How the Zimmermann sisters built an Australian fashion empire
Recently a fashion brand started by two sisters 30 years ago became the most successful fashion label in the country.
Image: Zimmermann
In a deal worth between $1.5 - $1.75 billion, Advent International, a Private Equity firm, purchased a majority stake in Zimmermann.
The Zimmermann brand is focused on swimwear, poolside separates and sophisticated and feminine pieces. There are currently 58 Zimmermann stores, including 22 in Australia and 22 in the US. With revenue of $26M and >30% profit margin, the investment enabled Zimmernann to propel its expansion into Asia and the Middle East, boost its distribution network, including E-commerce, Advent, Zimmermann and Style Capital advised in a joint statement.
Simone Zimmermann attributes the success of the brand to staying in its lane, enabling the business to go from success to success.“We don’t follow cues from international designers,” she says. “We do what we do, and we have a business we’ve been honing for many years.”
Starting out as a market stall in Sydney’s Paddington Market in 1991, Nicky and her sister Simone saw a gap in the luxury fashion market and were able to test concepts with their customers, gaining a firm understanding of what resonated. In fact, this is a key to its success: understanding who the customer is, testing concepts with customers, gaining a solid understanding of what customers want.
A major turning point in the brand's success was in 1996 when the brand helped to launch Australian Fashion Week, alongside 8 other designers including Collette Dinnigan and Peter Morrissey. Says Nicky: “We had made up our minds that we wanted a business that was going to be international.” Shortly following this, the brand was picked up by Harvey Nichols, giving the business prime window display space. Net-a-porter started to stock Zimmermann and there was additional growth from being featured in the Victoria’s Secret catalogue.
The unique proposition of the brand when it started out helped provide a distinctive style that was unique: “We decided to do swimwear with clothing, which no one had done at the time,” says Nicky. “It was very fashion swimwear, and the prints were the same as the clothes. And it wasn’t kaftans. It was jackets and pants and full-on dresses, and it was quite a different point of view.”
In a market that has seen many Australian fashion businesses crumble, it's inspiring to witness the Zimmermann business go from strength to strength.
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