California Apparel News

Retail turnout was not great, but there were orders placed and new contacts made at the Jan. 16–20 run of Los Angeles Fashion Market, held at the California Market Center, The New Mart, Cooper Design Space, Gerry Building, Lady Liberty building and 824 Building, as well as satellite trade events Brighte Companies and Designers and Agents.

The January market is traditionally one of the smallest on the calendar. After following one of the weakest holiday retail sales seasons in a generation, many expected business to be poor. However, the previous weeks of austerity paved the way for some pent-up demand, said showroom owner Jackie Bartolo. Many retailers kept their inventories so lean that they did not do much buying for the Spring fashion season, she said. The pent-up demand gave a boost for a market for Summer fashions. “[Retailers] did not buy for Spring, and they were scrambling for goods,” said Bartolo, owner of the Jackie B showroom in The New Mart.

“We were preparing for one of the slowest markets based on the current state of the economy,” said Joanne Lee, senior vice president of CMC Services. “However, I think that there were many tenants and exhibitors that were unexpectedly happy with the buyer traffic and the orders they wrote.”

Still, many retailers who turned out for market said they arrived with a curtailed budget.

The weak economy forced Mark Werts, owner of pioneering boutique chain American Rag, to cut his market budget by 10 percent because of decreasing customer demand. “It’s very unusual for us,” Werts said. “The marketplace is asking us to cut back.”

Retailer Wendy Foster cut her market spending 30 percent compared with the same time in the previous year. However, she said she believes her spending will gradually increase after the first fiscal quarter of this year. “I feel encouraged by recent business we’ve had,” Foster said. She buys for her self-named boutique in Montecito, Calif., which is a 10-minute drive from Santa Barbara, Calif. She also co-owns three other boutiques in the Santa Barbara area.

She said a slower market made it tougher to make purchases for her store, where printed T-shirts remain popular and popular colors include mauve, purple, gray and beige.

“It’s a hard time to pick out new trends,” Foster said. “They are not sticking out their necks for new things.”

Running counter to trend were a handful of retailers whose business remains unaffected by the economy. One of them, veteran retailer Claire Samaras of Sonoma, Calif.–based Angelique, was determined to remain upbeat.

“I refuse to listen to anything negative,” she said. “Our business is up 10 percent. Yes, the first half of the holidays was slow, but it really picked up during the second half. It’s all about energy and having a positive attitude. I buy very carefully.”Cautious Buying at CMC

“Cautious but buying. Price conscious but interested in newness.” That was Susie Hart’s assessment of buyers who turned out at market. Hart’s Niche showroom, located on the CMC’s fifth floor, carries a range of merchandise from sweaters by One Girl Whohellip; to contemporary sportswear from Samantha Dru and Fashionista, accessories by Lenni Navarro and Twigs, and candles by Aglow.

Among the buyers who shopped the show were several majors—including Nordstrom, Cacheacute; and Macy’s West—Hart said. Missing were many East Coast and Texas stores, she added. Still, the market drew a mix of regular customers and potential new business, Hart said, adding that reliability and relationships are proving to be more important to business than ever.

“Our regulars are making choices about who to do business with,” she said. “People are interested in dependable people they can rely on. They’re doing their due diligence, reviewing their numbers and writing closer to season.”

Traffic seemed to be about 20 percent down from last year, according to Don Reichman. “But for the people who left paper, the average order was up.”

Reichman and his wife, Velma, own the Reichman Associates showroom, located on the CMC’s second floor. The showroom carries Barbara Lesser/Fibers better separates, Haley K organic-cotton knits, resort-driven dresses and sportswear from Joyous & Free, and Savican’s shawls and scarves.

Buyers were looking for key items and brands that are already selling well, Velma Reichman said.

“They are carefully shopping, and price point is definitely important,” Don Reichman added.

This season, the Reichmans worked with their manufacturers to offer buyer incentives—anything from free freight to 10 percent discounts.

“[The buyers] feel the manufacturer is helping support their business,” Don Reichman said.

The two saw fewer buyers from the Midwest and Texas than they usually do, and several Northern California stores sat the market out to wait for reps to come to them later this month.

“It’s more road work for us, but all in all, we feel fortunate,” Velma Reichman said.

Business in the misses and updated sections of the CMC ran hot and cold during the five-day show.

Bentzi Gershon of the Moda Style showroom on the CMC’s third floor characterized recent business as being the “worst in the history of the garment industry.”

He tried to spice things up with new lines featuring tattoo-inspired art on sweat-suit sets from local resource Oliver. He also carried the tattoo theme over to tanks and tees from a line called Sababa, priced from $18 to $25, and French-designed thermal tops from Angelique, priced from $25 to $49.

Traffic was more upbeat in the Betty Bottom showroom, also on the third floor. Showroom co-owner Ernesto Mantilla, looking to capitalize on lifestyle trends, created a new spa section featuring natural body washes, candles, soap cubes, and other body and bath items from Studio City, Calif.–based Klean.

“The reaction has been great. The buyers want more than just clothes,” he said.

In the Sharon Koshet showroom, Kambiz Hakimi of Los Angeles–based updated resource Mesmerize said he was doing well with soft Modal hand-painted shawls for $32 as well as colorful maxi dresses in “twisted” animal and paisley prints for $58 and day dresses from Hope & Emma.

Jennifer Ashley of Santa Monica, Calif.–based Hippie Ink debuted a new series of organic and organic-blended tees featuring whimsical surfer girls, political messages and retro “Haight Ashbury” themes inspired by the movie “Milk.” Ashley said her accounts were still placing orders but in lesser quantities.

Herlinda Ellis of the Studio III showroom said buyers were more focused on price points at this show.

“They were more conservative, but many are maintaining a positive attitude. I think the March show will be much stronger,” she said.

Retailers echoed the fact that they were more item-driven than usual.

Vicki Burdman of the Ruth Waters boutique in the Naples section of Long Beach, Calif., said she was looking for “anything that would compel the customer to shop.”

Her business has been especially affected by the downturn in real estate. “It trickles down from the real estate brokers down to escrow agents and homeowners, who have all been hit hard. We are next to a few real estate companies, so we see what’s going on.”

It’s a tough time to be opening new stores, but several newbies were shopping the CMC, including Corona del Mar, Calif., retailer Anita Tabib of Maison Saint Marie, which opened its doors on Dec. 4.

“I’ve been selling by appointment for 10 years in a studio and needed more visibility,” she said.

Colleen Hopkins opened Shades of Red in the Orange County community of Monarch Beach, Calif., two weeks ago. She previously operated a store in Newport Beach, Calif.

“I’ve had some good traffic. The consumer is very focused on what she needs, so we are trying to keep pricing tight,” said Hopkins, who purchased several novelty tops from a variety of vendors.Pre-Show Work Saves Some New Mart Sales

For showroom owners at The New Mart, a heavy emphasis on pre-show marketing was the cure for the economy’s blues.The New Mart showrooms Connected International Sales and Jackie B reported doubling their marketing efforts to wrangle appointments for the most recent market. Connected showroom owner Steeve Bohbot declared a temporary moratorium on his staff’s road trips so his sales representatives could concentrate on calling boutique owners to get them to the January show.

Jackie B’s Bartolo hired one temporary salesperson to help with showroom calls after the week of Christmas. The extra work paid off. Both showrooms claimed more than 100 appointments during the slow market. Bohbot estimated his sales increased more than 5 percent compared with the same market in the previous year.

High-profile retailers such as Macy’s, Dillard’s and Kitson shopped The New Mart’s showrooms during the most recent market. However, building General Manager Ethan Eller said the January market was one of the toughest in a decade. In an e-mail, he wrote the most recent market was the smallest since January 2001. “I have heard from some of my tenants that actual sales, as opposed to attendance, were down even further. Buyers were requesting off-price items as well,” he wrote.

Showroom owner Janine Milne also judged this market to be particularly slow. Many boutiques outside of Southern California could not afford to travel to the market, according to Milne, who owns a self-named showroom in The New Mart. However, quantity of traffic does not necessarily equal quality of orders, the showroom owner said. “We felt people liked what they saw, and they were writing orders,” Milne said. Cooper Slow, Price Conscious

Never one to sugarcoat news, Mona Sangkala, the Cooper Design Space’s leasing manager, said the first Fashion Market of the year went “as expected” in the building. Light traffic, cautious buyers and reps working a variety of seasons to accommodate overstretched retailers were a hallmark of the show. Still, the building welcomed buyers with an expanded showroom roster, including the new Le Trend showroom on the newly filled 10th floor and ongoing construction in its lobby, which is set to be completed in March.

Though the market is traditionally a Summer market, showrooms reported buyers in search of everything from Immediates to Spring, Summer and even pre-Fall and Fall.

“Buyers were eager to see Fall. It’s a total break from Spring and Summer and gives them something to look forward to. But they were writing orders for Immediates and Spring,” said Nicole Wolenski of the Standard Showroom. Holiday sales left holes in retailers’ floors, she said, so Immediates seemed to be top of mind. Spring was another key season for buyers, she said, because of its flexibility and potential to save buyers cash. “You can stretch Spring goods through Summer if you have to and then go right into Fall,” she said.

As expected, price was the motivating factor in most buys, even among top-tier retailers, showrooms reported. Another money-saving approach buyers took was adding freshness to their mix without breaking the bank with the tried-and-true accessory. At Standard, small leather goods wholesaling for $25 by designer Alice Park earned buys.D&A—Smaller but Steady

For Ben DeLuca, the only thing to fear was fear of a bad market.

When the sales representative for fashion label Christys’ Hats rolled up to the Designers and Agents fashion trade show, he conceded that news of the grim 2008 holiday retail sales season had him mentally preparing for a bad market. However, he soon felt he was wrong.

“I saw all my regular customers,” DeLuca said.

Even if high-profile retailers such as Kitson, Metropark, Blue Bee and Fred Segal Hats shopped at the Christys’ Hats booth, there was no denying the January market was different.

For the first time, DeLuca gave a special deal to buyers, a discount of 10 percent off wholesale. Designer Kristi Paras of New York–based label Zachary’s Smile said because buyers seemed to be avoiding anything with a high price point, she would not sell anything retail priced higher than $248. “We’re readjusting everything.” She and other show vendors, including Jarbo, based in Seattle, and T Luxury of Huntington Beach, Calif., reported doing steady business during the market.

D&A co-founder Barbara Kramer said 45 brands did business at 41 booths at the show, which was half the size of the same show in the previous year. Kramer declined to reveal attendance numbers. “It was more upbeat than I expected,” Kramer said of the show. The show’s buyers were shopping for Summer fashions and Immediates.

Boutique owner Jenn Caig remained optimistic even though she cut her buying budget 10 percent for this January trade event. She owns a boutique called Market, based in Los Angeles’ Brentwood neighborhood. “People are still buying fashion. It’s not drying up,” Caig said. Her store’s merchandise was divided between 50 percent basics styles such as T-shirts and jeans and 50 percent fashion items such as dresses and coats.

Focused Business at Brighte

Attendance was noticeably off at ENK’s Brighte Companies show, held Jan. 16–19 in the CMC Fashion Theater. Several exhibitors passed on the show, which explained why the usually occupied stage area was not set up this outing. For those who did attend, business was fair.

“The stores that are here are serious,” said Michelle Crocker, sales manager for Seattle-based A to Z. “We had a busy Sunday. I think you saw a lot of order cancellations and store closures [during the holidays], so what’s left are the more serious buyers.”

Crocker reported doing well with basic items such as Modal/cotton and viscose tops and dresses in apricot, white, blue and mocha, priced in the $25 to $45 range.

Adam Garfinkel, a principal with contemporary label Alexia Admore in New York, said many buyers were scouting for deals, promo items and Immediates.

“The buyers are apprehensive right now. They are competing with the department stores and are looking for ways to drive sales,” he said.

The bulk of orders placed with Alexia Admore was from existing accounts, Garfinkel said. The company was highlighting vibrant prints and strapless dresses priced from $98 to $148. The slowdown has forced the company to carry less stock and do more cut-to-order business, Garfinkel said.

Pascal Benouaiche of Los Angeles knits label Co2 Collection said the company has become more lenient in working with retailers in recent weeks.

“We’ve been more open, letting them exchange some items if they have trouble selling something. Everybody is in the same boat right now,” he said. “We are at the high end so are a little less vulnerable.”

Benouaiche debuted a new collection of thin-gauge cashmere tops, some combined with silk and featuring floral and bird embellishments, priced from $155.

New at Brighte was Christian Audigier’s latest endeavor, Crystal Rock, a collection designed by Audigier’s 16-year-old daughter and featuring sweat suits printed with colorful girly characters, priced at $90 and up.

“We’ve been getting lots of reorders. They are easy to sell,” said rep Valerie Hammond, who described the sets as a little bit clubwear, a little bit streetwear.Buyers Focused at Gerry, Lady Liberty and 824

Lingerie buyers from stores around California—including Romantiques Lingerie in Los Gatos, Camouflage in Santa Cruz and Risque in Pasadena—came to the Gerry Building focused on writing. In Jennie Nielsen’s lingerie showroom, the high-end lingerie line I.D. Sarrieri was an important component for buyers to have in their stores even it if it was “just bringing in a couple pieces,” said Nielsen of the pricy luxury line. “Because they need to have that fluff.” The market was “consistent” for Cynthia T. Adams, whose strongest-selling categories were bras and daywear in her Gerry Building showroom. Felina and Jezebel’s reliable history, fashion and prices averaging $25 to $40 for bras were a winning combination for buyers. “If the bra is $25 to $40, they feel like they can have something new without spending a lot of money,” Adams said.

Buyers from Los Angeles’ top contemporary stores such as Intuition, Planet Blue, Kitson and Petro Zillia were ready to commit their dollars for “great items” at The Globe Showroom in the Lady Liberty Building. “They’re coming to get a point of view and buy,” said Tracey Burton of The Globe. “They want a lot of look for the price.” Jewelry line Citrine by the Stones and Los Angeles–based designers such as Karen Zambos and Piper & Forest were standouts in both Summer deliveries and Immediates.

“Buyers are definitely looking to place orders on a shorter deadline,” said Burton, adding that her designers who produce locally can meet the short deadlines.

Denim and tees make up the DC Sales Group showroom in the 824 Building. Dustin Friedman showed MEK Denim’s men’s, women’s and kids’ lines, which offered both basic “conservative” styles and “radical” embellished and distressed styles that average $58 wholesale. The new luxury denim line Maison Bibliotheque offered a special leather case packaging that “added perceived value” to the $90 to $110 wholesale price points.