What's up for Solving the Ports' Congestion Problems
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NEWSPAPER 2ND CLASS $2.99 VOLUME 71, NUMBER 11 MARCH 6–12, 2015 THE VOICE OF THE INDUSTRY FOR 70 YEARS TRADE SHOW REPORT New Format, New Developments at the LA Textile Show By Alison A. Nieder Executive Editor The threat of rain put a damper on the opening day of the Los Angeles International Textile Show, but traffic picked up on the second and third day of the show’s March 2–4 run at the California Market Center. This season the CMC debuted a new look for the 13th- floor penthouse, which had been reconfigured to add ad- ditional open-booth space. The new look was praised by exhibitors, although several said they had to move from longstanding locations to harder-to-find spots on the floor. That was the case for Buhler Quality Yarns, which moved from its initial spot in a showroom tucked in a corner to an open-booth space in the newly reconfigured space. Victor Almeida, textile engineer with the Jefferson, ➥ LA Textile Show page 16 The Los Angeles International Textile Show bowed with a new layout during its March 2–4 run at the California Market Center. What’s Up for (Pictured: Triple Textile Inc.) Solving the Ports’ Retailers Searching for Premium-Denim Rebound Congestion Problems By Andrew Asch Retail Editor sion, boutiques such as LASC found higher-priced premium denim a harder sell. By Deborah Belgum Senior Editor Premium denim is a staple at LASC, but the West Holly- For LASC customers, this marks a change in spending on wood, Calif., men’s boutique kept its offerings fairly narrow premium denim. Before the Great Recession, premium denim LONG BEACH, Calif.—The lingering port congestion until recently, when the retailer began adding new labels to its made up 30 percent of the sales at LASC. Since 2009, it has problem may linger a little longer. mix. made up 10 percent of the boutique’s sales, Izaguirre said. Even though a labor dispute has been tentatively re- In October, the retailer started stocking Los Angeles brand Throughout the relatively lean years for premium denim, solved, port officials in the Los Angeles area admit it will Bravery for All, which offers novelty premium-denim pants LASC stocked denim from tried-and-true brands such as G- take at least three months to deal with the traffic jam of retail priced at $180 and up. Alfredo Izaguirre, LASC’s general Star and Scotch & Soda. goods that has plagued the watery transportation centers manager and buyer, said he was surprised to find customers Darrel Adams, owner of the boutique chain Kin, also report- since October. were open to trying new denim brands and not as resistant to ed that he was developing more business in premium denim— Gene Seroka, executive director of the Port of Los An- premium-denim prices as they have been in recent years. specifically, novelty denim. geles, and Jon Slangerup, chief executive of the Port of “There was no issue with price. We could have gone to “Customers are willing to pay for something special,” Ad- Long Beach, told a crowd of shippers, freight forward- $250,” he said. “It’s a big step. …. We are cautiously optimistic ams said. “If it looks the same as all of their other jeans, they ers and high-stakes importers at the recent Trans-Pacific about the denim business.” won’t pick it up. But if it is different, if it is something that they Maritime Conference that the two ports are working as Southern California has been a capital for the design and don’t have in their closets, they will pay for it.” fast as they can to return to normal. “By the third month, the production of high-end premium denim. Jeans retailing for Kin maintains boutiques in West Hollywood, Los Ange- I hope by working in concert with the liner [shipping] $100 and above have long been popular for their fine fabrics les’ exclusive Bel-Air neighborhood and a recently opened and their attention to stylish detail, but since the Great Reces- ➥ Premium Denim page 2 ➥ Pacific Maritime page 18 TRADE SHOW REPORT INSIDE: Where fashion gets down to business SM Sourcing Show Factory Direct Debuts at The New Mart By Alison A. Nieder Executive Editor Ted Houston, president of Long Beach, Calif.–based Poly- Full-package producers, logistics, design consulting and gon Solutions, was similarly enthusiastic. other sourcing resources exhibited at the debut of the Factory “The level of established businesses here is high,” he said, Direct trade show at The New Mart March 2–4. adding that he met with a $2 million denim brand at the show. Organized by trade show and technology executive David Polygon Solutions provides an operation platform for emerg- 2 12 Dea, the show got off to a slow start when weather kept traf- ing brands to outsource services such as purchase order and fic away on opening day. But by the second day, exhibitors EDI management, customs liaison, invoicing and inventory NRF president addresses Technology & Textile reported seeing established companies walking the show. management, and customer-service support. ports ... p. 2 Resources ... p. 20 “We saw quality businesses,” said Scott Wilson, account “We will definitely be back,” Houston said. Retail Sales ... p. 4 Finance Resources .. p. 21 vice president for JS Apparel, a printer and manufacturer Helen Saleh, head designer for Los Angeles–based Adiva New Lines ... p. 6 Fashion Resources .. p. 21 based in Carson, Calif. “I think David is on to something.” Intimates Inc., said she had a good reaction to the company’s Showroom Profiles ... pp. 8, 14 Wilson said he met with an established jewelry brand that services. Fall Trends ... p. 12–13 is starting an apparel line. Adiva provides full-package design development and pro- “It already has the brand awareness and the distribution,” duction in its own facilities in Vietnam. The 20-year-old com- he said. “What we do is a perfect match for them.” ➥ Factory Direct page 19 www.apparelnews.net 01,2,16-19.indd 1 3/5/15 7:09 PM NEWS NRF President Calls for a Better Way to Resolve Labor Union Disputes Noting that the retail industry is highly reli- then went to anchor for three weeks before re- manent,” he observed. interested people can think it’s okay to put ant on just-in-time delivery of goods, the head turning to Tacoma. “He said, ‘We will literally Much of the more recent port congestion thousands upon thousands of American jobs of the National Retail Federation said many be throwing the cargo away,’” Shay noted. problems were caused by work slowdowns at risk,” Shay added. retailers were economically hurt by the recent Another retailer was expecting at least a during the drawn-out labor negotiations be- He called on Republicans and Demo- West Coast port problems and labor slow- $20 million loss in the first quarter due to the tween the International Longshore and crats to work together to reform labor laws downs that led to imported merchandise taking delivery delays. Warehouse Union and their employers, the and regulations and modernize the labor- weeks and even months to be delivered. “Our pain was particularly acute over the Pacific Maritime Association. agreement system to avoid the kind of costly “Countless retailers of all sizes, from big- recent Christmas season, when our retailers He said it was unacceptable to resolve is- negotiating period just concluded between box stores to boutiques, are feeling the hurt,” suffered delays in getting holiday goods to sues with work slowdowns and there had to longshore workers and their employers. said Matt Shay, the NRF’s president and store shelves,” he said. “Now, as we begin to be some solution. “The time has come for “Overall, labor and management work to- chief executive, speaking at a March 2 lun- stock up for warmer weather to come—from all of us to say, ‘Enough is enough.’ There gether quite well in this country,” Shay said. cheon held at the 15th annual Trans-Pacific garden shovels to spring fashion shoes—it are too many challenges facing the ports that “Look at the automakers, for example. Ford Maritime Conference in Long Beach, Ca- looks like another seasonal opportunity will already require us to work together. The on- [Motor Company] and the UAW [United lif. (See related story, page 1.) be affected.” going uncertainty and unpredictability from Auto Workers] found ways to work together He said one retailer told him that he had To survive, he said, retailers shifted cargo labor negotiations every few years can’t be in the depths of the recession to restructure ships that should have discharged merchandise to ports along the East Coast, the Gulf Coast, standard operating procedure,” he said. and refocus to build a stronger company for in Tacoma, Wash., but skipped Tacoma to un- Canada and Mexico. “In many cases, these “I do have to say that it is inconceivable the future. …We can do the same here.” load merchandise in Vancouver, Canada, and temporary arrangements might become per- to me that a small group of narrowly self- —Deborah Belgum sive novelty jeans, Morrell said. There are no For Fred Levine, owner of the M.Fredric request a different style of embellishment on Continued from page 1 Denim alternatives. Those who want the best novelty chain of contemporary boutiques in Los Ange- their order of jeans, which will make them appointments-only boutique in Huntington jeans must pay the requested price. les County, the excesses and the variety of the unique from other retailers. Beach, Calif.