The LA apparel industry is historically very fragmented both ethnically, and from the products that are produced. From the many knitting mills (which have mostly closed up), premium denim, contemporary women’s, active sportswear and the Korean junior market, each have their own dynamics and for the most part they do not cross over into one another’s territory. Then there are the many ethnic contractors who do the sewing for the manufacturers. Chinese, Hispanic, Vietnamese, Korean and the others! Each group may have their own associations but there is not an overriding organization which services the needs of the whole industry. So, does that matter? Yes, in today’s (2011) economic business environment the US apparel industry needs both representation and advocacy that services ALL sectors of the largest apparel sector in the world. The city and state needs to focus on the immediate needs of the industry environment or we will lose it and all that goes with our creative world recognized branded industries.
Too much legislation, taxes and licenses are required by the city, the state and federally agencies making owning a profitable manufacturing, or contracting business very difficult. The reputation that the whole industry is a sweatshop abusive industry has remained and tainted any support. Historically, this has resulted in the city, state and federal government not wanting to get involved or invest in new technology and infrastructure that would serve the apparel industry.
Ten years ago the mantra heard from LAEDC was “let the brains stay here and let China, or other off shore counties have the manufacturing jobs.” Well, that is for the most part what has led us into this depressed sad situation in 2011 when we are scrambling to find domestic production who can provide fast turn production and produce smaller units more often. In order to facilitate these immediate needs we must plan fast and respond to these needs before it is too late. Having an incubator building in down town that incubates new businesses and trains new workers from entry level to skilled workers is a must and could easily be accomplished with the right team. The building would also provide a center that would educate businesses about sustainability and new technology uses.
I have been involved in the industry for the past 35 years both in the US and internationally. I have been fortunate to have been commissioned to work for companies from: England, Germany, Turkey, China, Brunei, Japan, Italy, Guatemala and many US companies. I founded the Fashion Business Incorporated in 1999 through a realization that we need to help creative designers run a successful business, which involves business management. This venture and my other experiences have led me to many other exciting opportunities and I am proud to say to become a recognized consultant on the apparel industry.
Some of the ventures I have been involved in for the past 10 years that have given me a very good insight into the apparel industry both domestic and internationally:
- Authored several books on starting an apparel business and entrepreneurship. www.fashionforprofit.com
- 2001 to present - Planned and presented a variety of topics twice each year at the MAGIC trade show in Vegas (the largest apparel in the world).
- 2002 – to present - Planned and presented seminars at the Active Sportswear Show (ASR)in San Diego and other leading trades shows across the country and internationally.
- 2005 & 2006 - Presented a seminar on Brand Building at the Hong Kong World Boutique. Plus, organize a group of 8 FBI members from LA for their show case trade show.
- 2007 – Presented a seminar at Shanghai University on how to prepare to enter the US market with their label.
- 2008 - Invited by the French Government to be part of a select global delegation of 8 to learn about the issues that surround counterfeiting of branded goods. The trip to Paris, Carne, and Marseille involved some very impressive lecturers and mixers to discuss the problems surrounding this topic, which unfortunately often involves Illegal drugs, child labor, mafia, and terrorist activities.
- 2009 - Invited as a US industry expert by the German government to be educated about what the German’s are doing to support the creative arts, which included fashion, furniture, and architecture using sustainability. The visit took us to Munich, Dusseldorf and Berlin.
- 2010 -Invited by the Australian government to present lecturers in Sydney, Melbourne, Perth, and Brisbane on the global apparel industry and the many changes that are taking place therein.
The global industry is constantly evolving and changes on the global platform are interesting to note.
- Fact! LA is a global trend setter in a number of categories, Active Sports, Streetwear, Contemporary and now the junior market (Forever 21). Trends DO NOT start on the runways of Paris or New York. The west coast market follows Europe and NY markets and this means that west coast manufacturers have to spend big $ to go to the trade shows in Europe and NY as the buyers have a budget and they will send first in NY and then come to LA.
- China has become more expensive due in part to the international demands for compliant manufacturing. China is now taking production into cheaper countries. China is even investing in new factories in Viet Nam, Africa, South America and have show a great deal of interest in investing here in the US and particularly in LA. This would be a good idea for both counties.
- Some Mexico retailers are driving to LA and buying product from the Korean manufacturers. With import duties it is cheaper than doing production in China or domestically.
- Italy is bringing in cheap labor from China to work in their factories so that they can still retain their label “Made in Italy”
- The “Economist” predicts that India will overtake China as the largest economy in 2020. Many US manufacturers produce in India.
Foot note: The Fashion Business Incorporated (FBI) 501 c3, has never been formally supported as an institution that services the US apparel industry. It is a shame that other counties seem egger to embrace and recognize what a small group have worked so hard to create and to built here in LA. The fact is that there is no domestic support for what is at the moment the largest apparel industry in the world. Can we retain that lead? It is very unlikely that we can given the lack of organized leadership and recognition of our dynamic creative industry. But I do live in hope!!!