TRADE SHOW REPORT

Slowly Recovering Economy Keeps Los Angeles Fashion Market Upbeat

There was a certain buzz in the air at Los Angeles Fashion Market for Fall 2013, held March 11–14 at the various showroom buildings in downtown Los Angeles.

Economic reports were turning positive. The nation’s unemployment rate dipped from 7.9 percent at the beginning of the year to 7.7 percent, the California housing market looked like it had gotten a blood transfusion, and the stock market was running with the bulls.

For the hordes of retailers who flocked to Los Angeles Fashion Market, budgets were up even if shoppers were having to be nudged to make a purchase.

At the California Market Center, Los Angeles Fashion Market received reviews that ranged from good to bad.

“It was great. It’s been a while since I said ‘great’ about a market,” said Liza Stewart of the Liza Stewart showroom. Stewart is marking her 15th year of doing business at the CMC. “It’s been busy. We’re optimistic.”

At the Rep et Trois showroom, it was a different story. “I never had a worse March market,” said Michael Gae, co-owner of Rep et Trois.

He claimed buyer traffic was similar to the August fashion market, often described as the slowest on the Los Angeles Fashion Market calendar. Gae said the March show was scheduled too soon after MAGIC, the major Las Vegas apparel trade show that took place Feb. 18–21. Many retailers spent much of their budget at MAGIC, Gae said.

For Joyce Snyder, national sales manager of the Stop Staring! showroom, March business was just all right. “Traffic was down [from last year],” she said. “But we did our fair share of business.”

Don Reichman of Reichman Associates estimated his showroom’s business would increase compared with the March 2012 market. “Retailers are more optimistic, and they are looking at other collections, not just the brands they have bought before. Brands are still very important,” Reichman said.

Many independent boutiques shopped at the show, including Besitos Boutique of Calabasas, Calif.; Eve and Me of Modesto, Calif.; Pepi Sports of Vail, Colo.; and AriaBoutique of Regina, Canada.

For Lisa Zagha of the Lisa Z boutique in Redondo Beach, Calif., the March fashion market is a convenient place to stock her boutique, and it is an alternative to MAGIC. “Until I get my big budget back, I won’t go back to MAGIC,” she said.

But business is improving. She estimated that sales increased 20 percent last month compared with the same time last year. She was shopping for May 30 and June 30 delivery dates and anticipated making cash registers ring on the days leading up to Mother’s Day on May 12. “Mother’s Day is a huge business for us,” she said.

For fashion trends, music festivals were a big influence during the recent market, said Delilah Camacho, buyer at Eden boutique in Long Beach, Calif. “Coachella, Lightning in a Bottle and Burning Man [events] are affecting what people are buying. [Vendors] were saying, ‘You can wear this at Coachella,’” Camacho said. The popular Coachella music festival is scheduled April 12–14 and April 19–24 in Indio, Calif. Lightning in a Bottle is scheduled for July 11–15 in Temecula, Calif., and Burning Man takes place Aug. 26–Sept. 2 in Nevada’s Black Rock Desert area.

Popular looks were short shorts, maxi-dresses and T-shirts constructed out of ethnic-inspired fabrics, Camacho said.

During Los Angeles Fashion Market, Transit footwear and accessories show took place March 11–13 on the CMC’s 13th floor and the CMC Gift & Home Market ran March 10–14 on several floors of the CMC.

Nicholas Hughes, a vendor at Transit, said buyer traffic was heavy the first day of the show and then decreased. Hughes’ wife and business partner, Lisa Hughes, said Transit was the first trade show for their Bermuda Dunes, Calif.–based line, called Turkishsoul, which offers boots and bags made with Turkish handicrafts. “It was a learning experience,” Lisa Hughes said.

Making business connections for their nascent brand was one of the best things about the show.

Other retailers that visited the California Market Center during market week included LF Stores, Wasteland, Revolve Clothing, Zappos, Nasty Gal, Planet Blue,Dillard’s, Urban Outfitters and Zulily.

The New Mart

The New Mart elevators were packed with buyers, and several showrooms were bustling.

“We had a really great day,” said showroom owner Michael Cohen. Cohen co-owns the Work in Progress and Michael Cohen Showroom. The two showrooms recently merged into one space on the ninth floor of The New Mart.

“We planted a lot of seeds over the last few months, and they’re starting to bear fruit,” Cohen said. “We’re seeing people we know and a lot of new people we met over the last two shows in Las Vegas.”

Cohen’s lines include Alternative Apparel and Cotton Citizen, as well as the vintage-inspired line Artisan Deluxe and a new denim line called Strom.

“Retailers are ready to buy. They are cautiously optimistic and are willing to listen a little more to representatives they have relationships with. Although they are venturing into new products, they are going to dip their toes into the water carefully, but they are willing to go there,” said Robin Cohen, the other owner of the Cohen Showroom. “They understand they have to push the envelope and bring in new labels in order to differentiate themselves from each other.”

Michael Cohen said he has seen some new boutiques begin to open up in recent years. “There’s got to be a cool store in every little town,” he said. “And with that comes a fresh outlook.”

At the Livefree Showroom, there were buyers working at every table at the new showroom representing Denimocracy and Lolly.

It was a similar scene at the Artisan House showroom, where buyers were responding well to the tapestry bags and laser-cut leather from Isabella Fiore, as well as Foley & Corinna croc-embossed leather handbags and Danielle Nicole’s luxe-look vegan handbags.

Cooper Design Space

Major retailers and boutiques shopping for Fall 2013 were eager to place orders for specialty items at the Cooper Design Space. Trends for the season were novelty-driven pieces, including jackets with leather embellishments and metallic shine and loungewear that could be worn from day to evening.

Bobby Sankary of Bond.Showroom said there was steady foot traffic with mainly appointment-based, quality buyers who were looking for comfortable pieces with casual fleece and cashmere blends. The Lady and the Sailor line, which produces luxe tees, was popular, with wholesale price points starting at $30 and going up to $108 for higher-end pieces.

Other popular lines were Alice by Temperley, known for ornate prints and cotton mesh dresses that wholesale for $195 to $450. Sankary has a new sweater line, Lhooq, that wholesales for $35 to $120.

At the Joey Showroom, Deborah Farmanian said her flagship line, Black Halo, with structured dresses with body-flattering silhouettes, is always a major a hit with buyers.

Denim Identity, a new line for Joey, featuresquilting, basic crotch stitching, body knits and moto washes that retail for $138 to $198. The polyurethane denim, which comes in an array of bright colors, is higher priced, but buyers seemed to be placing orders despite the cost. “Our lines come in at a good margin and are a money maker for our buyers,” Farmanian said.

Joey carries Immediate jerseys for Summer and Holiday lace dresses with a 9/30 delivery date. With 16 years of experience behind them, the Joey Showrooms in New York, Los Angeles, Atlanta and Dallas launch upcoming designers and continue to build the brands to qualified consumers, [including] Neiman Marcus, Saks Fifth Avenue,the Four Seasons Hotel, Nordstrom and Jill Roberts,Farmanian said.

At the Marked Showroom, which carries women’s contemporary lines at various price points, Jackie Yi said the “reaction [from buyers] has been great with a steady list of appointments that are coming in on time. It is only the second day, but it has been great so far with more appointments than last market and more buyers writing and leaving orders.”

The showroom carries delicate, feminine pieces by Seinne; classic silhouettes by Karolyn Pho; knit dressing by Shae; and pieces by Los Angeles–based designer Love, Zooey.

Yi noted that retailers are prepared to write orders with higher price points for outerwear, sweaters and a mix of leather. “With our clientele, the sexy, easy pieces do well with no real price-point hesitation,” she said.

“We have a sweater line that goes from $80 to $298, depending on the cashmere and gauge. We have a couple of silk dress lines that range from $80 to $200,” Yi said.

On the mezzanine of the Cooper building was a multi-line collective called “An Ensemble,” which featured at least 19 lines. It was sponsored by Joor Access,an online marketplace for buyers and brands. The space was perfect for companies that don’t have enough capital to have their own showrooms.

The lead organizer of the event was Hillary France, vice president of women’s clothing line Kimberly Ovitz. “This is the third season we have been doing this for two main markets and pre-Fall in January. This is a great collective to get buyers to showcase together. It’s a great space,” she said.

The brands complement each other. Some are trendier, such as the Rachel Zoe collection, while others are more edgy, such as cut 25.

The Kimberly Ovitz line had dresses wholesaling for $150 to $195 and sweaters in the $90 to $100 category.

“We are really working at getting entry-level price points. We do well in Los Angeles, mainly because our signature [item] is our Ponté dress, a super-tight fitted dress great for going out.”

France was pleased with the turnout, capturing a lot of West Coast base sales with many walk-ins and appointment-based buyers who were eagerly placing orders for Fall 2013.

Gerry Building

The sign outside the Gerry Building, filled with scores of apparel showrooms, beckoned people inside. “Welcome, buyers. Nine floors of women’s updated and designer collections.”

And the buyers did come. Specialty-store buyers from around the country frequented the building, hunting for fashions with a certain edge that wouldn’t break the bank.

Dawn Gore, who owns an Amelia’s Boutique in Kansas City, Kan., and another Amelia’s Boutique in Kansas City, Mo., was shopping with an expanded budget because she moved her Kansas store to a new location, which is now 3,000 square feet, 20 percent larger than her previous outpost.

She was looking for denim and dresses that retail for around $150, as well as tops at various price points. She said her clientele was not willing to splurge on fashion above the $150 mark.

For Altha Jensen, this was her first trip in four years to a Los Angeles Fashion Market. She used to come regularly, but then sales reps started visiting her at her Tucson, Ariz., store, called AK Jensen.

Normally, Jensen makes a trip to the MAGIC show in Las Vegas to see the lines that don’t swing by Arizona. But she was unable to travel to Las Vegas this past February.

The retailer was shopping with a budget that was up about 5 percent to 10 percent over last year. “It seems that things are getting a little better. But it used to be that the store was busy from Wednesday through Saturday, and Sunday through Tuesdays was okay,” she said. “Now, Saturday can be the worst day and Monday the best, and it is all determined by the news. As long as the news is good, sales are good. And if the news is negative, sales are down.”

She has noticed that customers are buying more tops than bottoms with a sales ratio of four tops for every bottom sold. And her ideal retail price for clothing is locked in at $50 to $70 for denim, $25 to $120 for tops and $39 to $120 for pants.

Gore and Jensen were just two of the many buyers keeping the Gerry Building showrooms jumping. Sunday, when the Gerry Building showrooms opened their doors for Los Angeles Fashion Market, turned out to be the busiest day.

Arlene Henry and Sarah Kirakossian were swamped on Sunday with buyers from 9 a.m. to 7:30 p.m. who stopped by the Arlene Henry Sales showroom on the ninth floor.

Monday was equally busy, with buyers in the showroom from 9 a.m. to 8:30 p.m. They were looking at lines such as Lauren Vidal, Mezon, Staples USA and Mado et les Autres.

Bea Gorman at Salt & Pepper Sales on the eighth floor was extremely enthusiastic about this season’s market. “I think we’re going to be up 20 percent over last year,” she said.

She said the showroom was doing well with Banana Blue, a sleek, sophisticated Australian line whose dresses and tunic outfits wholesale for $45 to $145.

Another top seller was colorful lambskin leather coats made in Turkey by Marc.a.Dolci. They wholesale for $200.

Designers and Agents

D&A hosted its seasonal trade show March 11–13 at The New Mart in downtown Los Angeles with 94 brands exhibiting. Trends for Fall 2013 included winter coats, jackets and bottoms with leather and suede trims. Buyers were also looking at accessories, including jewelry, handbags and footwear.

Designer Ann Marie Garcia of Chaiken apparel said the label’s pants were the most popular item for buyers, with outerwear coming in second. “We are known for our excellent fit in bottoms, but the special details on jackets have been doing well with buyers,” Garcia said.

Basic pants wholesale for $105 and go up to $128 for more elaborate construction, while a more expensive item, such as the leather-and-suede combo dress, retails for $895.

For Naida Begata, a clothing and handbag designer based out of Santa Monica, Calif., who mainly sells her line kao pao shu to the Japanese market, the D&A show was a chance to introduce her handbag collection to the American market. Her wholesale price points range from $75 to $140.

The bags are made out of webbing. A seatbelt-based material with varied ribbons such as velvet and satin is then applied to give them different textures. “The concept is everything starts from one line. All of the bags are basically created by following a line that gives shape to the bag,” Begata said.

Stacie Lucas, the marketing and operations director of Scosha, a jewelry line based in Brooklyn, N.Y., said she saw a handful of reorders and the line picked up new specialty-store accounts.

The jewelry is inspired from Australian-born designer and artist ScoshaWoolridge’s world travels. She learned beading techniques in Brazil and Turkey. Each piece tells a story and is delicately crafted. Her experience as a sculptor and painter bring character and precision to the men’s and women’s collection, with an addition of a bridal section, including bracelets, rings and necklaces.

Wholesale price points range from $13 to $500. The higher-end collections with gold and diamonds are priced higher.

The D&A show dates were perfect for sales representative Portia Harris of Iro, a clothing line based in Paris. The label’s Fall 2013 collection ships in August and September.

Retailers left orders for jackets with detailed fabrications, as well as leather dresses, structured pants and booties.

Wholesale prices range from tees starting at $60 to $73, dresses from $195 to $398 and jackets ranging from $253 to $600.

Coeur

The Coeur trade show ran March 11–13 at the Cooper Design Space, showcasing 60 brands.

The show featured a diverse range of accessories, gift, home and lifestyle collections from Los Angeles, New York and San Francisco as well as international locations such as London and Laos.

Show organizer Henri Myers said the event is really becoming a nice experience. “The show now has a little bit more history behind it,” said Myers, adding that Coeur has evolved by doing exhibitions in both New York and Los Angeles.

“[Vendors have] done the shows in the past, and they feel it is a good formula, so they are continuing to do our shows,” Myers said. “We’re establishing trust and comfort with the vendors that we’re going to bring the right types of buyers to the show.”

Retailers shopping included Lost & Found, Madison, Fred Segal Rocks, Des Kohan, Guild, Isetan and Saks Fifth Avenue. New this season at Coeur is a collaboration with POP-Market, a wholesale commerce and connection platform that links vendors with buyers.

Lady Liberty

It was a pretty varied Los Angeles Fashion Market for the showrooms at the Lady Liberty building on Los Angeles Street.

At the Ocean showroom, traffic had been good and steady, said showroom owner Brigette Lubin. She carries a nice mix of women’s contemporary brands, includingLanston, Krisa, Habitual and Amour Vert.

“Budgets have been kind of the same,” she said. “Winter was rough for a lot of people, so they are being safe.”

Buyers were most interested in tops and Immediates, she said.

Over at the McMillian Showroom, owner Sabrina McMillian said the market had been very quiet. “It’s because there are so many shows. They have seen the same thing three weeks straight,” she said, referring to the abundance of apparel trade shows in February.

Walk-in traffic was practically non-existent, but all her appointments showed up. “Monday was busy, and Tuesday was quiet,” she said.

Select

Most of the samples that Yukiko Kawabata intended to exhibit at the Select Contemporary Tradeshow in the Fashion Theater of the California Market Center came one day late. But a disaster was averted for Kawabata, owner of Beagle House NY. Her appointments made good on their promises to return to see her clients’ hats and scarves at Select, where 35 vendors were exhibiting.

While business was solid, Kawabata estimated that buyer traffic decreased 10 percent compared with last year’s Select show.

Like at many other trade shows, people had various opinions about the traffic. Some vendors were busy throughout the show. Others looked like they were killing time.

“It was an appointment-driven show,” said Mary Ann Monaghan, a sales representative for the Boston-headquartered Christina K. Pierce showroom. “Buyers did not have time to browse beyond their appointments.”

Many veteran vendors of Select, such as Streets Ahead and Gillian Julius, returned for the show.

Select also hosted newcomers and vendors who returned after a hiatus.

The New York–headquartered Linda Richards label makes outerwear and fur pieces for day and evening. The label last exhibited at Select in June 2012.

New to the show was Style New York, a misses contemporary line.