California Apparel News

The end of quotas and the constant demand for fast-turning fashion, private-label goods and price points has created a new dynamic for organizers of the MAGIC International show, held twice a year in Las Vegas.

With the official launch of the Sourcing Zone in 2004, MAGIC officials addressed trends in global trade by bringing in contractors from around the world to meet buyers looking for private-label and other manufacturing needs.

Now, with quotas eliminated for most World Trade Organization nations and with the passage of the Central American Free Trade Agreement, there is a new order in manufacturing. China is not the only source anymore. Emerging nations, from Vietnam to Honduras, are trying to get a piece of the pie. American manufacturers and retailers are looking to offshore resources more than ever and have increased their investments in peripherals, such as the technology that goes with offshore manufacturing.

To address these trends, MAGIC hired David Dea, formerly of Los Angeles–based technology company PDM Soft, to strengthen a team aimed at bringing more technology and manufacturer resources to the show. The Original Design Manufacturer Showcase (ODM) is debuting at the Sourcing Zone with 60 exhibitors representing factories that offer pre-designed apparel. Many technology vendors are also joining the show, boosting exhibitor attendance by 57 percent and square footage by 6 percent. About 700 exhibitors are on hand in the Sourcing Zone/Fabric at MAGIC area.

ODM companies differ from contractors in that they provide pre-designed products rather than garments based on specifications provided by clients. They generally work with minimums of about 350 units and up, as opposed to contractors, who usually require 2,400. The primary ODM client is an apparel brand that wants to expand its lines into other areas without investing a lot of money.

“You can have a company that designs jeans and uses L.A. wash houses but wants to expand into other areas, maybe T-shirts and blazers. They may not be prepared to do it in house, and ODM is a way to address that,” explained Camille Candella, marketing director for MAGIC.

The companies will target branded wholesalers, wholesale resellers, private-label buyers and multi-unit retailers.

“Factories have offered design services for years, but a lot of factors, including the end of quotas, are bringing this to the forefront,” Candella added.

Candella said China is not the only answer to offshore manufacturing. Factories from Mexico, Peru, Colombia, Brazil, Thailand and the United States are among those in the ODM showcase.

“Before this, buyers had to travel to meet with these factories. This is changing the way they do business and opens up a whole new world,” Candella said.

Because more manufacturers are contracting overseas, they have had to maintain greater control of their supply chains from their home bases. Database technologies that manage product specs, order management, warehouse management, and other pre- and post-production operations have come into demand as a result.

New technology vendors showing this week include Fairfield, N.J.–based Cypress Creek Technologies, Intentia, Intuit, Jantex Inks & Beyond, Volusion Inc., TradeEasy and SGS North America. —R.M.