Vendors exhibiting in WWDMAGIC’S premium segment, a recent addition to the show, anticipate encountering a pool of buyers that are more optimistic in their outlook for the year, but are still cautious when it comes to writing orders.
Executives and sales representatives from several labels in the section have had a chance to participate in smaller regional trade shows around the country over the last month. What they found was that more buyers focused on bringing in only the most unique product they could find — and quickly. Although economic conditions and buyers’ moods have improved, orders are being put off as late as possible. In fact, the degree of success premium vendors will achieve at MAGIC could hinge largely on their ability to turn product quickly.
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“I think first people are really going to buy immediates, because people are buying so close to season,” said Ginger Vasquez, owner of Ginger Showroom. Vasquez will represent the Charlie Jade label at the show, which until January had gone under the name Haven. “Immediate business, if you have it, is going to be really good.”
Vasquez said she has seen business pick up significantly since the beginning of the year, but price sensitivity remains.
“People are more price-sensitive,” she said. “Again, stores will pick up a better-priced garment if it’s absolutely a must-have, but in general there’s such great product offered at good prices, that price has gotten more relevant.”
And while buyers will pay for items they deem as must-haves, they are buying less of it than in years past, she added.
The name change to Charlie Jade came about in mid-January after the label was purchased by a new owner. Vasquez said the designer, concept and fabrics of the line remain the same. Dresses wholesale from $44 to $56 and blouses from $34 to $42.
Gareth Rondell, owner and founder of Rock62, has also seen business pick up significantly since the first of the year.
“I’m considerably happier knowing that I’m going into this even already from two big events in January that have secured significant orders,” said Rondell.
Immediates are the key to Rondell’s business, made possible by the fact that all Rock62’s products are domestically manufactured.
“Our T-shirt business is built upon immediates,” said Rondell. “We make everything to order. As a result, because of the change in trends for buyers, it’s helped me considerably.”
Rondell believes buyers enter shows these days not wanting to exhaust their budgets on one or two big orders. The days of buyers overextending themselves, he added, are over.
“I think buyers have been too stretched, and they’ve realized that themselves now,” he said. Wholesale prices for Rock62 range between $20 and $60.
Michelle Waller, designer and owner of Royal Plush, transitioned to all domestic manufacturing about six months ago, which has also allowed her to capture more immediates business and to offer more customized products to her clients.
“Now if we have an important customer that says, ‘I have to have that in a month,’ I can cut it and ship it,” said Waller. “It’s a positive because you can do special things for people like Bloomingdale’s. With overseas [production], everything was a big deal.”
The Los Angeles-based label now has its production facilities in its own back yard. It’s an advantage for speed and flexibility, but Waller also noted it can also be time-consuming. She’s spending more time at the facility working on the product, which keeps her out of the office. Still, she said, it’s a good problem to have.
A trend shift has also helped allow for quicker product turnaround.
“The trend is a lot cleaner right now,” she said. “That helps with lead times, as well.”
Waller has also made a number of other moves to ride through the difficult economy and keep momentum going. Last year Royal Plush launched a fashion activewear line to complement the core line of casual contemporary lifestyle apparel.
“It’s been a savior for us because the price points are better,” said Waller of the collection, which carries wholesale prices from $18 to $44.
Waller also lowered prices on the core business a bit, but ramped up marketing initiatives to get Royal Plush on celebrities. The company even inked a deal to produce a co-branded line with “The Real Housewives” reality TV show.
Said Waller, “We just feel that to survive in this environment, you just need to keep twisting and turning.”