Trying New Tactics to Combat the Bad Economy

The changes continue to come fast and furious.

From designer brands to contemporary brands and beyond, apparel makers are shifting their business models to make room for lower price points, expanded distribution, collaborations, new divisions and even entirely new design directions to court new business.

Daring moves are generally reserved for more-flush times, but some brands are finding the down economy to be just as motivating.

Lanie Alabanza-Barcena, the designer/founder of the 5-year-old Hellz Bellz line of women’s streetwear, took an entirely new approach to her collection for Fall 2009.

Renamed Hellz, the collection spun on a dime to go from a more urban-inspired brand to a fashion-forward basics line—think a Los Angeles take on Alexander Wang–style T-shirts. Now Hellz’s collection features slouchy T-shirts in muted tones, cropped sweatshirts with exposed zippers, a full range of jeans and printed mini-dresses with peek-a-boo details.

“The older I get, the more mature my personal style gets. It’s only natural for my designs to change with that,” Alabanza-Barcena said. Still, she acknowledges, a big portion of the streetwear stores that helped her brand grow have closed their doors. “Now my focus is women’s boutiques and, thankfully, they ’get’ Hellz,” she said. The shift in aesthetic has garnered her orders from stores such as Oak NYC and Nasty Gal Vintage, but it hasn’t come easy.

“It was definitely a challenge. I had to get smarter about my design and fabrications,” she said. The result is price points that dropped from $150 to $200 retail to $80 to $175 retail. “Price is a big deal right now, and dropping ours has been key in being able to cross over from streetwear to contemporary.”

Austin Sherbanenko, the designer behind the Odyn Vovk line of moody high-end menswear, launched O.V. with the Fall 2009 season. A capsule of 10 basics, O.V. includes denim, T-shirts, tank tops and sweaters that wholesale well below the core collection.

“It’s a similar aesthetic but a more basic, straightforward design—which makes it more accessible for more-conservative consumers and retailers,” Sherbanenko said. “The fabrications and quality are the same, though, and that’s important.” Since its launch, the capsule has found its way into 50 percent of his orders and has succeeded in opening new doors for him.

Wholesale prices for O.V. range from $45 to $300, while Odyn Vovk, which retails at stores such as Blackbird in Seattle and Barneys Japan, wholesales for $151 to $850.

Expanding Odyn Vovk’s distribution has been a key focus for Sherbanenko, who designs and produces his collection in Los Angeles. To that end, the designer has recently opened a showroom/studio/retail space and footed the bill for a runway show during New York Fashion Week this spring. His second New York Fashion Week show took place Sept. 9 at St. Mark’s Church in the Bowery.

Another approach Sherbanenko is taking is marketing some of his pieces as unisex. “Almost everything can be considered unisex because [the line] is cut slim and long, but some [pieces] work better than others for women,” he said. Tanks, slouchy sweaters, a sleeveless piece with an oversize hood and even denim can be found in retailers’ women’s departments.

Jasmin Shokrian, the Los Angeles–based designer who earlier this year found herself thrust into the limelight when the first lady wore one of her designs, has added Draft No. 17, a diffusion line, to her eponymous line.

Based on “different declinations of the slip dress,” the collection debuts for fall and includes Shokrian’s architectural riffs on tops, sweaters, outerwear and pants. More casual and less pricy than her eponymous line, Draft No. 17 retains some of the same silhouettes season after season to be updated in fabric or color. Not only is it something that Shokrian can maintain long-term with less effort than designing an entirely new collection each season, but also consumers can purchase their favorite pieces in new colorways. Pieces from the collection retail from $196 to $736, down from the designer price points Shokrian’s core collection commands.

As designers launch diffusion lines and reposition their brands, they have to be mindful of wary retailers who depend on quality and style. “Just because something is cheaper doesn’t mean it is better,” said James Hammonds, the menswear and accessories buyer for the American Rag CIE chain of specialty stores. “Some designers are doing a great job of translating their look, though, into something that is easier to wear and easier to sell—and we’re getting a lot of mileage out of those brands that can do that.”

Chris Dennler, founder/designer of the Rxmance line of graphic T-shirts, will expand his collection to include a line of unisex fashion basics for Spring 2010. Minimalist black or white crew- and V-neck T-shirts, tanks, sleeveless T-shirts, and oversize T-shirts that skew more hipster than cholo will retail for men and women in sizes XS to XL. The move, which doubles Dennler’s collection, also adds a lower price point. Now Rxmance graphic T-shirts will wholesale for $27, and the unisex fashion basics will wholesale for $19. “So far, the reaction has been great. The basics program not only extends my brand, but the price point is right where it needs to be,” Dennler said.

Bradley Davidowitz, creative director and president of One Grey Day, a new Los Angeles–based contemporary line, launched the collection with a less-is-more mentality, which jibes well with retailers and consumers alike. Central to the line, which launched with the Fall/Winter 2009 season, are interesting, versatile silhouettes cut from viscose jersey in three colors: gray, white and black.

“Our ’X-factor’ is the versatility of our pieces,” Davidowitz said. Tops are cut long and flowy and can double as mini-dresses; straps and draping allow for pieces to be worn in varieties of ways, for example. “Everything can be worn multiple ways, and everything can easily go from day to night. Our customer isn’t a girl who wants two separate wardrobes right now; she wants to get style and versatility.”

Best-selling styles will return each season, updated with sleek, minimalist embellishments. “We ask for feedback from retailers, and each season their feedback will inform the direction of the brand,” Davidowitz said.

Cutting everything from viscose jersey in the same three colors every season saves Davidowitz cash and makes price points sharp for retailers. “Everything is priced to sell,” he said. Wholesale prices for the line range from $45 to $110.

Joel Knoernschild, creative director of the KZO menswear line, sought to expand his distribution with Creative Growth for Everybody, a collaboration with Creative Growth, a nonprofit group that pairs fashion designers (including Marc Jacobs and Vena Cava) with disabled artists. “Creative Growth is a great project to get involved with on a personal level, but it also gave me the opportunity to reach a different retailer that KZO can’t access,” Knoernschild said. His Spring 2010 line for Creative Growth For Everybody, which will retail at Barneys New York, includes pieces for women, something that is a first for him.