California Apparel News

For its silver anniversary, Los Angeles belt label Streets Ahead is rolling out two new accessories collections to add to the company’s belt and denim business.

The company quietly launched its high-end accessories line Seril earlier this summer and will roll out its new Streets Ahead men’s line later this month in Las Vegas. The two new lines follow on the heels of the company’s first diffusion line, Hyde, launched at the beginning of the year.

It’s all part of the grand plan for the company, founded in 1981 by South Africa native David Sack and named for South African slang meaning “ahead of the pack.” Today, Sack and his wife, Michelle, run the company out of their Los Angeles headquarters. With a team of 140, the Sacks oversee a $12 million operation that includes branded accessories and apparel, and a growing private-label accessories business.

Streets Ahead’s belts sell in better department stores and specialty boutiques such as Saks Fifth Avenue, Neiman Marcus and Henri Bendel.

“We decided this year to work on our branding and on telling the story of who we are,” said David Sack.

Targeting “stealth wealth”

For Seril, the company’s new high-end line, Marjori Seril, creative director and designer for Streets Ahead, created a collection inspired by Los Angeles’ culture and what the designer describes as “stealth wealth.”

“It’s about the individual who isn’t into flash and bling or logos; they are more understated,” said Seril, who describes the “stealth wealth” category as “above premium and near luxury.”

The collection includes leather belts, bags, wallets, cuffs and guitar straps made from Italian Barolo lamb leather, rabbit fur and python-embossed cowhide. The handbags are lined in Ultrasuede, which provides added strength and stain resistance, Seril explained. And everything is handcrafted in Los Angeles. The line also includes bracelets and necklaces in silver, leather and horn.

The handbags range from rock star looks such as “Black Widow,” an oversize embossed style with trailing leather fringe, to “Knock Out,” an elegant clutch style with an arc of circular cutouts. The “Runway” is a hobo bag with a stripe of silver nailheads along the edge. The “Foxy” is a slouchy hobo in rabbit fur.

The belts and guitar straps are stamped to give the look of snakeskin or studded with grommets and lacing.

Wholesale prices average about $300. So far, two boutiques are carrying the collection: Iconology in Los Angeles and Lounge Soho in New York. The company plans to target the collection to better department stores and boutiques.

“The distribution is going to be tight,” Seril said. “We’re not necessarily wanting to have it in the same boutiques as Streets Ahead.”

Introducing men’s

Streets Ahead also is launching its first full collection of men’s belts, set to bow for Holiday ’06 at the Project Global Trade Show in Las Vegas.

“We’ve made belts before on a private-label basis, and I’ve been making belts for my buddies for years,” said Sack, who added, “It’s not a belt to keep your pants up. It’s a designer belt.”

The collection will feature about 150 styles in about six different groups geared toward the rocker and the surfer and everyone in-between.

The line includes about 15 types of leather, including snake-like skins and leather with vintage finishes and “new finishes you don’t normally get in the men’s market,” Sack said.

The leather and buckles are sourced in Italy and produced in Los Angeles. Streets Ahead has secured six-month exclusive agreements with many of its Italian buckle manufacturers, “which gives us an edge,” Sack said.

The company’s local manufacturing facility also gives it a competitive advantage. “We make [the belts] ourselves and we have no minimum requirements,” he explained. “If someone wanted four belts for their store, we can make that. We have something for everybody, which is what the women’s collection has always been about.”

Wholesale prices for the men’s line average between $40 and $50.

Going to China

Streets Ahead’s diffusion line, Hyde, launched in January to give the contemporary company a leg up on its competitors.

“Streets Ahead has been the leading belt company in California,” Sack said, “and we’ve been looked at for trends and we find our belts all over the world.” He said the company decided to break into the more moderate market with its own line of mid-tier belts manufactured in China.

And so far, the strategy seems to be working, according to Sack. “Already in seven months, we’re made over a million [for that division].”

The belts are primarily manufactured overseas, but a small percentage are manufactured in Los Angeles. And many of the overseas-made belts are finished or detailed in Los Angeles. Some are made with leather sources offshore in China, India, Spain or Mexico, but the buckles are Italian-made, and additional details such as sanding, metallic washes or nailheads are added in Los Angeles.

“Hyde doesn’t look like the competition,” said Sack.

Although it was created as a branded venture, the division’s strategy is also working for Streets Ahead’s private-label business.

“Streets Ahead historically has had every major coming to it for private label,” said Sack, who said cost had prevented the company from developing this side of the business in the past. “With Hyde, we’ve been doing non-stop business with Bebe, Arden B. and BCBG.”

By producing part of the collection offshore, the company can afford to be a little more flexible with its production. For example, Sack explained, the company might produce the first pieces of an Arden B. order in Los Angeles, but then the retailer can reorder from another order coming from China.

The average wholesale price points for Hyde are $29. For the private-label product, the average price is less.

“With Hyde, we have an advantage,” said Sack. “It’s a marginal business because Streets Ahead covers all my overhead.”

Getting in on—and out of—trends

Indeed, by focusing on Streets Ahead’s core belt business, Sack has been able to jump on several trends in the industry—and get out of the business when the trend subsides.

That was the case with Streets Ahead’s denim line.Several years ago, it launched an embellished denim line called Buzz 18. When the embellished trend ended, the company stopped production, Sack said.

A year and a half ago, Sack saw embellished jeans return and launched a Streets Ahead jeans line featuring denim embellished with rhinestones, Swarovski crystals and turquoise beading. The company soon added T-shirts, hoodies and jackets to the mix.

“The line has been evolving ever since,” said Sack, who added, “at this point, the line is more tops than jeans.”

Next step: handbags

The next step for Streets Ahead is a collection of handbags, which is currently in development for Spring ’07, according to Sack. “The handbags will be designed around our style, in our high-end Italian leather.” He said the line would be targeted to the high-end contemporary market.

The handbag line will source its leather and hardware from some of the same sources that Streets Ahead has worked with for years, which makes it a logical extension for the company. Indeed, Sack noted that the company’s growth plans were ambitious, but he pointed out that all the company’s new divisions were an outgrowth of Streets Ahead’s core belt business.

“We’ve got our hands full,” he said, “but it’s all about the things we know.”

For more information about Streets Ahead and Hyde, call (800) 669-8218 or visit www.streetsaheadinc.com or www.hydecollectioninc.com. Forinformation about Seril, call (323) 277-3886 or visit www.seril.net.