Price-Conscious Buying at Los Angeles Market

The mood at the June 12–16 Fashion Market was up as buyers perused everything from Immediates to Fall and Holiday styles. “It was the most positive market I’ve seen in a while,” said Mattie Ilel of apparel and accessories brand J.P. & Mattie.

Held in the California Market Center, The New Mart, the Cooper Design Space, the Gerry Building and various emerging showroom buildings—the Lady Liberty Building, 824 Building and new Primrose Building—the June market wasn’t heavily attended, but exhibitors and buyers reported purposeful buying across several seasons. Boutique trade shows—including Brighte Companies, Designers and Agents and Focus—reported buys that spanned price points.

Typically one of the smaller markets, the June market’s standout feature was its lack of doom and gloom. It seemed that most everyone decided to look on the bright side. Pointing to everything from steady Immediate orders to buys that went forward into Fall and Holiday deliveries as well as stacks of notes as hallmarks of better times to come, exhibitors, producers and retailers were united in their cautious optimism.

Ethan Eller, The New Mart’s general manager, summed it up by saying, “It was hit and miss. It was about what you’ve got and who you know.” Attendance in the building included 885 registered buyers—down more than 100 from the same market last year. Still, he said, that’s better than had been expected. During the previous market, attendance had dipped 15 percent. Ed Mandelbaum, co-producer of D&A, said that while the show was smaller than last year’s edition, attendance did not dip. “I think it’s a sign retail has picked up,” he said. “We’ve all been in such a depressed mentality since last year. I think this is a sign things are looking up.”

Executives at the CMC were equally encouraged. “Buyer traffic was up every day except Saturday from March 2009,” said Joanne Lee, senior vice president of the California Market Center. “The market’s success is an indication that the industry is beginning to recover.”

Cost conscious at the CMC

Showroom reps said the secret ingredient to success at this market was having an abundance of product with lower price points. The mantra across the board seemed to be “chic but cheap.” That helped to counter what many felt was lower attendance than last year for the Fall II/Holiday market week.

“People are definitely watching their pennies,” said Heather Kern, who owns the Heather G Showroom on the fifth floor of the California Market Center.

She was fairly busy the first three days of market and found buyers were particularly interested in the Green Dragon line she represents.

With wholesale prices ranging from $35 to $89, this stylish collection of tops and bottoms was a top seller.

Particularly popular were medium-weight fashionable jackets in recycled fleece/Modal that had fancy embroidery work on the back. So were the fleece skinny-leg pants that wholesaled for $36 and looked like leggings.

Another hit was a new line that Green Dragon recently developed called Free Society. The tops had embellishments around the neckline, and the fabrics were done in a rich wash. They were wholesaling for $25 to $47.

“Anything with trim detailing around the neck is a huge trend,” Kern said.

Over at the Lifestyle Clothiers showroom on the CMC’s fifth floor, Sue Volin-Gershon said she also noticed a certain reticence on the part of buyers to part with much money.

“Accessories have been good, but other than that, buyers have been pretty tight-fisted,” said the showroom owner, who reps lines such as Notice, Jake’s Dry Goods, Kiss The Girl and Anu by Natural scarves.

Boutiques, she observed, were on the prowl for inexpensive items to dress up a wardrobe, from leggings and skirts to scarves. T-shirts that wholesaled for $18 to $24 also went quickly. And from the Notice contemporary label, fake-fur vests that cinched at the waist, retailing for around $100, were moving briskly.

At the CMC’s Landa Sales showroom, Shana Landa agreed that buyers seemed to have gone on a strict financial diet for this market. But fortunately for her, the two lines she carries, LTB jeans and the contemporary label C. Luce, are priced for cash-conscious customers. “I hear from the stores that there are great days and then there are quiet days. And this is from all over the country,” Landa said. “So everyone wants deals. They just don’t want it to look inexpensive.”

Because much of her LTB denim line retails for around $88, buyers were particularly interested in the women’s collection, which has a more American fit with an 8-inch rise in the front and a higher waistline in the back.

C. Luce had trendy selections, with stylish sweaters going for $21 (wholesale) and boyfriend jackets wholesaling for $38.

“People are looking for good price points that will retail for under $100,” Landa said, adding that this market for her was better than last year because her lines had the modest price points buyers needed to keep customers walking through the doors.

Boutique owners wandering the showroom halls confirmed they were working on a stricter budget than last year.

Connie Later and Shauna Nelson, owners of Justified, a relatively new boutique in Sandy, Utah, south of Salt Lake City, said that last year it wasn’t that much of a problem to sell $300 True Religion jeans. But this year, it was hard to coax customers into any pair of jeans that sold for more than $150.

“Price is important,” said Nelson, who said she was eschewing apparel with bling and going for more classic looks.

Edith Wenzel and Christina Rickett, owners of Azul Couture, a high-end boutique in Alberta, Canada, said their retail price points were coming down this year, but they were still around $150 to $400. In the past, they have carried items that sold for as much as $3,000. But residents in Alberta, which depends on the oil industry for much of its economic base, were coming back to earth and not paying astronomical prices for apparel.

The shop owners were looking for outerwear and Holiday dresses that would be warm enough for the Canadian climate. “We don’t like to be too inexpensive because our selection has to be different from other stores that carry the cheaper items,” said Wenzel, noting that her female clientele ranges in age from 35 to 50 and has a little more cash to spend on their wardrobes. “We only get a few of each style so they [our customers] won’t see themselves everywhere.”

Trends and classics at The New Mart

Key items, not necessarily season, drove buys at The New Mart.

In the Focus Showroom—which represents brands such as Twig, Central Park West, Madison Marcus and its new little-sister brand, Gemma—buyers scouted all the brands, while in the past they may have only viewed a narrower selection.

“Retailers were being very careful to diversify their buys,” said Focus owner Sylvana Lankshear, who said buyers were cherry-picking items across seasons, brands and price points. “Stores that at one point may have turned their noses up at some of the brands now are very interested in seeing everything. Madison Marcus did well with ’80s-inspired tops and silky dresses with pops of bright color and details such as exposed zippers. Silk blazers and pieces with lace or chiffon details that mimic the look of layering were popular. The “sweet spot” for price point landed between $98 and $128 wholesale, Lankshear said. Gemma, a new silk-top resource from the makers of Madison Marcus, lured buyers with a lower price point of $59 to $69 and items such as tank tops with novelty prints and oversized pockets. Central Park West earned buys with “fashion at the right price point,” Lankshear said. Fringed cardigans, sequined tops and jackets, and jacket bodies in knit fabrics priced between $39 and $59 lured buyers.

At the Level 99 showroom, buyers divided their focus between moderately priced trendy denim and more-expensive premium denim in classic jacket and pant silhouettes, said Tate Goldsberry. “Buyers aren’t willing to spend a lot on riskier, trendier items,” Goldsberry said. For super-skinny, really distressed and crazy washes, buyers opted for the lower price point of Divine Rights of Denim, she said. Staple pieces such as trouser-cut denim, vintage-styling and classic jean jackets and Level 99’s $100 retail items won out.

Quick delivery at Cooper

Buyers were definitely on the fast track when shopping for goods. Most were in search of Immediates to fill gaps in their inventory.

At the Brand Equity Showroom in the Cooper Design Space, sales agent Heather Ellis said buyers were looking for items that would arrive in the next month or six weeks. “They are also looking for sharp price points,” she said, noting that traffic during this market week was slow.

“People are still buying Fall when Holiday is over,” said Brian Stark, owner of the large showroom, whose labels include Chevignon for men and women, Division E, Civil Society, and Red Monkey headwear. “This is when it pays to be a domestic line.” Labels manufactured overseas don’t have a chance of delivering goods quickly.

At the Standard Showroom on the Cooper’s fifth floor, sales rep Nicole Wolensky agreed that buyers were interested in Immediates. But they also were looking down the road. “They are still buying for Holiday,” said Wolensky, whose lines include Special Fabrications, Vuori, Josh Podoll and Lily & Jae. “But they are buying more cautiously, looking more for gift items than Holiday outfits.”

Wolensky said this was the worst market she had seen in six or seven years.

However, the market was more upbeat for Andrea Plsek, the West Coast sales manager at the multi-line Joey Showroom in the Cooper. She said Nordstrom buyers stopped by as well as 10 or 15 specialty-store buyers a day. Particularly popular with buyers was the House of Harlow costume-jewelry line, launched by celebrity Nicole Richie. Its wholesale price points ranged from $5 for stackable rings to $200 for a headpiece.

Diversity at D&A

Though noticeably smaller, Designers and Agents provided the diverse offerings it has become known for. Eco-conscious brands shared floor space with established contemporary and denim brands, fledgling brands, accessories lines, and even cash-and-carry options. Exhibitors reported a brisk opening day.

Tiffany Phipps, designer and owner of New York–based innerwear line T-Luxe, hoped to make an impression on buyers during her Left Coast debut. The concise collection—which includes tap pants, bras and night gowns in organic silk—appealed to some retailers for its flexibility. Vintage-inspired night dresses could be sold as tops, for example, or layering pieces.

At James Jeans, Seun Lim the brand’s creative director, eschewed Fall or Holiday in favor of selling reorder and Immediate goods. “That’s what buyers need right now,” she said. A simple formula drove sales, she said. “The tighter the jeans and the lower the price, the better.”

J.P. & Mattie’s Ilel said that while she hasn’t dropped her prices, she has reworked her fabrications to appeal to today’s price-conscious and skittish buyers. “I still produce silk and cotton pieces, but before I may have produced 50 of one dress in silk and 50 of that same dress in cotton. Now I produce 80 of that dress in cotton and 20 in silk,” she said.

’Brighte’ spots

Business appeared to improve at the Brighte Cos. show compared with the last show, which took place in March, according to several exhibitors showing during the June 12–15 run of the event in the CMC’s Fashion Theater.

The ENK-sponsored event caters to contemporary apparel and accessories buyers, mostly from New York and the West Coast.

Countering trends from recent shows, exhibitors reported more seasonal buying rather than Immediate orders. Items and sure sellers appeared to be the formula, said buyer Linda Patterson of Los Angeles boutique Nuyu.

“My customers are still coming into the store, but they are not buying as much as they had been,” she said. “As a result, I am buying less and being more specific.”

Jane Mohr of Van Nuys, Calif.–based Jane Mohr Designs, which markets a European-influenced line called Dress to Kill and knits line Caz, concurred.

“You have to have something different,” she said. Mohr said she thought the energy at the most recent edition of Brighte was much higher than that at the March show. She did well with harem pants and deconstructed striped shirts from Dress to Kill but said her knits line, Caz, performed slower. “Sweaters are soft right now,” she said.

Still, Mohr said she is on track to improve over last year’s sales, noting that her customer—the baby boomer woman—is better positioned during the recession than others.

Hawaiian denim line Allison Izu debuted at Brighte, featuring premium denim made in California for petite women. Designer and Fashion Institute of Technology grad Izu said she was more concerned about getting her name out than racking up orders.

“I brought a team out that is getting the word out to stores down Robertson, La Brea and elsewhere,” Izu said.

The line features five basic and five specialty styles made with domestic and Italian denim. Wholesale prices start at $70, and the jeans come in lengths ranging from 27 inches to 31 inches. “There’s a void in the marketplace for shorter women,” she said.

Handbag designer Beth Springer said she was somewhat surprised that she was placing orders for her high-end product, which exceeded wholesale price points of $300. The line is based in Los Angeles’ Venice district.

“We came out with some smaller product with broader prices, but we sold the highest price points down to the lowest, doing especially well with messenger bags,” Springer said. “But I was pleasantly surprised all around. It was almost a normal market.”

Wide selection at CMC’s Focus

Buyers had a wide selection of merchandise to choose from at the Focus show, held June 12–15 in the CMC’s 13th-floor Penthouse Pavilion. Exhibitors included well-known brands such as XOXO and Farmer, as well as newly launched lines, and the merchandise mix spanned all categories, from contemporary and premium denim to accessories and graphic tees.

Most exhibitors reported slow traffic, but many said they met with enough buyers to make it worthwhile.

This was the third time showing at Focus for Kellwood division XOXO, which also has a permanent showroom on the CMC’s eighth floor. “Across the board, trade show attendance has been down for quite some time,” said Account Executive Sylvia Barraza. “Although several prospective customers visited the booth, we scheduled appointments in advance, so the XOXO booth had a constant flow of traffic.” Barraza said she saw a mix of both local retailers and out-of-town buyers and signed new accounts at the show. This was the first time showing at Focus for Los Angeles–based label Farmer. While traffic was slow, according to representative Kelly Casteneda, the premium-denim brand benefited by being a new face at the show. “People are looking for a newer identity,” Casteneda said. “A lot of companies carry the same things. People are looking for that extra quirk.”

This was also the first time at the show for Salt Lake City, Utah–based jewelry line The Pink Chandelier, but co-owner Tyler Cole said he met with retailers from California, Washington, Kansas and North Carolina—“stores from all over.”

Los Angeles–based designer Talina Hermann opted to “test-drive the market” at Focus with her eponymous collection, which launched in late 2007. The line is carried at Fred Segal Fun in Santa Monica and in Krisol, KIN and Mesh and Lace in Los Angeles, as well as stores in San Diego, Georgia, Arizona and New York.

One of the larger booths at Focus housed Los Angeles–based casual collection Muuml;r and its new contemporary line, Monoreno by Muuml;r. Muuml;r is known for its jackets, said Emma Oh, Web marketing director for Monoreno, but at Focus, she said she saw strong interest in tunic tops, as well. Both lines are produced in the company’s own factory in China.

Oh said most of the traffic at Focus came from existing Muuml;r and Monoreno buyers.

“The main reason to go to a local show is to meet new customers, and we met a lot of our regular customers,” she said.

Focus also included a few exhibitors—Original Sin Jewelry and U=R Unaware—from Thread Select, the showcase of indie designers put on by San Diego–based consumer trade show Thread.

New-media firm Buzzflikr PR also set up shop in the Penthouse Pavilion with its “Catch a Buzz” lounge, where staffers were offering tips on technology and social networking and Tweeting live from the trade show.

Mixed results for other showroom buildings

Tracey Burton and Karen Spaulding of The Globe showroom in the Lady Liberty building reported a surprisingly steady flow of business from buyers looking for Fall goods and price points.

“We were actually much busier than anticipated and surprised at the flow of traffic,” Spaulding said. “The buyers were definitely looking for new things, but it’s more about price points and sell-throughs right now.”

The showroom did well with Line Knitwear, featuring sweaters, wraps, cardigans and leggings in cotton, wool and cashmere.

Jewelry by Luc Kieffer featuring Lucite and Swarovski crystals, as well as mixed metal necklaces and other pieces from Nancy Caten, were also strong.

“I think at the last market, buyers were so focused on apparel and they needed to round out their stores with accessories,” Spaulding said.

Burton said the key price point was around $200 retail. Buyers appeared to resist anything that would go above the $400 retail price point, she added.

“It’s obviously still tough, but you have to adapt and focus more on customer service,” Spaulding said.

The news was also upbeat at the T&A Showroom at the 824 Building, one of the newer showroom buildings in the district.

“It went fairly well; we had regular buyers and some department stores,” said co-owner Alfred Davis. “It was primarily appointments, but we had about four random people who stopped by, which is great for a new building.” Davis and co-owner Timothy Padilla threw an opening-night party that drew waves of guests until late in the evening. “By 12:30, we had about 200 people here.” David said he and Padilla hope to host more market parties in the future.

Many of the showrooms at the Gerry Building did not participate in market week, preferring to see clients on their own schedules. Sandra Gonzalez, a sales rep at Le Marias showroom for Ed Hardy scarves, said she found the show slow, meeting with only five buyers.

The newest showroom building in the district is the Primrose Building, located on Spring Street. So far, tenants include Alternative Apparel, which has not yet moved in, and retailer Free People, which declined to comment.