A tough economy isn’t keeping casual lifestyle companies down.
Vendors are countering the slowing economy and rising production costs with affordable, trendy and comfortable styles with forgiving fits in the misses’, petite and plus-size categories — all the while playing up value with better fabrics and trying to keep a lid on prices. Many are also launching new categories such as denim, knits and accessories, and producing new in-house brands and more private label products for specialty and department stores, as well as for spa and resort chains.
Meanwhile, marketing has never been more crucial to growth, as vendors reach out to attract more stores with multichannel approaches including direct mail, Internet and telemarketing campaigns and broader exposure at national and regional trade shows.
“It’s harder and harder for new retailers to open up shop, and it’s tough for small, independent specialty retailers to survive, because they can’t compete with big chain stores. They’re looking for differentiation in their product assortment to survive,” said Tom Williamson, vice president of sales and marketing at Aventura Clothing Co. by Sportif USA, based in Sparks, Nev.
“We’re challenging ourselves to offer unique styles with destination qualities so that specialty retailers can gain an edge over the competition,” Williamson said. For example, the company is using lots of organic cotton in fashion colors for casual lifestyle shoppers, and many of its fabrics have built-in UVA and UVB sunblock protection. “It’s a way to stand apart from the crowd,” he said.
Aventura Clothing Co. by Sportif launched with a spring 2006 line, and sales are projected to increase by at least 25 percent for spring 2007. Wholesale prices range from about $15 for a cotton shirt to $30 for a jacket or ensemble.
“Pricing and production issues are always a major concern and become more important when the economy slows down,” said Nina Tolentino, president and designer at A Touch of Class Clothing in Irwindale, Calif. “We’re giving them an expensive look at value prices and sticking with comfortable styles in luscious colors for women with less-than-perfect bodies. We stress versatility in our designs so women can
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get more value for their purchase and dress up or dress down in our styles. They can go from work to weekend.”
Wholesale prices are $16 for a slinky knit tank top to $79 for a long, beaded duster. According to Tolentino, who founded the company 21 years ago with her husband, Herbert, sales are expected to rise 15 to 25 percent by yearend.
“Retailers and consumers are still buying if the look is updated and more contemporary, so we’re cutting trendier items and going away from too much ethnic styling,” said Shivi Sindhu, national sales manager at Los Angeles-based Papillon Eastern Imports Inc. “We have introduced quite a bit of new fabrics, including Battenberg lace dresses.” The company is also going a bit more upmarket with more luxury detailing, such as intricate beading, to appeal to more upscale consumers, who can weather the economy better. Wholesale prices at the 31-year-old company are $45 to $130 for a dress, depending on embellishment. Papillon Eastern Imports is expecting sales to rise at least 10 percent in 2006, according to Sindhu.
Several casual lifestyle makers have stepped up production across categories and labels to create items new to the company, offering a sense of novelty for consumers.
“In February 2007 we’ll be offering our own denim label as part of our expansion to beat the economy and grow sales. The economy has caused business to be flat in 2006, and we want to grow,” said Haresh Patel, president of HP Trading Co., which, until recently, produced mostly private label styles for retailers across the U.S. “We’re also growing our range of denim styles right now for our private label accounts, so we think the timing is right. It will definitely lead to other in-house branded products in the future. We’re doing it because brands are powerful in America, and consumers follow brands.” Wholesale prices are $10 for a simple shirt to $50 for a beaded top.
“We’re continually trying to develop new product and offerings for our own weekendwear or ‘carpool couture’ customers, as well as private label specialty fashion products for the resort market. Business has been flat in 2006, but we’re optimistic,” said Andy David, director of product development at Overwear Inc. in Los Angeles. Wholesale prices at the 18-year-old company are $12 for a layering-piece top to $30 for a printed jacket.
A Touch of Class Clothing is launching new handbag and belt collections for spring to complement its apparel lines. “Women are really going for more ensemble dressing, and related items mean multiple sales for retailers,” said Tolentino. Wholesale prices are $19 for belts to $49 for metallic leather handbags.
Vendors are spreading the word about their companies with tactics ranging from catalogues to Web sites.
“We have sales representatives all over the U.S., and we’re greatly expanding our presence at trade shows. It’s paying off with big numbers, including lots of new retail accounts. We now have more than 350 accounts, and most of them have been trade-show driven,” said Williamson, who added that Aventura Clothing Co. by Sportif USA also does large-scale catalogue mailings and has a strong Internet presence.
Advertising plays a major role in the growth strategy at A Touch of Class Clothing. Tactics include “lots of direct mail and catalogues throughout the year to keep in touch with retailers and remind them to visit at the markets we attend,” said Tolentino.
“We have a major and growing Internet presence and also send out a tremendous amount of catalogues for categories including dresses, pants, tops, skirts, nightgowns, shoes and accessories,” said Papillon Eastern Imports’ Sindhu. “It’s all about keying into the way retailers, as well as consumers, shop and think.”