Clothing Brands Still Made in the USA: A Boomlet for Domestic Apparel Makers – BusinessWeek. This news article highlights eight different small companies that make things in the USA: Beyond Clothing; Boathouse Sports; Eagle USA; Gala; Red Ant Pants; TS Designs; Wearable Integrity; and Zentek Clothing.
Archive for April, 2012
SHOOT FOR INC. MAGAZINE | VERDICT PHOTOGRAPHY. The link has a 1 minute 36 second commercial on why American Giant is making clothes in the USA through the internet. American Giant makes sweatshirts in the USA.
So, why should I cover a company that sells clothes over the internet, when my mission is to help people to find clothing made in the USA at brick and mortar stores? It is not the lure of a free sweatshirt, but it did get my attention. It is because: the company is local, Headquarters in the Mission District of San Francisco and manufactured in Brisbane, CA ; and it just opened for business on February 1, 2012; plus, their marketing department has done a great job getting their name out. In fact, I have never seen a new start-up internet clothing business with so much advertising through the internet. This may be the future of new business start-ups. (There will be a list of the internet articles at the end.)
The Name: American Giant
The phrase American Giant conjures up a lot of images, usually of large, oversized people, for some, it is that huge green man with the skimpy shorts, but, possibly, it conveys the image of the movie: “Giant” co-starring James Dean, the icon of cool. Bayard Winthrop, American Giant Founder, came up with the name and then checked to see if it was trademarked. His heart dropped when he found out it was. But he did not give up. Mr. Winthrop found out that the trademark was owned by a trademark lawyer, who had trademarked American Giant which was the title of a book he had written. He, then, called the lawyer, they started chatting and found out that the lawyer was a big fan of American made apparel. They became friends and Mr. Winthrop was granted permission to use American Giant.
The Owner
Bayard Winthrop was the former CEO of Chrome Bags. For those of you who have never heard of Chrome Bags, I will provide a little background on the company. Chrome Bags started 16 years ago when a couple of guys needed bags and found that nothing to fit their needs (it reminds me of the story of the founders of Rag & Bone and their search for jeans), so they started making bags on their own in very modest surroundings, their garage. They grew slowly at first, then moved to San Francisco and expanded their inventory to include clothes, gear and shoes. So, American Giant does have a background in clothes making.
The Philosophy of American Giant
The purpose of American Giant is to produce good quality clothing in the United States and sell them at affordable prices. They have directed their competition towards J. Crew and GAP customers. Mr. Winthrop loves the make of sweatshirts of the past: the 1960’s and 1970’s and is devoted to making clothes in this manner, which means obtaining good quality material and better manufacturing practices. To keep prices down, American Giant will be selling over the internet only. The reason is as follows.
Traditional Business Model of Clothing Stores
It was not that long ago, (and presently with a few independent clothing stores) that the clothing store owner bought clothing (traditionally it was all made in the US) at wholesale cost. These clothes were then sold to the public at a 50% mark-up. This 50% mark-up was used to cover all costs to run the business: the rent, the gas and electricity, the salaries of employees, taxes, shipping, supplies etc. Having big sales were not very common and usually skimpy (compared to today’s sales) So, overall, there was not great profit in this business, but there was enough to make a decent living. Today, there are multiple mega-stores which buy volumes of cheap clothing. The mark-up, at these places are no longer 50%, but 300 – 2000% . That is why they can have 40% sales, or 50% sales or even 70% sales and still make money. For a small store, when a customer who is used to going to discount stores and expects 50% off, it is a difficult situation. To make a sale to this type of customer it usually involves educating the consumer – who is usually less than interested in learning anything.
New Business Plan
American Giant has combined the manufacturing of clothes with the selling of clothes. When many people discuss costs, they incorrectly assume that most of the costs are due to labor. Most authorities agree that labor makes up a small percentage of costs, about 5-10%. But, according to Bayard Winthrop, CEO of American Giant, it is the soft costs – the overhead that drives up the costs. The costs including setting up a facility, travel, transportation, executive pay as well as the costs of maintaining a brick and mortar space. Overhead is responsible for up to 600% of labor. By eliminating stores all across the country with all of their inherent costs, much of the overhead is eliminated. Therefore, American Giant has elected to do everything over the internet.
Why Some People Do Not Buy Over The Internet
There are a couple of inherent problems with selling clothes over the internet: 1)a huge problem is that nobody knows you exist – hence, the establishment of a marketing department for American Giant, mostly through the internet; 2) a few people have no internet access, but, also, some people do not trust internet companies, as they have no address, and contact is limited, there is no actual person that you meet, contact is only through the internet or if you are lucky via phone; 3) often it is difficult to judge a piece of clothing on the internet – the color may be off, the quality may be poor, the size and fit aren’t right. To remedy this, American Giant has just opened a showroom on April 17, 2012 at 3171 21st Street, San Francisco, CA (in the Mission District – the Mission District is a growing place for trendy clothes – down the street is Freemans Sporting Club, all US made clothes, and Self Edge, mainly Japanese made clothing). In the future, may be there will be new additional showrooms.
Business Plan
American Giant has been making and selling sweatshirts since February 2012. American made sweatshirts are a difficult to come by commodity and it is a welcome addition. American Giant has just started making T-shirts. Their plan is every 6 – 8 weeks, they will bring out another line of clothing, next, I believe, will be Polo shirts. Now, this will be a very greatly appreciated as Polos made in the USA are harder to find than sweatshirts. Other basic wear is to follow. I will not post any pictures of these clothes as pictures of clothes just laying on a table are not really enticing to the buyer.
Potential Advantage
There are two advantages to manufacturing things yourself and selling via the internet besides the costs. One advantage is that, if you sell-out of an item or a size, new items can still be made and sold as long as the raw material is still available. Second, because American Giant manufactures all their clothes locally, there can be a very quick turn around (from idea to ready for sale). For example, Zara, a Spanish company with clothing stores all throughout the US (most clothes are manufactured in Spain, Turkey and some overseas) can design and distribute a garment to market in 15 days. Whereas, a brand will have to make a purchasing decision for overseas production 18 months in advance. That is correct: the newest colors and designs for next year and possibly even the next year after that, have already been pre-determined. There is no reason, you couldn’t wear next years colors this year.
Remember to avoid slave labor made products, remember to listen to your conscious, buy American. Good luck to American Giant. I cheer for your success but I hope that you, unlike many other companies who became very big, became too greedy, and started outsourcing their jobs overseas, stay true to your original mission and keep making clothing locally.
Success
To be an internet only company, the most difficult part is developing name recognition or even to be seen. American Giant has been successful through marketing. But they have also been blessed by being discovered by ABC News in their segments about Buying American. As there business has grown, the types of articles of clothing has also expanded.
(Updated April 18, 2014)
Internet Articles
“Fashions have done more harm than revolutions” -Victor Hugo
Made – and Rebalanced – in America. The link provided is from the article ‘Made and Rebalanced in America’ written by Michael Moran for ‘Slate’ on March 5, 2012. America’s manufacturing is on the way back. Part of this is due to rebalancing. As China’s higher living standards and expectations increase this will increase manufacturing jobs in the United States. The article lists some of the companies that have brought jobs back from overseas.The U.S. economy is dependent on manufacturing and is a stabilizing factor in the economy’s future. I wish we could just bring back more clothing manufacturing. Some companies have brought US manufacturing back, but just in trickles.
Made in USA: 30 day Journey
I have been writing about finding clothing made in the USA for about a year now. I have been impressed with the occasional TV’s ABC News short news briefs about finding things made in America. But there is a new project afoot, I am personally excited about: Made in USA: 30 Day Journey. There is a person named Joshua Miller who is making a movie about things made in the USA. (Make sure you visit his facebook page at Made in USA: 30 Day Journey – he will give you updates on where he is, where he is going and he can interact with you. Also, view the U Tube Video. This is a one minute commercial about his project.)
Synopsis of the project, Mr. Miller will travel all throughout the United States looking for things made in the USA. His clothing will all be American made. His transportation will all be American made (I am not sure if he will be able to tell whether the gasoline he uses is American drilled or imported), he will stay at hotels across the way, and if the bed is not made in the US, then he is out of luck. It is also interesting because he won’t be able to use his laptop or cell phone either as they are foreign made. And, of course their will be some economics and politics about how we got here, and where we are headed. I hope the movie is a hit and that it will help raise the consciousness of the American public. Good luck, Joshua.
Don’t forget to check out his website as well.
New Balance celebrates its homemade footprint – San Jose Mercury News. This article appeared in the San Jose Mercury News on April 6, 2012. Written by Jane L. Levere of the New York Times. This article is about New Balance, the only remaining U.S. maker of running shoes, celebrating their upcoming 30th anniversary of its 990 running shoe which has established a cult following. According to New Balance, the 990 is favored by Steve Jobs, Ben Affleck, Jennifer Garner and Hilary Duff, among others.
New Balance has retail sales in 2011 of $400 million which accounts for 6.4% of the total of running shoe sales. New Balance is planning a marketing campaign of their 990 model as well as the fact that they are made in the USA. (Not all New Balance shoes are made in the US – so check the label, or the shoe box which proudly displays “Made in the USA”.)
Allen Edmonds Men’s Shoes – MLB. Allen Edmonds now offers shoes imprinted with your favorite Major League Baseball Team Logo. All of Allen Edmonds are made in the USA.
‘Made in America’ trend hits LA apparel maker | abc7.com. This is a video from March 9, 2012 by ABC7 News in Los Angeles, CA, regarding the return of American Manufacturing. Featured in this 2 minute 4 second video is Karen Kane clothing who has recently brought more of their manufacturing back from overseas due to increasing costs. Karen Kane had been manufacturing 50% overseas, now 90% is made in the USA.
Lucky’s Top 25 Shopping Cities
- New York
- Los Angeles
- San Francisco
- Miami
- Chicago
- Atlanta
- Portland
- Seattle
- Phoenix
- Las Vegas
- Washington D.C.
- Austin
- Boston
- Philadelphia
- Houston
- Dallas
- Denver
- Orlando
- New Orleans
- Nashville
- Kansas City
- Baltimore
- Charlotte
- Minneapolis
- Indianapolis
Lucky Magazine came out with their top 25 Shopping Cities on February 2012. Factors considered: the number of empty stores (culled from real estate firms, traffic on Yelp, the number of women’s clothing stores and department stores (from Costco to Saks Fifth Avenue), and where Lucky editors would want to shop. Regarding San Francisco: “San Francisco has tons of great neighborhoods, with a distinct mix of second hand, designer and boutique shopping. When it comes to innovation, SF has yet to open its ‘Opening Ceremony’ or ‘Ten Over Six’ equivalent. But in such a cool town, we know a cool concept store is sure to emerge!” said Lauren Sherman, Lucky’s executive digital editor.
For the full article please click on this link: Lucky’s Top 25 Shopping Cities.
“Veni, Vidi, Visa – I came, I saw, I went shopping” – Julius Caeser at Barney’s
Mainpoint: Skiis made in America
From Time Magazine April 2, 2012 – Money Section
“Sweet Spot. Niche skimakers are making a run for diehard skiers” by Bob Diddlebock/Denver
Steve Kneller, an all-over-the-mountain downhill skier in Breckenridge, Colo., takes his skiing seriously. For years, Kneller, 58, a geologist who hits the trails five times a week, burned through pair after pair of big-name skis-like Icelantics, Fischers and Volkls-because of all the sharp dodging and turning he does on Breckenridge’s black-diamond slopes. So when it came time to buy a new pair this season, Kneller hung up his latest pair of made-in-China Dynastars for skis better equipped to handle some serious mileage. He shelled out $649 – $300 more than he paid for his previous pair – for skis handcrafted in Denver by David Liechty, owner of Grace Skis. “It’s a very clean, classic-looking ski that’s good going over icy bumps and for making strong turns,” says Kneller.
He also liked that Liechty, who started Grace Skis in 2010, manufactures the skis in his living room, his garage and a local machine shop rather than in a foreign factory. “They’re very solid and smooth, and I’m enjoying them tremendously,” says Kneller. “I definitely think David’s onto something.”
Small-batch skimakers in Colorado – whose revenues have grown 50% since the 2005-06 season, to roughly $5 million a year – are setting an example for boutique ski shops across the country. They’re attracting high-end consumers who crave all things local and a growing crop of older hardcore skiers. The number of skiers ages 45 and older is up 93% since the 1996-97 season, according to the National Ski Areas Association, and affluent skiers – those with a household income of $100,000 or more – now make up half the visitors to U.S. slopes, up from 24% in 2004. Those skiers tend to have the time and money to ski more often and splurge on high-tech, higher-end skis crafted for a particular experience, like deep-powder turns, which China-made skis don’t typically offer. “I’m building skis for guys like me who don’t want to give up the sport and for kids who’ll work all night so they can make the money to ski all day,” says Liechty, 43, a Kent State University graduate with a background in industrial design.
There are some 80 niche skimakers in the U.S., up from 70 five years ago. Some are in snowy states like Maine and Wyoming, but a sizable chunk – 13 – have set up shop in Colorado, home to more top ski resorts than any other state. A handful of big-name manufacturers, including Atomic, Dynastar, K2 and Salomon, control about 90% of the $533 million ski market, with roughly 35% of their skis made in China. Boutique skimakers want to change that: they generate a steady $20 million to $30 million a year in revenues through the downturn. And as more skiers gravitate to handcrafted, high-end skis made in the U.S., those skimakers could capture another 3%-5% of the ski market in the next 5 to 10 years, according to trade group SnowSports Industries America. “These small companies bring a huge amount of passion and innovation to the industry,” says Kelly Davis, research director for SIA. “They’re going up against the Goliaths, but they have very specific target markets and are selling to a specific customer. That’s the hardcore skier who skis 10 to 100 times a year, the skier who knows exactly what kind of ski he needs for the conditions he skis.”
Personal frustration tends to drive die-hards into the trade. Matt Cudmore, 32, a computer draftsman for an engineering firm in Glenwood Springs, Colo., started his ski operation, Meier Skis, in 2009 after suffering through numerous pairs of big-name skis with improperly cured fiberglass, wood that separated from the frame and top sheets that flaked off. “For big manufacturers, it’s all about pushing more and more product. For me, it’s giving skiers what they want and what they need to ski the way they want to ski,” says Cudmore. His six models, which run from $500 to $2,000, feature local woods like beetle-killed blue-stain pine and lightweight aspen from the Grand Mesa. Meier’s rocker technology also helps downhillers negotiate powder and make more elegant turns. So far this season, Meier has sold 30 pairs of skis, a number Cudmore expects to double next year.
Peter Wagner, a mechanical engineer and sought-after designer of custom golf clubs, has taken the local skimaking craft even further. Whereas most boutique skimakers use precast molds for a better fit, Wagner, who started his 12-person workshop in Telluride, Colo., in 2006, makes each pair from scratch. He tailors the width, length, side cut and graphics of his skis to customers’ needs on the basis of their answers to a questionnaire, which he then plugs into his own computer algorithms. “We’re more of a tech company than a ski company,” Wagner, 36, says. His custom-milled creations, which range from $1,750 to $2,300, are gaining ground fast: he sold more than 1,000 pair of skis this year, a 60% jump over last year, and yearly sales have grown as much as 80% since he set up shop.
Apex ski boots would go nicely with those boards. manufactured since 2009 by Apex Sports Group, a Boulder, Colo., start-up led by Harvard Business School graduate and ex-racer Denny Hanson, the $1,295 boots – which the company calls the “most expensive ski boot on the market” – have a target audience: baby boomers with sensitive feet who can no longer crash the trees, like famed former alpine ski racer Billy Kidd, a racing buddy of Hanson’s turned Apex spokesman.
Hanson’s boots, handcrafted by a 10-person workforce, are built from carbon fiber, which gives them a pliability and walkability similar to that of snowboard boots. Sales have doubled every year for three years, according to Hanson, which has given him room to experiment. Next year he’s promising an even pricier unisex boot, at $1,495, and two under-$1,000 models. He thinks selling some products at lower price points will expand his customer base and allow him to compete with the cheaper boots on offer from big manufacturers. The skiing business is not for the weak of heart, he says, noting that he’s only breaking even this year and could turn a profit next year. “I’m not a youngster at 68,” says Hanson, which is why he’s gunning for big growth.
Not Cudmore, who started Meier Skis with $1,000 from his grandmother. He’s sticking with the high quality and high prices that attract skiing zealots. “Nobody cares what the numbers look like. Everybody loves a local story,” says Cudmore. At least that’s the case for fanatics who can afford one. END ARTICLE
For a listing of little known ski manufacturers around the world check out ExoticSkis.com.
Editor’s note: I find it heartening that the area of ski manufacturing is slowly decentralizing. It is a reversal from the three decades long trend of Mega- everything: Mega-banks, Mega-stores, Mega-farming. I would love to see more smaller businesses competing against the goliaths by finding little niches. I would like to see Hawaii growing sugar cane again locally, and increasing its production of pineapple. And I definitely would love to see more clothing manufactured in the United States as well as all products imaginable. Maybe the goal should be to make a decent and comfortable living instead of trying to rule the entire world.