Canada – local design retail on the rise

The Canadian retail market is growing, with tastes varying by region. And with the support of fashion week events, local talents are starting to gain national fame.

Fashion retail development in Canada

According to the 2009 World Fact Book of the Central Intelligence Agency of the United States, Canada's GDP in terms of purchasing power parity has reached US$1.287 trillion, ranking it number 25 among 222 countries worldwide, while its GDP per capita has reached US$38,400, placing it at 23 out of 152 countries. In addition, figures from Statistics Canada suggest the country's retail sector is now doing well. Sales of clothing and accessories stores increased by 0.5% in January 2010, sales of shoes, clothing accessories and jewellery stores rose 1.3%, and sales of clothing stores were up 0.2%, showing fashion jewellery and accessories are becoming more popular with customers.

Compared with the United States and Europe, Canada is a relatively smaller market for fashion retailing. Robin Kay, president of Fashion Design Council of Canada and executive director of LG Fashion Week in Toronto, commented, "The fashion industry in Canada is young. Our Toronto Fashion Week is in just its 11th year, which is very green compared to other global fashion capitals. However, the growth we have been seeing over the years has been huge and astonishing. Since Canada's fashion retail market is smaller, designers and businessmen here have to be very strategic and decisive in how they promote themselves as well as in how they gain global recognition to increase sales and growth."

Canadian fashion retailing is indeed gaining importance in the international market. More established and emerging designers from Canada are becoming increasingly well-known and respected among industry practitioners, Stacey Claffey, general manager of West Edmonton Mall in Alberta (Western Canada) pointed out. Ms Claffey also revealed that consumers are now more conscious of designer labels than before. West Edmonton Mall does pretty well in bringing international names to the region, and especially in attracting North American retailers. As one of the largest shopping malls in the world, the mall comprises a good mix of American and European young fashion brands, such as Abercrombie & Fitch, Zara, Coach, American Apparel, Fossil, BCBG Maxazria, Miss Sixty, Esprit, Hugo Boss, Guess, H & M, Banana Republic, French Connection and Club Monaco, to name just a few.

The general manager of Holt Renfrew, Barbara Wolfson, has more than 25 years in fashion retailing and knows a lot about what goes on in the industry. "The most notable development during the decade in Canada would be the emergence of online shopping as an accessible option for customers, as well as the continuing trend toward globalisation of luxury brands. That was only available in a limited way ten years ago, owing to the geographical factor. Successful retailers have embraced such changes, and are able to leverage and further develop them as a point of difference for customers," she commented. Housing over 80 fashion jewellery and accessories labels, including Gucci, Kenneth Jay Lane, Marc by Marc Jacobs, Marni, Lanvin, Oscar de la Renta, House of Harlow and David Yurman, Holt Renfrew is a leading high fashion store with three established stores in Toronto, one store each in Ottawa, Montreal, Quebec City, Vancouver and Edmonton and a new one in Calgary.

Fashion Weeks nurturing local talents

Regions such as Alberta, Montreal, Toronto and Vancouver are some of the more fashion-forward regions in Canada. Fashion Weeks are held regularly: for example, the LG Fashion Week in Toronto, Montreal Fashion Week, British Columbia Fashion Week, Alberta Fashion Week and Western Canada Fashion Week in Edmonton. Each region has its own distinctive culture and style. Mr Kay stated that Toronto, as the economic centre, sees more international brands station their flagships there; Vancouver, thanks to its coastal geographical location, sees a larger concentration of sportswear and environmentally sustainable clothing stores, reflecting its market; while Montreal has a slightly European atmosphere, with boutiques lining the downtown streets.

Talking about Vancouver, Ms Wolfson agreed that its coastal location plays an important role for customers, who normally prefer items that combine style and function for when they go travelling. Some of them are also very fashion-savvy and love tracking designer trends. Ms Claffey states that Alberta is a four-season province with high-income earners; therefore, the place is always filled with a great variety of designer brands.

Owing to the nature of the market, local brands do occupy a huge percentage of the Canadian fashion retailing sector, and they are also important to the customers. Unlike the United States, where the retailing business relies greatly on large department stores, the Canadian market is smaller, yet more versatile in its labels profile. However, more Canadian designers are gaining fame in the fashion world, thanks to the fashion weeks held across the country.

Ms Claffey said, "The emerging Western Canada Fashion Week allows designers a unique exposure to showcase their work to buyers and retailers and provides them with information and resources they need to create their collections and build successful brands." Mr Kay agreed that designers can benefit from fashion weeks, but also suggested to us how fierce is the competition that designers need to face in order to become known worldwide. "It begins with local recognition and a foundation of fans, followers, buyers and industry standing behind the label, before it can progress into the global arena with substantial experience. And designers always have to take risks from a financial standpoint and in the aspect of differentiating themselves from the rest of the industry."

Local talents gaining popularity

Danielle Loftus, senior buyer (jewellery) at Holt Renfrew, stated that customers today would not look solely for the famous brands in jewellery or accessories, but also for design and quality. And for some, Canadian designs are becoming an added value. In their store, Montreal-based Anzie is one of their popular jewellery collections. Meanwhile, Ms Claffey sees a movement by some independent retailers and boutiques to carry exclusive Canadian designs and designs that are made exclusively with Canadian products, giving a boost to local designers and the garment industry.

Canada is not immune to the global financial crisis that began two years ago, yet Holt Renfrew and West Edmonton Mall have not seen their business fall. In fact, Holt Renfrew has even experienced growth in all jewellery categories over the past few years. Ms Loftus suggested the growth is attributable to the launch of the Ippolita and Queen Baby brands, and the expansion of existing jewellery labels such as Mimi So, John Hardy, David Yurman and Alexis Bittar.

When asked about the must-have fashion accessories for Summer, Ms Claffey believed that designer denim items will be hot. As for Autumn/Winter 2010/11, Mr Kay foresees the next season in Canada being focused on any accessories with fur. He saw plenty of fur stoles, arm and leg warmers and capes on the LG Fashion Week runways.

Photo Credit: B-low the belt, Burberry, Fendi, Holt Renfrew, House of Harlow, Laurel, LG Fashion Week, Marni and West Edmonton Mall. Photographer: George Pimentel for LG Fashion Week

Source: Asia's Fashion Jewellery & Accessories Review