There have been some interesting developments in the Fashion world recently after the recent stagnation in the industry. Tapestry will acquire Michael Kors, Jimmy Choo and Versace in an $8.5 billion deal to make them a serious heavyweight in the luxury sector. Kering has said it would acquire 30% of Valentino for 1.7 Billion Euros.
There has been little movement in Fashion M&A due to rising interest rates and concerns about slowing consumer demands. Then last week, we heard the significant and rather unexpected news that Zimmermann had sold a majority stake to Advent International, a Private Equity Group. This values Zimmermann at approximately 1.15 Billion USD, making them Australia's first billion-dollar fashion brand.
As with my other blogs, I look at the psychological effect of fashion, and this is a good example. “The Zimmermann-effect”. I used to travel to Australia annually, primarily to visit family. My last visit was in 2017; obviously, annual visits were stalled by the pandemic and inevitable border restrictions. Coming back, as I have in the past week, has been quite a revelation in fashion terms. Hence the “Zimmermann effect”.
Australia has undoubtedly had many talented Fashion Designers - Scanlon Theodore, Camilla, Dion Lee, Lisa Ho, and Rebecca Valance, to name a few, past and present. They have their own aesthetic, similar to Scandinavian Designers, with a limited scope to impact and sell globally. It is a shame, as these tremendously talented Designers remain largely unseen.
This was all to change with Zimmermann. Zimmermann was established in 1991 by sisters Simone and Nicky Zimmermann. The label was always a presence in the Swimwear fashion category in the Australian Fashion world. However, an investment from Style Capital, an Italian private equity firm, changed all of that. Around 2016 I started noticing more brand awareness among influencers, magazines and media outlets. There was a new energy around the Brand, and the aesthetic was so new and right for that moment.
On a trip to Melbourne, I visited the new Boutique and quickly bought two dresses that I wore extensively for several years. As an early adopter, I loved this trend of pretty, ethereal wrap dresses. I went on to buy and wear other pieces, much to the admiration of others. Stores and outlets opened in major cities, such as London, LA etc. The aesthetic captured a glamorous resort mood, the feeling of always being on a fabulous vacation, even if you were just going to work or for dinner in your home town. Suddenly, Zimmermann dresses and outfits were everywhere.
Let’s circle back to the recent Australia trip and the “Zimmermann effect”. The Brand has been on a committed strategy to build its business and influence. On my earlier trips to Australia, the clothes and fashion worn on the street were somewhat dull and indistinct (mainly due to the high import taxes of clothing). However, this past week I have seen so many beautifully dressed women in Zimmermann or Zimmermann look-a-likes. This is the Zimmermann effect. By raising their profile, aesthetic and influence, Zimmermann has raised that of the Fashion of Australia. Hopefully, this will impact the entire Australian Fashion Industry and its talented designers.
All the best,
Kate
Kate Padget-Koh