Akubra ordering issues?

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backstagejack
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Akubra ordering issues?

Post by backstagejack »

So not necessarily Indiana Jones hat related but..... anyone know what's going on with Akubra hats? I know for a little time they were having supply issues but it all seemed to be straightening itself out.

100 and 1 hats is showing no Akubras at all. If you go to Hatsdirect you have to call them to order anything outside of Australia.

Which looks like..... that does not include the Federation line? :-k Seems you can still order that up with no problems? Though after the recent restock they're now running out of sizes again.
"As an AKUBRA retailer, we are currently only able to DISPLAY the AKUBRA range online. If you would like to make a purchase of an AKUBRA product, please contact us online." -hatsdirect
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Re: Akubra ordering issues?

Post by Illinois_Jones »

Lord knows what's going on. Covid messed up their operations pretty bad, and now that private equity owns the brand I can only imagine.
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Re: Akubra ordering issues?

Post by Rob »

Speaking as an Aussie, there's not a lot of news on the ground. The last stories I saw related to how the company - under its new management - was cutting off little independent 'western' clothing stores and horse supply shops and basically traditional outlets for where Akubras were sold. They're trying to change the brand a bit, it seems. Now, quite how that affects supply to shops that are still 'allowed' to sell the products, or indeed the production of the products at all, I have no idea. It probably doesn't. But something is still gumming things up, and we're so far beyond COVID, that excuse is getting old :whip:
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Re: Akubra ordering issues?

Post by Howard Weinstein »

Holy cow! I had no idea this was happening, but it's a real shame. There were supply-chain issues during the pandemic and most Akubra retailers were low on stock. But this is a whole new problem for those of us who love Akubra hats. This story explains in detail (I'll paste the text below the link) -- https://www.exploretravel.com.au/story/ ... ry-stores/

Akubra hat trick leaves western Queensland towns empty-handed
By Sally Gall - September 20 2024

"Always getting kicked in the guts" is how country retailers have reacted to the news that Akubra Hats has closed their accounts, meaning they can no longer order what's regarded by many as an Australian icon.

After 147 years of ownership by the Keir family, the hat-making business was acquired by Andrew and Nicola Forrest's private investment group Tattarang, in November 2023.

Six months later, in May this year, stockists began receiving notification that because of Akubra's need to streamline its wholesale network, to set it up for long-term success, their account with Akubra was not commercially viable to maintain and would therefore be closed.

Writing to outlets such as the Samios Trading Post at Mitchell, Akubra Hats CEO Natalie Culina said their key driver was a focus on ensuring a consistent and quality retail experience for customers. "This focus would be undermined if we continued to spread stock across too many wholesale accounts," her letter said. "This is particularly so given that demand from our existing wholesalers has long exceeded our supply capacity."

As a result, accounts were closed on August 20. The shops affected can continue to sell whatever Akubra products they still have in stock, until the end of February 2025, but that's of little consolation to Samios co-owner Vicki Jones. "We've been flying Akubra's flag in our shop for 15 years, telling their story to our customers," she said. "Tourists want to buy an Akubra when they're in the bush, and they want to support small businesses."

Adding to the disappointment of seeing an iconic brand disappear from so many places, Ms Jones said it was what brought many into the shop in the first place.

"A farmer might only come to town to buy a hat but he ends up buying ammo and some socks as well," she said. Ironically, Ms Jones said her shop was opened by a man who was frustrated because he couldn't buy an Akubra in town. "Customers aren't very happy," she said. "We try and steer them to other Australian brands but the ones that are true to Akubra ask if they can get one online. "Yes, of course you can, but that means your money's going out of town."

'Remain committed'
An Akubra spokesperson said the brand had been a symbol of the Australian bush for 148 years and they remained committed to regional customers. More than 200 stores nationally are still selling Akubra hats and the spokesperson said more than three-quarters of their east coast retailers were in regional or remote locations.

"From Mount Isa, Cloncurry and Winton to Longreach, Charleville and Goondiwindi, Akubra continues to be stocked in 99 stores across Queensland," they said, explaining there was more demand for the hats than its Australian workshop in Kempsey could supply.

"While we are committed to growing our Australian-made workshop's capability, we are regretfully unable to provide every current retailer with enough stock to ensure a consistent experience for our customers, with a variety of styles and sizes available in stores. Akubra plans to hire dozens more craftspeople in the coming year and continues to invest in the necessary processes, operations and equipment to increase production capacity while preserving the handmade nature of our hats. We will continue to assess our retail network against our supply as time goes on. Queensland is our biggest market, and we are very grateful to our loyal customers and are working to ensure they have the best range available."

At the time of Tattarang's purchase of the business, Nicola Forrest said she was committed to protecting and enhancing the company's legacy. "An Akubra has always been part of my life, and as a new custodian, I am excited to help new generations discover this treasured Australian icon," she said.

'Not true outback brand'
In Blackall, where the same notice of closure has been received, retailer Ian Kinsey said it was always the smaller towns that got kicked in the guts. "We always sold whatever stock we had," he said. "At the end of the day, this isn't the be all to end all, but it takes away from our businesses if people go elsewhere to shop."

Mr Kinsey's Bowerbird shop has largely weathered the online shopping trend and seen customers swing back to shopping instore, and he said he would likely order in a hat range that more people could afford. "Akubra is a good, big sale but we were only getting so few to sell, it wasn't bread and butter stuff," he said. "I don't regard Akubra and RM Williams as true outback brands anymore."

Ms Jones was frustrated that part of the reason given for closing their account was that they didn't have enough sales, saying that for a number of years they'd been limited to ordering a restricted number of hats a month.

One email received in October 2022 tells the Joneses Akubra had "great news, your monthly allocation has been increased to 3 hats".

"It's pretty hard to be a big customer under those conditions," Ms Jones said, adding that she wasn't sure what potential sales might be now. "I wasn't monitoring sales, I didn't think this would happen," she said.

As news of the change filtered out on social media, people such as Susie Moore-Mcpherson expressed their dissatisfaction. "I am gobsmacked that this hat company is doing this," she said. "These guys work so hard to supply everything in their store and online business. Rural is where these hats are needed. It's like having a car to drive to work in - very sad for them."
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Re: Akubra ordering issues?

Post by Howard Weinstein »

These alarm bells prompted me to check some of our old standby online retailers for Akubra hats. Sadly, Everything Australian and Hatsdirect no longer have Akubra prices on their websites, and a couple of others appear to no longer carry Akubra at all.

I sent messages to Akubra via Facebook and their company website, suggesting they may be shooting themselves in the foot with this questionable policy of punishing reliable longtime retailers by restricting online sales or kicking them off Akubra's dealer list altogether. Not to mention, making it harder for international customers to buy Akubra hats. ](*,)

I have a lot of western hats -- almost all Akubras -- but I'd think twice before recommending Akubra to anybody else, or buying any more myself.

As for Indy and other fedoras, it's a good thing we have many other sources these days. But I wonder how Akubra's seemingly mean-spirited and ill-considered corporate policy might affect The Hattery/Hatsdirect and their revamped Federation supposedly under development. :?
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Re: Akubra ordering issues?

Post by Illinois_Jones »

Well I can imagine that the covid supply chain issues et al severely impacted the company's ability to operate and basically forced the Keirs to sell because like most family-owned business they just didn't have the capital at hand to weather the pandemic and then ramp production back up etc.

But I fear a situation like what happened to Ray-Ban after the Luxottica acquisition back when or more recently what happened to American Optical. The corporate system comes in and then views an inefficiency in the market and decides the "remake" the brand. They likely see what Stetson charges and want to come in closer to that number rather than being affordable quality. That's what happened to Ray-Ban, which used to be like $25 at any store in the US in the 90s, or has now happened to American Optical -- just a few years ago you could get a pair of AOs for like $50, but then they were bought by another firm, again during covid, who looked at the market and what people were willing to pay for a pair of Randolphs (virtually the same design) and decided to increase the price 200%+. I strongly fear we're going to start seeing Akubras going for $400+ in the near future.
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Re: Akubra ordering issues?

Post by Michaelson »

You’ll still find the Federation available on the HatsDirect site as they pulled it out of the Akubra listings and list it separately.

Regards! Michaelson
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Re: Akubra ordering issues?

Post by Illinois_Jones »

Well and I wonder how long that lasts before the new overlords at Akubra start shaking down the ladies in Katoomba and we see dramatic price increases or the Fed line disappears altogether.

It's just a terrible reality of math and business where if you double your prices and consequently reduce sales 50% you still end up making a lot of money by cutting input costs for materials and labor etc. But it also appears they're cutting out the middleman -- you can still order most of the line direct from Akubra, albeit at a more premium price than the typical online vendors we're used to. Heck, I think ordering a cattleman from David Morgan is cheaper now.
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Re: Akubra ordering issues?

Post by Howard Weinstein »

Akubra actually answered my email warning them that the new corporate policy cutting off international sales by the many loyal Australian retailers who've been selling Akubras online for years could come back to bite Akubra on the butt. I thought some of you might be interested in their response:

"Hi Howard -- For nearly 150 years, Akubra has proudly crafted iconic hats that embody Australian heritage, exceptional craftsmanship, and a legacy of quality. We deeply appreciate the loyalty and passion that our customers share for our hats, which have become part of your lives and stories.

Recently, we made changes to our online retail strategy to ensure a consistent and reliable experience for our customers. This decision reflects our commitment to safeguarding Akubra’s reputation and quality for future generations. By bringing our online presence in-house we aim to make it more convenient for our customers to access our full product range, ensure accurate stock information and uphold the highest standards of service.

We acknowledge the significant contributions of our longstanding retail partners and recognise the role they’ve played in Akubra’s history. These changes are part of our strategic focus on preserving the Akubra brand and delivering a seamless experience for customers, both in-store and online.

We want to assure you that Akubra remains committed to Australian-made quality and craftsmanship. Every hat is a testament to our dedication, taking six weeks and 162 steps to create. While some adjustments are necessary to support our future, we remain unwavering in our values and commitment to excellence.
Thank you for your understanding as we continue to evolve while staying true to the Akubra spirit.

For all purchasing needs, please visit our official website, or contact our customer service team for assistance.

Akubra - Support Enquiries"

In search of a short-term profit boost, I think they're making it less likely international customers will buy Akubra hats in the future. They've already raised prices, to the point where Akubra hats are no longer a comparative bargain. And since there's no longer marketplace competition, prices will almost certainly continue to rise. I think Akubra will ultimately regret this short-sighted decision. What do you guys think?
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Re: Akubra ordering issues?

Post by Rob »

Howard Weinstein wrote: Fri Jan 24, 2025 9:21 amIn search of a short-term profit boost, I think they're making it less likely international customers will buy Akubra hats in the future. They've already raised prices, to the point where Akubra hats are no longer a comparative bargain. And since there's no longer marketplace competition, prices will almost certainly continue to rise. I think Akubra will ultimately regret this short-sighted decision. What do you guys think?
While I'm not enamoured with what Akubra's done, I think you're looking at it from a very outsider point of view, Howard. And how can you not? You are outside Australia, so that's not a knock.

Within Australia, Akubra will continue to sell very well to its main market - which is those of us who live here. It's an insular POV - I totally get that - but it seems to be what it's banking on.

Give it time. They'll either continue to sell well here, locally, and be happy with that... or they'll realise they're missing out on some international sales, and will go chasing them :whip:
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Re: Akubra ordering issues?

Post by Indiana Jeff »

I hope Akubra did the requisite market analysis to see the comparison of domestic to international sales in making this decision.

I think our Indy community gets a skewed sense of sales because we see the Fed IV as a mainstay in our hobby, but I imagine it is a drop in the bucket of Akubra’s overall sales.

Still, disappointing that international purchases will be more difficult.

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Re: Akubra ordering issues?

Post by Rob »

Indiana Jeff wrote: Sat Jan 25, 2025 3:43 pm I hope Akubra did the requisite market analysis to see the comparison of domestic to international sales in making this decision.

I think our Indy community gets a skewed sense of sales because we see the Fed IV as a mainstay in our hobby, but I imagine it is a drop in the bucket of Akubra’s overall sales.
Yes and yes, basically. Akubra is a tiny company (I'll post a shot of its one and only location below; it's about 4hrs north of me here in Sydney), and I think that's actually how things like the Federation got made. A larger company would have such overheads, and need to make a gazillion units to make it worthwhile, whereas Akubra is such a tiny outfit - in relative terms, I'm not suggesting its mum and dad in their back shed, either - that it can make specialised stuff that doesn't sell in huge numbers. It would seem to me that, even prior to the new owners, there was no desire to build a bigger factory or relocate. They seem to want to keep operating at the same size of manufacture. As such, it seems that the domestic market is going to continue to be its bread and butter and obviously that's profitable enough for management :whip:

Image
Last edited by Rob on Sat Jan 25, 2025 4:53 pm, edited 1 time in total.
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Re: Akubra ordering issues?

Post by Indiana Jeff »

That is helpful insight. Thanks. :TOH:


Regards,

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Re: Akubra ordering issues?

Post by Rob »

Indiana Jeff wrote: Sat Jan 25, 2025 4:53 pm That is helpful insight. Thanks. :TOH:
No problem! Also worth mentioning the number of cars in the carpark. Some of those would be members of the public visiting the factory store, so it gives you a feel for the workforce size :whip:

A cool video on how they make hats which also gives you a feel for their size: https://www.youtube.com/watch?v=SCk0Qc541R8
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Re: Akubra ordering issues?

Post by Illinois_Jones »

Eh, something tells me Twiggy Forrest and Company has something up their sleeve. I believe at its peak in the pre-covid days Akubra sold on average something like 150k hats per year, which might seem like a lot for a small firm it's not really a lot since its such a narrow and aligned manufacturing process and product, especially considering the felt hat manufacturing business is what it is at this point; there's not going to be any major innovations in felting or blocking etc save some strange -- and creepy -- new way to like clone animal pelts and save the animals. A hat is a hat and we've been making them like that for 200 years. And I get Twiggy is trying some weird nationalist entrepreneurial capitalism thing (which is very au courant these days) like with RM Williams, but you can't tell me the handful -- and I do mean HANDFUL -- of North American or European etc Akubra buyers were causing some issue for the Aussie market let alone the manufacturer. I mean, it's not like Akubra paid the international shipping. A sale is a sale. And, AFAIK, Akubra sales have been down quite a bit of late -- they haven't published numbers in years but given the major shrinkage of the product line it tells me the market has shrunk substantially the past 5 years. I'll admit there could be a very VERY outside chance they're trying to create a domestic supply glut, along with selective scarcity in specific places/situations, in order to actually INCREASE demand... all while charging a premium for international orders. As I said before, Akubra's own site appears to allow one to place international orders. There's something else going on and it's not manufacturing capacity.

And is Akubra still all that popular down under really? The past several times I've been down to Oz (my wife is from Sydney) I honestly don't recall seeing all that many, even way out in the bush by Broken Hill and stuff. Plenty of people had lids, of course, but they were almost always cloth and at times I would honestly feel weird and touristy wearing an Akubra. Back in the 80s and 90s I remember Aussies wearing tons of Akubras; it was practically a cliche. Nowadays not so much.
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Re: Akubra ordering issues?

Post by Rob »

Illinois_Jones wrote: Sun Jan 26, 2025 12:17 am Snipped for brevity! :whip:
You've answered your own question(s), essentially. The outfit is small (as I was just saying), and never made loads of hats, and Akubra wearing would be down, historically.

So for the business to bring these sales in-house, to its own online model, and just streamlining the business (to use their own words) makes sense - assuming they've looked at the local and global markets, and decided - probably for a variety of reasons - to concentrate locally (not too many folks in Finland or Serbia want an Akubra, funnily enough, but I bet a lot of West Australians still do).

The pricing issue I see complained about has more to do with the US dollar being historically higher than the Australian dollar, so Akubras were always attractive for US folks to purchase; it was like getting a major discount straight out of the gate. The new, "less attractive" pricing isn't some conspiracy, aimed at overseas buyers, but reflects the way the price of Akubras has gone up here, full-stop.

I was looking at how much a new Akubra would be, of a style that I bought about 15 years ago (the 'Territory'), and I was dumbfounded with how much extra they cost these days. That's inflation :whip:
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Re: Akubra ordering issues?

Post by Howard Weinstein »

To Rob and others who weighed in -- Thanks for your varied perspectives and good points. I may have mentioned earlier in this thread that I've bought 20 or so Akubra western hats (plus 3 straw hats) from 4 or 5 Australian-based online shops over the past 14 years. So my own perspective wasn't focused only on the Federation fedoras which are of primary interest to many/most who hang out here.

Having a bunch of Australian hat shop websites selling internationally meant having several options in terms of stock, price, shipping costs, etc. (I hasten to add that all had exemplary customer service.) Plus, as with The Hattery developing and being the exclusive seller of the Federation line, other Australian retailers sometimes contracted with Akubra to stock and sell an exclusive color or style among their western hats. Competition is usually a good thing for consumers, and now we've lost that.

I agree that Akubra's international sales must be considerably less than home-territory sales. But for the new owners to end online international sales by Australian hat retailers, with Akubra corporate now the only source for international buyers, they must have concluded the potential gain was substantial enough to warrant the change. I get that it's a business, and understand that the new owners want to maximize profit and control; I'm just not sure this is the best way to reach those goals.

I could be wrong, but this wouldn't be the first time a company made a marketing decision which might prove counterproductive. New Coke, anybody? ;)
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Re: Akubra ordering issues?

Post by Rob »

Howard Weinstein wrote: Sun Jan 26, 2025 12:59 pm I could be wrong, but this wouldn't be the first time a company made a marketing decision which might prove counterproductive. New Coke, anybody? ;)
Was it Heraclitus who said the only constant in life is change? ;)

While I don't see anything on the horizon, as this is still in the process of happening, who knows about the longer term? :whip:
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