“More fashion consumption means there is more fashion to trade on 99dresses,” she says.
“There are also positives competing against an international giant like eBay. You can study their business model, and why it is so successful, and why many don’t like it but use it because there is no other option – and then you innovate to make it better. It’s kind of like a benchmark.”
Kath Purkis, founder of online women’s fashion retailer Le Black Book, agrees the entrance of overseas players is a positive for start-ups.
“It’s fantastic because it means established Australian retailers will have to up their game and innovate,” she enthuses.
She says an advantage smaller start-ups have is the ability to quickly respond to market conditions.
An example is her affordable house brand Noir Shop, a 10-piece capsule collection that sold out within three hours when she launched the first range.
The initiative has been so successful, she now designs a capsule collection every month.
This is in contrast to major fashion brands, most of which only release a spring/summer and autumn/winter collection.
Purkis says effectively competing with big overseas players comes down to creating a strong brand identity, much of which is about building up an online community through Twitter and Facebook.
She says many of her customers also know it’s Purkis herself behind the brand, rather than a faceless multinational behemoth, and email her personally from all over the world to seek her opinion and get in touch, something that’s impossible to do as a bigger business.
Bernie Cooper from Crane’s Wines, which has just opened a B&B attached to the winery, which is near Kingaroy in Queensland, says he’s not bothered by the arrival of accommodation provider Airbnb in the Australian market.
Airbnb allows anyone to offer their spare room to travelers for a small fee.
“There will always be people who want a cheaper alternative, but what we offer is something special. We want every visitor’s experience to be special and we are conscious of keeping things high-end.”
He also says people who offer their spare room as holiday accommodation might find it’s somewhat of an inconvenience after a certain point.
“It means being courteous even when they might not feel like it and putting themselves out a bit,” he says.
“Some will do a good job, but really, if they want to run it professionally they should probably be running it as a business anyway.”
Have a well thought-out, clearly defined proposition and do the basics well. Remember, you need more than a good idea to run a successful business, so if an international giant has vaguely the same concept as you, don’t despair.
Learn from the best. How does Zappos display its products online? How does Google encourage its staff to think creatively? How does Oprah Winfrey build and exploit her brand? How does Sir Richard Branson react to a setback?
Don’t radically alter your business model based on what others do. Always be aware of how the marketplace is moving, but don’t flee as soon as a big name arrives.
Make the most of your advantages. You are a genuinely Australian business. You have a warmth and personal touch that big brands lack. You know Australian consumers well and are small and nimble enough to react to their changing needs.
Don’t see new arrivals are solely competitors. With any luck, they will grow the market you’re operating in and indirectly benefit your business. You can even go a step further and formally collaborate with them.
