Air New Zealand Fashion Week Worth $33.06 Million
1 September 2006
Air New Zealand Fashion Week Worth $33.06 Million To NZ Economy
Latest figures reinforce the economic value of the icon fashion event
New research shows Air New Zealand Fashion Week is generating at least $33.06 million annually for the New Zealand economy.
Commissioned by event organisers, the study into the economic impact of Air New Zealand Fashion Week 2004 looked at designers' sales resulting from the event, as well as downstream spending in the Auckland and New Zealand economies including spending by visiting international buyers and media.
The research, based on the most recent completed available figures, found Air New Zealand Fashion Week 2004 was worth an estimated $33.06 million to the New Zealand economy in terms of total output generated, and an estimated $29.75 million in the Auckland economy. Designers' expected incremental foreign exchange earnings resulting from the event are estimated to be in excess of $13.13 million.
Air New Zealand Fashion Week Managing Director, Pieter Stewart is delighted with the results which represent an increase of more than $10million on the previous EIR.
Research on the 2003 collections (L'Oreal New Zealand Fashion Week) found the event was worth an estimated $23.2 million to the New Zealand economy and an estimated $19.2 million to the Auckland economy. The designer's foreign exchange earnings from the previous report were calculated as in excess of $9.5 million.
"While it has taken us two years to compile all these figures, it is exciting on the eve of the 2006 collections to see the continuing growth of the impact of Fashion Week on the business of the designers and the business of fashion"
International buyers and media were estimated to spend an average of $2,800 each while in Auckland on food and beverage, transport and accommodation, in addition to expenditure funded by the event organiser. A further $238 per person on average was spent by international media and buyers in other regions.
More than half the designers who participated in Air New Zealand Fashion Week that year provided information for the study. This represents a high proportion of those designers who are believed to have achieved a significant direct benefit from the event.
Additional information was sourced from international buyers and media, major sponsors, local retailers and other organisations involved in the event including Fashion Industry New Zealand and New Zealand Trade and Enterprise.
Undertaken by an independent research firm, Horwath Asia Pacific Limited, the study involved the collation of a large amount of commercially sensitive information which remains confidential to the company undertaking the research.
Primarily an export-focused trade show for international and domestic buyers and media within the fashion industry, the 2004 New Zealand Fashion Week involved 46 designers, 50 labels, nearly 600 registered delegates and approximately 9,000 guests attending shows.
Approximately 145 registered buyers attended from eight countries including New Zealand. There were 150 registered media plus 90 photographers from five countries including New Zealand. Balance of registered delegates were made up of industry spectators and media who received day passes, in particular tv crews.
The sales derived by the designers involved as a result of the event, particularly the international sales, are the major contributor to the event's economic impact on the Auckland and New Zealand economies.
The international and domestic buyers and media attending also contributed to the Auckland and New Zealand economies via expenditure on accommodation, food, beverage, transport, retail purchases etc.
All of the international buyers/media surveyed, commented that ANZFW was a professionally managed event with some believing the event is better managed than similar events in other parts of the world.
ANZFW has grown considerably in the six years since its inception. The number of international delegates has grown by about 30% since 2001, with steady growth of about 15% from both buyers and media.
Domestic and international media coverage has also grown significantly in the six years of the event from $NZ 1.8 million in 2001 to more than $NZ 22 million in 2005, which equals or exceeds most major news and international sporting events of the same calibre in New Zealand. These figures do not include destinational coverage carried out by many of these visiting media which appears in tourism publications around the world.
Comments from designers (anonymous) about Air New Zealand Fashion Week collated as part of the research:
Impact on their business:
. An excellent platform for a new company - it assures we have to meet a very high standard.
. Puts me on the map. 10 buyers lined up for this year which should be huge impact.
. Fashion Week has helped put the NZ industry on the world map. Don't get these opportunities otherwise.
Impact on Auckland retailers/CBD:
. The city was buzzing. Fashion Week was a topic of conversation with our clients.
. Promoting new lines of fashion and new designers to the country plus establishing Auckland as a host city.
. It celebrates our designers in our home country. It makes me proud to see them in Sydney and other fashion capitals, so it's nice to promote their designs here.
New Zealand Apparel Exports and Industry
Source: NZTE/World Trade Atlas
Apparel Exports (May 2005 - May 2006)
. New Zealand's total apparel industry exports (excluding textiles) are worth around $313.5million a year; bigger than publishing ($56million) and comparable to marine ($321million).
. Add in textiles with $221million of exports and the wider textile and apparel export sector total leaps to $534.5million - which compares with export earnings generated by the wine industry ($501million)
. Current top four apparel
export countries are (from one to four):
Australia - 71%; USA - 9.1%; UK - 7.1% and Japan - 1.1%.
. Australia is traditionally the largest market and in recent years labels such as Nom*D, Trelise Cooper and Zambesi have established their own retail presence in this key market. There is a healthy trend towards diversification, but Australia is expected to remain the key export destination with New Zealand apparel holding a leading reputation for superior branding, quality and niche manufacturing and marketing success.
Westpac, Elite sponsor of Air New Zealand Fashion Week, have an economist available to interpret these statistics from a wider economic perspective. Please contact the ANZFW Media Office for contact details.