Fashion Observer Magazine Feb. 2014 | Page 50

cash injections as part of the Federal Government $112.5 million program. Lisa Ho received $200 000 worth of government subsidies, Bettina Liano received $300 000 before going into voluntary administration, and Ojay $20 000 before it also tipped into administration. The question has to be asked whether this money could have been channelled better to stimulate innovation and renewal into holistically reinventing companies from the inside out. Beyond band-aid solutions and cash flow subsidies, with $112.5 million in our pockets, we are sure that we could renew an entire industry and in turn creating new opportunities within the sector. The industry is overregulated and struggling to thrive under strict labour policies- any wonder many businesses succumb to the pressures to move their operations offshore. We are making it too difficult to operate in Australia and remain competitive with foreign brands. Firms have to complete BAS quarterly, annual tax returns, provide superannuation allocations, meet local council reporting needs, work safe compliance, whilst meeting financial pressures and the multitude of other idiosyncrasies in running a business, including dealing with clients. How can business owners run their businesses while being tacked with so many different rules and regulations? a number of companies that really understand the essence of service and creating an experience for consumers – a little retail entertainment. I love the feeling of buying a $7 packet of coffee and made to feel like I am buying a $3000 Chanel bag thanks to the service experience. Innovation isn’t just about quirky designs or new trends. International players are not only being innovative with fashion trends, but they are savvy with the technology they use on the back end of their business to track their inventory, so they know what’s selling and what’s not, and retaining that data on customers. Innovation needs to be examined, at a much deeper level, to ensure it pervades across every facet of the business. It’s about innovation of how we manage people, innovation of life balance into business; it’s about innovation of systems and technology. It’s also about our recruitment strategy – who we hire, how we hire, how we train and develop these people. Simon Scalzo, Leader for Retail at Audit, Tax and Advisory firm, BDO, echoes this sentiment and suggests a culture open to change drives innovation and innovation leads to smarter business strategies. By embracing change, and supporting innovation through technology, systems and online marketing, including social media, retailers can better compete in an ever-challenging operating environment. A crucial element in implementing or driving a change orientation is intrinsically linking the change culture to the firm’s overarching business strategy. This is a must, reveals Simon. On the storefront, we are facing a two-sided assault thanks to a lack of retail buzz. Retailers dismiss innovation, repetitively relying on cloned products and marketing strategies yet expecting a different result while the world around them is changing rapidly. Bland products are flooding the market propped up by minimal and unmotivated team members on the shop floor with no incentive to Today embracing the benefits of technology both connect with customers unless they make their on the front and back end of the business is key to a way to the counter with an open wallet. There are successful outcome of the business strategy.