From disaster to blessing for Sassy Divas

IF there is one lesson Carrie Trigwell has learned in her five years as a small business owner, it’s to not keep all your eggs in one basket.

When Ms Trigwell lost a major clothing agent in early 2009 for her Bunbury-based women’s retail clothing store, Sassy Divas, she believed her young business was on the brink of collapse.

The agent was a major supplier, providing three clothing labels to the store, and the cancellation of future orders left Ms Trigwell facing a whole season without stock.

“One of the major problems I have faced was early last year in the wake of the global financial crisis; I had a few brands with the one company that I had heavily backed stock for, for winter,” Ms Trigwell told WA Business News.

“I had placed orders for these five months prior.

“I found out in March that the factory in China was shut down and I was not receiving any of my winter orders.

“Well, at first it I thought it would have a massive impact on my business, I had no idea where I was going to source another label at such late notice when most orders were placed five months before.

“To face a winter without 70 per cent of my orders was slightly daunting.”

The agent, Melbourne-headquartered fashion brands company Mercury Brands, was put up for sale in September 2009 after being placed into the hands of receivers.

The company owned more than 20 lifestyle brands, including No Fear, French Kitty, Kangol and Rochford Australia.

Although it had an annual turnover of $28 million, it was put into voluntary administration after a promised $2 million investment from a business called Biron Capital failed to eventuate, meaning a new $3.5 million funding facility also fell through.

Compounding the loss of that major supplier was the competitive landscape Sassy Divas faced in Bunbury.

Ms Trigwell said there was more direct competition in the South West town than in metropolitan areas as it was a smaller city, with fewer retail stores, and a variation in competitiveness whereby most outlets compete either in price, product or service.

Backed into a corner and faced with having to let some of her five employees go, Ms Trigwell began to assess her options.

“I see everything as a challenge, and this was definitely one. I spoke with my agent and mentor for some advice,” she said.

Her mentor, Sue Barrett, is the agent for Ms Trigwell’s current major label, Mei Mei, and the two have worked closely for the past five years.

The two business owners speak daily, with Ms Barrett offering advice on aspects of the business such as strategic plans, budget forecasts, and basic business development.

When Sassy Divas lost Mercury Brands, Ms Barrett suggested other labels Ms Trigwell should pursue and put her in touch with the right people.

“Within two weeks of speaking to Sue I had picked up a couple of other little labels to help cover the dent,” she said.

“This got me through. My major label (Mei Mei), which I have supported strongly for the past five years, has fairly recently purchased its own factory in China, so at least I know that that won’t get shut down unexpectedly.”

To find those “other little labels” Ms Trigwell simply used internet searches of companies that stocked the types and styles of clothes she was looking for, eventually finding some in China.

Despite the problem of losing that agent, Sassy Divas has recorded its strongest winter sales figures to date and Ms Trigwell is bullish about the future of her small business.

“It has probably worked out for the better in the long run for me,” she said.

“Taking on a couple of new little brands has opened the door for me with new business and new agents that stock some amazing little labels.

“I would never have come across them if I kept doing what I was doing before. So what seemed like a disaster, turned out to be a blessing.”