Fake It Till You Make It
Fake snake, pleather and a “think positive” attitude are keeping the accessories industry afloat.
By Antonia R. Bell
The “green shoots” that the daily media claim are appearing were hard to see at the recent AFPL Fashion Access. Buyers were present in most booths, but foot traffic was definitely down. Considering that handbags and accessories tend to outperform other categories even during dips in the economy, we were not surprised that most exhibitors reported that buyers were at least interested, if not ordering as aggressively as they would have hoped.
–However even those exhibitors who were getting order were in agreement: traffic was down from April’s fair. “I think realistically, the traffic is much less over here this time due to the economy,” said Scott Mendelson, Executive Vice President of Nicole Lee. A decade long participator of APLF, Roger Gee of Pacific (International) Leather Products, said that the fair has been getting quieter and quieter over the past 4 or 5 years. “It is gradually slowing down. There’s less traffic and fewer exhibitors. When we first started, it was nearly impossible to sit down and talk. People were constantly in and out - there was no time for a break. But today, we’re chatting.”
Business is down in general. “When we first participated in the show, every now and again, we would have a customer place a reasonably large order. Now no more,” said Mr. Gee. Additionally, the pressure on price has been felt by many. GuangZhou-based Fish Leather has already slightly dropped their prices in response, trying to survive the current of the economic tide. “There is too much competition and now we have stopped making money,” said a company representative. However, Mr. Gee said that the timing is irrelevant – people always push on price. “They want to buy a piece of gold for the price of a piece of brass.”
But amongst the gloom, there were stories of success. First time APLF exhibitor, Paula D of EDS Holdings Limited, admitted that the fair was quiet but had still received some interest from buyers. With a maximum price point of US$12 for an attractive “pleather” luggage bag, she was conscious not to overprice her merchandise. Keeping goods affordable is key. Another relative new-comer, Jean Kim, director of Hananel, was also optimistic, hoping to expand business out of the United States. With prices ranging from US$12 – 24, she acknowledged that there was a lot of pressure on pricing but that the storm could be weathered “as long as you keep your design and your color, and have better quality.”
Fake It
Plain to see was the prevalence of synthetic materials being used in the latest collections, and the rather limited use of leather. PVC and PU definitely reigned over natural materials, and with newest versions looking very leather-like indeed. “PVC sells better. It is popular with the general public due to price point,” said Mr. Mendelson. Also key for the upcoming season is hardware – chains and studs. “Studs are really hot at the moment; lots of hardware - funky, hard rock, rough looking,” said Ms. Kim. Mr. Gee echoed this sentiment: “This year, there are a lot of people asking for this kind of studded bag. This is what is hot.”
Other trends include the use of embellishments and florals, and while colors on site were wide and varying, the general consensus was that neutral pastels are going to be de rigueur for Spring/Summer 2010. “We had a good response to brighter colors last Spring/Summer, but for Spring/Summer 2010, we’re looking at much softer colors,” said Ms. Kim. “Natural colors are a safer choice.”
Finding A Niche
As far as buying markets are concerned, those that are still buying are the same. Goods are being sold to the United States, Russia, Europe and major markets across Asia. The home market also plays a role. Thirty percent of Fish Leather’s goods go to the domestic market. Interestingly though, some felt that this fair had attracted Japanese buyers. “This time there are a lot of Japanese buyers. I don’t know why. Maybe the Japanese market is picking up. It’s always a sign,” reported Mr. Gee.
While most companies have been hit by the fiscal downturn, there are exceptions. Nicole Lee seems to have found its own protective niche. “I hate to say it this way, but in some crazy way, we may have benefited from this disaster,” said Mr. Mendelson. Due to the company’s structure they don’t hold inventory. After the market collapsed last year, others were left trying to push old stock. Nicole Lee profited because without residual merchandise, they were able to produce new styles that followed new trends.
Most companies create their products months in advance, but Nicole Lee holds out until the last possible moment, watching the trends as they develop. “We produce trends very quickly. We watch right up until the last minute what the hottest trends are and then we go into production with samples. That’s our competitive advantage,” said Mr. Mendelson. The company launches its collections at APLF. At the end of the fair, the styles that buyers choose go into production. “We take a very big risk every month because we’re buying goods and cutting them before we’ve even sold them.”
Overall, despite some successes, Fashion Access indicated that the industry is a long way from recovery. While exhibitors put on a brave face and tried to remain optimistic, general feeling was probably well summarized at Fish Leather: “I wish the economy to recover very soon.” They would certainly find agreement on that from everyone else in the industry.