California Apparel News

The crashing stock market may not offer much hope of a healthy economic future for apparel industry resources, but the recent gift and home industry markets in Los Angeles—which are markets the apparel industry has been known to parallel—may offer a glimmer of hope, as a week of brisk order writing and healthy traffic countered weak signals coming from other business fronts.

Following softer gift shows in Atlanta and Dallas, Los Angeles-based gift buyers and resources at the California Market Center (CMC) for the July 16–23 International Gift and Home Accessories Market, the Los Angeles Convention Center for the July 20–23 California Gift Show and the L.A. Mart for the July 16–23 Gift and Home Furnishings Market were expecting similar results but instead reported surprisingly healthy traffic and order writing despite signs that the economy was turning soft again.

California Gift Show attendance was up 8 percent from last year’s show to 27,000 attendees, said Dorothy Belshaw, vice president of show operator George Little Management LLC. She said exhibitor attendance remained flat at 1,900 but included the addition of 450 new wholesalers.

Paul Watson, vice president and assistant general manager of the L.A. Mart, did not release hard numbers but said feedback from showrooms indicated “significant increases in sales.” Likewise, Paul Lentz, general manager of the CMC, said preliminary estimates show traffic well ahead of projections.

CMC Opens to Positive Reviews

The CMC staged its official launch offering five floors of gift and home showrooms, giving buyers a new look to the biannual market. Most were pleased about the new venue.

“At first, we didn’t think this site would be viable, but it turned out to be very nice,” said buyer Sharon Podlesnik of Main Avenue Marketplace in Durango, Colo.

“The word is out,” added Sue Bajda, buyer with Long’s in Fresno, Calif.

Buyer Teresa Perry of Los Angeles-area silk floral decorator Improvisations thought the CMC added a new dimension to the show.

“It’s absolutely wonderful— clean and well-kept. Every time I turn around, I see people cleaning windows. It’s kind of like Disneyland,” said Perry.

Some buyers such as Catherine Coppolini of Cathie’s Corner in Chatsworth, Calif., said there was some confusion for those unfamiliar with the CMC. “There’s a real lack of assistance the minute you get here,” Coppolini said.

Exhibitors also expressed satisfaction with the CMC.

Dickson, Tenn.-based Jim Marvin Enterprises Ltd. Inc., which used to be represented in an L.A. Mart showroom, recently opened a 4,000-square-foot showroom at the CMC to launch a bigger West Coast presence. Jim Marvin said he sent 20,000 mailers to customers to promote the move, and the reaction he received was positive.

“We’ve reacquainted ourselves with customers— some of whom we hadn’t seen in 10 years,” Marvin said.

He said buyers from small retailers in Guam, Utah, Arizona, New Mexico and Washington had visited the showroom, purchasing holiday wares ranging from hanging glass ornaments to wooden dolls in sea and fox hunt themes.

Books, toys and paper goods were selling strong at the Anne McGilvray & Co. Inc. showroom on the building’s 10th floor, which hosted buyers from specialty chains including Nordstrom Rack and Hot Topic. The Dallas-based firm recently moved to the building from the L.A. Mart, and it reported strong sales at its 12,000-square-foot showroom.

“So far so good,” said Anne McGilvray, who noted that the gift show at the nearby convention center wasn’t hurting traffic.

Apparel Vendors Stage ’Mini Mart’

As part of the CMC’s cross-merchandising concept with the apparel industry, about 70 apparel and fashion accessory showrooms remained open for business during the weeklong gift market and their reactions were mixed. Most reported scattered traffic, while some even logged some orders.

“We had eight to 10 stores visit us in one day,” said Susan Barry-Stedman, who reps several lines on the third floor of the CMC. “It was wonderful and the crossover has been tremendous. One gift rep left with a $1,000 order for It’s Out of the Bag novelty jackets and Gift Wraps cape-lets.”

Others, including Tracie May of the Fabulous showroom on the 10th floor, didn’t fare so well. “It wasn’t worth my time to stay open during the weekends,” said May.

Peter Jacobsen and Carol Herzog, located on the second floor, shut their doors to weekend traffic, expecting very little business. Still, they welcomed the concept.

“It’s fabulous,” said Herzog. “It’s creating a lot of energy.”

Gift Business Remains Strong

The positive feedback from the gift showrooms indicated that the West is outperforming other parts of the country and economic indicators appear to justify that rationale, with local unemployment turning down and certain sectors, including real estate, still strong in the region as interest rates remain attractive and demand for housing is high.

“We heard that other markets have been soft, but we’ve been doing quite well,” said Carol Lang, vice president of California Marketing Associates, which represents about 80 lines in the CMC. Lang said her showroom was getting strong interest in seasonal goods, home deacute;cor items, collectibles and personal accessories.

Perry of Improvisations could identify with the real estate link. “Business is good— people keep buying homes and doing them up,” she said, adding that she was planning to raise spending 25 percent this year.

Like the apparel market, the gift sector has lots of impulse-driven product and that’s what’s been keeping it afloat, said Kathryn Albeen, senior showroom manager of f.e.m. sales, based in the L.A. Mart.

“You have to diversify and have plenty of things that women can buy for themselves, like home fragrances, hats and scarves and things like little lamps with beaded fringes,” she said, offering that business has been on the flat side compared to last year.

Cheri Dobberteen, showroom manager for housewares specialist Debi Wise & Associates, concurred, saying that the high-end customers “are still spending money. It’s been very positive and it’s been a good show.”

Dick Firestone, president of Firestone & Associates, which occupies most of the 12th floor of the CMC, said his showroom was doing well with home furnishings such as Bailey & Co.’s period furniture pieces.

“After Sept. 11, people stopped traveling and put more money into their homes. There’s a balance and everything’s running in cycles, so you have to play to that,” he said.

Convention Center, L.A. Mart Up and Down

By the time the California Gift Show opened, buyers had already had four full days of preview shopping at the CMC and L.A. Mart and that appeared to affect business at the Los Angeles Convention Center, where some reported sparser crowds even though overall vendor attendance was slightly up.

“We’re very pleased with attendance considering the difficult climate,” said Belshaw of George Little Management. “I think the addition of new exhibitors also helped to make for a good buying experience for attendees.”

Belshaw said the show’s new format also helped boost business. Organizers divided the show into 12 sections—down from 17 in the past—to make it more manageable for buyers and to better represent the product mix. Extracts, an exhibit of 110 beauty and aromatherapy vendors, was a new division for the show. LA Contemporary, a juried selection of home design and furnishings, jewelry, and garden and tabletop accessories, was new to the July show but made its debut at the January edition of the event.

However, some exhibitors at the convention center found traffic to be slower than in the past.

“For some reason, traffic is down and sales are up,” said Tracey Clark, a sales representative for New York-based Ganz, a 52-year-old wholesaler of plush toys, home accents and giftware. “I guess people are still staying home or opting to come to one L.A. show and not both.”

Sea World, Hallmark and casinos from Las Vegas were among the retailers visiting the booth, Clark said, noting that buyers were looking for holiday items such as ornaments and stuffed animals.

Dwayne Mosco, vice president of Entertaining Creative & Fun, a Chatsworth, Calif.-based wholesaler of gift and novelty items, was bullish about the changes to the Los Angeles show and said his company was planning to capitalize on the new direction. He said the firm is opening a 4,100-square-foot showroom at the CMC next January.

“We’re looking for business the other 11 months of the year—we want the overflow from shoe and apparel shows at the CMC to come visit our showroom,” Mosco said.

The company’s steel booth— the only two-story exhibit in the South Hall of the convention center—was drawing both new and existing customers, Mosco said. Top-selling items for the 4-year-old firm, which represents 35 different lines, were puzzles, age-related products and stuffed animals from First & Main Inc.

Other exhibitors said buyers were stocking up on designer tableware, including Lunares’ aluminum ice cream containers with attached spoons and cheese knives, P.J. Salvage Valentine’s Day–themed camisole sets and jeweled chandelier- style earrings.

Then, there were the buyers who didn’t quite fit a retail niche but were on the prowl for newness.

“Maybe 95 percent of the show doesn’t pertain to us, but if I find only one thing, it’s a good show for me,” said Sarah Sultana, general manager of Hustler Hollywood.

Sultana said she planned to spend about $10,000 at the show, buying Atenti retro-styled handbags and Classic Hardware pendant jewelry.

The L.A. Mart also experimented with new merchandising concepts, putting on 50 “market time showrooms.”

“We were pleased with the traffic and orders,” reported Joan Ulrich, vice president of leasing for gift, Merchandise Mart Properties Inc., owner of the L.A. Mart. “What you’re seeing is that people are shopping more regionally. Even though products are similar, California definitely has a hip, West Coast flavor and there’s lots of drive- in traffic,” she said.

Neither Ulrich nor the L.A. Mart’s Watson would comment directly on their new competition, the nearby CMC, but Watson said there was “a real spirit of cooperation” among buyers and exhibitors.

This cooperation will be especially put to the test during the January 2003 gift shows, which will overlap Los Angeles Fashion Week, bringing gift, home furnishings and apparel buyers together in one place.

“This will be the place to be,” concluded Paul Lessell of the Crystal Clear lighting showroom in the CMC.