Speed to Market – Fast Turn – Rapid Response

What do these terms mean to the apparel industry in 2009? Good news and bad news!

New times = New methods of doing business = Rapid response to the demands of the retailer and consumer.

But, can the average apparel manufacturer respond rapidly? Well, for the small company who, due to their smaller orders are for the most part producing domestically it is good news. They can turn on a dime and produce faster than the larger companies who need a much longer lead time to produce their goods, usually in far off places. Smaller companies with small orders ship them to the retailer, then if the orders sell through they get reorders. This is the very best of new business news for new and smaller manufacturers. It is also good news for the retailer as they can plan for the demands of their customers, the weather, and the economy etc. This new type of selling and buying results in the manufacturer having a much better cash flow, as they will not be seeking funding for larger orders when selling through the traditional five seasons each year.

This tradition of selling at the four or five markets each year usually requires groups within each line that demands cash outlay for the expenses for patternmaking and sampling. Now, the manufacturer is constantly designing, which they really always have and then showing new products, and shipping weekly or monthly new merchandise. So now the manufacturer can get paid more often. They do not need to invest heavily in the five big lines a year as they are now producing and shipping new items to replenish sell through products. The retailer will also have less of a cash flow problem with this type of merchandise planning. The customer will see new items when ever they shop. A win win in a new economy! Well, we hope so.

So, it has at last been officially noted by many international economist that the small business owners are really the backbone of our economy, not only in the US but globally. The big branded companies are not fairing well and many have had to cut back or worse, close their doors. Small businesses can adjust and respond as they don’t have large overheads. For the most part they contract out all their work, including sewing, cutting, bookkeeping etc. and cut back on other expenses to respond to demands, or lack of demands of the economy.

Some for the negative results of this new economy is that bigger retailers are demanding, from branded manufacturers that they discount or allow markdown money. Additionally, major discount store, e.g. Marshals, TJ Maxx, Ross are producing more private label. This has resulted in much cheaper prices for the average clothing labels that are now being sold. The price of clothing today is the lowest we have seen in years. Due to the recession sewing factories around the world have all been forced to lay off workers. The ports in China and other locations are full of containers with cancelled orders. These goods may get discounted and sold or they will have to be destroyed.

However, much merchandise is still being produced domestically, especially in southern California where they produce premium denim, active sportswear and contemporary clothing. But sadly both the off shore and the domestic sewing contractors reluctantly have been forced to take cuts in their pricing so that they can keep their workers working. This rational is in the hopes that the economy will turn around and then the demand for new clothing will pick up. The alternative is to lay workers off and then when the economy turns around they will then need to reinvest time and money in finding good workers and training them.

Another change in business methods are that some of the higher end retailers are asking the smaller manufactures to sell on consignment and this is not a good idea. It was bad enough that traditionally the manufacturer has taken all the risks with development and production costs then have to wait to get paid. Now they are expected to take ALL the risk and maybe then get paid!

Talk about getting screwed!  - Consignment selling will be one of my next blog topics.

But, now onto a very different topic. It is the season to be merry! And I need to take a deep breath and keep my mouth shut when I see all those ugly heavy knitted sweaters decorated with Christmas trees adorned with lights and holly. Or, equally as offensive fashion trend, those cheaply mass produced red jackets lovely dragged out annually of the closets. Where, in my very opinionated opinion they should really remain for posterity. J

HAPPY HOLIDAYS TO YOU AND YOUR LOVED ONES. I HAVE MUCH TO BE GRATEFUL FOR IN MY LIFE AND ALTHOUGH CLOTHING IS MY BUSINESS IT IS NOT MY LIFE.

It’s time to start looking at your business from a global perspective.  How many of you are buying or selling your products outside of the U.S.?  If not, you need to start looking at how to create a global presence for your products.  The U. S. economy is going through a lot of turmoil these days.  If 100% of your business is reliant on the U. S. economy you’d better buckle up, you may be in for a bumpy ride.  Think of the analogy of putting all of your eggs in one basket; it’s the same thing.  With global markets opening up and technology available to allow commercial transactions in multiple currencies there’s no better time to explore opportunities outside U. S. borders. 

I remember not too long ago when trying to sell or buy Canadian products was such a deterrent most apparel companies decided it wasn’t worth the effort.   Now, I can’t see why a smart business person wouldn’t welcome the opportunity to access global markets, suppliers and buyers.  If I were a buyer or manufacturer in this economy, I know I would want to spread my risk and potential reward through as many channels as possible.  When I think about how I would do this I know I need to reach as many buyers or manufacturers as possible.  U. S. tradeshows are great for U. S. buyers and suppliers, but most are not heavily attended by international buyers.  So, how would I reach an international market?  Easy.  I would look outside our borders to find global tradeshows.  The types of shows that attract buyers from Europe, Asia, the Middle East and more.  Many of these economies are doing well, buyers have deep pockets and are looking for new, exciting products.  American brands hold a great deal of cache and brands “Made in America” are always appealing to a foreign market.  If I were a retailer, I would look for exciting new trends and global brands to fill my store; things I wouldn’t find in every mainstream boutique or department store. 

So, how do I start?  How do I find international buyers for my products?  How do I find great brands or products for my stores?  How do I make connections to global manufacturers, suppliers, agents and buyers?  Hop on a plane!  Head on over to Hong Kong Fashion Week and World Boutique.  FBI is working directly with the Hong Kong Trade Development Council to promote the upcoming Hong Kong World Boutique and Fashion Week January 18 – 21, 2010.  FBI and HKTDC are offering an AMAZING AIRFARE AND HOTEL DEAL to first time buyers who would like to attend Fashion Week and the World Boutique this January in Hong Kong.  Intrigued?  I’ll bet you are!  Even If you’ve attended this show before, there are some amazing hotel deals to be had through HKTDC.  Looking to exhibit instead?  There are a number of options for first time exhibitors and established brands.  There’s even a fashion show if you’re so inclined to participate. 

Please don’t wait to sign up for this global opportunity.  Email us at FBI to find out more or stop by the FBI office on December 7, at 3:00 p.m. to see a presentation from Dannie Chiu and Julia Son from HKTDC.  The primary goal of this presentation will be to discuss the upcoming Hong Kong World Boutique and Fashion Week January 18 – 21, 2010 and why it would be of benefit to attend either as a buyer or as an exhibitor.  You’ll get a better understanding of Asian and Global markets, the types of buyers, distributors, manufacturers and retailers attending the show and get the answers to all of your global questions. 

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated.  Email:  jill@fashionbizinc.org

I recently had the opportunity to speak with Kelli Nelson of FindFashionRep.com to discuss how she came up with the idea for this terrific website.  FindFashionRep.com provides designers and manufacturers with the information they need to make informed decisions when looking for sales representation.  Using the service is very simple.  Kelli has done all the work to make the process as painless as possible.  A designer or manufacturer logs into the site, answers a few questions about the type of product, the target market, price points, etc.  After selecting a territory a list of suitable reps is provided.  The designer or manufacturer can then view the other lines being offered by each rep to help determine if their products would be a good complement to the existing offering.  It may take several tries to find the right rep, but once the designer or manufacturer selects a rep they will receive contact information, price points and product descriptions of the other lines.

What Kelli has done is take the guess work and the leg work out of finding quality sales representation across the U. S.  It’s hard to imagine how much time and energy it must have taken her to develop this database, let alone the time it takes to keep it up to date.  Sales reps are encouraged to update their line lists, price points and other relevant information on a regular basis in order to make FindFashionRep.com the most comprehensive of its kind. 

New FBI member Kelli Nelson got her start in the fashion industry in 1988, while still in college.  Working as an assistant sales rep to the West Coast sales manager of Z. Cavaricci, Kelli learned the ins and outs of representing a major brand to retailers of all sizes.  She quickly moved up the ranks at Z. Cavaricci, acquiring more responsibility and more skills.  Kelli started her own company, In Harmony, in 1995.  Using the knowledge she acquired at Z. Cavaricci, she built In Harmony into a multi-million dollar business.  The one issue that always nagged at her was how to find the right sales representation for her brand.  “It’s not enough to know a few good sales reps,” Kelli said in our interview “it’s about finding the right rep for your product.”  The trick to finding a great rep is understanding the labels or products they carry and who they are able to sell to.  Unless she flew to a specific sales territory she would spend countless hours on the phone trying to locate good reps through recommendations and referrals that were already closely aligned with her target stores. 

 In 2006, Kelli decided to start compiling an extensive database of independent sales reps in the 12 major U. S. fashion markets.  Her goal was to cover all categories of mens, womens and childrens clothing and accessories across all major U. S. markets. Many hours of work went into developing what is now known as www.FindFashionRep.com

We’re excited to have Kelli on board as a new FBI member.  I encourage you to check out her site and services.  It’s a great idea and long overdue.

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated.  Email:  jill@fashionbizinc.org

Part one

I have just returned from an interesting and thought provoking 8 day trip to Germany. I was invited by the German Federal Foreign office to be part of a foreign delegation. The visit included four cities which highlighted sustainability, green technology and to see firsthand what the Germans have in place to support their creative industry.

Why were we invited on this fascinating trip? To begin with this was a question on all our minds, but it soon became clear that this experience was a PR trip to educate the world about Germany’s support of creativity and entrepreneurial endeavors. They also wanted to highlight the importance of small creative entrepreneurial businesses to the world economy and the importance of supporting small business.

First stop Munich, my favorite city in Germany. A place I know very well from living there for four years in the 70’s and then later for two years with my family in the 80’s. We stayed in a wonderful boutique hotel downtown near the center. The first evening after my near 24 hours trip from LA via Zurich I was introduced to the other members of the delegation who had also arrived that day from various other parts of the world.

Including me there was a total of nine people in the delegation; a shy professor of fashion from Beijing, an extravert and renowned reporter from Shanghai, a glamorous new age Marilyn Monroe fashion reporter accompanied by a delightful professor of knitting from Oslo Norway, the exuberant talented and bight business journalist from Luxemburg, a talented designer from Tehran who will be showing her fashions at the Victoria and Albert museum in London in November 09. A rugged science journalist from New Zealand and last, but by no ways least, a delightful Harvard masters graduate and professor of fashion from Boston.

Our Munich itinerary included visits to a new young “How to make your own thing” magazine. A visit to a boutique with a social conscience, which featured interesting organic cottage industry clothing, and accessories. Followed by a SBahn train ride to a small but very interesting trade show that featured sustainable furniture. But, the highlight in Munich was the visit to the new very impressive modern art gallery which was a treat for us all. Packed full of valuable art work that would have cost millions to purchase. The building is a master example in the use of space and light.

Next we flew to Dusseldorf to visit Germany’s center of fashion and architectural fame. A city that combines green technology with old and not so old historic buildings. From there we drove to Essen the past heart of the industrial center of Germany. We visited a rebuilt and preserved brewery and an old coal mine, which our guides likened to the “pyramids” in engineering and architecture. The Germans have reworked these places with precision, a quality for style and workmanship for which they are famous.

Our final destination was Berlin to experience firsthand their relatively recent rebirth of a city from the ashes of the east and from the division of a country to the newly reunited Berlin. This year marks 20 years since the wall came down. Berlin is a tribute to their master planning with its incredible architectural buildings that highlight Germany’s ability to heal and rebuild a city.

In Berlin we had many meetings and lectures at different locations, maybe too many as we were all rather exhausted at this point. One meeting that we all agreed was refreshingly honest and insightful was presented by Sven Harpering, Senior Managing Media, ICT & Creative Industries. Sven discussed the contributions made to the economy of the creative industries. Small new companies that pop up in all sectors of creativity, from fashion, music, film, art, software design, performing arts and many more. These small companies contribute massively to the economy. Hundreds of thousands of small companies with maybe one or two employees, which are struggling to make their company bigger or more profitable.

Most of us are aware that many types of jobs have been lost to off shore cheaper labor. As a result we are now looking at our struggling economy and what has resulted from the massive lack of planning and rebuilding of any new infrastructure. If we do not begin to support our own western creativity to create new businesses and help existing businesses then the east will soon take over as the leaders in entrepreneurial endeavors.

What they are doing in Germany is something we at the Fashion Business Incorporated www.fashionbizinc.org in LA have for the past ten years been trying to achieve. That is, to support creative entrepreneurs realize success and profits, while at the same time creating new jobs. We must rapidly realize that it is extremely important to rebuild our countries infrastructure by developing new manufacturing methods that will serve the needs of today’s textile and fashion industry.

The apparel industry is the largest industry in the US if you consider the retailing segment. Bigger than the auto industry! When has our industry received support from any bailouts? But if the industry is not supported soon our creative entrepreneurs and the money they generate for our western economies, and whose trendy fashion goods that are sought after globally will disappear. We can then all expect to be looking to China’s new designer/entrepreneurs to fill our shoes as well as produce the product!

However, back to our trip which was truly memorable. The new friends I made were all so different in many ways with very diverse experiences and life styles, and yet we all really bonded. It could have been the good wine that helped fuel this realization. I feel confident that we will all stay connected to find more solutions to support global creativity.

Global Creativity Network - to be continued.

As a relative newcomer to the world of blogging, I didn’t realize how much fun, or how difficult blogging can be. It’s fun, because I can write just about anything I want – which is also what makes it so difficult - narrowing down my ideas into one somewhat coherent stream of thought. Which is why I’m getting back to the business of fashion. Because that’s what we do here at Fashion Business, Incorporated.

And speaking of here, did you know we now have an FBI location in San Francisco? That’s right – We now have a chapter serving the San Francisco Bay Area, offering classes in multiple locations including through our partnership with the Small Business Administration. Janet Lees is directing all FBI programs in the Bay Area as well as fund raising for the SF FBI office. A native of UK, Janet has been involved with the Bay Area fashion and design industries for 16 years and is especially proud of the programs she’s developed to support entrepreneurs in fashion and the arts. In addition, she is an experienced small business owner and an active partner in her husband’s modern furniture company, Jason Lees Design, located in Oakland, where she is responsible for Public Relations and has secured ink in local, national and international press. We are so fortunate to have Janet on board and are very excited to be able to present many new and popular seminars to our Bay Area members. Check out our list of upcoming events in Northern and Southern California, Atlanta and Phoenix – open to members and non-members alike.

When most people think of fashion they think of runways filled with glamorous models, fashion magazines full of glossy advertisements, celebrities at movie premiers or awards show or maybe even “Project Runway.” At FBI we know that the finished product, what the consumer sees, is the end result of many months of design, planning, manufacturing, logistics and more. There are so many pieces to the puzzle of successful fashion businesses that it’s no wonder so many companies can’t make it in today’s economic climate. No, not just because people aren’t buying clothing, accessories or shoes. They are, just take a look at the latest retail numbers to see sales have improved greatly. It’s because business is changing. Wholesale, retail, ecommerce – it’s all changing. As a fashion business, you need to have the skills to stay on top of new retail buying and selling trends, new credit and financing issues that are affecting us all, new business and technology skills and even new ways of doing business with your vendors. That’s where the FBI comes in. Why not take full advantage of your FBI membership? Or, if you’re not currently a member, become one. Memberships start at $200 per year, but the knowledge you gain is priceless. We’re here to service the fashion communities in California as well as seminars in Atlanta, Phoenix and New York. Can’t be here in person? We have a number of classes and seminars online at very affordable prices. Contact Jacquelyn@fashionbizinc.org for more information or just stop by our offices or website. We look forward to seeing you.

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated. Email: jill@fashionbizinc.org

Well, actually, October was National Cyber Security Awareness Month, so it’s a little late to post this, but it’s never too late to be aware of your cyber and network security. National Cyber Security Awareness Month (NCSAM), sponsored by the Department of Homeland Security, has been conducted every October since 2001, and is a national public awareness campaign to encourage everyone to protect their computers and our nation’s critical cyber infrastructure.

What does this have to do with YOU? Everything. If you’re reading this blog you must be using a computer or some type of tool that allows you to access the internet. If you can access the internet, it’s possible that someone or something can access your data or network. Identity theft is on the rise. Malicious viruses and network hackers always seem to be looming close by. What can you do to protect yourself and your business?

1: Be smart about your computer, your network and especially your passwords. Computers and networks should be running up to date security software which scans for viruses, spyware and more on a daily basis. If you work in an open or public location, log off of your computer when you step away from your desk. Yes, it’s irritating to have to log back in, but better safe than sorry. Don’t share your passwords, ever. And don’t use the same password for all of your email, online accounts, banking and more. See below for some hints on how to create strong passwords. What should you do if you find your computer is the recipient of a virus? See #3 on the list.

2: Any information, data, files, pictures, etc. that has any importance to you or your business should ALWAYS be backed up to a separate, secure location. And I don’t just mean a little USB drive which can easily be lost. It’s worth the investment for yourself or your business to have secure, offsite storage of your files with a reputable company. You can usually backup your files on a daily, weekly and monthly basis to your server or to an online, internet data storage which should be accessible to you any place you can get an internet connection. If you’re like me and everything you have is on your laptop, what do you do if the darn thing crashes or gets stolen? It would take me a while to get a new laptop, but only a few minutes to get to all of my files. Backing up to a separate hard drive is also a good idea, but if you keep your hard drive in the same place where you keep your computer, it’s not a very good disaster recovery plan. Oh, and always, always, ALWAYS check your back up to make sure your data is actually there!

3: Know when to ask for help. Professional help, that is. Sole proprietors and small business owners are notorious for knowing “someone” who can help them with their computer or network. That “someone” usually turns out to be the next door neighbor’s 15 year old kid who’s a computer genius. Yes, he may be a genius but does he know what to do when your network is infected with a virus or your server is out of commission? Probably not. So what should you do? Well, I recommend establishing a relationship with an IT service provider who will help manage your network, servers, computers and more. Fees for these types of services can be very affordable depending on the service and support you need. Knowing that someone is keeping your network running smoothly, monitoring your system backups and keeping your security software up-to-date provides piece of mind to many businesses. Heck, you can even outsource your IT help desk to some of these service providers. In this case, what you don’t know about computer and network security can really hurt you or your business.

Some top tips from www.staysafeonline.org:

• Keep your web browsers and operating systems up-to-date. Internet Service Providers (ISPs) and software companies regularly update their browsers and operating systems not to annoy you (yes, I know it feels like this), but to fix security issues and bugs which may allow unintentional access to your systems. By keeping up-to-date on the latest releases you help close these security gaps.
• Back up important files – see #2 above. I would recommend you back up all files, because you never know what’s important until you can’t find it.
• Use caution with email attachments – many email programs have an automatic virus scan for all email attachments, make sure you use it. If something looks or seems suspicious, DON’T OPEN THE ATTACHMENT! Call or email the person who sent it to you and ask them to tell you what was in the attachment. If they don’t know or say they never sent you an attachment, it’s probably a virus and should not be opened anyway.
• Create strong passwords:
  • Don’t use passwords that are based on personal information that can be easily accessed or guessed.
  • Don’t use words that can be found in any dictionary of any language.
  • Use both lowercase and capital letters and/or a combination of letters, numbers, and special characters.
  • Use different passwords on different systems.
• Use security software tools as your first line of offense – there is no reason not to have up-to-date security software running on your computer and network. It may cost a monthly or yearly fee, but I can guarantee that fee is a lot less than the cost of having a professional come out and try to recover lost data from an infected system.

Jill Mazur is an independent apparel business and technology consultant working with Fashion Business, Incorporated. Email: jill@fashionbizinc.org