Archive for the ‘Clothing’ Category

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‘Made In Italy’ By Chinese Workers, With Chinese Materials

Monday, September 13th, 2010

Times are changing in Europe, and Italy is struggling to maintain the integrity and marketability of its high-end fashion brand while dealing with an influx of legal and illegal immigrants from China.

  • The city of Prato in Tuscany has always been known for its quality textile production, but recently the industry has been taken over by Chinese companies known to use illegal labor and imported materials to feed a new low-end, “fast fashion” industry.
  • Part of the immigrants’ success in exploiting the local economy involves clever maneuvering around Italian laws and regulations. Companies operating in a “gray market” are not technically breaking any laws – they comply with most regulations – but neither are thy upholding the spirit of the laws. For example, a textile producer may refuse to inquire into whether his subcontractors use illegal labor.
  • The issue is sensitive in Italy, where immigration is a controversial and emotional subject. Some believe the situation in Prato is an intentional attempt at economic colonization by the Chinese government.

Facts & Figures

  • Since 2001, half of Italian-owned textile businesses in Prato have been replaced by Chinese-owned textile businesses.
  • Prato represents 27% of all Italian fabric imports from China.
  • Approximately $1.5 million a day is directed from immigrants in Prato back to China, though it seems that much of that money is not being claimed on tax forms.
  • Prato is home to about 25,000 mostly Chinese illegal immigrants.

Best Quote

“The Chinese are very clever. They’re not like other immigrants, who can be pretty thick. The difficulty is in finding a shared understanding of the rules of the game.” – Riccardo Marini, Head of the Prato branch of Confindustria, the organization of Italian industrialists

More Men Wearing Makeup

Thursday, September 2nd, 2010

In the old days, men used wax and powder to perfect their complexions. But today’s man is going for something a little more understated…

  • Despite a social norm that categorizes makeup as “for women only,” men are becoming more comfortable shopping for concealers, tinted moisturizers, and specialized cleansers and lotions.
  • Instead of playing up their features to enhance beauty the way women do, men are mostly interested in hiding dark under-eye circles and evening out their complexions.
  • There are many new cosmetics companies specifically targeting men, though some customers are confident enough to shop at Sephora or other woman-centric beauty shops. The term “makeup” still has an effeminate stigma, so retailers and customers tend to refer to men’s beauty products as “cosmetics.”

Facts & Figures

  • In 1997, Americans spent $2.4 billion on men’s grooming products; in 2009, that number rose to $4.8 billion.
  • In skin care alone, sales rose from $40.9 million to $217 million in the same period.
  • 4Voo sells “Confidence Corrector” for $34, and “Lash and Brow Styling Glaze” for $23. KenMen sells “guy-liner” for $22, and tinted lip balm for $25.

Best Quote

“There is a little bit of that stealth makeup thing going on, where you’re not slapping foundation onto your face but as part of your other routines — it sort of creeps in.” – Jason Chen, Grooming Editor at GQ

Fashion Week Shares A Stage With The Opera

Wednesday, August 25th, 2010

On September 9, Fashion Week will get a new look…

  • The Mercedes-Benz Fashion Week has grown too big for its former digs – this year it’s moving from Bryant Park to Damrosch Park and Lincoln Center.
  • The new hosts at Lincoln Center are using this move as an opportunity to expand the center’s reputation beyond just music, dance, and theater performance. They will complement the runway shows with a variety of fashion-related programming.
  • Designers who might have traditionally chosen to hold their shows off-site in the Bryant Park years have been encouraged to stage their events close to Lincoln Center. Some designers are showing in the promenades of Avery Fisher Hall and the David H. Koch Theater, or at the NY Public Library for the Performing Arts.

Best Quote

“I want to see fashion on par with all of the other cultural activities here—the ballet, the opera.” – Stephanie Winston Wolkoff, Director of Fashion at Lincoln Center

Cool Electronics Move Ahead Of Clothes And Appliances

Wednesday, August 4th, 2010

Second-quarter reports indicate that Americans have changed their spending priorities from appliances to new and improved electronics.

  • Rather than purchasing appliances and clothing, Americans now tend to put their money toward new electronics and in their savings.
  • Electronics are constantly evolving to become newer, cooler and better–causing an incentive to buy the latest items.
  • Some clothing retailers, such as American Eagle Outfitters and Macy’s, are giving consumers electronic incentives to buy apparel (like giving away smartphones).

Facts & Figures

  • Sales of televisions, computers, video and telephone equipment grew 1.8% in the first six months of 2010.
  • Spending on appliances decreased 3.6% and spending on furniture decreased 11%.
  • The U.S. savings rate increased to 6.4% from May to June.
  • In the first 6 months of 2010, Americans spent $534 billion on durable goods, up 5.9% from last year.

Best Quote

“But who needs to buy more ties? I mean, come on, I have a great computer.” -Spence Witten, 27-year-old consumer

Luxury Sites Replace Luxury Stores

Friday, July 16th, 2010

In a struggling economy, online shopping might replace even the highest high-end stores.

  • In the wake of the recession, luxury stores are forced to sell merchandise on the web.
  • Selling clothes online, though less atmospheric than a downtown boutique, allows profits to go directly to the company by cutting out the costs of a store.
  • Technology’s infinite possibilities has increased the number of high-end online stores, allowing boutiques to make their websites seem as impressive and exclusive as their boutique.

Facts & Figures

  • In 2009, when the worldwide luxury-goods industry fell 8%, luxury sales online were forecast to grow 20%

Best Quote

“These brands are finally taking the plunge to establish an online retail presence. The recession forced these manufacturers to realize they needed to look for revenue wherever they could.” – Jeffrey Max, Chief Executive, Venda E-Commerce Sites

Consumption Gap Widens Between Haves and Have-Nots

Thursday, November 19th, 2009

While wealthier American shoppers have returned to patronizing high-end department stores, middle class consumers struggle to afford basics at Walmart.

  • Consumers at all income levels are focused on the value of their purchase and on not overspending.
  • Luxury chains report shoppers buying items such as shoes and dresses, while discount stores say their consumers are focused on food and socks.
  • Shoppers focused on saving in these economically tight times cannot afford to purchase items outside of the bare essentials.

Facts and Figures

  • The wealthy reigned in their spending most severely during the financial meltdown last fall.
  • Walmart has had to lower their prices to encourage their regular shoppers to continue buying.
  • Nordstrom’s third-quarter profit rose as sales improved compared with 2009.

Best Quote

“I used to consider shopping enertainment, but now I don’t think it’s enertainment.” – Patricia Murnane, Shopper and Risk Manager from New York

How Do You Get a $2,000 Dress for $100? Rent it!

Friday, November 13th, 2009
Will rental haute couture be all the rage?
  • Rent the Runway is a new website that lets women rent dresses from high-end designers for about a tenth of their retail asking price.
  • Although the launch has been met with enthusiasm, the business model does face a few risks. Fashion tends to have a short shelf-life compared to rental DVDs. The site is also invitation-only, which limits its customer base. There’s also the enormous customer service risk. If your Netflix movie arrives a day late, that’s one thing, but if the dress for your Saturday wedding comes the following Monday, Rent the Runway has a big problem.
  • Retail stores in big cities have rented dresses for years, but the company believes its online convenience will create a surge in the market even though women won’t be able to try dresses on beforehand.

Facts & Figures

  • The rentals run $50 to $200 for a four-night loan and are shipped directly to the customer.
  • Each dress order includes a duplicate dress in a back-up size for no additional charge.
  • More than 20,000 women signed up for the service for its first week.

Best Quote

“Here was this young girl who loves fashion and was willing to spend a good portion of her salary on a dress that she’s only going to wear once or twice, and I thought, there has to be a solution for this.” – Jennifer Human, Co-Founder of Rent the Runway

Punk Rock Pearls

Thursday, November 12th, 2009
Jewelry designer Tom Binns opens his first boutique mixing goth and glam and making it work…
  • When designers bring old styles back into fashion, they usually miss the mark – like bringing back daisies and bell-bottoms from the ’60s without any mention of Vietnam.
  • Tom Binns doesn’t white-wash his ’80s inspiration: studded leather cuffs with heavy sterling fasteners and emerald-cut crystals, sterling slave collars and spiked bangles, and a silver bullet necklace, to name a few. It’s rock n’ roll jewelry ready for the red carpet.
  • Binns was trained as a fine artist and welder, and signed up for jewelry classes to get girls, which is probably what makes his jewelry such obscene fun.

Facts and Figures

  • Michelle Obama has been seen sporting pieces by Tom Binns.
  • A big silver heart pendant held together by safety pins and bent nails, hung on long strings of tiny pearls goes for $325.

Best Quote

“Here’s the thing: It’s, like, $30,000, so if you feel comfortable with that responsibility, that’s fine.” – Boutique Manager(in response to the journalist’s request to try on a unique necklace)

Buying Shoes Apparently The Thing To Do In A Recession

Tuesday, November 10th, 2009

Shoes have been selling increasingly well despite the recession, due to what analysts are calling “frugal fatigue.”

  • While other retail sales have faltered, shoes are increasingly weathering the economic storm.
  • According to analysts, shoes cost less than other items of clothing (even in a good economy), so more people can afford to spend on shoes regardless of their size or economic situation.
  • Shoes are considered more of a necessity than handbags, beautiful dresses or nice suits. And shoes wear down and need to be replaced more quickly than most articles of clothing.

Facts & Figures

  • Shoe sales were at $1.5 billion in October 2009, highest since October 2006.
  • Sales increased 7.9% compared to one year ago.
  • J.C Penney, Dillard’s, and other major retailers cite shoes as one of their best-selling product categories.

Best Quote

“Shoes democratize fashion. You probably can’t buy a Zac Posen dress if you wear a size 14, but you can buy a pair of Jimmy Choo shoes.” – Kathryn Finney, Writer for the Budget Fashionista blog

A Second British Invasion… But With Retail Stores?

Wednesday, November 4th, 2009

With retail sales dropping, U.K. fashion chain Top Shop takes a transatlantic risk.

  • Philip Green is one of Britain’s wealthiest citizens, with a personal fortune estimated in excess of 3.8 billion pounds. He also owns the women’s retail clothing store Top Shop, among other business ventures.
  • After successful runs in the U.K. and across Europe, Green has opened a flagship American Top Shop in SoHo in New York City.
  • Green hopes that associating the Top Shop brand with star power (such as supermodel Kate Moss) will help bring the store acceptance in the U.S.

Facts & Figures

  • Top Shop’s largest global competitor is H&M, which opened its first store in New York in 2000 and operates 175 stores in the U.S.
  • Arcada Group Ltd., of which Green is CEO, made a profit of £164.7 million (in the currency of Great Britain, pounds sterling) and total sales of £1.9 billion in the year ending Aug. 29, 2009. Revenue from Top Shop and Top Man contributed to at least a third of both figures.
  • The Top Shop emporium in Soho cost $25 million to prepare.

Best Quote

“Green’s New York store is a statement of his intent that Topshop will become a global fashion brand,” –  Greg Hodge, Analyst at Planet Retail Ltd. (a London-based industry research firm)

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