California Apparel News

Los Angeles– based Rhapsody Clothing Inc. sells its made-in-U.S.A. juniors lines throughout North America, but its new line will be an Asia-only retail concern.

On Sept. 23, Rhapsody will open a more than 2,000-square-foot shop-in-shop at Home Plus, one of South Korea’s leading discount chains. Home Plus is jointly owned by U.K.-based Tesco. The shop-in-shop will be called Love Scene and will sell Rhapsody’s new Love Scene brand.

The Love Scene shop-in-shop will be located in Bucheon, a suburb of Seoul. Bryan Kang, Rhapsody’s chief executive and president, forecasts his company will run more than 100 Love Scene shop-in-shops in Home Plus locations spread across South Korea by the end of 2012. Asian retail will put Rhapsody on a growth spurt. Rhapsody is forecast to earn $30 million in sales in 2011. Sales will grow to $50 million in 2012. By 2013, it is predicted to skyrocket to $200 million.

In the near future, Rhapsody will build Love Scene–branded stores in China, but Kang forecast his company will stick to wholesale business in North America.

“The American economy is tough, and retail is over-saturated,” he said. “I think I made the right decision.”

According to Kang, Rhapsody was a good fit for Home Plus because much of the merchandise is made in America.

“Asian people love to see the Made in U.S.A. label,” he said. Rhapsody’s knit tops and dresses are made in America. Its outerwear is made in China, and other categories are manufactured in Mexico and Guatemala.

Another draw for Home Plus was the popularity of fast-fashion retailers in South Korea. Forever 21 and Hennes & Mauritz (H&M) already run successful chains in South Korea. Love Scene will be pitched as a burgeoning fast-fashion brand in the country.

Kang’s deal with Home Plus will also position him to take advantage of the proposed United States–Korea Free Trade Agreement. The agreement is rumored to be up for a congressional vote in October, but a spokesperson for the Office of the U.S. Trade Representative said no vote is scheduled. If the agreement is signed, it will knock Korean duties off of American exports to the Northeast Asian country. Korean duties currently make up 8 percent to 13 percent of Rhapsody’s wholesale costs. Rhapsody has been wholesaling its Rhapsody juniors line since January 2010.

The Love Scene stores are not Rhapsody’s first venture into retail. The brand marks the company’s further expansion outside the juniors category. Love Scene will be what Kang called “young misses,” a whole category of clothes for women in their 20s to early 40s. The line will include denim pants, knit tops, dresses and even padded jackets for the cold Korean winters. Kang promised new deliveries every week. Retail price points will range from $50 to $200.

Rhapsody launched Love Scene last year as part of a collaboration with Korean fashion retailer Le Queen, which runs more than 60 locations in South Korea. Le Queen requested Rhapsody collaborate with it on a young misses line. The Love Scene line proved successful, but Rhapsody pulled Love Scene out of Le Queen in August after its one-year contract with the company ended and it was approached by Home Plus.

Rhapsody has also manufactured a contemporary-styled line called Epilogue for more than a decade. It has been sold at Sears locations in the United States. Another line, called Zealous, launched in 2010 and has been sold at Ross Stores. Also in 2010, Rhapsody launched Rhapsody Studio, a division that handles licensed fashions. It currently makes tops and dresses with cartoon characters such as Betty Boop; the cast of Peanuts; and Olivia, the popular book and cartoon piglet.

Now a U.S. citizen, Kang moved to Los Angeles with his parents in 1986, shortly after he graduated from high school in Korea. He graduated with a degree in fashion design from the Los Angeles campus of the Fashion Institute of Design & Merchandising. He started Rhapsody in 1994.

Kang also has taken an interest in helping new designers. He is helping to sponsor Fashion Business Inc.’s “California Dreaming” fashion show, which is scheduled to take place on Oct. 20, and picked up the $1,000 entry fee for each of the show’s seven designers.

Frances Harder, FBI founder and president /director, said Kang’s support eased a financial burden on the new and emerging designers participating in the show. The support also will widen the categories of those who can participate in the show. “We’re able to choose designers who are cutting edge,” she said. “California Dreaming” designers will range from activewear to red-carpet fashions. The show will take place at Vibiana in downtown Los Angeles. Another event sponsor, accounting firm and business consultancy Moss-Adams LLP, will announce the winner of this year’s “Moss Adams Fashion Innovator Award” at the event.