CIT recently published its Los Angeles Area Fashion Industry Profile and we sat down with Mitch Cohen, Western Regional Manager and Maria Contino, Deputy Sales Manager, to discuss some of the highlights.
Your report starts out by saying that fashion is Los Angeles’s “most under-appreciated industry.” What factors led to that conclusion?
There is a significant difference in the size of the employment sector in California vs. New York, with California having a greater influence on the ‘look’ of the future.
People think of the Apparel trade as a non-technical industry. Even though it’s fashion driven, most people underestimate the skills associated with designing, merchandising and selling into retail. It’s not perceived as “sexy” an industry as other industries. In my mind, it’s often misunderstood as people not involved in the industry take it for granted. We have seen so many companies enter the market but only the strong survive. The fact that an Apparel company needs to reinvent itself every season is quite different than companies in many industries where product is basic in nature. The need to consistently evolve and change is taken for granted. The skills of the company owners are underappreciated and quite frankly, so are the skills of the factors and lenders who support the growth within the industry.
What did you find are the strengths of LA’s fashion industry and how can action sports brands best tap into them?
Resiliency, versatility, and passion are the strengths of the California industry. Through all of the ups and downs of the economy, companies have grown, blossomed, and started up.
The West Coast market has some of the most creative talent in the entire industry. The California lifestyle helps stimulate creativity and helps drive innovation. Since most West Coast companies are typically smaller at the start than those in NY, the path to success is more available to the Action Sports (AS) companies which create and innovate well. There is a tremendous talent pool within the AS industry that knows it’s customers and what they want…it’s always about being fresh and relevant. In addition, there is a growing trend of consumers who cross over to other lifestyle sports during offseason, such as surfing and wake boarding to snowboarding, motocross, BMX riding, etc. New opportunities arise for brands to target the apparel lines to address the lifestyle needs of these consumers.
Many of the successful firms in SoCal tap into the “Hollywood” concept. AS companies do that with up and coming celebrities within the AS world whose roots now expand into the mainstream culture.
What challenges do you see ahead for LA’s fashion industry?.jpg)
The success of LA’s industry has been linked to the ability to nurture start-ups, and these companies must begin with small lots produced domestically. At the same time, the retailers are demanding some allotment be given to made-in-USA merchandise. Therefore, the larger companies are in a hunt for any and all qualified factories, squeezing some of these smaller brands out of the production schedule. The issues are clear: LA needs industrial training for the next wave of hand-eye coordinated workers, finance capabilities for new or leased updated equipment for the contractors, and a global marketing campaign to tell the world of fashion that the industry is here!
The biggest problem I see in talking to companies big and small alike is how to source effectively under the constant margin pressure.
What role can CIT play in helping brands overcome the challenges you outline in the report?
CIT can certainly help both small and big companies as we possess the expertise, knowledge, and relationships in all facets of the apparel industry from sourcing, to manufacturing, to knowing the customers and how they behave, and all the professionals to turn to create a quality team. CIT is instrumental as a conduit for ‘economic’ information.
Knowledge is power and the industry knowledge and relationships held by CIT can be shared in order to help companies of all sizes grow!
