How a photography school drop-out become one of the hottest names in Australian fashion

Fashion loves a Cinderella story. Amid the turmoil of the near-collapse – and potential resurrection – of Australian Fashion Week, the closure of several brands including Dion Lee, and the general downturn in retail, any green shoot is worth celebrating.

Effie Kats knows this almost better than anyone in the industry, having come close to total financial collapse five years ago, when her first label, Zachary, imploded after her main investor allegedly conned her into signing away her business and ran up large debts in her name.

Of her two brands – Effie Kats and Bayse Brand – it’s the eponymous line, which she runs with her father Bill, that’s garnering the most attention, especially after this year’s spring racing carnival, during which she dressed 20 celebrities including model Montana Cox, radio host Carrie Bickmore and Kylie Rogers, the new chief executive of the Victoria Racing Club.

Forging a new pattern … Effie Kats in her Melbourne workroom.Credit: Simon Schluter

So, how does a brand walk the line between a viral moment and over-exposure? And how did 34-year-old Kats, a photography school drop-out with no formal design training, become one of the hottest names in Australian fashion?

Dressing women such as Rogers and Nicole Pappas – the wife of Lexus’ Australian chief executive, John “JP” Pappas – delivered Kats a credibility bounce that has helped tip her from “influencer brand” to a genuine contender alongside the likes of DISSH and Aje, both of whose founders appeared on The Australian Financial Review’s annual Young Rich list.

“For us, influencers, obviously, are very important … But there’s a lot more to being in this industry,” she says. “Working with people like [Rogers], obviously, she’s got her network, people will see her, be like, my god, I love your suit. Where is that from? And then that opens up another clientele for us.”

Backing fashion winners … (from left) Carrie Bickmore, Kylie Rogers and Montana Cox wear Effie Kats at Derby Day at Flemington.Credit: Getty

According to Kats, sales are up 35 per cent on 2023, and she’s on track to top $1 million in profit by June 30. Last month, she threw a lavish dinner at Melbourne institution Grossi Florentino for 70 guests, with many heavy-hitters in Australian fashion and media, including Lindy Klim, Nadia Bartel and Lana Wilkinson, in attendance (and prolifically posting to social media).

Kats admits her father was initially reluctant for the business to fund the dinner, but off the back of the event, the brand posted its first week of sales in the six figures. Immediately, plans were being hatched for a “matcher” event in Sydney, the brand’s second-biggest market.

“There’s a different feeling in the office [since the event],” she says. “There’s an excitement. I can’t even put my finger on it … we’re all in our element, and everything’s just flowing.”

She says she doesn’t give much thought to the competition, other than her own drive to succeed.

Effie Kats posted her brand’s first six-figure week after a dinner at Melbourne’s Grossi Florentino to celebrate her brand’s new collection.

“If you said to me, ‘who would you compare yourself to?’ I don’t really think there is anyone … What we’re doing is unique in the market.”

Aesthetically, Kats’ range isn’t breaking any major ground – nor does it claim to. Still, it’s giving Australian women what they want: a place to buy evening dresses for under $1000 that have social cred among everyone from “it” girls to captains of industry.

“What people appreciate is that we’re not overcharging them,” she says. “It’s Australian made, the quality’s amazing, and they’re timeless pieces.”

Kats (born Effie Katsaounis) grew up in the historically working-class suburb of Coburg, where her workroom has been in her family for generations. It’s here she runs a showroom, though most sales come from online and wholesalers. From 2025, the brand will launch at David Jones, and she is exploring sites for standalone stores.

Being made locally – a fact even some of the country’s most powerful fashion brands cannot boast – is something Kats is keen to champion.

“Part of our strategy is taking people behind the curtain and showing them how we … work with our production cutters, how we work with our sample machinists, what our fitting process looks like,” she says. “And I think that’s something that our customers will value.”

Helping create jobs is important to Kats, who gets her work ethic from her mother, a partner at a top-tier law firm, and creative spirit from her father, a fashion veteran (Kats’ parents divorced when she was a child). Working with her dad has had its share of challenges, especially through the Zachary saga, but as she’s matured, she realises they are stronger together.

“I’m giving people something I want it to be the best, where my dad’s like, it doesn’t [have to be perfect] ... we would butt heads,” she says. “This time around, we stick to our lanes, we respect each other, and we’re probably in the best place we’ve ever been as business partners and father and daughter.”

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