Jo Mercer is hoping to reverse the decline of Australia’s manufacturing industry with the launch of her locally made lifestyle brand, Matilda Life. Available online, her debut collection includes women’s basics, such as linen dresses, denim shorts, and organic cotton t-shirts, leather shoes and accessories, and fragrances. She plans to expand into menswear and soft homewares in future. “The promise I made in starting the business was that the manufacturing would be in Australia. I fu
. I fully believe that if we don’t support the local industry, the skills will be lost forever,” Mercer told Inside Retail.
Best-known for the eponymous shoe brand she founded in 1998, Mercer led Myer’s footwear, handbag, and accessories department for 12 years, but left the business last year as part of its downsizing efforts amidst Covid-19.
When she started working on the concept for Matilda Life, she knew she wanted to keep production onshore.
“There was a fair bit of research at the time showing that Australians wanted to buy lifestyle product and clothing that was made in Australia, but it’s hard to find. And when you do find it, it’s at a designer price point,” she said.
“It made me think there was an opportunity for a lifestyle brand that’s multi-category and that’s genuinely made in Australia.”
By this, Mercer means that she not only makes her finished products in Australia, but wherever possible, she also uses raw materials and even office supplies that have been locally made.
“Our organic cotton has all been knitted here. Our shipping boxes are made here. Our stationery has all been printed in Sydney. Our leather for our shoes comes from a very old tannery up in Queensland, Packer, that has been around forever,” she said.
“Some people think that’s crazy, but to me, it’s not. It’s supporting a local business. Why wouldn’t we?”
Bucking the offshoring trend
Matilda Life is not the only brand bucking the offshoring trend. Brands like Nobody Denim have been fighting to keep local manufacturing alive for decades. And recently, major labels, such as R.M. Williams and Country Road, have announced plans to bring some of their production back to Australia.
“What’s happening at the moment as more people start to support Australian-made is that suddenly factories have got very busy,” Mercer said.
Manufacturers that once downsized to survive are now able to expand their operations. Melbourne-based footwear manufacturer Anna Fiori is a case in point.
One of the last shoe-makers in the country, Anna Fiori has been in business since 1967, but was forced to close its doors during the Covid-19 pandemic. It was only after Mercer reached out to the owners on LinkedIn, expressing her interest in working with them, that they were able to reopen their factory.
“There is so little [shoe manufacturing] left, you wouldn’t believe it. I just think, then those skills are gone, too. What a shame,” she said.
In addition to supporting local businesses, manufacturing in Australia has the added benefit of being more environmentally friendly, which is a requirement for Mercer.
“Being a sustainable brand goes without saying today. We’re very committed to that,” she said, noting that the brand doesn’t use any plastic packaging.
“I have a real issue with the fast fashion industry and the fact that the full cost of production is not realised by anyone – the consumer, the producer, anyone. It doesn’t feel healthy.”
Paying a fair price
Whether consumers are prepared to pay the true cost of locally made, sustainable products remains to be seen.
Mercer said she and her business partners – including fellow Myer alum Lauren Mastromanno – have focused on charging a fair price for the quality they’re providing, even if it means sacrificing some of their profit margin.
“We’re in a position where we haven’t got big overheads, so that has allowed us to start with what we’re calling a fair price,” she said.
“As volume grows, we will get better prices, but if I have to take less margin on shoes, so be it. It’s got to be a fair price.”
Because of this, Mercer said she will be very selective about the retailers she wholesales to, since she doesn’t have a lot of room to discount.
“The reality is we’re not making giant margins at all,” she said.
Currently, in addition to the Matilda Life website, the brand is also available on Buy Aussie Now, an online marketplace for Australian-made and owned products that launched earlier this year.