Iconic New Zealand kids’ wear brand Pumpkin Patch has flourished to reach 22 markets across the world, but every step offshore has been a measured one.
During the past 20 years, the company has expanded from a small mail order venture, to a thriving international business, which sells its products in more than 527 locations, 230 of those company-owned stores. The Patch brand can now be found throughout Australasia, the United Kingdom, the United States, Asia and the Middle East.
About 83 percent of Pumpkin Patch’s turnover is made from export, with Australia clearly the biggest market.
“Like most businesses, we took steps, rather than raced ahead, reaching new milestones along the way,” says Pumpkin Patch Chief Executive Maurice Prendergast. “The journey was definitely difficult in the early days – but fun. In fact we’re still having fun growing our brand.”
After the company began as a solely mail order business in 1990, it opened its first stores in New Zealand before venturing across the Tasman in the mid-90s, when Pumpkin Patch spotted an opportunity in Australian kids’ apparel.
The expansion that rolled out in Australia has been the business model that has continued the growth of Pumpkin Patch around the world – next, a gradual release of stores in the United Kingdom in 2000 which now total 41, and developing relationships in the United States. The first store in Los Angeles opened in 2005, and there are now 20 American stores. As the Patch spreads into new markets in Asia and the Middle East, the company’s future is focused on expanding into further countries.
Pumpkin Patch now realises annual sales of close to $400 million, but the path to reach the $50 million revenue mark presented its own strains, Mr Prendergast says.
“The journey up to $50 million is a very different one than after $50 million. For private companies, there are growing pains especially around funding. Even up to $200 million, we were having massive growth, and having to fund the inventory and the shop fits. They were pretty interesting times,” he says.
“There were also the challenges of scale. We were manufacturing only a few hundred garments per style – imagine trying to convince a Chinese manufacturer to do that? Our team didn’t have the depth of staff then, so we were continually on the road, designing and making sure our quality standards were kept.
“In my first year, 17 years ago, our head designer Chrissy Conyngham was pregnant, and we actually did the final stock buy while sitting on her bed when she was in labour! We were much more hands-on in the business then, but now, even though we are much bigger, we have a lot more really great people to help us get through it.”
Pumpkin Patch manufactures all its product offshore, building up strong relationships with its suppliers in China – some who have been in partnership with the company for all of its 20 years.
Manufacturing overseas, but designing in New Zealand, has enabled Pumpkin Patch to expand, with more than 400 people employed at its East Tamaki site. “While we would have loved to manufacture in New Zealand, the reality was the quality and price our customers wanted was only achievable offshore. As it’s turned out we now employ far more New Zealanders because of this,” says Mr Prendergast.
Manufacturing around 20 million garments a year, Pumpkin Patch needs to ensure its quality standards are maintained. Customers are looking for true value, says Mr Prendergast. “This means a quality garment, great fashion and a good price. With more than 200 factories working for us in China we must ensure we are obsessed with our attention to detail and our quality standards.
“We create or buy artwork, select the fabric and design the clothes here in New Zealand. The manufacturing process happens overseas but along every stage, we are checking to make sure the garment is exactly what we want. Very often changes are made along the way to ensure a better product is achieved. This can be up to a nine month process.
“At Pumpkin Patch we are designers, retailers, marketers and brand creators. We have been successful but there’s a long way to go for us yet.”
Judges’ commendation
“Pumpkin Patch is establishing itself as an iconic New Zealand brand and has demonstrated success globally. Importantly, it has the management, culture and processes in place to build on the platform it has created and achieve further international success.”
For more information contact:
New Zealand Trade and Enterprise
Anna McIntyre, phone +64 4 816 8317, email anna.mcintyre@nzte.govt.nz
