Legacy retailer enters voluntary administration

Dr Carol Tan, fashion industries expert

"The rise of online and fast-fashion retailers has intensified competition, putting pressure on Mosaic Brands to keep up. 

“Changing consumer preferences have transformed the retail landscape, making it difficult for Mosaic Brands to adapt quickly. At one point, Mosaic also expanded too rapidly, which may have stretched its resources. They have also been challenged legally, with the Australian Competition and Consumer Commission (ACCC) taking Mosaic Brands to court for failing to meet advertised delivery timeframes.  

"More generally, many legacy brands have rigid structures that hinder their ability to pivot in response to market trends or consumer preferences. Their heavy reliance on traditional retail models, focused primarily on brick-and-mortar stores, has limited their ability to succeed in an e-commerce-dominated environment. 

"Fashion brands that are successful in today’s competitive market are cultivating strong communities around their products. These brands maintain closer communication with customers, both in-store and online, allowing staff to gather valuable feedback and understand what resonates with their audience.

"Building an authentic brand that aligns with customer values is also essential. Consumers are more likely to connect with brands that reflect their beliefs and lifestyles.

"For example, local shoe brand Radical Yes operates on four core values: Creativity, Communication, Consideration, and Community. These values are fundamental to driving the company’s direction and decisions, ensuring that every aspect of their business aligns with their mission. This values-led approach not only differentiates their brand in the market but also cultivates a loyal customer base that resonates with their vision.

“Fashion brands must also consider their social and environmental impact. Producing in smaller quantities is not only more sustainable but also avoids the pitfalls of overproduction and excessive discounting, which helps maintain brand integrity and prevents cheapening the brand image. 

“Ultimately, successful fashion brands are agile, community-focused, and responsive to their customers' needs, prioritising authenticity and responsible practices in a rapidly evolving market. Many legacy brands are not meeting this brief."

Dr. Carol Tan is a Senior Lecturer and Program Manager of the Masters of Fashion (Entrepreneurship) at the School of Fashion and Textiles, RMIT University. Since 2003, she has been actively researching the key success factors for small-to-medium enterprises (SMEs) in Australia, focusing on businesses experiencing significant growth.

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