Cost of living crisis or not, expression through fashion continues to drive the US$21.72 billion apparel industry in Australia. Despite a slight dip in 2020, the global apparel market is set to grow to about US$2 trillion by 2028, from US$1.79 trillion where it sits currently. Locally, women’s apparel represents the largest segment with an estimated market volume of US$11.86 billion; the men’s apparel market is about half of that, worth US$6.35 billion. In 2024 it is estimated that 90 per ce
90 per cent of sales in the apparel market will be attributed to non-luxury purchases.
This excludes handbags which drive US$0.57 billion of spending, and where, despite economic uncertainty, the demand for quality handbags and attainable price points is similarly high.
Birthday suit vice
Against this backdrop, Australian fashion brand Nakedvice is on a mission to redefine accessible luxury with timeless designs that draw inspiration from vintage pieces and ‘90s nostalgia, aligning with emerging trends and consumer sentiments.
The brand was co-founded in 2014 by best friends Sarah Miller and Jessie Gargan, who were 23 and 26, respectively, at the time. They had met five years prior when Gargan hired Miller as a Christmas casual at Sportsgirl.
Both Miller and Gargan worked at Tiger Mist, another Australian fashion brand, before Miller moved on to work at Sass & Bide and Gargan went into product development at S&R Fashions, a design, development and supplier of women’s fashion garments to retailers and branded wholesalers. The company services labels including Sportsgirl, Sussan and Seed Heritage.
When the founders decided to launch their own label, they named it Nakedvice in reference to Gargan’s mum, who often commented that one is “naked” without a handbag, and the idea that the essential nature of their product offering is a “vice,” or something you can’t live without.
Growing the team for global expansion
Currently, Nakedvice sells products online and in-store through its Melbourne Flagship in Abbotsford, which serves as a destination location for customers. It also has a wholesale presence in over 60 boutiques across Australia, Canada and Japan, as well as major Australian retailers including Myer, The Iconic, Universal Store, Princess Polly and Showpo.
Nakedvice’s consulting CEO Bianca Santic told Inside Retail, “2024 marks our expansion into the international markets through securing major partnerships.”
California-based online retailer Verishop is one such partner. It is one of the world’s largest aggregators for independent and DTC brands, which sell through Verishop’s website and mobile app, and provides new ways to shop with personalised content feeds and livestream shopping.
In addition, Nakedvice has partnered with curated online retailers Co-Ed, By Elloise and Fox Maiden, which align with the brand’s purpose to redefine timeless accessible luxury, through elevated styling, simplicity, functionality and comfort.
In February last year, Santic came on board as the consulting CEO, bringing with her a wealth of retail knowledge to further expand the brand’s domestic and international presence, in addition to reaching new customers whilst maintaining its commitment to quality and innovation.
“Expanding into targeted locations with high volumes of foot traffic will expose Nakedvice to a broader audience, including those who may not be familiar with our brand or have never had the opportunity to touch and feel our product,” Santic said.
Part of the brand’s retail growth strategy for 2024, defined by the consulting CEO is to boost the overall revenue by at least 8 per cent.
Expansion plans will be supported by the opening of a second boutique in Victoria and a third in New South Wales by the year’s end.
“Our strategic focus includes targeting up-and-coming locations where we can establish a strong retail footprint,” Santic continued.
The selection of new Nakedvice boutique locations will be guided by several key criteria, including understanding the foot traffic and sales per square metre to gauge the potential store performance and customer engagement.
Other KPIs that the brand monitors include sales volumes across channels, overall revenue growth and the returns rate, which is crucial for maximising profitability and customer satisfaction.
“Given that the customer has multiple channels to make purchases, it’s imperative that we make the retail experience special to encourage in-store visits. This involves creating immersive and personalised experiences, offering exclusive promos and events, and ensuring exceptional customer service at every point,” Santic said.
Integrated omnichannel approach
Nakedvice aims to provide a premium product through a seamless integrated omnichannel approach, so consistency is paramount for the brand as it expands.
“Consistency in branding, customer experience, and product offering ensures a cohesive and positive experience for our customer across all locations,” Santic said.
It plans to expand click-and-collect to drive foot traffic in-store, whilst maintaining online shopping convenience, and reward customer loyalty.
Loyalty is an area of significant importance for Nakedvice, especially in a market where price is a primary concern for consumers.
“We are prioritising building and maintaining customer loyalty programs,” Santic continued.
Last year, the brand partnered with Datapel, an inventory management system that Santic credits for enhancing the business’ capabilities in inventory tracking, order fulfilment and improving warehouse processes.
It has also enabled the brand to ship from store if an item is out of stock. Nakedvice offers this service free of charge, and Santic said it “ can add convenience and satisfaction” to the customer experience.
Crafting customer satisfaction
Smooth navigation of the website, easy checkout, efficient fulfilment and hassle-free returns and exchanges are all part of Nakedvice’s efforts to provide a seamless omnichannel experience.
“By removing barriers and simplifying transactions, Nakedvice can enhance customer satisfaction and drive repeat business,” Santic said.
Beyond this, she recognises the importance of product innovation and design to capture consumer interest.
“We intend to invest in research and development to create innovative and authentic products that not only stand out but are practical to use. By continuously refreshing our offering, we aim to stay ahead of trends and meet evolving customer demands,” Santic said.