Las Vegas Draws Cautious Retailers Looking for Hits

Apparel manufacturers and buyers, bruised from the economic blows hitting the industry, entered the retail ring again at this year’s Spring 2002 MAGIC International trade show in Las Vegas with tempered enthusiasm. Most of the players expected to fall short of last year’s numbers, with manufacturers reporting strengths in brand-awareness and niche offerings and buyers planning to modestly scale back orders.

In spite of recent reports of falling consumer confidence, show organizers put a positive spin on the economy’s encroachment on the event held Aug. 27–30. They wouldn’t provide hard numbers but estimated that attendance figures for the show would be on par with last year’s draw of 96,000 attendees, including representatives from major department stores Federated Dept. Stores, Kohl’s, Sears, Roebuck & Co. and Saks Fifth Avenue and large specialty retailers Nordstrom and Bon Ton Stores.

“As far as final numbers, we’re tracking pretty close to last year [but] we don’t even know the final numbers until after the show,” said Camille Candella, marketing director for MAGIC.

Candella said that the exhibitors she spoke to were pleased with the show—although many said they had been a little nervous in the weeks preceding the show.

“People were cautious because of the economy, but we’ve gotten good responses from both exhibitors and retailers,” she said. “I think that people had no idea what to think at first, but it went better than expected.”

Show organizers were also pleased with the number of major retailers at the show, according to Candella.

“We are constantly trying to increase the quality of our retailers, so we’re happy to see Saks and Nordstrom walking the floor,” she said.

Still, the mood on the show floor at the Las Vegas Convention Center and the Sands Expo & Convention Center was restrained, and domestic and international buyers and exhibitors alike said that floor traffic seemed light.

“I’m not surprised—the market’s soft right now,” said Greg Kaleel, owner of American Male & Co. in Oswego, Ill. “It’s been easier to work this year. I’ve been able to walk [into] booths without appointments. “

The show’s pace worried international players who look to the U.S. economy as a barometer for their own fiscal progress.

“It’s slow—very slow,” said Ezra Tussie, buyer for Grupo Generra in Mexico City. “This is a very important show in fashion. It’s surprising there aren’t more people.”

The news of falling consumer confidence that came midway through the show also kept some retailers’ spirits low. Consumer confidence nationwide dropped to 114.4 in August from 116.3 the prior month, although consumer confidence picked up in the Pacific region, according to the Conference Board, a New York-based research firm.

“That’s really discouraging,” said buyer Connie Wilson of San Diego-based catalog International Male. “Business needs to shape up and get off the ground again.”

The uncertain economic climate seemed to be reflected in manufacturers’ offerings, according to Carrie Williams, a retail consultant whose firm, Seattle-based Williams Creative Marketing, has worked with Nordstrom, Eddie Bauer, L.L. Bean and Pendleton Woolen Mills.

“Few manufacturers look like they have confidence,” she said. “Some look like they’re hedging their betshellip;which is causing a lot of confusion in the marketplace.”

Dave Stubbs, merchandise director at skate and snowboard retailer CCS in San Luis Obispo, Calif., said he counts on trend information usually found at MAGIC but was hard-pressed to find anything that was a must-have. “I’m not seeing anything phenomenal—I’m just seeing a lot of denim and camouflage,” said Stubbs.

Many retailers were scouting for sure sellers and key items to freshen their inventory.

“Retailers are going for the long haul and are looking for manufacturers who have more than one trick up their sleeve,” Williams said.

New Kids on the Fashion Block

A sluggish economy did not keep the new lines away, with several debuting at the show, including contemporary lines Mille Nico, Haley Bob, Ynnub and Lacey J and designer Jared Gold’s new line Black Chandelier. This year’s newcomers to the section of MAGIC known as the edge included Beta Project, Upper Playground, Ethnico, Base 09, NUFLO and KU USA.

Eager to tap the tween market, El Segundo, Calif.-based Mattel Inc. launched an apparel line for Diva Starz. The toymaker was capitalizing on the success of its interactive fashion dolls and hugely successful related CD-ROM launched last year. The tween line includes screened T-shirts, sleepwear, book bags, glittery denim jeans and accessories and targets 7- to 12-year-olds, according to Dann Murphy, Mattel’s vice president of retail development for Barbie consumer products.

Doing Business on Junior Boulevard

Booth location is always a key factor for exhibitors, and this year was no exception. Los Angeles-based manufacturer Hot Kiss’ location amid a sea of other junior contemporary resources, including b. Clothing Company, Tag Rag, JNCO and Paris Blues, prompted owner Moshe Tsabag to dub the location “Junior Boulevard.”

Tsabag said the buyers from department stores and chains, including Robinsons-May, Wet Seal and Dillard’s, were mostly placing holiday orders for the company’s recently licensed bags and sunglasses while getting an early sampling of the company’s Spring 2002 line.

Sean Knight, vice president of merchandising for Los Angeles-based b. Clothing, said buyers started dropping paper for immediate and holiday deliveries at the beginning of the show, and he attributed the flurry of orders to increased name recognition for the junior contemporary label.

The first two days of the show were busy for Newport Beach, Calif.-based manufacturer Paul Frank Industries, according to sales rep Austin Brown.

“It’s all been slammed,” he said. “Monday was crazy and we didn’t think it could get any crazier. Then by Tuesday morning, every single seat in the booth was filled until the day was over.”

Brown said retailers were writing orders for the company’s newly launched eyewear and watch lines, plus a mix of core bottoms and novelty tops.

Contemporary Continues to Show

Contemporary designers returned to the show despite the heavy emphasis placed on junior apparel.

“This is more of a denim market,” said Bisou Bisou chief executive officer Marc Bohbot.

Bisou Bisou left its contemporary line in Los Angeles during MAGIC and shifted its focus to its recently launched denim line. On the show’s first day, Bohbot said his only expectation of the show was that it would reinforce his company’s position as a hip denim manufacturer. Bohbot added that he would take his contemporary women’s line to New York for next month’s Fashion Coterie show.

Other contemporary designers agreed, adding that they felt slightly misplaced among a plethora of junior labels. “This show seems very junior contemporary–driven, so the better contemporary lines might have stood a better chance at the [Womenswear in Nevada] show,” said Yvette Estrada, a sales rep for Los Angeles-based missy contemporary label Angelica-Val.

Some contemporary resources including Rojas, St. Vincent’s T-shirt line Mrs. Weir and Fever jeans opted to show their lines among the menswear labels at the Las Vegas Convention Center.

Alternative Reigns at the edge

No longer the new show at MAGIC, the edge entered its sixth season with tightly edited looks from vinyl vests to fishnet tops and continued to lure alternative retailers who said they appreciated having a separate section in the Sands just for them. Porn Star, Second Co., Dogpile and Lip Service were among the exhibitors doing brisk business.

“The edge has kept a few of the better manufacturers to maintain the viability of the section and keep the edgier retailers coming back,” said L&H Apparel’s Sven Bastian, who heads up the company’s Porn Star division as well as the company’s other offspring, including Porn Star Undercovers, Starlette and Freedom of Speech (FOS) labels.

Bastian said his divisions were receiving orders from retailers as far away as Washington, D.C.’s Up Against the Wall to local retailers such as Atomic Garage in Los Angeles.

The cherry and skull prints were hot sellers at the She Devil booth, finding an enthusiastic customer in Bend, Ore.-based Faux Pas owner Mel Hignell. Her opinion, however, may hint of bias.

“They’re fabulous—they bought us booze,” said Hignell, sipping her whiskey sour. “They also gave us a lot of free gifts like stickers.”

Hignell, who planned on picking up Clever Girl, Serious Inc. and the Lip Service lines, reported that business at her punk boutique has been strong, and she plans on expanding her apparel line.

“We’re the only game in town so we don’t have a lot of competition,” she said.

Streetwear Starts Slow, Gains Momentum

The overall feeling among the exhibitors in the streetwear section of the Las Vegas Convention Center at the opening of MAGIC was of trepidation due to the slowing economy’s effect on all industries. But by the second day of the show, retailers were writing orders or, at the very least, scouting new resources, exhibitors said.

Reps for well-established streetwear labels including Karl Kani and Phat Farm said they were busy non-stop with retailers on Aug. 28 and Aug. 29.

Osa Odial, owner of new line Live Mechanics, reported that the show’s initial pace worried him.

“The first day was scary, and I was getting second thoughts about going back to law school,” Odial said. “I gave it all my effort. I was looking for big books the first few hours of the show, but it took a turn the first day and it’s been banging ever since.”

Finding the streetwear-section atmosphere “chaotic as usual,” Johnathan Gomez, co-owner of Monster Sports and Streetwear in Westminster, Calif., said he was seeing manufacturers return to past styles, including Phat Farm’s dark-toned velour shirts. He also noted that his customers’ slavish loyalty to denim was causing him to get burned business-wise.

“Denim’s getting too pricey and is being priced out of people’s market,” Gomez said. “We’re seeing a lot of people stealing them.”

Other retailers spotted shopping the section included large department stores/chains Bloomingdale’s, Macy’s West and Hot Topic, specialty boutiques Bang Bang and Le Chateau, and international buyers from Japan.

Spring 2002’s Key Looks

This year’s fashion show revealed feminine, saucy looks, including Fidel’s one-shoulder flowing dresses and Jane Doe’s one-button flesh-colored lacy tops. There was a return to punk madness with plaid skirts, safety pins and brightly colored shirts. New Breed played up the naughty-nice routine in a girl scout–inspired khaki-colored miniskirt with orange piping and a one-shoulder knit top.

Denim still took center court among retailers who showed no sign of hip-hugger weariness.

Daphne Brewer, buyer for Costa Mesa, Calif.-based boutique Black Velvet, said she was on the hunt for low-rise jeans. The buyer said she plans on dropping paper at MAGIC, noting that her orders will range from $800 for accessories to $5,000–$6,000 on apparel items, keeping in line with last year’s shipments.

Lacy blouses were top-of-mind for retailer Michiko Marryshow, co-owner of the year-old young contemporary boutique Red Lantern in New Orleans. One notable look she found was that of the tops of a new exhibitor, Los Angeles-based Red Engine.

International Male’s Wilson was spotting a lot of new men’s collar treatments, including keyholes, square necks and button-free openings.

“They’re creating shirts in basic silhouettes and giving them fresh twists,” she said.

WWIN Buyers Pleased With Mix

Buyers at the Womenswear in Nevada (WWIN) show, held Aug. 27–30 at the Rio Hotel and Convention Center in Las Vegas, viewed more than 1,200 lines at the event, according to Jeff Yunis of Specialty Trade Shows, organizers of WWIN.

Preliminary attendance figures counted more than 5,000 attendees, including buyers from Dillard’s, Nordstrom and Lane Bryant, according to Yunis.

Bob Kipperman, owner of Coronado, Calif.-based Kippys, said he was pleased with the amount of business he did on the opening day of the show.

“Yesterday I did what I would have been happy with for the whole show—it’s been crazy,” he said during the second day of the show.

Kippys manufactures Western-themed apparel in leather and suede embellished with crystals and studs. However, Kipperman said he was seeing interest from WWIN buyers in his more-contemporary items.

The show’s offerings included better missy, special-occasion and plus-size merchandise and accessories.

Laguna Beach, Calif.-based designer Dinah Lee, who was exhibiting her self-named line at WWIN, said the show is an important one for her business because she reaches her core customers there.

“The exhibitors here seem to know who their customers are and only focus on stores that understand [those customers’] needs,” she said, noting that the show’s relaxed and buyer-friendly environment is conducive to order writing.

Retailers Shirley and Steven Timmons were at the WWIN show looking for unique items for their women’s apparel boutique, the Mayfair, in Cambridge, Ohio. The two have shopped MAGIC for the past four years and added a stopover at WWIN in the past few years.

“This is more our customer,” said Shirley Timmons, adding, “We have found new lines at MAGIC, but this is more traditional.”