Over the last two or so years we have seen department stores absorbing a huge percentage of the market by discounting intimate apparel. They can afford to make a loss in certain departments in order to bring customers into their stores. Further to that with their huge buying power they are able to negotiate better deals thus paying less for product. Smaller boutiques just can't compete with this, unable to reduce their margins because they don't rely on volume but focus more on service. A fitting is the most important part of buying a bra and smaller boutiques still have the time to provide that service. Department stores these days have become more or less supermarkets with checkout operators. It's all about the bottom line, reducing wages equals more profit. But unfortunately also means less service
"I have heard of instances where a customer will frequent a boutique, spend thirty to forty minutes trying on different styles, being fitted then going to a department store during a sale period" - Says Evan Zorba, Marketing Manager for Innerware.
Now the only way to combat the huge buying power of department stores is to grow and be able to negotiate better deals with manufactures. I would like to see a cooperative group of lingerie stores within Australia, under one banner .This is a vision I believe is achievable and is the only way to combat the unbelievable inroads that large multinational have made in this industry. We will continue to focus on our industry and continue to focus on one thing, customer service, our most important strength. This combined with our planned expansion will give us the combination of service and better prices.
