Junior Maker Tyte Shifts Production Offshore
Los Angeles-based junior apparel maker Tyte Manufacturing has moved the bulk of its production from the domestic market to Mexico and China in a move to increase their competitiveness in the junior market by producing the line at a lower price. The company is also producing garments before orders are placed to improve its turnaround time.
“We have taken an aggressive approach to the fashion bottoms business,” said Alden Halpern, founder and chief executive officer of 4WHATITSWORTH, Inc., Tyte’s parent company.
“Instead of waiting for orders, we design the line and put it into production before showing it to the customer. We have expedited delivery by stepping out and committing to our production.
Current turn time from China is about 70 days, but Tyte has cut that time to about 50 days by projecting orders, Halpern said.
“We’ve increased our risk, but we’re able to deliver a lot earlier,” he said.
Halpern said Tyte production will be split between China and Mexico, with China producing 95 percent of the offshore production. The two areas were chosen for advantages of either speed or quality, he said.
“I use Mexico because it’s right around the corner and I’m able to turn fast,” Halpern said. “My business revolves around stretch products, and the piece goods from Mexico are limited. I picked China because of quality and the access to the different types of stretch fabrics, which are much more available in China.”
Halpern also pointed out that he’s able to do better with pricing in China than in Mexico, but the tradeoff is Mexico’s faster production. There are times when Tyte will produce the same garment in both countries, knowing that it still will be more efficient than total domestic production.
“The whole nation is in a fashion cycle versus a basic cycle and when the fashion cycle is in, that’s when I thrive,” said Halpern.“I’m able to compete with fashion at basics prices.”
Tyte still maintains 25 percent of its overall production in the domestic market, which facilitates a two- to four-week turn, but the move to foreign production was prompted by price competition within the junior market.
“The whole young, junior market is very price driven,” Halpern said. “[With outside production], we pass our savings on to create larger margins for our customers and they are able to get more profit on their side, which makes me very appealing to the stores.”
Halpern said he believes that Tyte’s approach will prompt other junior manufacturers to follow suit, seeking offshore production alternatives that provide competitive prices, quality and deliveries.
“Ultimately they won’t have much of a choice,” he said. “The market is driven by price, but if you don’t ship a good product, then you won’t be competitive. Shipping from China or the Far East provides price and quality and availability of new and innovative fabrics.”
Tyte’s denim and sportswear for women was launched in 1997 and is sold nationally in Macy’s, Burdine’s, Wet Seal, Gadzooks, Charlotte Russe and Delia’s catalog and retail stores. In addition to the Tyte brand, 4WHATITSWORTH, Inc. is also the parent company of Etoile Bleu, a collection of contemporary denim, sportswear and knits. Etoile Bleu launched in 1999 and is sold at Fred Segal, Bloomingdale’s and Saks Fifth Avenue.
