Singaporeans buy clothes that come from Paris, New York... but they don't buy from Singaporeans.'

Mr Song said: 'When I design, I think internationally. I do not think locally, because the market is too small.'

To help these aspiring designers who are trying to emulate the successful who have made their mark in the global fashion world, there have been various forays by IE Singapore.

It recently organised Blueprint, which comprised a trade show as well as a segment which allowed the public to buy from local designers. IE Singapore also has an Exporter Development Programme, where SMEs can develop their export competencies through mentors, customised courses, as well as an in-market visit.

However, homegrown designers are saying that more remains to be done if Singapore really wishes to wave its flag high in the fashion industry.

Mr Lau said: 'In the market, everything seems to have a sameness about it. Designers and brands have a hard time as many consumers are rather safe in their choices and this leads to rather 'safe' buying on the part of the retailers and also 'safe' designs from the designers. Sales figures are always in the back of retailers and designers' minds. This tends to stifle creativity.

'The supporting infrastructure needed to facilitate creativity is mostly lacking. Raw materials in terms of fabrics and trims, supporting talent like technical experts - drafters, pattern makers and tailors, embroiderers, beaders, skilled production personnel are all in short supply, thus making it very hard to turn out very creative and interesting items.'

Abyzz's Desmond Yang said that as a designer, all he wants to do is to create. He hopes to be successful overseas as well, but finds it hard because 'finding the right partner and setting up a store requires much time and money'.

Nevertheless, some SMEs have managed to successfully carve out a name for themselves, although breaking into the overseas market does require time and effort.

'Exporting is not an easy task as each market is different. This is especially true for the fashion business where trends and preferences differ across markets, so fashion SMEs need to be prepared and have a good understanding of their target overseas market before venturing out,' said Ms Lee.

Mr Lau, whose dreams were inspired by his mother, shares his experience with SME Inc: 'When breaking into overseas markets, the most difficult challenge is first to fully understand the idiosyncrasies of those markets and their requirements and needs.

'It's sort of a 'think global and also local' idea. To be able to locate and work with very reliable companies who are willing to work closely with you is also very important. What is also very important is to be able to come up with a product that is of a standard and quality that is internationally acceptable.'

Mr Wu also urged budding and aspiring designers to first do well in retail.

'By opening your own store, you need to wait three months at most to see your turnover. However, if you are going to wait around to just participate in trade shows, the whole process - taking orders during the trade show, waiting for the replies from producers and then wholesalers, and then waiting for the wholesaler to sell to retailers to put on their racks to sell - takes one whole year.

Mr Song said: 'The challenges are getting your business going and making sure the market knows that you are around. But you just have to anticipate the process and ensure it sells, just like any other businesses.

'It's about confidence and how much you believe in it.'