NEW YORK – For sportswear firms in the moderate, better and bridge zones, the past year has been one of mixed blessings and 2006 looks set to be just as complicated.
With hurricanes and high gas prices putting a damper on sales and new quotas on Chinese imports causing vendors to rethink their sourcing strategies, 2005 was challenging throughout the supply chain. On the plus side, there has been good reaction to more innovative and creative products, as women look to misses’ departments for more fashionable, younger-looking apparel.
Here are some thoughts on the past year and the year ahead from five executives in the sector: Ken Sitomer, principal at Apparel Holdings Group, which markets the Caribbean Joe brand
Accomplishments: “In 2005, the Apparel Holdings Group navigated the massive structural and personnel changes that occurred within the retail sector. This meant having to service the various retail groups, many having their own individual philosophy of assortment and presentation. For instance, some placed more emphasis on private label than others.
“However, the common thread was that whether branded or not, every retailer wants to be looked at as having an assortment or presentation different than their competitors. This forced us to think out of the box in order to satisfy those needs. We believe that with our strength in branded merchandise and our substantial growth in the private label area, we represent a diversified resource to almost any retailer. In addition, with our increased exposure of our junior and children’s divisions we would like to take them to the next level, again reinforcing our diversification.
“The most challenging issue in 2005 was to understand the changes and restrictions of the global sourcing community and make them work for us. We were able to successfully stay on top of those issues.”
Goals: “One of our 2006 goals is to take our Caribbean Joe brand and make sure the ‘legs’ we have created through the addition of new product categories and our extensive licensing program further enhances the lifestyle dressing we have created. The addition of new product categories, like home textiles and watches, also helped to maximize our past successes.
“Our other 2006 goal is further diversification by creating or buying a company and/or a brand having higher price points that also has the ability to achieve substantial sales volumes on their own.” Lynn Ritchie, owner of Ritchie Corp.
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Accomplishments: “This year was very challenging with both national and natural disasters that affected our business as an industry. However, I believe we accomplished the goals we set for ourselves this year. Cruise and holiday were exceptional seasons for us and helped us to increase our assortments. We did great with skirts this year, when we were known primarily for our tops. We also worked very hard on the fashion basics and had one camisole in particular that just kept selling and selling.”
Goals: “For 2006, which will be my 16th year in this business, I’m planning to create even more for our customers. For the first time, we are launching a collection of jeans, which we’ve tested and seem to be fitting the customers really well. That, I’m sure, will increase our printed top business, which we are already known for.
“Personally, I plan to keep my wonderful work staff happy since they’ve done such an amazing job this year. These are the people that helped me to become successful, so really, it’s all about the people. Also, I just keep in the mind-set that I want to keep creating clothing that I want to wear. Misses’ sounds so old lady-like. I don’t want to dress like an old lady and I don’t plan to.”
Jamie Gorman, president, Only Nine
Accomplishments: “Some positive things that happened to Only Nine and me personally was, of course, the birth of my daughter, Dylan, and the increase in our production abilities by the addition of several new factories in Los Angeles and in China. We now have better and bigger production factories and facilities specializing in novelties, specifically embroideries, beading and crochet. Working with new factories overseas allows us to produce more fashion-forward key items. All of this has allowed our business to grow significantly since 2004.”
Disappointments: “On a sad note, Hurricanes Katrina and Rita, as well as the tsunami [in Indonesia] had effects on all of our customers and factories.”
Goals: “We hope to expand and grow our offshore production. Also, we look forward to our Dylan Ava girls collection, which we just launched. We look forward to increasing our customer base through continuing the growth of our private label business by feeding back quick-turn fashion items at great prices into our stores.” Bob Taylor, chief marketing officer, FDJ French Dressing
Accomplishments: “Most importantly, we offer a brand with a heart. We’ve supported breast cancer research and treatment since 1996, having raised over $2.2 million over the last 10 years. FDJ French Dressing plans to increase this support for 2006 by offering to the cause 50 cents for every garment sold. We originally donated a certain amount from every bottom sold, the support will now be doubled.
“One of the best things for us in 2005 has been the partnering with our best retail customers to create a shop-within-shop concept. The results to date have been phenomenal and we are planning another 60 to 100 shops-in-shops across North America in the new year.”
Disappointments: “Since we are a Canadian-based company with headquarters in Montreal, Quebec, recent U.S. Customs regulatory changes were detrimental to our business by delaying our typical product turnaround – which can be as quick as 48 hours – by two to three weeks in early 2005. We proactively addressed this challenge by opening a warehouse in Plattsburgh, N.Y.”
Goals: “The FDJ French Dressing brand awareness and enhancement will be a primary focus in the New Year. Although a manufacturer of women’s lifestyle clothing, FDJ French Dressing is a marketing-driven, not a production-oriented, company. The emphasis will be on the brand and how to leverage it best.
“Some of the new initiatives that will take place in the new year include: consumer advertising, both on national and regional levels; a new brand catalogue that will be direct to consumer, distributed through retailer outlets and mailings; setting up a retail advisory board that will consist of a specific number of retailers across North America with a good geographical representation, and, finally, market research will allow us to understand our consumers better and improve how we market to their needs.
“Overall, we expect sales volume to grow by 20 percent to 25 percent in 2006. We also plan to increase yearly accounts by 150 to 200 new accounts.” Ginny Hilfiger, co-owner and designer, Ginny H
Accomplishments: “The best things that happened in 2005 were that Roopal Patel, the women’s fashion director of Bergdorf Goodman, got an e-mail suggesting she look at my line, which she picked up; my husband, Chris Mahl, decided to work with me, and I found the very best factories Stateside, so I can continue to produce in the U.S.”
Disappointments: “A couple of the worst things were my choice to take the summer off, which I used to design my spring 2006 collection, and my husband decided to work with me.”
Goals: “Looking ahead, in 2006, I hope to establish a showroom for Ginny H, sell fall exclusively and keep my sanity.”