California Apparel News

Industry veteran Robert Libby is using the power of the Internet to connect buyers to the world of off-price retailing. Libby has launched Offpricemarket.com, which is a virtual mall of wholesalers, jobbers, liquidators and importers dealing with all categories of apparel.

Off-price merchandise—usually 30 to 70 percent less than suggested retail prices— has continued to be in demand as retailers look for avenues to enhance their margins. Market leaders have been growing. Pleasanton, Calif.–based Ross Stores’ earnings are up 20 percent through the first three quarters of the year, and Framingham, Mass.–based The TJX Companies Inc., which owns Marshall’s and TJ Maxx, posted gains in earnings of 37 percent.

Access to the merchandise traditionally has had some high barriers until recently. United Kingdom–based Tarsus Group Plc several years ago launched the Off-Price Specialist trade show, which runs concurrently with the MAGIC Marketplace in Las Vegas. The online marketplace for off-price goods has been disconnected by a mass of independent Web sites. Libby hopes to bring them all under one roof at www.offpricemarket.com.

He launched the idea following the Sept. 11, 2001, terrorist attacks, when buyer traffic for off-price merchandise fell off dramatically. After several years of research and development, the site has officially launched. It currently has 35 vendors. Libby has built an in-house tech team to create a site that he described as easy to navigate and find.

“We usually come out in the top two for all the search engines,” he said.

Browsers can search by item—junior tops, for example—or by vendor.

The offerings can consist of anything from cancellations to overruns. Nordstrom, for example, has been known to cancel an order if it’s even one day late, said Libby. The merchandise on the site covers discount to better clothing and accessories in men’s, women’s and kids’ categories.

Libby saw the potential for off-price going back to the 1960s as a retailer who owned women’s clothing stores throughout California.

“I started out as a full-price retailer but occasionally would run into opportunities to get off-price merchandise. When I did, my profit margins soared,” he recalled.

The margin opportunities are still there, he said, explaining how he helped a client buy some chinchilla-trimmed ponchos for $230 a piece. He sold them for $650 each.

Libby also operates The Insiders, an offprice buying office in Los Angeles, which connects buyers to manufacturers. The office is still in operation, but Libby hopes the expansive World Wide Web will take his business to the next level.

Vendors pay a flat fee of $65 to join the virtual mall. Libby’s team can build Web sites from scratch, and it also offers tech consultations. The company also does extensive marketing, distributing 3,500 direct-mail pieces each quarter, as well as Web and other marketing.

Wholesaler S. Maya & Sons of Los Angeles has joined the site and has had a positive experience so far.

“It’s a great concept and outreach for many people on the Web looking for product. Unfortunately, we don’t have a lot of time to market and promote our own site, so this helps,” said company principal Paul Maya.

Added Libby: “We want to satisfy the retailer and the vendor. This is an absolute growing industry. Making margins today isn’t as easy as it was in the old days when you could buy something for $10 and sell it for $20. Now, there are so many expenses involved with owning a store. Everybody does some off-price business, so we hope to become a solution.”

For more information, e-mail info@offpricemarket.com.

L.A. Denim Labels Launch Web Sales

West Coast denim labels Seven for All Mankind, Chip & Pepper, 575 and James Jeans, along with Italian brand Miss Sixty/Energie and New York–based Sigrid Olsen, have teamed with Los Angeles–based e-commerce specialist One-Stop Internet to launch Web sales for the first time.

Seven’s www.7forallmankind.com site is up and running. The others should be up in a matter of weeks, said Eric Allen, director of business development for One-Stop. The company provides full e-commerce services via a revenue-sharing payment model. Services include Web site construction, product photography, customer service and fulfillment. It also provides analytical research on consumer behavior and trends.

“The Internet has become an increasingly important distribution channel, and e-commerce is the perfect complement to brands that have retail stores,” said Allen.

For more information, visit www.onestopinternet.com.

Evy Overhauls ERP System

Los Angeles–based girls’ apparel maker Evy of California has overhauled its IT systems and installed new ERP (enterprise resource planning) software by Miami Lakes, Fla.–based New Generation Computing.

The company has been making a transition from a domestic manufacturer to a global importer and had to retool its software systems as a result.

The company will use NGC’s SQL series, which includes PLM (product lifecycle management); e-SPS, a sourcing management system; and RedHorse, a business management system.

“NGC’s proven ability to handle all the details of our complex import and 807 production mix was a key factor in our decision, along with their advanced EDI capabilities, which are continually updated,” said Kurt Kreiser, chief executive officer for Evy.

Evy was established more than 50 years ago as a children’s dress house and now has a product range that includes licensed sportswear to boutique dresses and party wear in addition to junior bottoms and denim. Labels include Fleurish, Jalate and Pirouette.