Difficult times for N.Z. fashion

Press, 31 August 1977, Page 20

Difficult times for N.Z. fashion

i PA Auckland I New Zealand women were putting new' clothes a long' way down their shopping lists these days, according to the clothing trade sources, reacting to news of the closing of the House of Ray;monde's Masterton factory. The factory will stop ■ making women’s clothes ins Masterton on September 13,1 and 19 workers will lose their jobs. The firm's managing director. manufacturing, (Mr Marcus Cohen) said from Auckland that the closing of the seven-year-old Masterton factory had been forced by irrecoverable increased costs, the new terips of N.A.F.T.A., and a diminish-; ing demand for women’s' clothing. Economic problems asso-l ciated with the Masterton factory had compounded in; the four years since House of Raymonde had shifted its I headquarters from Welling-, ton to Auckland. “Women haven't had to', buy as many formal clothes over the last two or three' (years,” said Mr‘Cohen. “In-' Istead they buy a pair of; (dress jeans and a couple of! 'nice shirts.” , “Sales have fallen about 4 per cent over the last couple (of years,” said Mr David (Nathan, of Nathan Fashions. ( “Money is going on basics . (like food, power and rent.” , I Mr Peter Mitchell, of the i Association of Fashion Mani ufacturers, thinks money 'tended to go on more du- i ( rable items like colour TVs. 1 The more casual fashions of (the moment were not help- i ing sales either. (; | “People are able to get a; ’ (lot more wear out of a pair ; (of jeans than other cloth-! ing.” he said. Il

But the president of the Fashion Manufacturers’ Asisociation (Mr W. Hall) feels (part of the problem lies with the retailer. “They’re having to spend more money to buy less,” he said. “The demand is still ' there, but the retailers cannot afford to stock.” Instead of placing one large order, retailers wait to see how’ a thing is selling. If (they ordered in successive (small batches, it made the cost of manufacture higher. He was not worried by the casual clothing trend. “Fashion always concels itself out,” he says. “Wearing jeans one day, you’re really going to feel like dressing up when you go out at night, or to work the (next day.” i Mr Nathan said another j cause of the retail drop is 'that there are fewer twoincome families. “Housewives are the first! (ones to be put off and they; don’t show in the unemployI ment statistics,” he says. : “The clothing industry itself : is one of the biggest employers of married women.” ! “After they’ve bought the (groceries, meat, paid the power bill and put some; petrol in the car. then they! might think about new! clothing.” The House of Raymonde, had not sought any assis-l tance under the regional de-1 velopment programme for| the Wairarapa, the Minister, of Trade and Industry (Mrj Adams-Schneider), said yes-; terday. "Any application from the j company would, of course,! be considered on its merits; in line with established cri-l teria,” he said. “I have asked my department to 'watch the situation closely and keep me advised.” Mr Adams-Schneider said he understood the company’s!

t retrenchment of workers, 1 -iwas not directly attributable) s;to the imposition of; sjN.A.F.T.A. apparel quotas which had affected several! i .other companies recently. i| “However. many com-ii llpanies gearing up for in-j j(creased apparel exports to; Australia are now obliged to; sI divert their output to the; > domestic market with the! [ result that selling pressures jjhave intensified,” he said. :! “I would expect this to be ; a temporary phenomenon t which will gradually disap- , . pear as manufacturers dis- > pose of the fabric stocks • they acquired in anticipation s of increased sales in Aust- , ; ralia. ) “Officers of my depart- ! ment have told me that the ! Masterton factory was en- , r gaged mainly in sewing up >! women’s fashion garments -(sent in pre-cut pieces from (the company’s Auckland 11 plant and returned there for ;(finishing and distribution. “Although the company ■ has not discussed this prob- ! f lem with my department, 11 -; would expect, that freight! I costs would be particularly) ;! burdensome in such circumsi! tances.” Jj Mr Adams-Schneider said; (he understood the company r had not yet formally advised 'the Labour Department of! . its intention to close the ■I Masterton factory and it •Iwas, therefore, not possible •jfor him to comment in • (detail on the employment si- 1 • j tuation. ■ “Despite the unemploy(ment level in the clothing; :] industry, I believe that re- , I liable machinists are in keen ,; demand, and in fact my offi■|cers have told me that the > Labour Department has ali ready received inquiries 1 from companies in the Hutt Valley which are interested I in offering employment,” he >I said.