Fragile retail market no deterrent for new entrant

The Kooples creative director and co-founder Alexandre Elicha and chief executive Nicolas Dreyfus say the recent demise ...
The Kooples creative director and co-founder Alexandre Elicha and chief executive Nicolas Dreyfus say the recent demise of Australian clothing brands doesn't put them off investing in the market. Jesse Marlow

The collapse of some top Australian retail brands in recent months hasn't deterred France's Elicha brothers – the designers behind The Kooples.

The Kooples is adding concession stores in Myer in Sydney and Melbourne to its two existing bricks and mortar stores in the southern capital, and plans to launch another five stores next year.

Inspired by historic musical couples such as Serge Gainsbourg-Jane Birkin, and Mike Jagger-Marianne Faithfull, the brand is also scouting out a Sydney stand-alone store location as well as building an Australian online store.

Launched by brothers Alexandre, Raphael and Laurent Elicha nine years ago in Europe and also in the United States, The Kooples are working in Australia with the Aesthetics Group, which also represents international brands Karen Millen, Paul & Joe and Cacharel in Australia.

Myer has acquired two of its most popular brands, Marcs and David Lawrence, which collapsed in February.
Myer has acquired two of its most popular brands, Marcs and David Lawrence, which collapsed in February. Tamara Dean

Co-founder and creative director of menswear Alexandre Elicha said one of the brand's biggest strengths was "a real competitive advantage" that appealed to both men and women.

Balance

"We reach a perfect balance between the two genders, with men representing 48 per cent of the turnover, women 52 per cent."

Australia's retail market remains fragile, with just last month, high-profile Australian fashion labels Marcs and David Lawrence entering administration and Pumpkin Patch and Payless Shoes forced to shut down just before Christmas.

Mr Elicha said retail markets and business cycles moved according to their own circumstances and there were businesses leaving and joining the marketplace every day.

"We try to keep our focus on our clients, their evolving lifestyles, our love of design, our DNA and seeking to do everything we do with a unique point of view and high quality," Mr Elicha said.

The Kooples' pricing sits in the middle tier for Australian fashion, and in line with its American pricing, with a shirt retailing for about $190 and a suit for $900. Other international retailers such as Topshop and Zara have passed on the costs of higher labor.

In January it was revealed that global fashion chains UNIQLO, Zara and H&M; accounted for $600 million in sales from Australian apparel retailers in 2016, taking share from department stores and boutiques, but not all are turning a profit.

"We have priced the products here to essentially be aligned with our US market recommendation retail prices," Mr Elicha said.

Global

"We also display ranges in the same season here, so when a customer sees something on our social channels or in our New York, London or Paris stores it will be available at almost the same time in our Australian stores. Our customer is globally minded so this is what they expect."

Mr Elicha said the brand would not stop with Australia.

"International development remains our priority, and our next market targets are now China and Japan," he said.

"And in terms of offer, our target market is accessories, from leather goods to jewels. It takes time to attack these markets but we have strong plans for the next months."

The brothers are no strangers to the fashion industry. Their parents, Tony and Georgette, created high street fashion label Comptoir des Cotonniers, which in 2005 was sold to Japanese clothing giant Fast Retailing, which also owns Uniqlo.

"We had the best teachers in the world," Mr Elicha said.

"I would always remember how far my father trusted us and how he always told us: 'It's important to make mistakes – you learn by messing up.' We messed up, and we learned a lot."