California Apparel News

There are some who say a decade’s prevailing look does not become evident until the decade is more than halfway over. That axiom seemed to ring true for this decade when the much-anticipated change in silhouette finally arrived this year.

The same could be said for the fashion business overall as changes begun before the turn of the 21st century have coalesced into the new reality.

Globalization has become the norm for much of the apparel industry as manufacturers and retailers source supplies and production around the world. A record amount of goods passed through the ports of Los Angeles and Long Beach, Calif., this year. And thanks to streamlining measures set in place in recent years, cargo traffic has been moving quickly through.

Despite the increase in international production, U.S. Customs officials continue to keep an eye out for fraud, making sure the playing field is as even as possible in a global economy.

It seems like everyone was thinking globally in 2006—from a local retailer to a bicoastal trade show to the mayor of Los Angeles. For several pioneering retailers and real estate developers, the new frontier was right here at home. And still others looked beyond the real world to one of several online communities in cyberspace.

Meanwhile, a fashion-themed reality show let the rest of the world tune in to see how entertaining the business can be— and in the process put the spotlight on Los Angeles’ design talent.

California Fashion Exports

California-based designers continued to be a significant presence on the national fashion front this year. Two of the Council of Fashion Designers of America/Vogue Fashion Fund’s ten finalists—designer brands Rodarte, by designers Laura and Kate Mulleavy, and Jovovich-Hawk, by model/actress Milla Jovovich and Carmen Hawk—hailed from California. Their nominations came a year after Newport Beach, Calif.–based designer brand Trovata took home the win in 2005. This year the prize—$200,000 and a year of business mentoring— went to New York designer Doo-Ri Chung, but the nominations are irrefutable proof of the strength of West Coast fashion.

Further proof came with the roster of California labels that showed to excellent reviews during New York Fashion Week, including Michon Schur, Thomas Wylde, Juan Carlos Obando, Monique Lhuillier, Rock & Republic and BCBG’s new Max Azria collection.

For some, including high-end designer Juan Carlos Obando, the leap to New York has proved to be worth the cross-country trek. Obando’s first show in New York was “bare bones, a sacrifice,” he said. “There is no room for ego. When you show there, you have to start from the bottom.” But the editors in the front row of his modest East Coast debut show sprang the line onto their pages. Marie Clare magazine will profile his work in its January, February and March issues, hopefully helping to drive East Coast buyers to the showroom to write orders. —Erin Barajas

Central American Free Trade Agreement

The Central American Free Trade Agreement finally kicked in this year after a few false starts, boosting apparel production in that region.

Everyone expected the pact, which eliminates quotas and tariffs on items traded between the United States and Central America, to start on Jan. 1 with the participation of all six CAFTA countries.

But it was a staggered affair, with El Salvador being the first to join on March 1 after changing some of its national laws to comply with CAFTA. On April 1, Honduras and Nicaragua followed. Guatemala became an official member on July 1. The Dominican Republic is still waiting to make necessary changes to its laws, and Costa Rica’s Congress still hasn’t ratified the accord.

CAFTA has been a boon for Central America’s apparel and textile factories, which lost a lot of ground to China after quotas into the United States on Chinese-made clothing disappeared temporarily in 2005.

For example, at its peak in 2004, the Guatemalan apparel and textile industry employed 113,200 people and had 83,593 sewing machines in factories. In 2005, that dipped drastically to 87,000 apparel and textile employees and 75,348 machines. In 2006, things approved slightly with 90,000 people working in the industry, which now has 76,231 sewing machines in factories.

Nicaragua will probably be the country that benefits the most. It has the lowest minimum wage of all the countries in the region— about 75 cents an hour. It also was given a 9-year Tariff Preference Level, allowing the textile industry to use 100 million square meters of fabric every year from any part of the world to manufacture garments, which still can be qualified as a duty-free import to other CAFTA countries.

Capitalizing on the low cost of labor in Nicaragua, Cone Denim announced it would build a $100 million denim fabric mill there, one of the first in the region. Currently, most denim fabric used in Central America comes from the United States.

—Deborah Belgum

Designers and Agents

Known for their well-edited contemporary shows in Los Angeles, New York and Japan, New York–based show producer Designers and Agents made news this year by making the jump across the pond. In September, D&A joined London Fashion Week and showcased ready-to-wear and accessories collections at The Exhibition, the British Fashion Council’s official trade event.

“Representatives from [London Fashion Week] came out to Los Angeles, attended a D&A show there and loved the energy. They wanted us to help energize London, so they asked us to join them. We were the only outside group invited to London,” said Ed Mandelbaum, who co-produces the show with West Coast– based partner Barbara Kramer.

The show filled its allotted 13 booths with 15 American designers— all of whom had never participated in a trade event in London. California brands Mon Petit Oiseau, Erica Tanov, Kerry Cassill, Stuart Brown and Apothia joined Calypso, Organic, Tufi Duek and Arcangel for D&A’s first trip to London.

Housed alongside The Exhibition’s other 200 exhibitors, D&A did its best to bring its casual, upbeat aura to the British. “We had our own DJ—the rest of the show didn’t have a DJ—and played some good music and brought some good energy to our area. And we also brought some of the touches that made us successful in L.A., like our guacamole and margarita reception,” Mandelbaum said.

Next February, D&A will return to London with double the space. Eventually, the show hopes to have its very own tent during London Fashion Week, according to Mandelbaum, who promised, “It’ll get better and better every time we go. —E.B.

Downtown Developers

Beyond the high-profile apparel marts found in “The Intersection” in the Los Angeles Fashion District is a growing cadre of high-volume, fast-turning wholesale and retail businesses fueled by the highly successful San Pedro Wholesale Mart. These venues offer a quick solution for obtaining fast-turning juniors fashion, provided mostly by the local Korean manufacturing community.

The real estate suppliers consist of developers with ties to the industry. Among them are Fashion District board member Sina Kangavari of the KI Group, Uri Harkham of Hype/Jonathan Martin and Shawn Zackary of Paramount Textiles.

These developers have not only fueled the cash-and-carry trade, they’ve also pioneered unique concepts by offering wholesale and retail space as condominiums, giving business owners the opportunity to own real estate as well. They’ve also put a signature on new urban architecture with upperlevel parking structures built over retail/wholesale space with other unique configurations.

Among the latest projects are Kangavari’s Maple Union, a 100,000-square-foot retail center at Maple Street and Olympic featuring 120 women’s and men’s clothing stores. Next up is Stanford Regency Plaza, a $30 million wholesale project, that will bring 200 more showrooms to downtown.

Harkham is developing The Plaza at 12th & Wall, which features 120,000 square feet of retail space with an exterior escalator. The newly constructed development is being built from the ground up. Zackary has Stanford Wholesale Mart under construction near 12th and Crocker streets, where about 110 showrooms are scheduled to open next spring. —Robert McAllister

The Dress, the Skinny and the Short

This year, fashion has been defined by silhouette. Three key shapes have reigned as leaders of the fashion arena: “the short,” “the dress” and “the skinny.”

Ever since cuffed shorts by Los Angeles label Johnson were spotted on celebrities in 2005, the short has been back in full force. Nearly every Spring collection had a version of the short. Styles ranged from short shorts to casual cuffed versions and longer walking styles in plaids, vintage fabrics and soft tweeds with subtle metallic threads. The newest looks include short alls, jumpers and styles sporting suspenders.

Just when denim seemed like it couldn’t go any farther, enter the skinny. Skintight pencil silhouettes were the freshest look during Los Angeles Fashion Week last March, gracing the runways in everything from denim to tights, leggings and cropped pants agrave; la Audrey Hepburn. The look prevailed across the board, from denim makers to design brands. In a premiumdenim market that has in the past been spurred forward by low waistlines, engineered fits, and countless washes and embellishments, the cleaned-up dark denim skinny silhouette took top honors this year.

The dress is fashion’s latest reinvention. This year, the dress became en vogue for the masses and has become the new casual option for those who have a closet of denim.

Short 1960s styles prevail for Spring, including the sheath, the baby doll, the balloon and the jumper, all of which can be layered over leggings, tights and jeans.

Laurie Hasson, who reps Los Angeles–based lines Rachel Pally, Meghan and Corey Lynn Calter, said her dress business has doubled this year. “Fashion is cyclical,” she said. “We are bouncing back from a period of denim and tees—and what could be more put together and simplified than a dress? It’s easy, feminine and sexy and different than what’s been in trend for the past few years.”

—N. Jayne Seward

Emerging Neighborhoods/Retail Pioneers

In Los Angeles, it’s Melrose Place. In San Francisco, it’s Noe Valley. It was not too long ago when many fashion retailers would have left those neighborhoods off their lists of must-visit fashion districts. Now many retailers want to set down stakes in these neighborhoods, according to Chuck Dembo, a partner with real estate firm Dembo & Associates in Beverly Hills.

In the case of Melrose Place, the catalyst to changing the neighborhood was designer Marc Jacobs opening a boutique on the street. But transforming a street into a fashion retail neighborhood relies on a lot of other factors besides a big name, Dembo said. There’s got to be an existing demand for fashion in the area. There’s got to be low vacancy at nearby popular retail neighborhoods. Most crucial are pioneers willing to take the chance on a new street.

These pioneers might try their luck at a place adjacent to an already existing retail street, or they might try to reclaim space in a neighborhood that is being revitalized, such as the downtown areas of Los Angeles and San Diego.

But opening a new place in an emerging neighborhood does not necessarily mean that crowds will come, according to Lara Dean-Fernandez, co-owner of downtown San Diego boutique The Assembly.

She and her husband, Eduardo Fernandez, hoped to sell European and avant-garde fashions to loft dwellers in downtown San Diego when they opened The Assembly boutique more than 18 months ago. Despite being named one of the best San Diego boutiques by 944 magazine in 2005, the sales of the downtown store were quickly outpaced by the Fernandezes’ newest boutique, also called The Assembly. It opened in July in the alreadyestablished Hillcrest section of San Diego. The new Hillcrest boutique doubled the downtown business in its first month.

And just as neighborhoods such as Melrose Place and Noe Valley are hitting their stride, new shopping neighborhoods emerge as retail pioneers test the fashion waters in places such as downtown Los Angeles or the city’s Fairfax district.

—Andrew Asch

ENK International

Twenty years after ENK International launched its seminal Fashion Coterie show, the New York–based show producer added two new trade shows to its roster. In 2006, ENK’s founder and chief executive, Elyse Kroll, and ENK targeted two important markets with the debut of Clear, an international accessories and shoe showcase, and Blue, ENK’s first denim-only exhibition.

Clear, which attracts upper-crust buyers with its selection of exclusive European luxury brands, and Blue, which gathers the who’s who of premium denim (many of whom hail from Los Angeles) under one roof, were well-received by buyers and brands.

The year also saw ENK’s return to Las Vegas when it brought its Accessories Circuit/Intermezzo Collections show, which featured both contemporary apparel and accessories exhibitors, to Sin City to coincide with the MAGIC Marketplace.

This was ENK’s second venture into Las Vegas, having hosted a Las Vegas edition of its Brighte Companies show in 2005.

The trade show producer, under the direction of Kroll, has a history of testing the new trade show waters, retooling the concept and returning. That’s what ENK did with its Brighte Companies show, which launched in Los Angeles in 2003. The company had launched a similar, smaller concept show for contemporary labels in 1999, called Pacific Champions, but beefed up the offerings with more exhibitors and a bright, modern layout for Brighte Companies.

ENK also produces the Intermezzo show and menswear show The Collective, both held in New York. —E.B.

Fashion Business Inc.

Non-profit Fashion Business Inc. continued its mission to educate new and growing apparel companies on everything from the basics of running a business to the tools needed to proceed beyond the start-up phase.

Since 1999, when The New Mart donated office and seminar space, the FBI has produced industry-specific seminars on the ABCs of running an apparel company. Their well-attended classes ranged from the certainties of business math to the vagaries of branding. In 2006, the independent non-profit expanded its outreach for the more than 300 companies with membership in FBI.

For people looking for entrylevel jobs in the industry, FBI debuted training seminars on the computer program AIMS, which is often used by the fashion industry for order management. Many of the students were laid off from positions on department store sales floors and distribution centers, according to FBI president and founder Frances Harder. Others were looking for a career change or seeking to add technical training to their skill set.

The organization also launched the Peer Networking Group, where executives from companies exceeding $2 million in projected sales volume can meet to talk over the challenges of building a business with other executives from noncompeting companies.

In 2007, the FBI will offer seminars on the increasingly complex world of logistics in the apparel industry. It will also continue to take its act on the road. Look out for seminars at the Orange County campus of the Fashion Institute of Design & Merchandising and at the Renaissance Center in San Francisco. —A.A

Fast Fashion

On Nov. 9, more than 900 people lined up for the debut of the Hennes & Mauritz H&M at the Beverly Center mall in Los Angeles. They waited, some since 5 a.m., to buy pajamas by high-fashion label Viktor & Rolf, shop for jumpers that cost less than $10, and look for a cheapchic style edge that European shoppers have been enjoying for years. Beverly Center is one of six H&M stores in California, with more planned for next year.

European fast-fashion stores such as H&M, Zara and Mng By Mango opened at some of California’s most highprofile shopping centers this year. More are scheduled to be opened in 2007. The European invasion should be one that American retailers, specifically department stores, should pay careful attention to, according to Mercedes Gonzalez, director of the New York–based buying office Global Purchasing Companies.

The Europeans, particularly H&M, attracted such hysteria not just because of cheap and fashionable clothes. They typically time selling fashions specifically at the moment when people begin to desire it, according to Gonzales. Spring clothes are sold when it’s warm outside. Winter clothes are on the sales floor when the sky is cloudy. Their lightning- quick speed ensures that they don’t miss trends. “They’re able to turn on the dime,” Gonzales said.

She said California is only at the beginning of its love affair with European fast fashion and its stateside cousins such as Los Angeles–based Forever 21. “They’ve made mass merchandise special,” she said. —A.A.

Federated Department Stores

Cincinnati-based Federated Department Stores literally changed the retail landscape on the West Coast as a result of its 2005 acquisition of Robinsons-May and parent May Department Stores. The continuing integration of 400 stores has nearly dissipated a venerable West Coast nameplate while enhancing the Macy’s brand coast to coast.

While the merger has further consolidated the specialty/ department store landscape, it also created opportunities for others. Federated sold 80 former May stores to competitors like Boscov’s, Gottschalks and Target and to real estate investment trusts such as Westfield, Vornado, Macerich and Simon.

The shift in the retail real estate market could open up new opportunities for large and small players. Analysts said that specialty chains could capitalize on the situation by offering an alternative to Macy’s intimidation factor. At least one Wall Street analyst, reacting to lagging sales at Marshall Fields and Robinsons-May stores in the West and Midwest, theorized that Nordstrom, Kohl’s and JCPenney will step in to grab some of Federated’s retail share.

Federated remains confident that West Coasters will embrace the Macy’s brand, citing an 8.5 percent jump in samestore sales in November.

While it will take some time for loyalists to bid farewell to Rob-May, Macy’s fashion expertise—and real estate presence— should gain some new fans. —R.M.

Fred Eric/Tiara Cafeacute;

Fashionable dining for the fashionable crowd. That’s what chef Fred Eric served up when he opened the Tiara Cafeacute; in May in the heart of the Fashion District.

The Tiara Cafeacute; has filled a void in the Fashion District’s eating scene according to Ethan Eller, manager of The New Mart, who said he and The New Mart owner Joyce Eisenberg took their time finding the right tenant. “It took us a very long search to find,” Eller said. “It is truly a match made in heaven.”

The space on the ground floor of The New Mart showroom building at 127 E. Ninth St. had been vacant for more than three years after Sam’s Deli closed its doors after more than 40 years on the spot.

But the Tiara Cafeacute; isn’t just any 120-seat restaurant. It’s healthy eating in an upscale environment with pastel- colored walls and a bright glass-tile floor. Eric is dedicated to offering organic fare made with ingredients grown by small, independent farmers.

“It is the frame of mind of what I like to eat and where I think other people are going,” said Eric, who owns two other restaurants: Fred 62 in Los Feliz and Liberty Grill in downtown L.A. near the Staples Center.

The menu changes with the seasons, much like fashion, and is created from flavors around the world. Customers have a choice of several out-of-the-ordinary items such as a curried, grilled shrimp and quinoa salad, a grilled shrimp, Granny Smith apple and green-papaya sandwich, and an open-faced toasted goat-cheese sandwich with roasted red bell peppers, pine-nut puree and an artichoke and olive tapenade.

The space also has a marketplace with a salad bar, freshbaked goods, and exotic grocery items such as Italian pasta, dry pearl spelt, balsamic vinegar, and bottles of fine wine and beer.

Oh, and don’t forget the chocolate fountain on the market counter, flowing with liquid chocolate to coat a strawberry morsel in something sweet and pop it into your mouth.

Keeping with the fashion vibe, designers create the uniforms worn by the waitstaff. Most recently they were wearing styles by Miss Sixty.

Currently, the cafeacute; is open in the morning with a mini-breakfast menu and for lunch with a full menu. After January’s market week, it will be open for dinner. —D.B.

Green Business

This year, the color of business was green as organic materials and sustainable ideals took hold for many in the fashion industry.

Ventura, Calif.–based Patagonia was an early advocate of organic and recycled materials, as was Beaverton, Ore.–based athletic apparel maker Nike, and organizations like the Oakland, Calif.–based Organic Exchange have served as a resource for manufacturers and retailers looking for sustainable style.

But this year, more and more companies got in on the act, from contemporary labels such as Avita and Cellar Door, to action-sports brands including Etnies,Quiksilver and Arbor to lingerie line Suisse Organic. Even the blanks business is in on the trend. Blank T-shirt producers, including American Apparel and Article 1, added organic cotton tees to their offerings.

The green movement includes the increasing use of organic cotton, bamboo and hemp, as well as efforts made by washhouses to recycle water and reduce waste product.

The movement received a huge assist from retail behemoth Wal-Mart, which launched its sustainability initiative last year, after customers quickly snatched up an organic cotton yoga suit carried in the Bentonville, Ark.–based retailer’s Sam’s Club stores. Wal-Mart’s commitment to sustainability extends to the stores itself. Last year, the company built two “green buildings” to house Wal-Mart Supercenter stores in McKinney, Texas, and Aurora, Colo. The stores feature solarcell skylights, a system to reuse waste water and radiant-floor heating, among other environmentally conscious measures.

With the resources and demand come the trade shows. The ASAP Global Sourcing Show will share space in February with a new sustainable products show, the International Environmental Trade Show, which will feature manufacturers and distributors of sustainable goods and is planned to debut in February. —Alison A. Nieder

Iconix Brand Group

Southern California’s beach lifestyle brands continue to captivate the nation’s imagination. This year, the New York–based Iconix Brand Group, which owns nine brands (including Joe Boxer, Bongo, Rampage, Mudd and Badgley Mischka), focused on the state’s beach-inspired brands to grow its brand portfolio. In October, the company shelled out more than $170 million to acquire Irvine, Calif.–based surf brand Ocean Pacific and Santa Monica, Calif.–based casual apparel brand Mossimo Inc. The West Coast is familiar territory for Iconix. Rampage, Bongo and Joe Boxer brands all got their start in California.

“California is a wonderful place. A lot of great youth market– driven brands come out of Los Angeles and California. [Iconix] loves to acquire great brands—and California seems to breed iconic brands,” said Neil Cole, chairman and chief executive of Iconix.

Mossimo had been an on-again, off-again target for Iconix since 2005, when founder and majority stockholder Mossimo Giannulli twice attempted to take the company private. Now it will act as Iconix’s ticket into discount retailer Target, which holds the exclusive rights for production and distribution of all of Mossimo’s branded products in the United States through January 2010. The mass-market brand is also a good way for Iconix to strengthen its international business. “Mossimo has an amazing worldwide business,” Cole said, noting that the brand has distribution in Australia, Japan, Mexico and South America.

Ocean Pacific, which was acquired by Warnaco Group Inc. in 2004, is one of the original licensing companies, Cole said. That appealed immensely to Iconix, whose apparel is all manufactured through licensees. Now Iconix is planning its next move for the core surf brand, which in recent years had fought to regain its authentic reputation. “We’re evaluating different opportunities for Op and considering keeping it where it is,” Cole said. For now, the brand will remain in Irvine and will reintroduce its juniors apparel line, which was pruned last season to focus on swim-inspired cover-up looks.

With the Op and Mossimo deals completed, Iconix is once again scouring the California landscape for more potential acquisitions. “Our strategy is to diversify and be in every channel,” Cole said. Speaking from Southern California’s famed 405 freeway, Cole said action-sports brands and easily licensed fashion brands were of particular interest to Iconix. —E.B.

Ilse Metchek/California Fashion Association

It was another busy year for Ilse Metchek and the California Fashion Association.

The dynamic executive director oversees the 11-year-old organization, acting as a spokesperson for the industry and keeping CFA members apprised of current issues of importance to the industry.

On behalf of the CFA, Metchek prepared several industry reports, including “Fashion Forward,” a state-of-the-industry report on the economic impact of the fashion industry, which was incorporated into the Los Angeles County Economic Development Corp.’s annual economic impact report, which was released in June, as well as Fashion Action reports for CFA members on tax relief and employment. The organization also helped create the California Home Economics and Technology Education Career Pathway Standards for apparel educators at the college level. The standards outline key areas of study necessary to prepare students for a career in the fashion industry. Metchek also helped prepare the second round of textile certification courses for textile and apparel professionals at California State University, Los Angeles.

The latest endeavor is the “2007 California Apparel Salary Survey,” a report sponsored by placement agency 24 Seven, will include the first wage and employment data for the apparel industry since 1998. CFA spearheaded the meeting with members of the Fashion Industry Human Resources Association to help compile the data for the report.

CFA members got a chance to meet with Janet Labuda, the director of the U.S. Textile Enforcement and Operations Division of U.S. Customs and Border Protection, in February to discuss customs and import issues affecting the West Coast apparel industry. And in May, CFA members met with acting labor commissioner Robert Jones at a CFA membership meeting to discuss crucial label issues for apparel makers.

It was also a year of charity outreach. The CFA’s philanthropic arm, the California Fashion Foundation, donated about $100,000 in 2006 to various organizations, including Inner- City Arts, Habitat for Humanity and the scholarship funds for several Southern California design schools including the Fashion Institute of Design & Merchandising, Otis College of Art + Design, Los Angeles Trade-Technical College, Santa Monica College and others. CFF raised the monies from two main charity events held in 2005—the first-annual Poker Tournament and a manufacturers’ sale to raise money for victims of Hurricanes Katrina and Rita. The second poker event is set for January 2007, and the CFA has already created the second custom deck of cards featuring California brands. —A.A.N.

Janet Labuda

Janet Labuda is the government’s top cop when it comes to enforcing apparel and textile imports.

As director of the U.S. Textile Enforcement and Operations Division of U.S. Customs and Border Protection, her job is to make sure goods are not smuggled in under false labels or transshipped from one country to another and then to the United States to avoid quotas or tariffs.

For Labuda, 2006 has been a very busy year. Even though quotas on apparel and textiles disappeared for the 149 members of the World Trade Organization, temporary textile quotas— or safeguard measures—still exist on 34 different categories of Chinese-made goods imported into the United States. That expires at the end of 2008.

In a speech in February to members of the California Fashion Association, Labuda noted that enforcing apparel and textile import quotas had become a top priority for her agency. That’s because apparel and textiles account for 43 percent of all tariff revenue collected.

That enforcement was in place at the beginning of the year, when Los Angeles customs officials began scrutinizing all fine-gauge knit-to-shape sweaters being imported from Hong Kong and China. Because this category is exempt from quota, customs had its doubts about whether sweater panels were really linked and looped, to qualify for quota-free status, or sewn.

Later in the year, customs officials across the country began detaining all apparel and textiles shipped from the Philippines, investigating claims that Chinese manufacturers were skirting quotas by shipping their goods to the Philippines and then sending them on to the United States. During fiscal 2006, customs seized $100 million in illegally shipped or labeled apparel and textiles, compared to $17.6 million the previous year. —D.B.

Jeffrey Sebelia/“Project Runway”

All eyes turned to California after Jeffrey Sebelia won the “Project Runway” competition in October. The Emmy Award–winning Bravo reality show has become wildly popular since its launch in December 2004. Its elimination-style design challenges and behind-the-scenes drama have generated interest from both the fashion flock and the greater public. Designers who have made it on the show have become celebrities in their own right, launching careers in and beyond the fashion world. Sebelia took home top honors in the Season 3 finale for his directional and rock ’n’ roll–inspired collection. The designer, who has been producing his more hard-edged Cosa Nostra line for the past three years, beat out designers from around the country, including Miami, Atlanta and New York.

After winning Season 3, Los Angeles–based Sebelia has added top retail accounts, including Les Habitudes and Theodore, to his retail roster of more than 60 international stores in the United States, Europe, Asia and Hong Kong, according to his representatives.

An exclusive selection of his designs from the finale runway show will soon be available at the Ron Herman at Fred Segal Melrose store in Los Angeles, and the designs currently decorate the store’s window. The former punk rocker has multiple design offers on the table, ranging from fashion to film and television. The Bravo network’s reality show has also helped spur the careers of other California alums including Daniel Franco, who recently showed on the runway in New York, and Kara Saun, who showed last March during Mercedes-Benz Fashion Week at Smashbox Studios. Andrae Gonzalo is currently writing a book, Kirsten Ehrig is expanding her O Maillot de Bains swimwear line to include loungewear, and Nick Verreos recently designed a prom line for Windsor stores and has developed a side career as an on-air host. —N.J.S.

Kitson

Los Angeles boutique Kitson made headlines by helping to pioneer—and profit from—the celebrity shopping scene on fashionable Robertson Boulevard. In 2006 Kitson owner Fraser Ross made plans to take Kitson around the world.

Kitson will open at the luxurious Mall of the Emirates in Dubai in 2007. Cartoon Fashions LTD., a Dubai-based firm, licensed the Kitson name and will open a 3,000-square-foot boutique in the mall, which offers Alpine skiing and designer shopping in the Persian Gulf.

Kitson also landed in London. A 600-square-foot Kitson mini-boutique opened at the legendary department store Harrods in the first week of November. It sells Kitson-brand clothing, such as jeans, sweats and shoes. If the venture is deemed successful, Kitson may open a London boutique. “The world is your oyster,” Ross said. “America is oversaturated with retail.”

Kitson will have California company overseas. Los Angeles retailer Forever 21 and California brands Lucky Brand Jeans and Quiksilver also have a presence at the Mall of the Emirates. — A.A.

Los Angeles Fashion District BID

Despite record growth and expansion, the Los Angeles Fashion District Business Improvement District continues to keep the 90-square-block area of downtown running like a clock. The BID just celebrated its 10th year in operation and has set a standard for other similar organizations across the country.

Led by Executive Director Kent Smith and Chairman Steve Hirsh, the BID’s main responsibility to the area’s business owners is to maintain health and safety within the district. But it also does a lot of work in marketing the L.A. Fashion District brand to the world and has made steady progress.

The district’s recently relaunched Web site, www.fashiondistrict.org, scores more than two million hits per month from visitors looking for shopping as well as wholesale information. The BID recently started sponsoring guided shopping tours in the district through the company Urban Shopping Adventures.

The BID has also worked to accommodate a growing residential element by maintaining security and cleanliness through its 60-member “clean and safe” team. By the end of next year, the fashion district will have more than 2,000 housing units within its borders. Meanwhile, construction continues at a rapid pace, with several new wholesale and retail complexes under construction.

To keep up with the pace, the BID has adopted forwardthinking strategies. It was the first to install remote surveillance cameras in conjunction with the LAPD in an attempt to thwart counterfeiters of DVDs and apparel. The district is also taking part in a pilot recycling program and has diverted more than 12,000 pounds of recyclables since January.

And as a member of The Intersection, the BID participates with the California Market Center, the Cooper Design Space, the Gerry Building, The New Mart and Desiggners & Agents to promote West Coast fashion to the world through a number of programs. —R.M.

Los Angeles’ Wholesale District

“The Intersection” at 9th and Los Angeles streets in Los Angeles is considered the fashion center of the universe for many buyers. With more than 4,600 lines and 1,200 showrooms, the California Market Center, The New Mart, the Cooper Design Space and the Gerry Building form a quadruple offering that is hard to match as a wholesale destination.

The grande dame, the CMC, remains the centerpiece with 3 million square feet of apparel, gift and home accessory lines. The CMC’s management continued to promote the CMC as a lifestyle, one-stop marketplace. It hosted its first-ever combined apparel/gift show in March and then launched a VIP program in September, piling on the perks for buyers. Shopping sprees at Barney’s, iPods and first-class airline tickets were part of the promo. The center also converted its second floor to The Lounge Co- Op and Accessories at T r a n s i t , drawing new clothing labels to the temporary space. The Majors Markets continued to show growth with a 25 percent jump in traffic. Also, the CMC’s kids’ floor reached capacity this year, and both the penthouse and 5B contemporary section completed renovations.

The New Mart—the capital of all things contemporary—remained a tough ticket, with a 100 percent occupancy rate. The building hosts the Designers & Agents show, now in its seventh year, in all five Los Angeles Fashion Markets per year. The Bank, a lobby-level showroom where 10eleven, Theory and Hatch reside, opened a mezzanine level with more designer lines to come. The building welcomed new showrooms from Theresa Matthew, Charlotte Tarantola, Hale Bob, Bryan Wilson, Nancy K., Brothers & Sisters, 7 for All Mankind, Splendid and Stitches over the past year.

The Gerry recently reached 90 percent capacity and has found a niche as a lingerie venue as well as streetwear/contemporary source. The art deco building welcomed lines like Gsus Sindustries, a European street label; Amanda Ezra’s Junk Yard contemporary showroom; and Larry Hansel Clothing.

The Cooper has capitalized on The New Mart’s sold-out status and interest in the contemporary category. The building opened its fifth floor to new showrooms from Trina Turk, Robert Rodriguez, Scatola, Movement, Society, Cynthia O'Connor and Denice Wiliamson.

Mayor Antonio Villaraigosa

A sample of Los Angeles’ design power went to Asia in October on an official trade mission organized by Los Angeles Mayor Antonio Villaraigosa and his staff.

Major L.A. designers and their creations were featured in two fashion shows suggested and organized by Sabrina Kay, chairwoman and chief executive of Fashion Umbrella LLC, a Los Angeles branding and marketing firm. Kay also has an apparel line called the Sabrina Kay Collection. To find designers that could quickly send in samples to be shipped to China, Kay went to the California Fashion Association, the Los Angeles trade group headed by Ilse Metchek. Metchek called several members to see if they could participate.

Labels such as Lloyd Klein, Trina Turk, Karen Kane, Tadashi, Lucky Brand, Hot Kiss and others took part in the shows—one in Shanghai and the other in Seoul. As a last-minute surprise, Kay convinced the mayor to model a Lucky Brand outfit on the catwalk in Seoul.

Los Angeles designers have been eager to crack the Asian market with their trendy designs that evoke a California lifestyle. Kay is working on setting up mini-stores within department stores in Shanghai and Seoul that would feature only styles created by Los Angeles designers.

Los Angeles designers on the Asian catwalk aren’t unheard of, but they have been rare on official trade missions. During his November 2005 trip to Beijing, Gov. Arnold Schwarzenegger showcased a handful of renowned Los Angeles designers, such as Chan Luu, Kevan Hall and Louis Verdad, during an exclusive fashion show. —D.B.

Online Communities

For the greater part of the year, online community MySpace.com promised a launch of a new fashion initiative to rival the Web site’s success with the music industry.

Those plans are still in development, but that’s not stopping designers and independent labels from setting up their own pages on the popular site.

According to the West Hollywood, Calif.–based site, MySpace has more than 100 million members and is the fourth-most-visited Web site in the country. But it’s certainly not the only community for fashion content on the Internet. Imeem.com, YouTube.com, Facebook.com and SecondLife.com are attracting fashion-savvy viewers and the interest of apparel manufacturers and marketers.

San Francisco–based young men’s resource Blue Marlin Corp. has a MySpace page. So does Los Angeles–based Black Hearts Brigade and London-based Ben Sherman. Blue Marlin also uses YouTube and Imeem for visual marketing.

Hip boutiques such as Show Pony in Los Angeles’ Echo Park neighborhood, and Steinberg & Sons, also in Los Angeles, have profiles and use MySpace to connect with friends and customers. Brands like Costa Mesa, Calif.–based contemporary surf line RVCA and Los Angeles–based accessories maker Han Cholo use the site to promote their apparel and develop a community around their products.

MySpace helped independent arts and fashion festival Project Ethos secure its lineup, according to festival co-founder Heidi Luerra.

Nearly 3,000 attendees gathered for Project Ethos’ third festival in July, when the fashion show featured designs from indie labels such as Floripa Bikinis, Nicolita Rose Luxury Swimwear, Lenjetixs Custom Vintage, Totalitee Apparel, Technq Design Inc., J.Rhodes Collection, Janus Design Firm, Myriad Clothing Co., Random Thoughts Designs, Shy Violet Clothing and Queen Of Heartz, several of whom were spotted first on My- Space by Luerra and Project Ethos co-founder Jason Peskin.

This summer Los Angeles–based T-shirt maker American Apparel launched its new line of jeans virtually through a store on online community SecondLife. The virtual store was a precursor to the company’s denim launch in the real world.

In August Imeem sponsored the MAGIC Marketplace and sent a team of producers to Las Vegas to film the scene at the giant trade show. Imeem then ran live video coverage of MAGIC’s fashion shows and behind-the-scenes coverage of the brands exhibiting at MAGIC and its subsidiary shows, Project Global Trade Show and Pool.

Imeem, which bills itself as a social media Web site, says its community encompasses musicians, artists, designers, photographers, filmmakers and geeks. —A.A.N.

Ports of Los Angeles and Long Beach

This year could have been a disaster for apparel importers if the local ports—the nation’s largest port complex—had fallen down on the job. But despite a record amount of cargo passing through the ports of Los Angeles and Long Beach in 2006, there were few glitches during the peak shipping season, which lasted longer than normal, starting in June and terminating at the end of October.

More than 800,000 cargo containers passed through the Port of Los Angeles in October, a 13 percent increase over the previous October and an all-time U.S. harbor record.

Next door at the Port of Long Beach the harbor processed 650,700 containers in October, an 8.3 percent increase over the previous October. “The two ports are doing pretty well,” said Port of Long Beach spokesman Art Wong. “Since we had a slowdown in 2004, the ports have hired so many more people, that things are moving pretty well.”

Container traffic reached critical mass in 2004, when there was so much cargo coming from Asia that ships were waiting as long as one week to have their goods unloaded. The delay caused many apparel importers to lose their retail orders or be fined charge-back fees.

Following the traffic jam, the International Longshore and Warehouse Union, which controls the workforce at the docks, trained about 10,000 temporary workers as back-up labor for when there is a surge in container traffic.

Also, the ports are now open practically 24 hours a day for cargo pick-up, easing congestion at the terminal gates and on the freeways.

By the end of the year, year-over-year container traffic should be up 8 percent to 9 percent at the Port of Long Beach and 11 percent to 12 percent at the Port of Los Angeles, accounting for 43 percent of all the container traffic arriving in the United States. —D.B.

Sage Group

Los Angeles–based boutique investment banking firm Sage Group LLC continued its track record of selling up-and-coming California brands to high-stakes buyers.

In 2001 the company made waves when it sold denim maker Earl Jean Inc. to Nautica for $86 million, a price well over its $30 million annual revenues. Since then, Sage, which targets companies with gross margins in the high 50 percent to low 60 percent range, has negotiated highly lucrative deals for C&C California, DC Shoes, Mac & Jac, Juicy Couture and Junk Food Clothing.

Their keen eye and their finger squarely on the pulse of the California apparel market have made them a valued partner for big brands looking for high profit margins and a little freshness with lots of potential for expansion, as well as for fledgling brands looking to make top dollar. In January, the company negotiated Liz Claiborne’s acquisition of contemporary brand Mac & Jac and Canadian brand Westcoast Contempo Fashions. In September, Los Angeles–based contemporary label Vince searched Sage out to broker its acquisition deal with St. Louis– based apparel giant Kellwood Co. from Calabasas, Calif.–based apparel company John Paul Richard Inc. and founders Rea Laccone and Christopher LaPolice.

“I think Sage is able to illustrate what an aggressive valuation would be for a company based on their enormous database and experience. The one thing that appealed to us about Sage is that they are so tuned into our market,” said Richard Hirsch, co-chief executive officer of John Paul Richard.

“It has been a good year for us. We feel we are really hitting our stride as a firm,” said Brien Rowe, Sage’s managing director, earlier this year. —E.B.

Size & Fit

Finding the right-fitting clothing is literally coming down to a science as technology suppliers such as Malibu, Calif.–based Shapely Shadow, Los Angeles–based Tukatech, Pasadena, Calif.–based MyShape.com and Cary, N.C.–based TC2 develop new tools to assist retailers and manufacturers with their production needs.

Led by mother–daughter entrepreneurs Ilona Foyer and Roxy Starr, Shapely Shadow markets lifelike dress forms and 3-D software aimed at speeding up the production process and improving fit. The forms can be customized to replicate fit models with the aid of 3-D body scanners. Overseas contractors, in turn, can have access to a company’s fit model 24/7.

Now the company has teamed with TC2 and is using its landmark Size USA survey, taken among thousands of subjects, to produce a line of dress forms that better represent the changing American shape.

Fit is becoming more important thanks to the steady increase of Internet shopping and continued demand for denim and swimwear. Shapely Shadow’s client list includes Chico’s, Macy’s, Dillard’s, Gap, Pacific Sunwear, Disney and others.

The company has also diversified into software, producing a system that allows companies to collaborate on fitting sessions using 3-D virtual models via e-mail. The technology will soon be offered over the Internet. The next step in its dress forms line is to introduce the first robotic forms to the market. Similarly, Tukatech also produces customized, lifelike dress forms, and MyShape.com sells clothing to consumers based on a sizing model it developed. —R.M.

The Westfield Group

The Westfield Group is one of the largest retail property owners in the world, and in 2006, the Australian-based company finished major renovations on several key properties in California.

On Sept. 28, it debuted the new look of the Westfield San Francisco Centre, a $460 million renovation, which the company claims to be the largest urban mall west of the Mississippi River. On Oct. 6 it unveiled the $350 renovation of Westfield Topanga in Los Angeles’ Canoga Park neighborhood. The company also completed the second phase of renovation of Westfield Century City, which is several minutes away from the iconic retail street Rodeo Drive.

These malls are not only connected by a new, sleek look. They also devoted a lot of retail space to luxury stores, which also intend to claim a larger stake of California’s retail market. The Nordstrom at the Westfield Topanga showcases the most complete expression of what the Seattle-based retailer has to offer, said Peter Nordstrom, the company’s president of merchandising.

Similarly, Bloomingdale’s Chairman Michael Gould said his San Francisco Centre store could communicate many of the fashion possibilities of the venerable department store.

Westfield’s shopping centers also have built a bright marquee for specialty retail. Forth & Towne, a new retail concept from the Gap, and Neda by Bebe, a footwear venture by San Francisco–based Bebe, have opened doors at the new Westfields.

—A.A.