California Apparel News

After a couple of years of playing “how high can we go?” with premium-denim prices, denim makers are turning their attention to a new niche: girls who love the premium look but lack premium cash. Suddenly, up-and-coming denim heads are being courted from all sides by premium and juniors denim brands selling high-fashion denim priced for a teenager’s budget. Cash-strapped but fashion-savvy shoppers soon won’t have any problem finding jeans to suit their taste and, with prices hovering around $100, their lifestyle.

The market for mid-priced denim ranging from $68 to $100 isn’t new. Market research firm NPD Group reported that women’s jeans priced between $75 and $99.99 accounted for $48.06 million in sales for the 12 months ending August 2006—representing a 15.2 percent increase in dollar sales.

However, teens haven’t historically been a major focus for brands in this price point. NPD figures suggest teen girls ages 13 to 17 are used to paying far less for their jeans—on average $23.70 per pair.

Now as more companies enter the $100 denim market, the juniors and young contemporary client is being targeted with laser precision.

Courting two customers

For both juniors and premium-denim makers, the goal is two-fold: to lure a true junior customer into spending a bit more on jeans than she has in the past, and to tempt a young contemporary customer who may, on occasion, spend $180 on jeans to buy two pairs of their more-moderately priced jeans instead.

“These girls have been exposed to all the high-end denim, and they love the look of it, but in the past, the price has been restrictive. Still, their taste level in denim has risen,” said Steven Millman, denim design chief for Los Angeles–based juniors brand Hot Kiss. For this new breed of consumer, the company has launched Hand Sewn, a new denim concept that offers a contemporary look and fit for a retail price of $48 to $68. “We want to entice that particular girl—the girl who needs another pair of jeans like a hole in the head— to buy one more pair of jeans. She already has 15 pairs in her closet in every wash and color; now we want her to buy our jeans,” said Moshe Tsabag, president of Hot Kiss.

So far Hand Sewn, which debuted at the MAGIC Marketplace in Las Vegas in August, has opened new retail doors for the brand. Dillard’s, Federated and The Buckle, all retailers who have never before carried Hot Kiss brand denim, have bought into the new direction. “It looks so high-end we feel like our denim could hang in stores like Fred Segal and E Street Denim,” Millman said. Booming wash houses and denim resources in China allow the brand to produce premium-looking denim without forgoing high-end touches such as baked yarns and whip-stitching. “Our jeans look like they are made in L.A.,” Millman said.

Los Angeles–based label YMI Jeanswear International also launched a new line with roots in the premium market in August. YMI Royalty, YMI’s answer to premium denim, is set to retail for $98 in the same channels as its lower-priced denim. Predicting a big bust in the premium-denim market, Dina de Fazio, director of marketing for YMI, said offering mid-priced denim to the masses is just good business sense. “It’s all about volume. They’ll still get the styles and little details they want—and they can buy more jeans for less money,” she said.

While the Royalty price point is higher than that of most juniors denim, she thinks consumers will be attracted to the line in two ways. “Girls who know the brand will be instantly attracted to it—but also there is a trendsetting girl out there who is very fashion- forward and looks for stuff that isn’t too branded, who doesn’t want to wear the big brands everyone is wearing,” she said. In this case, being relatively unknown to the premium customer is a benefit, she said.

Made of fabrics sourced in Hong Kong and offering 12 silhouettes in six to eight washes, YMI Royalty is a big project for the juniors brand, whose other denim retails for $68. Still, De Fazio is confident the brand’s overseas production and fast-fashion approach to denim will help YMI be more flexible than premium brands with cash tied up in domestic production and tight distribution.

Not to be outdone, several premium brands, including J&Company, Blue Cult and Paper Denim & Cloth, have bowed diffusion lines or new silhouettes designed for younger bodies.

In July, New York–based Paper Denim & Cloth hit stores with jeans priced at $88 to $120 after having dropped its denim retail prices 45 to 55 percent. Now Paper hangs alongside mid-priced jeans in Macy’s West, as well as at the Brass Plum department at Nordstrom and in juniors-friendly retailer The Buckle. Kim Tuber, vice president of sales, said Paper’s fits have always appealed to younger customers but now the brand is of fering silhouettes specifically crafted for its new juniors customer. The designs feature lower rises and trendy washes. To further its push into the juniors market, Paper is courting press coverage from teen fashion publications, including Teen People and CosmoGirl.

No other premium companies have followed suit in dropping their prices across the board, but several have made a concerted effort to enter the $100 denim market.

In June, Vernon, Calif.–based Blue Cult signed a licensing agreement with Irvine, Calif.–based manufacturer and distributor nZania, giving the company permission to manufacture its Blue 2 brand of juniors denim. Blue 2 retails for $98—the perfect price point for introducing younger clients to premium denim, said Blue Cult owner Caroline Athias. “The customer wants a contemporary fit and look, but they might not be as savvy or sophisticated as the typical Blue Cult customer,” she said.

Cutting the cost, not the style

The idea might be simple, but producing premium denim for a juniors customer can be difficult. “When we were making Blue 2 the margins kept shrinking and shrinking,” Athias said. “It got to the point where we couldn’t do production— we just couldn’t justify it.” Signing a licensing deal with a manufacturer with overseas resources solved the problem. “We cut corners on little sewing details but the fit isn’t compromised. It still needs to be flattering,” she said.

Los Angeles–based J&Company launched Born in California, a spin-off of its premium denim for the juniors and young contemporary market. Priced to sell at $100, the collection is packed with skinny gray stovepipe jeans, slim denim pencil skirts and tailored jean jackets.

Hayley Gottlieb, the brand’s owner and designer, said Born in California has an advantage because of its true premium pedigree. “The customer knows the product is coming from a quality manufacturer—someone who knows the premium market,” she said. Gottlieb manufactures Born in California alongside J&Company but is able to hit a lower price point by opting for less expensive denim and cleaner design. “BIC is cleaner, more classic denim inspiration using more details in construction and packaging rather than styles, novelty accessories or pocket details,” she said.

A side benefit of the diffusion line is that Gottlieb has something to offer that premium-denim customer who is suffering from price-fatigue. “People are getting too worn out to spend [$200 to $300] on a basic trend. Denim became the ’must-have trend’hellip; and denim companies ate it up. But we can’t forget that trends pass hellip; and people will not continue to pay the outrageous prices of the premium-denim market,” she said. Still, as $100 denim seems to be picking up steam, some industry watchers warn that the entire premium- denim market is saturated—even this emerging niche. Barbara Fields, owner of the Barbara Fields Buying Office in Los Angeles, said distribution channels for $100 junior denim is limited to upper-tier department stores and specialty boutiques. “Everyone has premium denim—it’s no big deal anymore and the brand doesn’t matter. Now, girls want trends and fast-fashion. They’re shopping at H&M, Forever 21 and Zara. Right now the trend is most important—and since the trend is layering, who can see what it says on your butt under 27 layers of clothing?” she said.