The unlikely rise of New Zealand's fashion industry

WHEN it comes to fashion sense, New Zealand has a reputation—but not in a good way. For years Kiwi backpackers recognised each other around the world from their unofficial uniform of black tracksuit-trousers, bush shirts and sneakers. Visiting diplomats have remarked upon the penchant among New Zealand women for short haircuts, backpacks and sensible shoes. One ambassador accused them of dressing like soldiers; another said they looked as though they were going to a funeral.

IcebreakerMade in New Zealand

But things are changing. New Zealand is now home to a vibrant and steadily expanding fashion industry, with some 50 established labels, up from a handful ten years ago, half of which sell abroad. The World Trade Organisation says clothes exports were worth NZ$315m ($216m) in the year to June 2007, up from NZ$194m a decade earlier. The largest market is Australia, followed by America, Britain, Hong Kong and Japan.

Karen Walker, one of New Zealand's leading designers, showed a collection at New York's Fashion Week in February. Trelise Cooper's designs are sold in fancy American shops, including Saks Fifth Avenue and Fred Segal. And Pumpkin Patch, a childrenswear and maternity-clothes chain, moved into the British and American markets in 2006, and its success is prompting it to open more shops in American this spring.

What does New Zealand have to offer? Charles Haddrell of New Zealand Trade and Enterprise, an economic-development agency, says it benefits from the combination of Pacific and urban cultures, an emphasis on natural fibres that appeal to environmentally conscious buyers, and a fresh and quirky approach. Icebreaker, a maker of outdoor clothing, does well abroad with its use of pure merino in striking colours and shapes (pictured above). Ms Cooper adds that because New Zealanders are geographically remote and have little exposure to mass labels, like Gucci and the Gap, designers ignore the rules. “This produces a different, quite edgy style,” she says.

Marketing campaigns that trade on the country's unspoilt scenery and laid-back culture also help. Bobux, which sells its pliable leather baby-shoes in 18 countries, boasts that they are “Born in New Zealand”. Swanndri, a cult maker of outdoor wear, shows rugged farmers in its brochures to emphasise the durability of its clothes. “We have to make a good garment. Most of our customers have guns,” runs one of its slogans.

The Southern Trust id Dunedin Fashion Week, which shows new and emerging designers and is now in its ninth year, opened on February 26th. But there are clouds on the horizon. As firms outsource manufacturing to Asia, they face a backlash from their loyal domestic customers. And the weak economy is hurting clothes retailers in America, which may not be such an attractive export market for the next couple of years.