CIT and the California Fashion Association recently released the 2016 Los Angeles Area Fashion Industry Profile. We caught up with Ying Yang, Vice President of Commercial Services at CIT to ask her about important issues and key takeaways from the report.
What in the report were you surprised to learn?
I cannot say that I was overly surprised but I was happy to see that the report clearly showed that the Southern California area led the nation in creativity. The fashion industry’s alignment with Hollywood and celebrity is a major contributor to that finding. The profile showed that the region had 12 times more film and video editors, as well as 12 times more media and communication workers in addition to 10 times fabric and patternmakers and 8 times the number of fashion designers than the national average.
The SoCal art scene has also exploded in the last few years, which helps drive the fashion industry and the desire to showcase something new and different. This adds to the creativity factor in the region. When you look at the use of developing a brand with either a Hollywood or Athletic “celebrity” the region’s creativity leads the way. The wealth of expertise from this entire pool supports the industry with a depth of experience and talent that fosters innovation.
What were some of the key takeaways for brands regarding regional employment trends?
In recent years fashion businesses have been bringing back jobs to the SoCal region, or growing fresh ones. From 2012 to 2013 net apparel manufacturing jobs increased by 7.7% or 3,596 new jobs. If you tack on apparel wholesale workers the total increased from 95,585 to 102,062 or a total of 6,477 new jobs, a healthy 6.8% total increase. These increases continue to show that the fashion marketplace is one of the major employers in the entire SoCal area.
What should brands know about trends in e-commerce and social media?
Significant growth continues to occur through both of these channels. The report polled many of the region’s leading firms. The use of social media was deemed to be the most innovative use of technology for the future of the apparel industry. The response came in at a 54% level which is almost twice that of the 2nd place answer which was listed as a stronger system alignment between the manufacturer and the retailer.
In that same poll the leading firms were asked what is their biggest opportunity for growth in 2016 & 17. Sales through ecommerce online channels came in at a 22% level. This was one of the more significant options for new growth opportunities. Suffice to say in today’s apparel world a firm needs to have a defined ecommerce and social media strategy to grow their business as they position themselves to prosper.
What are some of the biggest obstacles to growth identified by industry leaders?
The poll identified a few key areas of concern. The top three responses received were maintaining cost control for the business which includes the ability to competitively source goods made abroad. The next two were the effects of continued retail consolidation, and the firm’s own ability to remain viable at retail and against competition. These challenges are shared by all firms within the fashion industry and are constantly among the top obstacles of growth in the marketplace.
Are there other highlights that you’d like to mention?
Overall the fashion industry in the United States remains a very challenging business. The fashion industry has always faced considerable obstacles which today include facing new offshore competition and continued retail consolidation. The business owners who grow are forced to constantly reinvent themselves to prosper. That’s a testimony to their talent, passion, and drive to succeed.
