DALLAS — Latins are influencing fashion and culture with their passion, creativity — and spending power.
Hispanics, with a population estimated at 42.5 million by the Census Bureau, are the largest and fastest-growing U.S. ethnic group. Their love of both classic-inspired looks and more traditional vibrant, sexy and colorful styles has bottom-line impact.
Hispanic women spent in excess of $6 billion on apparel last year, more than any other minority group. Overall, Latino purchasing power has climbed to $500 billion annually, according to WSL Strategic Retail. Hispanics favor mass discounters along with specialty stores that offer bargains and good customer service, provide a fresh flow of new and interesting items and keep advertised items in stock. They also feel most comfortable in stores that have convenient, clean locations and they want to be treated as part of the mainstream.
Fashions from Latin-inspired or Latin-owned companies have crossover appeal to mainstream shoppers, which is reflected in fall 2005 collections that feature cropped bolero jackets and shrugs, vibrant jewel tones, novelty prints and loads of satin, lace, ruffles and beading.
The widening appeal of Latin style is being propelled by new entrants such as Jennifer Lopez’s urban-inspired apparel line; Daisy Fuentes’ colorful and embellished offerings for middle-class America at Kohl’s and established, powerful and high-glam businesses at Oscar de la Renta, Narciso Rodriguez, Robert Rodriguez and Carolina Herrera.
“J.Lo’s line has been a big success not just because of Latinas alone, but because the look and the attitude is attractive to all women,” said Erika Prosper, a principal at Garcia 360, a San Antonio consulting, marketing and advertising agency. “Hispanic women tend to buy a whole ‘look’ [a blouse and matching skirt] rather than just one item, necessitating them to look for outfits that are affordable. I think that the Fuentes line is a great example of this, as she has made her clothing accessible at a midrange price point’’ and midrange retailers “as well as adding plus sizes to the mix.”
Hispanic heritage and a love of fashion inspired Al and Krista Escamilla to launch Guayaveda Inc., a women’s, men’s and children’s apparel company based in Midland, Tex. The firm has been in business three years and produces collections under three divisions: Starr Style, a misses’ moderate sportswear line with subtle embellishment and easy fit; Theochos, a collection of T-shirts and denim jeans, and Guayaveda, a line of young men’s shirts that have Spanish proverbs on the chest.
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“Originally, we just targeted the Hispanic community, but quickly realized that potential of an inclusive approach,’’ said Al Escamilla, a former stockbroker. “The idea now is to leverage the popularity of Hispanic style and culture and mold our portfolio to appeal to a wide American audience. We set out to create a portfolio of style for different niches of consumers, and we will definitely add more going forward.”
Guayaveda, the company’s first brand, was picked up by Nordstrom after its launch three years ago and rolled out to stores in California, Texas and Florida, which have high concentrations of Hispanics. That launch was followed by Theochos.
Last year, the Escamillas decided to court misses’ shoppers with the development of Starr Style, which includes items such as lace camisoles, beaded tunics, cardigans with rhinestone buttons and a medley of denim jeans that accent comfort. The line retails from $32 to $88 and is sold at Nordstrom.
“We got such a strong early response to our concept offering Hispanic style to mainstream shoppers that we decided to buy two small factories in Mexico so that we could control our growth and the production of our lines,” said Krista Escamilla, a former television news anchor. “We’ve never looked back.”
The company buys much of its fabrics at trade shows in Los Angeles and New York. “The most difficult part of doing business now is crossing the border and dealing with customers, though NAFTA has made it a lot easier,” said Al Escamilla, who projected total company sales this year at $2 million, with 70 percent of sales generated by Starr Style.
Nowhere is the passion for Latin style more evident than at Miami Fashion Week, where fall 2005 collections of several Latin designers will be shown May 11-14 at The Fashion Tent on the Beach.
“Never has the Latin influence been stronger and more appealing to such a diverse range of consumers, and the offerings on the runways will show just how versatile and far-reaching Latin style really is,” said Beth Sobol, executive director of Miami Fashion Week. The event typically draws hundreds of retail buyers.
Among the designers scheduled to show are Ivonne de la Vega, a New Jersey native whose family immigrated from Cuba.
“We specialize in eveningwear and mother-of-the-bride styles, and I think my Latin background is a great asset,’’ de la Vega said. “I grew up around, and was influenced by, women who crave fashion but interpret it in a very elegant and stylized way, with lots of color, beading and embroidery, but also with restraint. It’s a great balance that I continually strive for in my designs.
“Now much of my business is generated by non-Hispanic women who appreciate that sensibility,” she continued. De la Vega also owns a namesake retail store in Fort Lauderdale, Fla., along with her wholesale business, which counts 20 designer specialty store accounts across North America. Her wholesale business is planned to grow 30 percent this year.
Julian Chang Couture, a Miami-based designer, specializes in opulent fabrics with easy styling, said Sarah Rexroat, a principal at the company that also includes an eponymous retail store. Julian Chang is a Peruvian who now lives in Miami.
“To have a broad appeal is always about offering uniqueness and exceptional quality,’’ Rexroat said. “These are the things women remember and will come back for. The only thing that separates Latina shoppers from others, though, is that they want to be dressed head to toe, from earrings down to shoes. They want a complete, pulled-together ensemble, as opposed to being item shoppers. And that’s definitely good for business.”
Rexroat said business has increased 50 percent compared with a year ago. Julian Chang Couture wholesales to at least a dozen high-end designer stores across the U.S., as well.
According to a WWD List published last week based on research from NOP World, a global market research company, the top factors influencing Hispanics when choosing a shopping destination are, in order, low prices, convenient location, wide range of merchandise, employees who speak Spanish and products relevant to Hispanic customers.
NoNo’s Fashions, a women’s better, contemporary and designer store in El Paso, Tex., knows a lot about selling to Hispanic shoppers, given its location on the Mexican border across from Juarez, Mexico.
“We merchandise the store with Latina and American women in mind, though the distinction between the two groups continues to become less obvious,” said Missy Altus, co-owner of NoNo’s Fashions. “We do really well with designs by Robert Rodriguez, who does a sophisticated take on Latin style with clean and glamorous silhouettes. And we’re always looking for the newest rising star. When it comes to Latin fashion trends, few women can resist the color and embellishment.”