For others, MAGIC is an event the manufacturer attends in order to “show the flag”, to keep the company name before the retailers.  Whatever the reason, having a booth at MAGIC is a huge financial commitment.  For LA based manufacturers that can drive their goods to MAGIC, booth fees, hotel accommodations, food and sundries will likely cost $7000-$8000.  For manufacturers that must fly into Las Vegas and have their goods and their booth trucked in, the cost can easily top $10,000 for this four day event.

For many first time participants, MAGIC has an almost Pied Piper type of appeal.  Rent a booth, show your best styles, be seen by thousands of retailers, and write orders for merchandise.  What could be simpler?  For the uninitiated, the really is” a great deal.

If one were to speak to the Buyers for specialty retailers such as Nordstrom’s, one would likely hear that by the time that the Buyer attends MAGIC, he or she has already issued purchase orders totaling 95% of their total budget for the season.  More simply put, if the Buyer has a total budget of $1MM, he or she has already purchased $950,000 in goods from sales reps that they are currently doing business with.  In other words, sales reps were able to “preview” their lines with the Buyer before the season really started, and write orders.  Based upon this insight, it seems evident that many Buyers that attend shows such as MAGIC are less interested in purchasing new product, as much as assuring themselves that the goods, for which they have already issued orders, are still viable, that neither the styling, nor the color palette has changed.

This phenomenon punctuates one of the key truths within the industry:  success in the apparel business is closely tied to the relationships that one develops with one’s customers, contractors, and vendors. Many start up and fledgling manufacturers enter the fray without a good understanding of this most basic of truths.  The FBI works to help local area manufacturers learn the skills they need for their companies to not only survive, but to thrive in this volatile industry.
 

First Published 3/16/05