Fashion For Profit

State of the Industry - General Overview of the LA Apparel Sector.

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!!!

With great memories and some very sad goodbyes to 2010! Hello 2011 with great expectations for better collaboration!

On a personnel level 2010 has been a year of very high excitement with the marriage of our beautiful daughter Erika to handsome Ryan.  A wonderful 4^th of July wedding in our local botanical garden with an international gathering from Germany, the UK and other parts of the US.  But it has also been a year of great sadness through the loss of a dear friend who ultimately lost her battle with cancer.  One minute you feel so happy for a loved one and their union of love, and then the next minute you feel so very sad for the pain and loss of a special person and all that goes with such a painful experience for family and friends.

Professionally, it has been another year of hard work, which has allowed me more exciting opportunities and experiences. My recent two week invitation to visit Australia as a guest of their government was an interesting and exciting trip to Sydney, Brisbane, Melbourne and Perth.  The topic for my presentations was the global apparel industry, which was and is fascinating to observe in 2010.

Other business trips included presenting a number of seminars at the MAGIC trade show in Vegas both last February and August to packed rooms of new entrepreneurs.  Phoenix, Seattle, San Diego and San Francisco were other cities I was invited to present a variety of seminar topics.

It seems that there no shortage of new businesses, and in fact I think there are many more new start-ups due to the economy. People get laid off and begin to think about following their dream of one day owning their own business.  Unfortunately, the statistics for survival is still not good, especially in the apparel industry where there are so many things that can go wrong. Fabric arrives in the wrong width and color, production gets late or is produced incorrectly.  With 15 to 35 items in a line there is always a lot that can and the fact is will go wrong! Having an understanding of what to do when things do go wrong and being prepared really can help correct problems.

I get many grateful messages from people who have bought my book and have referred to it as their bible! They also joined the FBI and received all the members’ benefits, from their one hour consultation to discounts on seminars consultants and trade show prices. These small initial investments can be the support system that is needed to start and run your new venture. The industry is changing, in some ways for the better. But we need to change with the industry and to do that we must first understand what these changes are.

So, for 2011 I wish for more understanding, collaboration and partnerships. I have said the following since I founded the FBI in 1999  “Together we can make a difference”! I really hope that this year will see more collaboration, both state side and internationally.

 

The Cost of Clothing! Ridicules! They have to go up in price.

First you plant and grow the cotton, or grow and tend the sheep.  Or, with synthetic fabrics, process the oil/wood/bamboo into filament.

It is then spun and woven, dyed, printed and finished into textiles that can then be shipped to manufacturers to be then inspected, laid out for cutting, cut and bundled for sewing. The machine operators then sew the cut goods into the finished style using a number of different machines depending on the final design; overlock, straight stitch, hemming, embroidery, and many other specialized machines are put into operation. The goods maybe ironed, labeling attached with hang tags, which may also include EDI (Electronic Data Information) for tracking. The goods are again inspected and they are then warehoused to be sorted for the different customers’ locations. The orders are picked and packed, and distributed per the stores instructions. The retailer receives the goods then again inspects the goods to be placed in the store for sale. The retailer will then price the goods up to their retail selling price which is usually around 55% above the price they paid the manufacturer.  Example: if the retailer paid the manufacturer $20.00 for the goods the retailer will price for the final sale at around $45.00.

Now, the manufacturer has also marked up the goods for their own profit margin.  For simplicity of this example could have been keystoned (doubled). So, the $20.00 price the manufacturer sold to the retailer means that the Cost of Goods to produce that includes all the material, zippers, buttons, and then the labor was around $10.00 to produce!!!! Now also consider, the final wholesale selling price has not included the development cost, from designing, sampling, marketing, sales representatives, grading the sizes and marker making for the cutter. Then there are the overhead costs, rent, salaries, telephones, etc. that are also not included in the cost of goods.

Now who can tell me that clothes are overpriced!!! Clothing has not increased in final selling price for the last 20 years. A pair of jeans at Target can still be purchased for $29.99 2010! I remember in the 70s when I paid $70 and above for a nice pair of California designer jeans.

The industry is also looking for speed to market and domestic production. Some ask why it should cost so much to make clothing domestically. Please tell them!

  

Good Old Polyester!

The ultimate green recycled life time reusable fabric – Polyester!

What is green, ecologically acceptable, sustainable, or organic?

How about good old polyester, micro fiber? The ultimate recyclable fabric, reusable, melt down and use again and again. Wear and wear again, remake it, it lasts for centuries!

What does organic really mean?  We are all trying to be the new generation of “green thinkers” but do most of us understand what this means or entails? I don’t think so.

First,  we should really understand what organic stands for? Example, most organic cotton growth demands the use of more water to grow it than non organic. In certain parts of the world this extra water is taken away from certain indigenous tribes, which has resulted in the depletion of water for their own farming needs. This has had a devastating effect, causing starvation and misery for those tribes. And all so that the western world can feel better that they are buying organic rather than the standard cotton that we have farmed and used for many years.

Then there is bamboo and all the hype that goes with this natural plant that is processed into a synthetic fiber, which is processed in the same way that rayon is produced.

Until we have a full understanding of “green” “sustainable” “Carbon foot print” “Organic” ………. Let’s not get too excited.

Don’t know about where you live, but this summer has been the coldest I have ever known since living for 30 years in Southern California. What happened to Global warming? J

What is Bamboo?

 

Rayon is a regenerated cellulosic fiber made primarily from the wood pulp after chemical synthesis. The various varieties of wood pulp variations used determine the charecteristics of the viscose fibre. The rayon thus obtained from the pulp of the bamboo is known as rayon from bamboo. TEMBRO is one of the major supplier of Bamboo rayon. Till last year companies were promoting this fiber as natural fiber and we creating confusion in the market. Post a decision by US authorities they are using the revised nomenclature Rayon from Bamboo.

Rohit Chadha•

The ultimate green recycled life time reusable fabric – Polyester!

 

What is green, ecologically acceptable, sustainable, or organic?

 

How about good old polyester, micro fiber? The ultimate recyclable fabric, reusable, melt down and use again and again. Wear and wear again, remake it, it lasts for centuries!

 

What does organic really mean?  We are all trying to be the new generation of “green thinkers” but do most of us understand what this means or entails? I don’t think so.

Firstly we should really understand what organic stands for? Example, most organic cotton growth demands the use of more water to grow it than non organic. In certain parts of the world this extra water is taken away from certain indigenous tribes, which has resulted in the depletion of water for their own farming needs. This has had a devastating effect, causing starvation and misery for those tribes. And all so that the western world can feel better that they are buying organic rather than the standard cotton that we have farmed and used for many years.

 

Then there is bamboo and all the hype that goes with this natural plant that is then processed into a synthetic fiber, which we could also term rayon as it is processed and produced using the same methods as rayon.

 

Until we have a full understanding of “green” “sustainable” “Carbon foot print” “Organic” ………. Let’s not get too excited.

 

Don’t know about where you live but this summer has been the coldest I have ever known since living for 30 years in Southern California. What happened to Global warming? J

Common Violations found in Garment Factories

This is a list that I recently found when cleaning out my desk at work and thought is was a good list of examples of what you need to be aware of when finding a factory to do your production. This list also applies to where ever in the world you should manufacture your clothing.

YOU are the boss and that means you have the say as to how your product is being produced. You are paying the contractor to make your clothes. It is very important to know how their workers (your workers) are being treated.

 

1.    Failure to pay minimum wage and overtime

Piece rate not adjusted for minimum wage

Piece rate adjusted arbitrarily

Some work “doesn’t count” (repairs, small operations, etc.)

Flat hourly rate without overtime

Forced overtime

Flat fee for work done at home

Hours distributed over pay period to avoid overtime

 

2.    Failure to provide breaks

Meal break not at 4-hour intervals

Meal break less than ½ hour

Failure to inform workers about 10-minute rest breaks

Discouragement from workers taking 10-minute breaks

 

3.    Incomplete or fraudulent record-keeping

Time cards punched by employer/manager/worker at wrong hours; workers forced to sign

Electronic record keeping adjusts hours to fit legal wages

No piece rate/hourly rate/number of hours indicated

Name of manufacturers not on stub

No written contract between manufacturers and contractors

Workers not told name of employer, business

Failure to pay correct payroll taxes, workers’ compensation premiums, etc.

 

4.    Problems with payment

Workers paid in cash, no receipt given

Workers paid in personal check

Workers paid with “voucher” to be cashed at particular liquor store or cashing facility

Workers paid partly with company check, partly in cash/personal check

Workers paid with checks that bounce

Workers paid irregularly

Workers required to purchase tools and machine parts

“Deposit” held for 1-2 weeks

No itemized wage deduction statement issued

Workers paid under different “businesses”

 

5.    Strategies to avoid liability

Locking workers in factory, closing off windows and doors

Sending workers away when inspectors come

Refusing to allow inspectors into factory

“Staging” conditions for monitors (including choosing which workers can talk to monitors)

Closing business or switching business names, officers, factory locations, etc.

Lying about business relations between manufacturers and contractors, including existence of

relationship, value and volume of contracts, etc.

Keeping two sets of records, or one fraudulent set; altering records

Failing to cooperate with DLSE investigations; lying in proceedings

 

6.    Health and safety abuses

Fire hazards (blocked exits, loose wires)

Ventilation—heat stroke, respiratory ailments

Potable water

No place to eat, no microwave, no refrigerator, dirty eating area

No permission to use bathroom; dirty bathroom, no toilet paper, soap, water, etc.

Unguarded machines

No first aid attention

Firing injured workers

Ergonomic injuries

Rats, cockroaches, unsanitary conditions

 

7.    Verbal, physical and sexual abuse

Pressure, insults, threats, intimidation

Physical threats and attacks

Sexual harassment and abuse

 

8.    Discrimination

Injured workers

Older workers

Gender

Ethnicity/Race

Citizenship status/work authorization

Favoritism/ relatives

Workers who talk back are “blacklisted”

 

9.    Strategies to intimidate workers

Hiring preferences for undocumented workers

Hiring people from rural areas with less formal education, or those perceived to be “more docile.”

Disciplining workers publicly to make an example for others

Threatening to report workers to police, immigration authorities, etc.

Threatening to fire workers or close factory

Threatening to blacklist workers; telling other employers to fire “troublemakers”

Failing to provide training for workers or to notify them about their rights

Failing to provide information in workers’ language

Who Wears Dark Glasses in Side the House Or at Night?

Is this a Trend, a Fashion Statement of Pure ignorance? –  Wearing Dark Glasses in the Evening or indoors!

I have a couple of friends who wear their dark glasses inside the house, or after dark when in company. For me and most of my friends we find this to be a very odd and disconcerting habit that seems both tactless, and tasteless. We all ask “Why” does she wear those dark glasses in the house out of the sun over lunch, or when it is dark outside.  I find myself talking with her and wanting to tear them off her head and toss them over the room or over the lawn! It is so very strange and disconcerting when you cannot see a person’s eyes.  To her defense, she really is an all around very nice person but we are all at a loss as to why she would wear them.

Is it the “COOL” factor or the “Pretentious” factor? I find the habit to be “uncool” and in fact rather pretentious.  But then again it could be a trend for the very cool!! Of which I am not part.

Choosing the Right Subcontractor Partner for your New Business– Pattern maker, sample maker, sewing contractor, grader, cutter, sales rep., consultant….

Choosing/finding the right people to partner with in your entrepreneurial venture will be most important to the growth and success of you business.

Well, a few words of warning for those of you starting out. When looking to find the right experts in the many different categories of expertise needed to help make your dreams a reality PLEASE do your due diligence and spend the time to check references. Who have they worked for that can give them a testimonial?  You should have two at least. Do a web search to check them out. 

It is often a challenge to find the connections to the right resources to assist you to create and produce your first line. I have been there and know the power that some of these subcontractors can hold over you and your new business venture.

Recently, I had a couple of new FBI business owners who traveled from Arizona for their one hour free consultation through their FBI membership.  I was horrified to hear their story of being ripped off and their patterns, fabrics and samples kidnapped by a certain LA pattern maker. These unfortunate new entrepreneurs had sadly found this service through a listing under the FBI resource members’ page on our website, (which I must inform you I had promptly taken down).  It is important to note here that these FBI resource members pay a thousand dollars per year to be part of the organization, to support it, and to have the exposure to our over 18,000 data base we have accumulated in the past ten years of service.  It is impossible to personally check them all out and their credibility. We post a warning that we do not endorse any of our resource members and it is important to check references.

 We actually had another new member this week go through something similar with the same pattern maker who was charging $150.00 per hour! The second new business owner had paid over $10,000 and never received one pattern or sample! There are now small claims and the police involved as this was a clear case of extortion.

This type of story is all too often heard but not only about pattern makers. Many times I hear horror stories about sales reps. Designer/entrepreneurs get heady when they find a rep who wants to take their line. It is to them an accomplishment, an endorsement of their efforts… but is it? Or is it a scam to get your money?? Granted, finding the right pattern maker who is able to translate your ideas into reality, and then finding a sales rep. who loves your line for 12% commission plus $800.00 month showroom participation (rent money) could be a great find. But again is it?  If the pattern maker does not understand your creations due to either your lack of experience in giving the correct direction, or their inability to translate your instructions, how do you know if you are not experienced? Many first time designers really do not know how to give directions and can’t visualize the finished garment with all the many decisions that are needed in creating clothing. Seams, finishes, interlining, sizes are all a small part of what is needed to complete a garment. Then consider the sales rep. who wants showroom participation fees, (rent money) and has another ten lines in their show room ($8,000.00 per month without lifting a finger)!  I had a designer have this problem and no sales. After putting out money to a NY rep. for a few months I advised her to get on a plane and go and see for herself the showroom. She did and sure enough her line was nowhere to be seen. It was located in a back store room!! Or, when I had a line and a NY rep wanted to have it and I got no sales I had a friend check and we found that the rep. had cut my label out and put another company’s label in that they had been working with for a number of years.  These examples are not typical and sales reps have their own problems with many new designers who give their fantastic new lines to reps but do not have the funds in place when the reps have worked hard to get the orders.

I should also mention the many business consultants who are willing to step up and help you realize your vision.  They may seem to have the connection to the right sales reps and to all the other subcontractors, but do they?  You should look at all these subcontract consultants as your business partners that you will need to build a successful new business venture. Again, I stress, get recommendations and do some investigation before you start to pay out exorbitant amounts of fees for services.  Also, ask for discounts if you are an FBI member. J

It will mean growth, or it could result in failure if those partners are not what they say there are. Getting connected to the right team for your business needs YOU, the owner to take charge and time to find the right people. However, it is unlikely that it will be an instant happening.  Sub contractors and consultants could be potential scam artists, or potentially, hopefully a productive long term partner for your business. There is no doubt, that it is very difficult to turn your vision into a profitable business if you don’t have the right team. The right team can make all the difference to your journey.  Begin by getting references and referrals.

The Wedding Dress - Back to basics

The Wedding Dress -  Back to basics.

I am thrilled that my daughter, Erika will be getting married this 4^th of July to a great guy and a family, which is local is also a real BIG plus!

As I never had, or really felt I wanted a large wedding it has been, and still is a new experience.  All the planning around this, what we first thought would be a no frills’ wedding in our local botanic gardens has been quite an undertaking on top of our own busy schedules. But,  I must say not an unpleasant undertaking.

Of course the dress has been a very big deal! At first we thought she could buy one through one of my own many connections in the industry. Well, that did not work out and then plan two that we would buy the fabric and have it made through one of my many connections! Well, that also took too long to get connected. So I then thought about it for a few days and decided that I should drag out the size 8 dress form that is around 14 years old, which incidentally in 2010 sizes is now equivalent to a size 4 in today’s sizes for our growing population!

And, so I began the process to create the pattern from the first draped muslin, which I draped in sections following tape I had marked on the dress form that would be the style lines for the dress. I then transferred the first muslin and traced it onto pattern paper and began the flat pattern part of truing up the drape. From that I cut a full muslin of the outside of the lace part of the dress. This I fit on my daughter, Erika and make the pattern changes. I then needed to drape the under dress that is a bias cut double silk chamois slip that is worn under the lace outer dress. I then went through the same process as the first drape to true up the pattern and make as a full muslin to fit.

In the beginning I was a little concerned about our four cats as they seemed to have found this whole process very interesting and thought they could help me adjust my draping. Although it was hard to keep them out of the room we managed all of us to get the dress finished. I am please to say that I really have enjoyed the process and my lovely daughter is very thrilled that her old mother made her wedding dress. Plus, it is the dress she wanted that would have cost around $5,000. I think we have paid for fabrics around $300.00. Although, in my eagerness to create the prefect dress I ordered another design of lace, which is at the moment on its way to our house! This I will need to keep hidden from my husband. Or, as I enjoyed this back to basics experience I could possible create a number 2 wedding dress from Erika.

Now for me… what am I going to wear? I have purchased two lots of printed silk chiffon but I have been informed by a couple of truthful designer friends that they thought the fabric choice would not do me any justice! So, now I am on the hunt to find something or have something made, or maybe I should just keep the dress form out and get back to basics for myself?