Friday, July 8, 2016

REVIEW: Agenda Long Beach Trade Show, June 29-30, 2016

It was all systems go at the unofficial launch of the Spring 2017 season round of apparel trade shows last Wednesday and Agenda Long Beach, June 2016Thursday with Agenda Long Beach at the Long Beach Convention Center.
The busiest period of the fashion week and trade show year will continue through the end of October with major stops in Miami, Las Vegas, New York and Los Angeles.
The original street, skate and surf focus of Agenda has expanded and diversified steadily over the past 5 years to include contemporary and progressive men's and women's brands in Agenda WMNS and The Woods sections, personalized accessories in Pin & Patch, grooming and personal items in The Essentials, and industry service providers in Agenda Resource. Read more about each section here.
The broadening mix of brands at Agenda brings together industry veterans, today's apparel movers and shakers, buyers of all stripes, sales agents from across the spectrum, millennials chugging beers at 10AM, and kids on skateboards. It is a fascinating cross section of the industry. There are bodies in constant motion in every direction to the accompaniment of chatter and laughter, DJ-ed beats, and the clatter and scrape of skateboards. The bars and food trucks inside are never short of customers.
The sights and sounds create a frenetic energy that gives Agenda Long Beach a party feel. But there is still plenty of business done. Most of the brands and sales agents that I spoke to were very happy with the amount and quality of the buyers seen.
Some eyecatchers for me were:
The famous LA heritage brand, Kennington
The famous LA heritage brand, Kennington
Kennington has been doing it right for 60 years. They sport their famous prints and colors in a contemporary, slim fit body for their younger customer and their time tested regular fit in long and short sleeves. I particularly like the Flume Short in three colors and the jackets in three bodies - Bomber, Garage and Safari - that they are doing for Spring 2017.

Gypsies & Debutantes at Joken Style booth
Gypsies & Debutantes at Joken Style booth
Eme Mizioch of Joken Style Showroom was super excited by the response to Gypsies & Debutantes' bags. The bags are beautifully constructed with paneling made from re-purposed traditional women's blouses from South America. They had seen buyers from Diane's Beachwear, Fab Fit Fun and Crossroads.

Giving Bracelets benefits Court Appointed Special Advocates (CASA) for Children
Giving Bracelets benefits Court Appointed Special Advocates (CASA) for Children
The soft leather, metal and electro-plated crystal adjustable bracelets and necklaces from Giving Bracelets are unisex, comfortable and empowering to wear (I haven't taken mine off). 10% of the proceeds go to support Giving Bracelets benefits Court Appointed Special Advocates (CASA) for Children. Wholesale prices start at $13.50 with no minimums.

The Wayward Collection by JanSport catching the higher end, natural look
The Wayward Collection by JanSport catching the higher end, natural look
I was impressed by the new Wayward Collection from JanSport. JanSport has captured a natural eco-look with subtle colors and prints to appeal to the higher end of the market.
They were two very strong days at Agenda. The activity bodes well for the upcoming wholesale selling season. I am looking forward to the reports from shows in New York and Miami in July. I will be blogging from Las Vegas in August. I am expecting Vegas to be the strongest show since the 2008 financial crisis.
Paul Brindley
paul brindley consults

Friday, June 3, 2016

Bern Baby Bern but Don't Bern Down the House

Last Friday, I had a flashback to election day, 4 November 2008. I was volunteering on the 'No on 8' campaign to stop the hurtful, regressive and reactionary Proposition 8 that sought to add the preposterous notion that "only marriage between a man and a woman is valid or recognized in California" to the California Constitution.
It was a day of mixed emotions. Barry O won the presidential election but so did Prop 8. The many young volunteers that worked on 'No on 8' were devastated. It was their first taste of political defeat. They talked back and forth all day as we moved from polling station to polling station about how just our cause and how certain our win. The prejudice behind Prop 8 made no sense to them. Their enthusiasm was infectious. Their true belief in equality was inspirational. Their disappointment was heartbreaking. I left them with the wish that they work through their disillusionment and stay engaged and fight on.
And fight on they did. With the emotional and educational groundwork laid by those older, it was largely the younger generations' enlightened and almost banal attitude of acceptance and inclusion that dissolved the prejudice against marriage equality. Marriage equality became the everyday reality that even the most reactionary of Supreme Courts could not resist (I am glad Scalia was around to taste that defeat). I knew that day in November 2008 that although the young people I had worked with had lost a battle, they would win the war. They did.
I had that same feeling when I looked around the crowd at last Friday's Bernie Sanders rally at the Los Angeles Maritime Museum in San Pedro.
The organizers had expected the maximum crowd that the outdoor area could hold - 2,700. So did I. Doors were opening at 8AM. Not wanting to miss out, I got to the Maritime Museum at Harbor Blvd and 6th Street in San Pedro just after 7AM to find that I was about the 200th person in a very quiet line. I had expected more volume in all respects.
Viva La Revolucion!
Viva La Revolucion!
Those first waiting few were a microcosm of the crowd to come. Most under 30, some over 60, few in between.
8AM came and went as the line lengthened and the merchandise paraded past. My favorite was the tee shirt sporting the famous Che Guevara head with a superimposed Bernie face and the slogan "Viva La Revolucion".
Bernie Sanders campaign buttons 2 for $5, 3 for $10??
2 for $5, 3 for $10??
Some of the campaign buttons were clever. "Birdie For President" touting the feathered friend that alighted on Bernie's lectern mid-speech a while back. I assume Nike and/or Michael Jordan are supporters given the presence of an 'Air Bernie' button. I was tickled by the progressive pricing model for the buttons - "2 for $5, 3 for $10" was the cry. I had to ask the young man next to me if I had heard the woman selling the buttons correctly.
Having broken the ice with the young man, I proceeded to inform him and his young female companion that I was there to write an article about the rally and asked them if they would mind answering a couple of questions. I promised I wouldn't be using their names so I didn't ask for them. Both are born in the US to Mexican parents. He is 23. She is 20.
He had voted for Obama in 2012. This is her first presidential voting opportunity. Before Bernie, they weren't interested in politics. So what is it about Bernie's platform?
  • access to lower cost or free tertiary education
  • an easier process for work permits for those wanting to work in the US
  • a pathway to citizenship for undocumented aliens
  • wages growth and increased benefits for workers
They both realize that Bernie would have trouble getting his platform through Congress but believe he would point the country in the right direction if elected.
If Sanders doesn't secure the nomination, they will both vote for Hillary against Trump. Reluctantly. They listed the same negatives about Hillary that I heard all day from others people I spoke to or heard talking around me:
  • She's a liar
  • She's corrupt
  • She's a friend of Wall St
  • She's a corporatist
  • She's a warmonger
  • She's broken the law by using a private email server so says the State Department
  • She says anything to get votes
I asked the couple where they had gotten their information. He had formed his opinion from information off the web or TV channels like CNN. She had gotten most of her information from him.
I asked the young woman if it was important to her that a woman become President. She said yes but not Hillary. I resisted the urge to press further.
The line continued to grow as we got further past the supposed 8AM doors open. We began filing through the security check at about 9AM, and then made our way to the open area right on the harbor to the left of the Maritime Museum. The raised stage with podium and bleachers raised the anticipation of the Bernie experience among the crowding throng of the young in tees and jeans, union members in their colors, families and old lefties. There wasn't a suit or tie or corporate type among us. I felt overdressed in a blue dress shirt and Zegna lace-up leather boots.
With what I thought I were the thousands still in line being slowly security screened at Checkpoint Bernie, I knew were in for a wait (There turned out to be less than half the expected crowd so said the chap in the suit who was running the checkpoint). Once I had found my spot, I asked the guy standing next to me some of the same questions I had asked the young couple in line. Donald from Montclair gave me very similar responses. Donald isn't devoted to any party. He votes with his conscience for those that support the middle class. He supports all of Bernie's platform. With Bernie's almost done, I asked if he vote for Hillary against Trump? No, he would vote for the Green Party. Why? Because California is a safe Democratic state so he would protest against Hillary by voting Green. He listed off the congenital Bernie-supporter complaints about Hillary - corporatist, untrustworthy, not sure whose side is she on, first for something then against like fracking and free trade. Unprompted though, he agreeably informed me that he would vote for Hillary is California was a marginal state.
At around 9.30AM, the Bernie fever spread with an elongated version of the national anthem by a soul singer with a beautiful voice evidenced by the holding of many a note and with the warm up speeches by local union leaders (one in which a speaker assured us that "Bernie wants to make America great again" - I assume he would like that one back). The fever passed with no Bernie but a long lull while we listened to a slightly annoying loop of truncated songs (we were on the road again with Willie Nelson then bern baby bern-ing to "Disco Inferno" then feeling power to the people with Lennon [John, not Vladimir], et al.) as the gloom burnt off revealing wispy white clouds in a gorgeous blue sky and a sun determined to get hotter and hotter. The podium stood invitingly against the blue with three green Evergreen container crane sentinels in the background.
By 11AM, there was still no Bernie or any updates from the organizers. I had been there four hours. With no hat and sore back, I had had just about enough. Relief was stymied by a sighting at the podium. The president of the local International Longshore and Warehouse Union, the main organizers of the event, slipped into us with a rousing tirade about the rigged system and the disappearing middle class and better wages and all for one and one for all before making the announcement we had all been waiting for .... heeeeeere's Bernie!
Bernie graced us with his presence right on 11.15. Fists were raised, Bernie signs were waved, and the enthusiastic but vaguely defeated chant of "Bernie, Bernie, ..." filled the air. I had the odd thought that he looks more like Bernie live than on TV. I am still not sure what that meant.
My next thought was more coherent. It was very soon into the speech that I was convinced that Bernie is in this for the right reasons. He is sincere. He is not on an ego trip. He knows that the only way he has any chance of realizing the changes that he and his supporters believe in is to push Hillary all the way.
He is a compelling speaker. He worked his way through his platform. I won't regurgitate here. Though I would like to mention that he only called out Hillary once and that was for taking Wall St super PAC money. "How can you take on Wall St when you are taking money from Wall St?". There was a lusty round of boos for Secretary Clinton as Sanders refers to her.
Some highlights for me:
"This is the richest country in the history of the world. There is no excuse for the poverty we have in this country."
"There is no excuse for women making 75c on the dollar compared to men."
"We need to demilitarize local police departments."
"Medicare-for-all."
He gave Trump and his supporters, and the Republican Party a right old kicking.
"We have the ludicrous situation of a billionaire like Sheldon Adelson giving hundreds of millions of dollars to another billionaire like Trump!"
He lampooned the Trump and the other Republican climate change deniers with whom he sits on the Senate Committee on Environment and Public Works.
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"Together we can do this"
It was strong stuff until about 25 minutes in when Bernie started to repeat himself. I can understand his need to stretch the speech and entertain the crowd who had lined up and waited all morning. But I was done.
As I made my way through the gathered proletariat, I had mixed feelings. I believe Bernie is genuine and I agreed with everything I had heard. I appreciate that his campaign has called out the rigged US political and economic system for what it is while naming the bad actors who perpetuate and benefit from their warped creation.
I am very optimistic about the ability of the generation of change agents that Bernie has energized to carry forward and realize his agenda. I am sure this is only the beginning of a lifetime of political engagement for many of the young people at the rally. This is a very, very good thing.
But ... its time. Its time for Bernie to put the cue in the rack. Its time to let Hillary Clinton get on with annihilating Donald Trump in November.
I understand the fury among the shrinking middle class and the exploited working class for meaningful change to a system that is stacked against them. Despite her long fight for social and economic justice, many see Hillary as part of that system.
I understand that 'Clinton Fatigue' is almost natural after nearly 30 years of hearing about him, then him and her, and now her.
I understand that Hillary has at times in the past (particularly during the 2008 presidential run) tried to be all things to all people. She is the most unfairly scrutinized and criticized woman in public life that I can remember. Constant attack is bound to make anybody hyper sensitive and to say things that please. Plus she is woman operating in very hostile male territory who must tread carefully and watch what she says during this campaign. Do you really think that the white male power structure wants to give the keys to the kingdom to a woman? It is crystal clear that they have been looking to skewer Hillary since well before she announced her run. As much as they hate it, they would rather have a black man in the White House. As Sheryl Sandberg, the COO of Facebook who Inc. magazine called 'arguably the most influential woman in business', was recently quoted in an Inc. piece, "As a country and as a world, we are not comfortable with women in leadership roles ..." I'll say.
Now remember, Hillary has secured more primary votes, more delegates, and almost all the super delegates that the Democratic Party primary system allows. Bernie and his supporters complain that too many independent voters have been deprived of voting in the primaries. It is the Democratic Party primary.
Between her successful legal career, 12 years along side Bill when he was Arkansas governor, 8 years in the White House, 8 years as the senator from New York, and 4 years as a universally admired Secretary of State (outside the US where the admiration or not of the Secretary of State counts), Hillary Clinton is one of the most qualified people ever to run for the presidency.
And unlike Bernie, Hillary is stripped down and ready to go. Bernie hasn't endured anything like the scrutiny of personal belief or public record or job performance that Hillary has been subjected to for the past 25 years. There is no stone unturned in Hillary's life and work. We do not know what the Republicans jackals will find in Bernie's past or present. They have largely kept their powder dry on Bernie's democratic socialism (= communism). Bernie will end up looking like Uncle Joe Stalin but the time they are done.
For me, above all, it is time for a woman to be President of The United States.
I like the way Brendan Quinn put it on the Blue Nation Review website in an April 2015 article:
When a woman takes up the mantle of “Leader of the Free World,” our nation will cross a line, never to return. I’m not saying that Hillary Clinton becoming president will magically create nationwide gender equality, because it won’t. But when we join the ranks of countries like Germany, Denmark, and Chile (and dozens of others) by placing a woman as our Head of State, a new generation will grow up with an altered view of what a woman can do.
When women take on leadership roles, the way women are perceived and talked about changes. In just the last half-century, the way women are discussed in the media has changed dramatically. Because my generation grew up seeing women as senators and governors, (and creating laws that improve the lives of women) we perceive them in a different way than our grandparents. Unfortunately (for now), I can only imagine the discourse of a generation that grew up with a woman in the Oval Office.
Sexism is the ruling "-ism" from which all others corrupt. It is the first we learn as children. That boys and girls are different and, for millenia, boys are better, stronger and more valued that girls. I believe that the education and empowerment of women in the US and across countries and cultures is the key to solving all the problems of the world, be it, economic, social, environmental or religious.
The younger generations are more accepting and more tolerant than any generation before them. They can make the final spiritual leap to full equality and empowerment for all in the US. We have seen their effect on public debate and policy through the acceptance, codifying and ratifying of the marriage equality and marijuana legalization laws across the country. Bernie has energized them. He can now direct that energy to transform the lofty rhetoric into reality. It won't be with him as president. He knows what he must do.
If Bernie is all about solving the real problems we face and blocking the fraudulence and selfishness of Donald Trump and the deformed Republican Party then he must do his part when the time comes. When Hillary is confirmed, he must unequivocally and unconditionally support her candidacy and direct his supporters to do the same in his name. "A vote for Hillary, it is vote for all of us".
Electing Hillary Clinton as President of the United States will not only put the most qualified and experienced and capable candidate in the White House. It will send a message to everyone everywhere that anyone can do anything.

Thursday, May 26, 2016

It’s the End of the Department Store as We Know It? It Better Be

When was the last time you shopped for clothes or accessories at a department store? And when I say department store, I mean nothing short of a Macy's. Let's not count the popular secondary department stores like Marshalls or Ross or the department stores' own secondaries like Nordstrom Rack, Macy's Backstage and Saks Fifth Avenue OFF 5th.
If or when you did last grace the departments, did you linger and walk the floors like the good old days? Or was it a smash and grab raid like you were shopping online? Could you live without department stores in your shopping life? After all, you have never had more buying options for apparel or just about anything for that matter.
I ask these questions because you may have to consider life with fewer or even (well down the road, if ever) no department stores. The business press has been reporting the on the struggles of the US department stores for some time now. Recent poor financial results have increased the pressure on some big names.

The Business of Fashion just posted an excellent article on the subject, Why American Department Stores Are ‘Broken’.  Macy’s saw a 5.6% drop in year on year sales for the first fiscal quarter of 2016; Saks Fifth Avenue was down 5.7 percent, and the usually invulnerable Nordstrom dipped 1.7%.
Why are they broken?
  • Retail in general is struggling despite all the usual economic parameters for strong retail sales currently set in 'Go' mode. The Business of Fashion outlines the reasons in another excellent article, "Why Aren't Americans Shopping". I couldn't put it any better, so I won't except to say that we live in a very different retail world post the 2008 Great Recession (aka "The GFC" or "The Global Financial Crisis", as it is known elsewhere).
  • Department stores haven't changed they way they do business in practice or look and feel for years. Walk into any department store today and it looks like it did 20 years ago. Just buying up the next popular online site or simply posting more content on social media or having sales staff working off iPads and or jazzing up your advertising will not cut it in this millennial world. Its all about customer engagement. Even the edgiest marketers are still figuring out how to effectively influence millennials. I do like "The 5 Ways to Sell to Millenials" on Inc.com:
1.  Authenticity matters most
2. Realize you'll be fact-checked--almost before you finish.
3. Make your point, and then shut up.
4. Make your message an emotional story.
5. TV? What's TV?
Department stores are way behind the game.
  • I heard an industry type on NPR last week state that many in the department store upper echelons have been in the system for their whole careers and that they may little or no feel for the new world of retailing. I'm not sure about this take. Surely someone involved in the running of a premium department store like Saks or Nordstrom or Bloomingdales is staying abreast of all the selling, promotional and demographic trends and needs. If not, then there will be some hefty pink slips making the rounds.
  • Competition is fierce, very fierce. Marshalls and Ross are as busy as ever with both recording healthy increases of year on year sales for Q1 2016. We all know that traditional bricks and mortar apparel retailers have been losing business to the online sellers for a long time now. The scope and pace of the e-commerce effect is broadening and quickening daily. But its now not only the Amazons of this new brave new world that are throwing shade. Retailers now need to contend with popular re-commerce sites like thredUP which are essentially online thrift stores that allow you return good for free within a certain amount of days, and fashion share sites like Rent the Runway where you can rent clothes and send them back.
Where to from here for the premium department store chains?
I think we will see a significant physical and influential downsizing of the department store presence in the market while they attempt to polish their customer engagement by returning to what set department stores apart years ago - the destination shopping experience.
The department store experience should include:
  • good quality restaurants and coffee shops pitched to the spending power of their demographic. E.g. Macy's would have a cafeteria, Nordstrom would have something more upmarket. I would give them a mid-century modern look to hark back to the 50's movies where people often seemed to be eating and drinking at the department store before or after a spot of shopping.
  • personal shoppers, spa services, and parties for regular customers
  • pop-up shops spotlighting new, innovative products.
  • more store-in-stores run by the brands themselves along the European department store model.
  • friendly and attentive sales staff
  • easy and efficient return policies
  • more bounce and pep to the look and feel of the stores. They should get ultra modern or mid century or something out of the ordinary.
  • and most importantly when it comes to apparel, more focus on the products that people are wearing now and not what they will be wearing in 3 months. I agree with the Business of Fashion piece that calls for enough of "the “early” retail deliveries, which are increasingly out of sync with the physical seasons and result in markdowns during what should be peak selling periods, hurting full-price sales potential. “As it stands, Pre-Fall clothes are delivered from April through July, while Autumn/Winter clothes are delivered from July through October,” BoF reported in March. “Heavier items like outerwear and knits are often deeply discounted in January when cold weather finally hits.” 
I am sure it seems inconceivable to many that we could exist in a retail environment without department stores. They have been the big fish of the retail world for 150 years.
Fortune.com ran an article in January titled ominously, How American Department Stores Are Fighting Extinction. They concurred with many of the points that I suggested above.
Do I think a mass extinction is imminent? No. But things are going to have to change and change quickly. Department stores better figure out how stay connected and relevant or they will be left way behind in this ever evolving, ever accelerating retail environment and may not catch up.
Paul Brindley
Principal Adviser
paul brindley consults

Friday, March 25, 2016

REVIEW: LA Fashion Market Week Fall16, March 14-17, 2016

9th St & Los Angeles - the epicenter of LA contemporary apparel wholesale
Where it all happens
Last Tuesday saw me strolling down Los Angeles Street in the downtown Los Angeles 
Fashion District heading for the Fall 2016 Los Angeles Fashion Market Week.
What is Market Week? Its a four day affair of seasonal wholesale buying in the showrooms and trade shows of the main wholesale centers: the California Market Center, the New Mart, the Cooper Design Space, and other venues in the Fashion District.
Five times a year, US and international wholesale buyers roam the showrooms and booth shows determined to stay within their budgets as they buy what’s hot, pass on what’s not, and perhaps gamble on what's next.  Most buyers who want to stay in business or keep their jobs have a good idea what is working for their customers, and what to take a punt on to freshen up their floors.
By the time I get to the crossroads of contemporary apparel wholesaling at Los Angeles and 9th, I can usually tell how the day is progressing. The telltale signs are everywhere. What is the foot traffic like on the sidewalks and filing in and out of the buildings? How many people are sitting in the cafes? How many are waiting at the traffic signals to get across to the adjacent buildings? How full are the parking lots?
First impressions were that this was going to be the average Fall market week that it turned out to be. You can muse over the full California Apparel News review of the week.
Fall market week in LA is the second busiest behind the October Spring edition. Despite Los Angeles having the largest apparel infrastructure and being the second largest city and metro area in the US, the LA market week is not as consequential as you would think. By the time buyers have been to the massive Las Vegas trade shows and the marquee New York showcases, LA is left to mainly service west coast and some international buyers.
Last week, I focused my time on walking the temporary booth trade shows - Brand Assembly in the Cooper Design Space, Designers and Agents in the New Mart, and the accessories showcase Coeur and the activewear and lifestyle grouping ALT in the California Market Center.
Brand Assembly Emerging Designers Showcase - - paul brindley consults
Brand Assembly Emerging Designers Showcase
Brand Assembly has expanded to 125 brands and now takes up the entire bright, white 13th floor event space of the Cooper Design Space. The carefully curated premier contemporary women's showcase, "gathers designers with similar price points while avoiding direct brand competition", as it was explained to me by co-founder, Hilary France. There is a well written profile of Hilary on Fashionista.com.
"Due to exhibitor demand, we could be much bigger but we are committed to a selective, curated approach that optimizes the Brand Assembly experience for our brands and buyers", professed the other co-founder, Alex Repola.
We Are Kindred - paul brindley consults
We Are Kindred from one of my favorites cities, Sydney at the busy SYDNY showroom booth
I was delighted to see We Are Kindred hanging beautifully in the busy The SYNDY Showroom booth. I introduced the label to The SYDNY. The SYDNY does an excellent job representing Australian designers and brands in the US market.
Brand Assembly was by far the busiest space of the week. Maybe buyers are taking the advice of one of the exhibitor brands, Monrow who have declared that "Brand Assembly Los Angeles is an incredibly well-curated assortment of brands & categories. If I was a boutique, I would only shop there."
The advanced contemporary Designers and Agents on the 3rd floor event space at the New Mart was close to full but a bit light on buyer traffic when I was there. D&A is known as an independent, international show that attracts brands from the US, Europe and Japan. D&A New York is a much larger, busier show.
Ben De Luca of Brooklyn Hat Company told me he had a busy Monday but Tuesday was slower.
Brooklyn Hat Co - paul brindley consults
Brooklyn Hat Co felts selling strongly for Fall16
Coeur and ALT were stranded on the buyer desert that is the huge penthouse event space of the California Market Center. It was very quiet up there. The penthouse space is only ever full for the LA Textile Show. The space is massive which tends to diffuse whatever energy is created. I think they should switch the smaller showcases to the more cozy and attractive 10th floor, 10B Loft. 10B Loft is about a third the size of the Penthouse and would create a significantly more intimate setting.
Coeur has suffered over the past two or three seasons from a lack of a permanent home (it was at the Alexandria Hotel last season) and most significantly from no longer sharing the 13th floor space with Brand Assembly. Coeur's accessories and Brand Assembly contemporary apparel complimented each other nicely and fed buyers from one to the other. Coeur was squeezed out by Brand Assembly's expansion.
The only eye catcher for me at Coeur was Mansi Shah, the namesake brand of New York artist, you guessed it, Mansi Shah. The print focused accessories and caps fuse the subtly innovative prints with a clean, hip mix of color and style, and are well priced.
Mansi Shah from New York
Mansi Shah from New York
We are told that the economy is doing better. The unemployment rate is down and there is even talk that there is sustainable wages growth on the horizon. Retail should be doing significantly better. But it isn't. The Census Bureau's Advance Retail Sales Report released March 15 reported that seasonally adjusted sales in February contracted month-over-month with January revised downward.
Continued softness in the retail sector is naturally reaching back to the wholesale market. I am hearing that business at the Fall16 trade shows has been choppy. In my February article, US Economy in 2016 – Steady As She Goes?, I detailed the reasons why I thought 2016 would be a steady year. I still think that a year with some positive momentum is how we will look back on 2016.
It is four months until the swimwear and resort trade shows in Miami and five months until the breaking of Spring17 collections in Las Vegas. I am looking forward to seeing where we are at as an industry should our current slow but steady economic momentum continue or even pick up.
Paul Brindley
Principal Adviser
paul brindley consults

Friday, February 5, 2016

US Economy in 2016 - Steady As She Goes?

About this time last year, I wrote an article cautioning against the then prevailing over-optimistic posture of most of the financial and apparel industry press that 2015 was going to be the bumper year leading us all to prosperity.
The broad insistence of the enthusiasm was alarming. The fundamentals of the US economy didn't jibe with the predicted boom. Jobs growth was slow and of questionable quality, wages growth non-existent, consumer confidence was lagging, the financial market was manic depressive. Where was this supposed surge going to come from? How was it going to be paid for? Was there to be another credit bubble?  Not again. Not another cycle of boom and bust. I could hear the words of the Credit Manager of the bank I once worked for echoing down from the barren post-1987 crash years, "This will never happen again". Well, he has been at least 5 times wrong since. And the last one nearly saw the whole place circle the drain.
Twelve months on, we are thankfully getting a much more sober appraisal of the economic year ahead. The party line this year is that the economic trends of 2016 should mirror those of 2015. The US will see steady progress up an easy gradient of an estimated 2% growth while the rest of the world at best staggers along a flat path.
What can we expect during 2016?
  1. Weak Retail Sales - U.S. retail sales declined in December to ensure the weakest retail year since 2009. I bored everyone with the obvious in last year's article (and ad nauseum elsewhere) by reiterating that the most significant driver of retail sales is disposable income. Right now, if people have it, they aren't spending it. Rising healthcare and housing costs are exacerbating the continued weak wages growth for those who have decent paying jobs. Many people are scraping by. The jobs growth figures appear strong with an official unemployment rate of 5% which is technically full employment. No-one believes this number. But even if this were true, wages growth is lagging badly. If you are thinking of opening a bricks and mortar store, you better be a 1000% sure that you have the right product(s) at the right price for the right market and that you have a good quality, well targeted online presence, otherwise, don't do it. I have retail clients and friends with retail stores in popular shopping districts in the greater Los Angeles area. Things are not good, and haven't been for a while. The holiday season was a bust with a low year on year increase of 2-3% (below the National Retail Federation prediction, as usual), with early discounting, and with no last minute boost as experienced in previous years. We are waiting on January's figures.
  2. E-commerce keeps clicking - web retail totalled more than $350B in the US for 2015. The US Commerce Department reports that internet retail accounted for 7.5% of total retail sales in 2015, up from 6.5% in 2014. For 2016, expect improvements in the functions of mobile online shopping such as slicker browsing and check-out processes, expect more relevant content coming your way than ever before through a more personalized online experience, expect more video content, and expect to see more social co-creation in 2016, especially in the apparel and accessory e-commerce sector where shoppers can drop their templates into existing designs and actually alter the designs of existing products and come up with personalized one-of-a-kinds.
  3. Careful with the plastic - there have been disquieting reports of the levels of household debt recently. a December 2015, Time.com article states, "Even after accounting for inflation, household debt has jumped 15% faster than income over the past dozen years." They quote a new study by NerdWallet“After the significant dip following the recession, there was a lot of talk that Americans were using their credit cards better,” says NerdWallet credit expert Sean McQuay. “The numbers aren’t showing that. Americans are taking on more debt.” After the near meltdown of 2008 due to the overloading of debt, this news beggars belief.
  4. Continued social and political dysfunction - with a general election in November and with the delibitating influence of crazed nativists and religious militants both at home and abroad, we can expect continued social discord and political gridlock in the US. There is much handwringing in the US about the absence of legislation expected out of Congress this year as the Republican majority ensures no good and all bad for the White House and Democrats. There is not much to be done about this. With our rigged and corrupt political system and our polarized, irreconcilable social values, the best we can hope for is a Democrat to win the November election and at least keep the inmates from running the asylum.
  5. Which way the US housing market - most analysts believe the only way is up. Southern California saw a price increase of about 15% in 2015. The Real Deal website reports, "San Francisco prices are up 79.2 percent since 2009. Atlanta is up 53 percent. Phoenix, up 47.1 percent. Denver, 42.6 percent. Los Angeles, 49.7 percent. The magnitude of these gains rivals what we saw during the nuttiest portions of the 2000s bubble."  The article goes on to state that "Don’t call this a bubble — mortgage borrowing is still low by historic standards — but things are changing. Consider a new type of mortgage San Francisco Federal Credit Union recently promoted. In response to “skyrocketing home prices” hampering affordability, the bank is offering a no-money-down mortgage with an adjustable interest rate and without requiring private mortgage insurance. Even 2005’s mortgage market would blush at those terms." Prices will have to cool at some stage. Many analysts believe we are reaching that point.
  6. All eyes on China - some analysts believe that the China Syndrome the world caught in the last half of 2015 has passed while others are still concerned that a full blown contagion is still in the air. All agree that the Chinese economy will continue to slow. The positive take is that as China transitions both from a manufacturing-led to a consumer-led economy, and from a state-directed to a free market, it's economic growth is hopefully slowing to a slower and more sustainable rate. A crash would be disastrous. China is such a big force in the global economy that the so-called "hard landing" that some predict would have a severe affect. Just last week, George Soros told an economic forum in Sri Lanka: "China has a major adjustment problem. I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008." Eek.
Soros isn't the only doom and gloom merchant abroad. Some think the housing market in the US is overvalued by at least 25%. Others are, like Soros, think China's convulsions are more serious than growing pains. Many think the US stock market is grossly overvalued. The Royal Bank of Scotland recently told their clients to “sell everything” because “in a crowded hall, the exit doors are small.”
Any one of these could occur. Who knows? For now, steady, sustainable growth is fine by me. The most important component of the "sustainable" is cash funded, not debt funded. We are in desperate need of more living wage paying jobs, and for more jobs with some wages growth. Until the population feels it has that bit extra to spare, it will not be shared around and the economy will continue to inch along.
My deepest concern is the outcome of the US presidential election. While I think Obama has been too lenient with Wall Street and the banks after their disgraceful and criminal activities leading up to the 2008 crash. And we don't have a single payer health care or an expanded Medicare system, despite Obama explicitly campaigning and winning a strong mandate for health care for all. I believe he has done a remarkable job. Severely restricted by a bought and paid for Congress, he has run a pretty tight economic ship while paying for and winding down wars, keeping a gutted economy upright and ensuring the weakest and poorest aren't completely forgotten.
He has also repaired some of the damage done by Bush and Cheney and their outlaws abroad. Obama's "lead from behind" strategy in geo-politics is ridiculed in the US as weak but praised almost universally around the world as a relief. The world is done with the US bursting into the joint and blasting away like a drunken cowboy (or dry-drunk in George W's case).
We are slowly gathering some positive momentum. A lurge to the right now by would be a disaster economically, socially and diplomatically.
Paul Brindley
Principal Adviser
paul brindley consults

Wednesday, January 13, 2016

Agenda Long Beach, January 2016 - More Partying Than Purchasing?

Last Thursday and Friday saw Agenda Long Beach open the US apparel trade show circuit IMG_20160107_111959for 2016 at the concrete cavern that is the Long Beach Convention Center in Long Beach, California.
Agenda Long Beach has been on a steady surge in size, popularity, diversity and activity since it's inception in 2012. The show has expanded from a skate, surf and streetwear focus to include contemporary men's and women's apparel and accessories, outdoor, swim and lifestyle collections and industry services. I raved about the show in my review of the July 2015 show.
Last week's show seemed off the boil to me when it came to foot traffic and overall energy. I didn't feel the same buzz that usually runs through the rows of booths and on the open center concourse.
That said, there are some mitigating arguments for what I thought was a slower show.
By all accounts, the holiday season was slow for the majority of retailers. Many stores may not have had the buying dollars available for immediate goods to warrant attending the show.
It rained in Southern California last week. While most of the country would welcome our last week's weather this time of year, locals could have taken the precipitation as a sign of the apocalyse, and thought that there wouldn't be a season to buy for.
Agenda LB may be getting too diverse. The Long Beach show is by far the largest and broadest Agenda iteration. For instance, the Agenda Las Vegas is truer to the original core constituency with distilled street, skate and surf brand offerings. Long Beach attempts to be many things to many people. With contemporary apparel and swim trade shows spread solidly on the calendar in the first quarter, Agenda may have overreached by expanding to so many categories.
I had one industry veteran (who asked to remain nameless) opine that Agenda LB is becoming too much like the now defunct Action Sports Retailer (ASR) trade shows that had a 30 year run in San Diego until 2010. Why did ASR fail? Many reasons. One is thought to be declining clarity as to just what the show's market was. As ASR diversified, did it cause confusion as to just what the show was about and who should attend? My contact thought that this could be happening to Agenda LB.
He also said that the show feels more like a party that a trade event. He noted how much drinking was going on in the booths. He also pointed to the skateboard ramp that made it's debut at last week's show, and said "it feels like just what happened at ASR". By the way, I was nearly taken out by a skater flying off the ramp. 
I don't know about the drinking and partying bit. Agenda has always had a loose and fun atmosphere. I have seen many a 11AM beer being downed as buyers have been shown around the racks. Also I don't know about the comparison to ASR because I never attended.
I didn't see much that caught my eye. I did notice that some long time participants weren't in attendance such as JanSport. The Australian women's contemporary labels, Tiger Mist and Rise of Dawn also gave it a miss.
The contemporary men's and women's apparel and the accessories booths seemed quiet on both days.
There was one new brand that was fascinating. Cooperative of Photography (aka COOPH) from Austria has created it's own category - Photography Wear or Photog Wear or Snap Wear or whatever someone cleverer than I can come up with.
IMG_20160107_120414
COOPH from Austria at Agenda LB
They design and produce excellent quality and very stylish gloves, headwear, hoodies, jackets, shirts and t-shirts with clever, innovative extras for photographers. For example, the underside of the bucket hat brim and the cap brim are grey cards, the shirts have a lens cleaning cloth sewn into the inside of the bottom hem, the hoodies have a lens cleaning cloth in hidden, zippable pocket and buttons for folding the jacket into a camera wrap or pillow.
So that was Agenda Long Beach for January 2016. A bit quieter than usual. Not a lot that was outstanding. I am going to reserve judgement on whether the show has grown too diverse until after the July edition. 
Up next is LA Fashion Market Week next week. See you there.
Paul Brindley
Principal Adviser
paulbrindleyconsults.com

Tuesday, January 12, 2016

2015 In Review: The Year in Trade Shows

Here’s a useful primer on the US apparel trade show landscape as at the end of 2015 from Apparel News.
Apparel News logo


TRADE SHOWS

2015 In Review: The Year in Trade Shows

This was a big year of change for apparel and textile trade shows as new players entered the market, new partnerships were formed and new categories opened.
The ink was still drying on the late-2014 acquisition of Advanstar—owners of the MAGICProjectand ENK trade shows—by London-based events producer UBM PLC when the now-renamed UBM Advanstar struck its first new deal. In February, the trade-show giant announced it had reached a deal with Eurovet, organizers of the Curvexpo lingerie and swimwear trade show, to launch a jointly owned event called CurveNV @ MAGIC in August during the Las Vegas trade shows.
But that wasn’t the only change in store for the Las Vegas trade-show lineup. In August, Urban Expositions, which organizes gift trade shows, acquired WomensWear in Nevada from Specialty Trade Shows. Shortly after, British company Clarion Events acquired a majority share in Urban Expositions, and Urban Expositions announced a new name for the California Gift Show. Going forward it will be called LAMKT.
Meanwhile, in Southern California, 2-year-old streetwear trade show Venue moved to a new, larger location at The Reef (formerly called the LA Mart) in downtown Los Angeles in May, then partnered with Los Angeles Fashion Week show organizer Style Fashion Week for its October run, also held at The Reef.
Southern California swimwear trade show Swim Collective expanded into the athletic and athleisure market with the launch of a new show called Active Collective. Initially held alongside the January Swim Collective Show in Huntington Beach, by June Active Collective was held as a standalone show. And in July, Swim Collective launched a premium beachwear show calledBeach Collective alongside the Swim Collective show. Swim Collective Executive Show Director Shannon Leggett announced plans to launch a swim and active week featuring the three shows in 2016.
It was a busy summer for Southern California’s swim market. After two years in Miami Beach, contemporary swim show Cabana launched a West Coast show in Newport Beach, Calif., running concurrently with Swim Collective in Newport Beach, Calif.
There were several other new shows launched in 2015, including Shape, a new athletic apparel and athleisure trade show launched by the California Market Center in Los Angeles. New sourcing trade show Factory Direct held its first two shows at The New Mart in March and September.
The New Mart was also the site of the first Moda 360 show in Los Angeles, where apparel and accessories showed in a gallery-like setting alongside fashion films and runway shows. In September, the building also hosted a new fashion and technology event called MélangeLive.
American Events Inc., organizers of the NW Materials Show in Portland, Ore., and the NE Materials Show in Boston, brought its footwear sourcing exhibition to Southern California with the launch of the SoCal Materials Show, held in January and July in Los Angeles.
Miami men’s and women’s contemporary trade show Coast added a Nashville show in October and announced plans to move its July 2016 Miami date to coincide with Miami Swim Week.
After hosting its textile show for 10 years in Milan, Italian fabric show Milano Unica expanded to include a New York show in July at the Javits Center. The textile show joined an existing lineup of trade shows that includes Texworld USAPremière Vision PreviewKingpinsDG Expo andSpin Expo.
Several New York textile and apparel trade show organizers—including Texworld USA, Kingpins and MRket— joined forces to launch NYC Textile Week, a collaborative marketing effort designed to make the trade-show trips more convenient, productive and fun for buyers and exhibitors.
Shortly after the official launch of NYC Textile Week, however, denim-sourcing trade show Kingpins announced plans to shift the schedule for its New York show from January and July to November and May starting in November 2015. Kingpins founder Andrew Olah said the shift came at the request of attendees who asked for an earlier schedule. The show also moved its location in New York from Skylight Clarkson Square to Basketball City at Pier 36.
There were several other venue changes in 2015.
CALA San Francisco held its last show at the Westin St. Francis hotel in San Francisco in January before moving to a new open-booth venue at the Fort Mason Center in March, where attendance more than doubled from March’s turnout of 569 buyers, organizers said.
For its fourth edition, Los Angeles Mens Market moved to the CMC’s penthouse from its previous location on the building’s fourth floor. In the new location it switched from a showroom event to an open-booth format.
In August, bridal trade show Couture Los Angeles Bridal Market returned to Los Angeles for a second annual run, moving from Siren Studios in Hollywood to The Reef in downtown Los Angeles.
Upscale accessories and lifestyle show Coeur tried out a new location at the Alexandria Ballrooms in downtown Los Angeles after four years at the Cooper Design Space. In December, Coeur announced plans to relocate to the CMC in 2016.
Business Journals Inc. shifted the dates for its Fall/Winter womenwear and accessories shows in New York from May to April in a move that allowed retailers to be in their stores in the days leading up to Mother’s Day, a holiday “second only to Christmas,” according to Britton Jones, BJI president and chief executive officer. The shows—ModaAccessories the Show and Fame—co-located at the Javits Center with ENK’s Intermezzo and Accessories Circuit.
This year also saw a new name for swimwear show Salon Allure. Now celebrating its fifth year in Miami Beach, the trade show rebranded itself as Hammock in July. But that wasn’t the only change for Miami Swim Week. This year, IMG, producers of Mercedes-Benz Fashion Week Miami, took a break from hosting runway shows during the July swim trade shows, which included the Miami SwimShow, Hammock and Cabana. Other event organizers—including Funkshion, Hammock and LDJ Productions—stepped up to fill the void with runway shows of their own.
New York’s fashion week landscape also saw a shift with the launch of New York Fashion Week: Mens in July. After years of hosting menswear shows as an adjunct to the women’s runway shows of New York Fashion Week, the Council of Fashion Designers of America decided to launch the first standalone for menswear.
In Los Angeles, the fashion-week scene saw a few organizers drop out in October, including LA Fashion Council and Concept Fashion Week, while new players, including LA Fashion Week and Fashion Week Los Angeles, joined a lineup that included Style Fashion Week and Art Hearts Fashion.