Fashion Business Inc.

Tempting Propositions

by ralinda on 10/31/2008

Ok lets face it…folks in the fashion industry can be very particular.  We create these brands and we care about them…we want to protect them and we don’t want to leave our “babies,” with just any ol’ retailer.

That means we have to discriminate a bit when it comes to picking the stores we sell to.  No matter how tempting it may be to imagine how black a new account could make our financial statements– selling our brand too short…too soon can have a detrimental effect that just won’t pay off.

Let me tell you a little story to illustrate my point….

A client of mine had these aspirations of creating a high end luxury lifestyle brand.  She imagined her stuff in the windows at Barneys, on the racks of the finest boutiques, on the homepage of international online retailer net-a-porter.com.  Her vision was crystal clear in her mind.  She believed in it and was excited to see it come to life….

But as she sat at her first trade show she watched buyer after buyer pass her by… they’d glance…comment, maybe even take a few pictures… They seemed interested but they weren’t buying….what was she supposed to do?

On the last day of the show, a slightly more mainstream department store paid her a friendly visit.  They were interested and ready to write an order.  I mean they were by no means a luxury brand….but one order from them alone could pay for the cost of her show, save her from hustling for more accounts when she needed to be designing and even allow her to give her consultant (me), a much needed bonus for all my dedication.. hard work, brilliant insight and commitment… (I know that’s right;).

And as much as I wanted and so deserved a little extra padding in my pocketbook I had to keep it real.  The department store deal didn’t make sense.  Of course we had the option of revising the strategy…adjusting our pricing, going slightly more mainstream— but it was only her first trade show.  Was it really the time to sell out?  Was an offer from one vendor offer enough to constitute a total change of plans?

Maybe eventually but not initially.

As you develop your brand you will sometimes have to resist the temptation of big business money…and just give yourself a chance to grow.

I advised that she stick to the program….the brand she wanted…the one she believed in….and the brand she worked hard to create with everything from imported fabric to the paper linen hangtags she loved that made for the perfect finishing touch.

So she took my advice and decided against the major retailer.  However, soon after the tradeshow she was able to acquire about 10 niche brand building boutiques that were interested in finding the next big thing…not just stuff that was sold in (nose in the air)… mid-tier department stores!

Now keep in mind the orders of those 10 stores didn’t even add up to the one order she turned down.

However–she wasn’t trying to host a thanksgiving day clearance sale–she was trying to build a brand.  That takes time.  And that means being strategic as well as pacing yourself.

Soon after she acquired her first 10 stores without a showroom she was picked up by one of the top international showrooms for her product category…who has since been able to place her in niche boutiques all over the world.  A lot more brand appropriate than being sold off to the highest bidder.

She’s since been featured as a top emerging designer in major fashion organizations and publications including Vogue…Not her hometown paper but…Vogue.

The moral of the story–If you have a vision for your brand let people help you refine that vision but don’t ever throw it out the window based on one tempting proposition.

If only for a little while…just believe–trust your gut and see what happens.  It could be better than you’ve ever imagined.

Showroom Shopping…

by ralinda on 10/27/2008

Finding a showroom as a new brand is no easy feat.  You have to find a place that believes in your brand and is willing to nurture it to its full potential.

It really takes warm-up time to build brands up…and in those times you nor your showroom will be making any “real,” money so to speak. In fact you may want to plan on losing some.

That said…you as well as the showroom you choose must be willing to be patient and prepared to deal with a bit of uncertainty as you climb the proverbial success ladder together.

To find a showroom in Los Angeles I recommend looking up brands you’d like to share a showroom with on the LA fashion district website directory. This directory contains all of the lines showing in “The Intersection,” which includes (The LA Mart, The New Mart and the Gerry and Cooper Buildings.)

When you search this directory look for lines you may be compatible with not competitive with.  You want to find a showroom that does not house direct competitors but that the same stores that buy the lines they carry may also be interested in your products as well.

Once you find some leads…walk by…take a peek in and see if it suits your company.  If it does ask if they are accepting new lines…and if they would take a meeting with you.

If you get to the meeting stage it’s time to put your best foot forward. If you even think you want them…sell yourself  and your new company like nobody’s business…get them to really want you.

Start the meeting by showing the the rep completed sales samples, marketing materials and sharing the long term vision of your company.  Reps love to see that you have a long term vision and a plan to get there.  Your communication skills will be key.  You want to vividly display the passion and commitment you have for making your business grow.

You also should highlight stores you’ve gotten into without a showroom (yes..you should be trying to get yourself in at least a few brand building stores before taking on a showroom), press coverage you may have received, mention investors so they understand your business is secure and don’t forget to bring up your past work experience to give them insight into your competency as a businessperson.

Once you have them where you want them….It’s time to start negotiating things like commission percentage, rent fees and the term of your agreement.

The better you present yourself the more flexible the showroom will become.  Give them the reason to believe they have much more to gain…than to lose by taking you under their sales umbrella.  Even though showrooms tend to have a bit of a chi-chi…boo-boo snob appeal they need you as much as you need them.

Present a great product…a great strategy and a strong business acumen and carrying your line can quickly go from getting a straight “NO,” to becoming a “NO-brainer.”

Happy Showroom Shopping!

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Surviving an Economic Downturn

by roberts on 10/23/2008

In my 30 plus years in the apparel industry, I’ve witnessed a number of  economic downturns.  The nature of the industry is both cyclical and rhythmic.  The seasons and styles represent the cycles of change and the industry expansions and contractions represents the rhythm of change.

Following each period of expansion, with new companies emerging and established ones growing, there is an inevitable period of contraction, during which some companies may fail and others consolidate. Whenever I’ve observed successful companies that emerge from a contraction stronger than before, it appears that they have one thing in common; they have adopted a positive attitude and not participated in the common conversation of doom and gloom that is pervasive during challenging economic times.

I hear many CEOs talk about finding ways to cut back on overhead during tough economic times.  Rarely do I hear them look for ways to expand on their sale, and when they do, they are invariably more successful and profitable.  Economic downturns are also filled with opportunity, and those who are flexible and have a positive approach will be better equipped to see and seize upon those opportunities.

Some tips to best survive and thrive during challenging economic times:

1. Get creative with marketing! There is always more business available in the market place than is currently being exploited. Explore ALL the possibilities.

2. Maintain a positive perspective.  Avoid the doom and gloom conversations (and the people, if necessary).  Surround yourself with positive people!

3. Remain in the present.  Pay attention on what  must be done today, and do it, rather than looking too far ahead into the future.

Most of the negatives attributed to economic downturn come from fear-based emotions or destructive negative thinking.  The ability to manage emotions and thoughts during such times will likely provide the internal fortitude necessary to survive and thrive during such times.

Robert Silverstone,

President

Silverstone Consulting (CFMS, Inc.)

Empowering Excellence in Business and in Life

www.robertsilverstone.com

Taking Action!

by ralinda on 10/22/2008

Debra Stevenson, FBI board member and founder of BuzzFlikr.com offers some key tips on staying smart in challenging economic times.  Now is not the time to freeze and ride out the storm…Debra suggests taking some action can help your business thrive in the midst of it all.

1.  Understand what consumers want right now.  We’re feeling cash poor but we still crave style.  One of my fave brands, Meghan Fabulous ( http://www.meghanfabulous.com/) moves excess inventory by offering a chic Sale of The Week directly to her customer mailing list.  The prices are seriously discounted, all her fans get a great deal and she stays liquid.  Genius!

2.  Don’t sacrifice your lifeline. As you’re cutting budgets or staff overhead, don’t compromise on key tools for success.  This may be a time to get out on the road yourself to spike sales.  Look for more affordable ways to        continue marketing, PR and media outreach.  Buzzflikr PR offers affordable rates and effective new ways to get your brand noticed (http://www.buzzflikr.com).

Getting In…

by ralinda on 10/20/2008

The biggest struggle for a new fashion business owner is getting in the right boutique doors.  Many designers have beautiful product at competitive prices but buyers still resist.  Why?

Well, in addition to being uncertain that a new line or brand will take off…buyers are even more hesitant to invest a significant amount of dollars into something new…. that could be invested in a sure thing.

Some ways around this….

1.  Minimize Minimums–Most lines have minimums where buyers have to buy a certain amount that the manufacturer believes makes a good presentation.  As a new line you may want to initially be a little more flexible with ordering minimums.  Do what you can to get people in the door and if your product sells…minimum ordering won’t be a big concern.

2. Multi Level Pricing–Having a low, mid, high price structure allows buyers to buy your brand without having to invest in one across the board pricepoint– that could be more than the open dollars they have available.

3.  Entry Level Products–Again buyers only have so many open dollars to use. Think about what you can create that still represents your brand but at a lower price point.  For example if you have an expensive handbag line you may want to offer a less expensive wallet or clutch.

140 Characters of Customer Contact

by Eric Busboom on 10/14/2008

What can you say to a customer in only 140 characters? Quite a lot, as many apparel vendors and boutique owners are discovering on Twitter.

Twitter is a Web-based text messaging service where people exchange the same sort of short message you might send from your cell phone, but distributed to all of your friends, not just one friend at a time. Using Twitter you can send short updates to your “followers,” other users who have chosen to receive your messages. Twitter is often called a micro-blog service because it lets people communicate in a similar ways to a blog, but only 140 characters at a time.

The service is very popular, and although most messages (known as “tweets”) are about the minutia of daily life, there are a growing number of businesses using Twitter to communicate with their customers. For instance, @Comcast uses it for customer service, the @BBC sends out breaking news, and @WholeFoods sends out news and product information.

The service is also popular in the fashion and apparel industry. @Coutorture tweets about couture events and products, Daria Muirhead of @BoutiqueCafe promotes her podcast for boutique owners, and @closetcaucus, a fashion editor, expresses her love of fashion. I write about apparel marketing issues as @Clarinova.

You too can use Twitter as an inexpensive way to build your customer base and communicate with your customers.

First, sign up for a Twitter account at http://www.twitter.com. Be sure to use a username that represents your business well and fill out as much information as you can in your profile. Don’t send any tweets until you’ve uploaded a picture—the picture is important to establish a connection with your followers.

Second, send a few tweets while no one is following you. You can delete the ones you don’t like (look for the trash can icon) while you get the hang of it. Make three or four tweets that other people can use to get a sense of what you are going to write about, so they can decide whether they want to follow you.

Third, after you have made three or four tweets that you like, invite some followers. Followers are the people who are listening to your tweets, so you want as many followers at you can get who are also current or potential customers. There are several ways to invite people, all of them available from the “Find People” tab at the top of the home page. To get your first set of followers, you can invite friends via e-mail or import addresses from your e-mail account or social networking account. But there is a third way to build a set of followers that involves following other people who may be interested in your tweet because you are interested in theirs. This process is a bit more involved, so it is described in a separate article.

To be successful with a mass-communication tool like Twitter, it is essential that you remember that you are part of a conversation, not a broadcast: you must be willing to listen first, then people will be willing to listen to you. This has always been true. Markets are conversations, but tools like Twitter make this conversation explicit, impossible to ignore, and very valuable to businesses that understand how to engage in it.

Eric Busboom is the founder and CEO of Clarinova, a Web technology company that improves the online visibility of apparel vendors. You can ask him for help with your Web problems by sending e-mail to eric@clarinova.com.

Working with Garment Contractors…

by ralinda on 10/08/2008

I

If you’re a new apparel business owner I’m sure you’ve been there. You’re looking for contractors and what might you experience??

A few snubs. Unreturned calls. That “we can’t be bothered…you’re way too small for us..we have much more important customers “attitude.

Unfortunately it happens. But the end of the day all we want to do is get our lines off the ground. So we deal with it. We take it on the chin and work with people we may feel less than comfortable with.

It can be challenging and scary to invest dollars and time in this type of situation.  So I put together a few tips to help you out along the way….

Tips for Working with Garment Contractors…

1. Be Your Own Publicist. Promote yourself to your contractors. Tell them about your growth plans and get them to believe in you. You want them to feel good about working with you the same way you want to feel good about working with them. If they believe you have a bright future and can eventually become a bigger account they could become a lot more accommodating.

2. Write it out. Show your professionalism. Give contractors written purchase orders and printed directions. Contractors don’t like indecisiveness…and if they do you better believe they are charging you for it. Show them you know exactly what you want and be clear on what you expect. You may be tempted to be overly benevolent if you’ve found a contractor you really like. Be respectful but never forget who’s the boss. It’s you…silly!

3. Do Your Due Diligence. If you’re a little green…some unscrupulous contractors may look at you like red meat. For that reason amongst others, see if you can find a referral, a reference or just look them up on the web. Do some due diligence before paying the real cost as well as the opportunity cost for working with the wrong company.

Finding good, compliant and reliable garment contractors can be a hard road. If you’re new to the industry that’s even more reason for you to start getting involved in the manufacturing community. Attend classes, go to trade shows, strike up conversations as you wait for your coffee at the fashion district Starbucks.

Start by running names by people. Although everyone may not be ready to give up the name of who they are directly working with…people are usually more than willing to give you a heads up if you’re thinking about working with the slimiest company in town.

Good luck….

Email Marketing 101

by ralinda on 10/07/2008

Email marketing has the highest return on investment than any type of marketing.  And the good part is you don’t have to be any type of marketing guru to get it right.

There are a lot of email marketing strategies that can take you over the top but lets just start with getting your emails delivered and opened.

Here are a few tips….

1.  Use an Email Marketing Software–Explore email marketing software such as constant contact and campaigner.  They can help you ensure deliverability and provide you with analytics to help understand the effectiveness of your campaigns.

2.  Do Not CC or BCC–For some this is a no-brainer, but you’d be surprised how many emails I receive where I see my precious email address on a long list of CC’s.  Most of the time I’ll find this CC clad email in my junk email folder.  A long list of CC’s or BCC’s from someone not on your contact list is an easy catch for any spam filter.

3.  Attachments are for Not for Marketing– People hesitate to open attachments from good friends and family yet alone hopeful marketers.  Give yourself a fair shot an send your emails in html using one of the online marketing systems I mentioned above.

Go Global!

by ralinda on 10/04/2008

    Fashion Business Inc. is sponsoring an international trade show opportunity for select manufacturers to show at World Boutique Hong Kong 2009–which is held January 12-15, concurrently with Hong Kong Fashion Week.

    This boutique-style exhibition will give selected California companies selling exposure to an expanded array of buyers from markets including:  Japan, China, Australia, Europe, Canada and Russia.

    In 2008 World Boutique hosted:

    • A total of 255 exhibitors from 14 countries and regions
    • 19,304 trade buyers from 96 countries and regions

    ·

    The best part—-FBI has coordinated a package deal so for less than $3,000 designers can receive a booth, travel from Los Angeles to Hong Kong and a six night hotel stay.

    For more information on showing at The Hong Kong World Boutique with Fashion Business Inc. please contact me, Ralinda Harvey at blog@fashionbizinc.org or call Fashion Business Inc. at 213.892.1669.

    –Don’t Delay…Spaces are Filling up quickly…the deadline is October 15th!

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    Sample Management

    by ralinda on 10/01/2008

    If you’re a designer I don’t have to tell you how much samples cost to produce.

    They can be 3-4 times as much as it will cost to produce your end product…when you calculate the higher costs of sample fabric, trim, cutting and sewing costs.

    For that reason responsible sample management is key.

    While each product should have its own individual tag attached for proper identification purposes, you should also attach a packing sheet… one you will keep file and put the other goes in the box.

    Information on the packing sheet should include:

    1.  The recipient’s contact information

    2.  A list of all the product sent and its description

    3.  The wholesale and retail prices of each garment

    4. The purpose of the request

    5.  An expected return date

    6.  The Fedex number of the recipient–if their paying for shipping which Media and PR companies normally do..

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