LOS ANGELES — Retail price pressures, consumer wariness and rising supply costs shadowed the market here this week, indicators the recession hasn’t completely loosened its grip on apparel vendors and merchants.
The market, which ran from Sunday to Wednesday and included Designers & Agents, Brighte, Focus Apparel & Accessories Show and the showrooms in the California Market Center, Cooper Design Space and New Mart, is a historically small show with light traffic. Many buyers chose to save their shopping for the start next Tuesday of MAGIC Marketplace and the ancillary trade shows such as Project and Pool in Las Vegas.
Purchasing close to season, retailers sought items that could be delivered within two months, but vendors also saw buyers who shopped holiday, resort and spring collections.
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“With domestic goods, I buy close to the season to see how the economy goes,” said Philippe Derey, owner of a namesake boutique in Beverly Hills. “Every day you listen to the news there is more about new rules and regulations, new taxes, new [government] spending, and I think it really has put a damper on people’s mood. Even people who have money are holding on to their money and waiting.”
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Jerry Wexler, who handles sales for Los Angeles young contemporary label Mystree, has detected a widespread lack of long-term ordering because of financial uncertainty: the forecasts for slower growth in the second half of the year, lagging job creation, tepid consumer spending and stock market volatility. “There hasn’t been much commitment beyond January [deliveries],” he said.
Overall, retailers’ budget constraints appear to be easing slowly even as the economy struggles to recover, but keeping prices affordable remains paramount.
Jasmine Afcharieh, co-owner of Boulmiche, a fashion retailer with California locations in Brentwood and Beverly Hills, said she is reining in retail prices and business is up compared with a year ago. “We used to have beaded, really dressy dresses that were $500 and $600, but now the price range has come down — $200 to $300 is what we sell better,” she said.
Vendors have adjusted to the price pressures.
In an effort to give retailers better margins, Los Angeles-based premium denim brand Habitual lowered the wholesale costs for some of its core styles to $79 so stores can keep the retail price the same at $189.
Ted Baker, which presented its spring collection at its new showroom in Cooper Design Space, benefited from a 25 percent reduction in prices after deciding last year to take its design and production in-house when the brand’s master license holder, Hartmarx Corp., filed for bankruptcy. Seeing gradual improvement in the U.S. economy despite cautionary predictions, Ted Baker plans to open stores in Chicago and in Manhattan’s Meatpacking District during October, in addition to units launched in Scottsdale, Ariz., and Santa Monica, Calif., in July and August, respectively.
“We’re bullish on [the economy] because we’re opening stores,” said Patrick Heitkam, executive vice president of Ted Baker’s wholesale and licensing business in the U.S.
To counter rising costs in fabrics and supplies, vendors are negotiating harder with factories and ensuring they meet certain minimum amounts to guarantee lower prices.
“As far as units and minimums, people are being careful about that,” said Elisse Shank, a sales representative for the Noetic Showroom, which carries lines such as Yana K. and Blue Feather.
The fashion direction during market week veered to bright colors and vivid prints that would help lift wardrobes filled with basics in solid hues. Designer Kerry Cassill, from Laguna Beach, Calif., printed a pink-and-blue leaf pattern on a $58 caftan tunic. Michelle Jonas Travelwear tie-dyed silk chiffon in pink, charcoal and white for $127 minidresses. Yana K. used a purple-and-pink tribal print on $118 maxidresses and Minnie Rose knitted cashmere into $99 swingy crop tops.
Prints also translated to jeans. Habitual laid a lace film on black jean leggings and a python print on gray leggings, both wholesaling for $125.
Handcrafted details resonated with retailers. Los Angeles-based Blue Feather offered an asymmetric gray T-shirt with lace appliqué on the shoulders for $63 at wholesale. Monserat De Lucca, a Los Angeles accessories company, did well with $118 drawstring cross-body bags whose exterior appeared to be intricately laced. Sophie Monet, a jewelry line from Venice, Calif., used ebony wood, zebra wood and shedua as warm bases for gold leaf, turquoise and other accents in rings and necklaces wholesaling from $20 to $68.
“Everybody responds to the wood because it’s different,” said Sophie Monet designer Sophie Okulick.
As far as apparel categories, dresses outpaced bottoms at Boulmiche and Philippe Derey. Derey singled out feminine, body-hugging dresses as top sellers. “At times like this, when the economy is not doing well, they make people feel better — men by looking at women, and women by feeling sexy and sensuous,” he said.