LAS VEGAS — Politics and pricing dominated the discussion among designers and manufacturers who participated in the Sourcing at Magic trade expo here.
Issues ranging from political unrest in Middle Eastern countries that produce textiles and apparel and the recovering U.S. economy to risings costs for fabrics, labor and transportation worldwide were shaping designers’ decisions when they scouted out fabrics and vendors at the four-day show that ended Feb. 16 at the Las Vegas Convention Center.
Drawn to Egypt’s duty free status with the U.S., Dov Charney, the embattled chief executive officer of American Apparel, visited the booths of Egyptian factories that make colored zippers and leather bags. Jael Thorpe from Brookings in San Diego sought a factory that could work with a minimum order of 300 pieces for the women’s contemporary sportswear she’s planning to launch under the label J. Ella Couture.
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“Anything other than plain” was how Gloria Brandes, ceo of young contemporary label BB Dakota in Costa Mesa, Calif., described her search for vendors of knit sweaters. One who caught her eye was China’s Hangzhou Light Industrial Products, Arts & Crafts, which exhibited knit samples of intarsia, drop-needle stitching and velvet lace flocking. In addition to a factory’s capability, its pricing was also vital in light of rising costs for cotton and other materials.
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“We’ve never worked as hard on our gross margins as this fall,” Brandes said. “Everywhere you look at it, the vendor’s getting squeezed.”
Winnie Luk, managing director at outerwear manufacturer Asian Garments in Hong Kong, said most clients are more understanding that costs of labor and supplies have increased as much as 20 percent. Luk offered some compromises: Asian Garments has expanded its offerings of fake fur and fake leather for customers who want to tap the trend for real skins but not pay for it.
Exhibitors from Egypt, which was the country of focus at Sourcing, tried to maintain a business-as-usual stance while acknowledging they faced uncertainty for the next six months following the resignation of President Hosni Mubarak.
Chereen Makhlouf, owner of Alexandria Mfg. in Egypt, said his factory in Alexandria is operating normally after closing for 72 hours in late January when the protests began. And he’s hopeful for Egyptian manufacturing.
“Democracy only brings in people who work for the people,” he said. “When somebody works for the people, they do what’s right for their business. They’ll facilitate and make it easier, like cut out bureaucracy and bribes.”
Sylvester Saldanha, a representative for Egypt’s Yasmina Garments, which makes shirts costing $14 to $16, said Egyptian business owners still want to promote their duty free status with the U.S. to attract more business.
“People in business still look at it as a world market,” he said.
Other vendors touting duty free status at Sourcing included Firemount Textiles Ltd. in Mauritius, a jeans maker which counts Egypt as one of its biggest competitors, and Oman Textile Mills Co., which exhibited its digital prints on silk chiffon and satin for the first time.
The potential of the U.S. market also enticed Alan Weiz, a French manufacturer that uses factories in France and China, who returned to Sourcing after a four-year absence.
India’s Ramjee Leathers & Supplies appealed to designers with its take on spring 2012 leather trends, including garment-dyed skins, washed jackets and pastel hues.
“People are buying less,” said Balajee Yogasundaram, Ramjee’s marketing manager. “They buy small but exclusive garments these days.”