What tariffs? The Australian fashion brand taking on the US

New York is the city where dreams are made, according to the Jay-Z and Alicia Keys standard, Empire State of Mind. Australian fashion label Leo Lin is dreaming bigger than most, launching a pop-up store and taking over the windows at the New York flagship of department store Bloomingdale’s this week.

While other brands experience sleepless nights, with the introduction of import tariffs by President Donald Trump of 10 per cent on Australian goods, and up to 145 per cent on items produced in China, Leo Lin’s plans for growth continue one floral print dress at a time.

“Tariffs are an obvious challenge,” says Laura Good, head of brand at Leo Lin. “The speed at which the tariffs were introduced has only solidified our position that this is our top priority as a business.”

Models in the latest Leo Lin collection heading to Bloomingdale’s in New York.Credit: Steven Siewert

Bloomingdale’s, which also stocks Australian labels Alemais, Camilla and L’Idee, successfully tested Leo Lin’s popularity at its Miami location in October, a month before the US election. Tariffs were not going to pour cold water on the partnership and the brand’s move into the New York store, with the US comprising 38 per cent of its wholesale business.

“Our US growth has been on an upward trajectory for over 12 months,” Good says. “When the tariffs were announced, we were already 80 per cent of the way through a major US expansion project.”

“The business has been focused on the US as a major growth market since we commenced international wholesale almost three years ago.”

Leo Lin launched originally as Leo + Lin, in Melbourne in 2017. Its founder, Leo Lin, had moved to Melbourne from China for his education when he was aged 16, staying on to explore fashion design and assemble his studio.

Early obvious influences such as Dior and John Galliano have disappeared, along with the plus sign, with the Leo Lin business moving to Sydney and finding its niche with bright, ultra-feminine dresses for special occasions.

“Leo Lin is in our advanced contemporary department, alongside brands like Alemais, Self Portrait, Camilla, Ronny Kobo, Cult Gaia and Patbo,” says Kelcye Ball, senior vice president, general manager marketing, ready to wear at Bloomingdale’s. “It shares their elevated, feminine vibe but stands out with its sculptural approach and vibrant prints.”

For the softly spoken Lin, Australian success was never the end game. The US was always in his sights.

“I truly would love to see Leo Lin in all the best retailers in the world,” Lin says. “Success in the US is fundamental to Leo Lin’s global success, with some of the best international retailers based in this market.”

Persisting with US growth in challenging times might seem risky. There are reports of US buyers behaving cautiously and only three brands from North America are sending buyers to the upcoming Australian Fashion Week: online retailers FWRD and Moda Operandi and Nordstrom department store.

Two brands have already dropped off the schedule for Australian Fashion Week, which begins on May 13, Sir and Christian Kimber.

“The hurdles are significant,” says Robyn Catinella, founder of fashion wholesale and communications agency Catinella. “Many Australian brands are still relatively unknown in the US, making brand awareness an ongoing challenge. The removal of the de minimis exemption will soon add new pressures, with every US-bound order (no matter how small) now subject to import duties, which will inevitably impact both pricing strategies and conversion rates.”

It’s not all doom, gloom and polyester.

Sydney-based womenswear designer Leo Lin. Credit: James Brickwood

“Despite the challenges, there are real opportunities,” says Catinella, who is on the advisory board for Australian Fashion Week. “A weaker Australian dollar makes exporting more favourable and can help brands stay competitive on price.”

The Leo Lin Cleo midi-dress is available in Australia for $999, with Bloomingdale’s customers in the US paying $US995 ($1553) for the same dress.

“Additionally, US buyers are increasingly drawn to brands with clear purpose, those built around sustainability, craftsmanship, and authenticity,” says Catinella. “For brands that can adapt quickly, tell a strong story, and remain flexible in this shifting environment, there is real potential for growth.”

Leo Lin is focused on that growth, with a US-based distribution operation set to be operational in a few weeks. The brand is also looking beyond New York, with Texas the top-performing state on its e-commerce site. Even with Texan dollars rolling in, it’s a state not big enough to match those dreams of Lin.

“The dreamer in me wants world domination,” he says.

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