Austrade: Los Angeles
Austrade Los Angeles business development manager Gabriele Manresa offers exporters the low down on the US TCF market.
The United States is the largest importer of clothing in the world with imports accounting for approximately 50 per cent of the overall apparel market. The US retail distribution channel is made up of department stores, national chains, mass merchants, speciality stores, high end department stores, off price retailers, factory outlets and direct mail/mail order companies. California, the area, is a large market in its own right and it is still growing.
There are 21.2 million residents in the five county areas, 10 million in Los Angeles County alone and steadily climbing. California's warm weather sees local consumers to be constant buyers for new trends in casualwear, sportswear and surfwear. Los Angeles annual retail sales increased from $A24 billion to $A37 billion last year.
Idiosyncracies of this market
California is the land of free spirits, many of the textile companies and apparel manufacturers are shifting to specialisation. Many boutiques and department stores focus on their specific blends of brands and designs in a bid to become a different fashion scene than of the east coast of the USA.
California's $US24 billion ($A40 billion) a year fashion industry is the largest in the US. It also leads the country in retail establishments devoted to apparel, accessories and gift and home products. For this reason Los Angeles' look and style influences the world and draws in buyers from all 50 states and 60 countries.
Buyers in California are looking for sophisticated clothing with great fabrics and fit at an affordable price point. It is also the way to get into a market that includes men and women aged 18 to 45-years-old who are also looking for affordable luxury.
California is the number one market place in the US for contemporary fashion and surfwear, attracting over 100,000 domestic and international buyers each year.
California is all about Hollywood, its celebrities and what they wear. Entering this market is a fast way to build and increase a brand's popularity and market acceptance, because it is about who is wearing what labels; especially since fashion trends emerge at red carpet events such as the Grammies and the Oscars.
Menswear is the breakout category in California, with the surge in menswear on the runways in Los Angeles was a reflection of the growth of the category in recent years. Clearly, menswear has arrived, and it's showing no signs of slowing down.
Southern California is now home to creators, elegant dressmaker Sue Wong, streetwear bad boy Christian Audigier, premium denim line True Religion and surfwear giant Quiksilver. It has carved out a niche for itself as a host for casual brands like American Apparel and as a manufacturer of quick-turnaround "fast fashion" and small orders for emerging designers. Fashion is Los Angeles' largest manufacturing industry, and employs more people here than in New York.
Exporter tips
Australians looking to enter the US market, particularly West Coast, need to be well prepared. With so many businesses from around the world looking to enter this market, creating a lot of choice, you might only get one chance to present your product range or label to prospective buyers.
As the US market for apparel is the biggest in the world but also extremely competitive the following needs to be considered:
• Are you ready to meet very big orders with immediate delivery
• Have you considered retail price points (which includes shipping to US and transport costs) and competing labels
• An understanding of labelling requirements, transport issues with a defined and credible view of supply and deliveries
• Are you innovative and able to finish a constantly changing fashion range
• Due to the changing fashion trends and environment at least two collections a year are required at a very competitive price
By Gabriele Manresa