So many shows and so little time!

I just returned from presenting four seminars at a new two day trade show in NY, the “DG Expo”. A new fabric and trims show that was created by my good friend Susan Power, which she specifically created to highlight fabrics and trims for low minimum orders. Susan created the show out of a demand geared for new creative design driven company who have a hard time finding what they want without having to order 5,000 yards! Susan put herself out on a limb and in the red to fill this fast growing niche! I think she has done a fantastic job, which I think will also be a good business decision. Echoes of Fashion For Profit!

Packing my bags now to fly early tomorrow morning to Vegas for the biggest apparel trade show in the world,  MAGIC International.  I will have a very busy few days presenting two seminars with a variety of industry experts, then also assist in lunching 20 new lines in FBI Launch Pad section of MAGIC WWD.

This a whole new concept that allows new companies to show for a first time only price through FBI membership of $800.00. They get a rolling rack and table! Great deal!  We will also be responsible to hold down an info POD in the sourcing section of MAGIC, which is a great resource of information and International sources.

The FBI active board members and members will be meeting and greeting, giving advice and mixing like a cocktail and networking like crazy to help the FBI mission. Then on Wednesday evening I will be flying back to LA totally exhausted but from my past experience I will be very glad to have made the extra effort which I now know it takes to achieve anything!

I then have in front of me the LA Fashion Week, LA Textile week,  which is a big deal and lots of work for us to come up with and then to present twice a year three days of one hour seminars. This is then followed by San Francisco fashion week, which is then followed by Phoenix Fashion Week…… This work load will then followed by three weeks’ vacation in South Africa where my husband and I will be visiting old friends and I think and hope we will make some new acquaintances!!

All in all a very busy scheduled for which I am so very grateful that there is a demand for my services and for any of my advice.

Frances

Supply Chain Management Checklist

Understanding your Business- What are the most important factors for you supply chain strategy?

• Price Point
• Speed and Market- How Long
• Location for Logistical or practical purposes
• Extra values offered by the factor or company
• Quality
• Other Factors
  • Stability
  • Design
  • Technical Advisors

Make sure you are comparing apples to apples!

• Same Fabric &Trims to your samples
• SameTrim, constitution and sewing (Tech packs)
• Same specs (Tech packs)
• Same terms
• Same social compliances
• Samples or swatches
• Tech pack
• Standards – Sizing
• PO Terms and Conditions

Tech pack- information needed for consistent pricing and delivery

• Fabric weight, construction, and content
• Trim detail with spec including buttons, zippers, embroidery stitches, labels, hang tags
• Sewing Details
• Packing Details
• Size specs graded and size range defined
• Chemicals applications and washes and finishes to apply including the standards

Company standards:

Some common standards that may differ for knits and woven will include you minimum ratings and test methods to use:

• Shrinkage
• Crocking- Wet and Dry
• Colorfastness to laundering
• Colorfastness to light
• Torqueing
• General Appearance test
• Pilling
• Seam strength

*The more requirements and tests needed, the higher the garment coat and coat to the buyer

Other Company Requirements That May Affect Price

• Social Compliance Requirements
• Terms
• FOB Point- Factory, Freight  Forward or other
• Document Filling Costs such as 10+2
• Inspection requirements- Important timing
• Payment Agreement for testing
• Payment Agreement on samples
• Payment Agreement on Sample Freight

General Overview: what to look for in a Factory

• Social Certification of compliance
• Factory overall capacity and available capacity for customers
• Minimum orders by fabric, color, and style
• Location- country and distance to port
• How long has the company been in business?
• Past and present customers with similar products
• In house facilities and where is the outsourcing done
• Average turn time for specific styles after all approvals
• Inventory of their equipment and maintenance schedules
• In house  auditors, auditing procedures and records of audits
• Technical staff available for assistance

Communication

• Do they write and speak English?
• Response time?
• Do they have a complete understanding of your questions and comments?
• What W.I.P reports will the provide
• Sample Quality- any issues due to poor communication skills 

Here are things you need to be prepared with for any tradeshow you might be exhibiting at.

Samples – Make sure to have merchandise all your samples as you would for a retail store display. Too many could crowd your space to few could give a too spare story of your company.

Booth   - Booth walls are often part of the show cost to you.

Racks or shelves to merchandise the line. These maybe included in booth cost.

Booth signs – Keep it clean and clear

Transportation – For set up for booth

Furniture – Bring your own because renting from the show unions are too expensive.

Light Music sources

Mirror – Good idea so Clients can see merchandise. Mirrors will also add depth to your space

Sales Order forms (Duplicate carbons)

Credit card machine -  (first check their credit and charge their card the day you ship.)

Line Sheets (style numbers, picture of products, delivery dates and
whole sale prices)

Business cards

Brochures or postcards

Accounting Profile (Business type, Market segment, target market,
retail Locations)

Credit Applications (Customers applying for credit)

Discount programs sheets (showing % of discount and new discounted price. Important to understand how much you can and cannot discount)

Sales Goal for Show (Internal)

Budget for show (Internal)

Market Kits for sales reps

Give away to make buyers remember your line.  REMEMBER YOU MUST BE SEEN AT LEAST 6 TIMES BEFORE YOUR LINE WILL BE REMEMBERED

Include:

Script – You have 3 seconds to engage WITH YOUR BUYER
Know your competitive advantages

Articles on company, celebrity or magazine editorials
FAQ’s (How to answer them)
Product Information – What type of fabric is used and how to care for it

Laptop

Container to hold and collect business cards – Important to follow up after the show

Pens and Pencils

Tape – Wide and narrow

Folders to file orders

Folders to give to customers with copy of their order forms

Bowl of Breathe Mints

Stapler

Paper Clips

Note pads

Models (To show product) They could be part of your sales team. Make sure they understand the script and your product.

Hotel

Transportation

Meal Reservations for Important customers

Project Runway the show on Bravo as we know has become a very popular reality show. BUT, I just don’t get it!

On the whole it seems to me that reality shows, and Project Runway is a typical example are really shows that publicly demean, belittle, humiliating and generally are mean spirited that people love to watch! Why do people like to enjoy watching people get tortured? It is almost medieval mentality where people would gather in the village square to watch someone being flogged or branded or worse still to watch heads roll off the block!  Or the Gladiators wrestle lions in the coliseum!  Don’t we try and teach our children to be kind to one another?

But, I get off the real reason to my writing this blog. How many of the tortured designers that have been on the show are now famous and running a successful business of their own???? NOT ONE? So, why do they still line up and want to be part of these shows? I can only assume that they all hope they will be the ONE to make it! I actually have either had as a student while teaching at FIDM or Otis or met through my nonprofit Fashion Business Incorporated five contestants. One of which told me some details that back up my statement. Of course they are sworn to secrecy and could get sued if they were to tell the torture they were subjected to while being part of the show.

It seems obvious to me that the big missing part and the real reason they don’t make it in the REAL world is that none of them seem to really understand the business side of running a successful apparel business! Take a look at the many successful apparel companies who have been around for more than a few years and you will see that they are run by people who understand how to run a successful fashion business. You need to understand a cost sheet, and financial planning. Without knowing where the money is coming from you will lose your life saves very fast. The streets of most major fashion centers around the world are overflowing with “Wanabe” designers.  There are fashion courses taught at most colleges around the western world, but not enough jobs for them when they graduate. School loans to pay back and no way to pay them back.

We need to emphasis and teach more business skills. It amazes me how many creative designers I meet who have a great idea and a natural talent to design but JUST do not get the concept that without money it is near impossible to start an apparel business, let alone sustain it as it grows.  Where do the funds come from when there is more money going out to produce the good before you are paid for the goods sold? Then as you grow your company where will the funding come from for the healthy growth of that company?

As I continually talk about and which my books all explain you must have a business and a financial plan. Fully understand cost sheet, production costs, retail math and real overhead costs.  Maybe then you can apply for Project Runway! But I suspect by then you will not want to or need to!!

California New Business Laws – Overview from the Apparel News

For those of you with California based businesses it will be important for you to take note of the new California laws that will affect your business in 2012. Below is an overview taken from this week’s Apparel News of the new laws that you should be aware of. It will be important to follow up on any that will impact your own business. These new laws and regulations go into effect on Jan. 1.

In 2011, state legislators were extra busy, passing a slew of new rules that affect California employers. There’s everything from fines for misclassifying independent contractors to having to provide the same employee insurance benefits to same-sex couples if your company operates in a number of states.

A new law passed in 2010 under Gov. Arnold Schwarzenegger’s watch makes it mandatory that California manufacturers and retailers let their customers know what they are doing about human trafficking. And San Francisco is making national headlines by having the highest minimum wage in the country. Here’s a summary of the state employment laws that will influence California’s apparel and textile industries in 2012.

Credit Checks

Assembly Bill 22 prohibits employers and prospective employers, not including certain financial institutions, from obtaining and using consumer credit reports (credit information) about applicants or employees.

Pregnancy Disability Leave

Senate Bill 299 requires all employers with five or more employees to continue to maintain and pay for health coverage under a group health plan for an eligible female employee who takes pregnancy disability leave (PDL) up to a maximum of four months in a 12-month period. The benefits are at the same level and under the same conditions as if the employee had continued working during the leave period.

Independent Contractors

Senate Bill 459 provides new penalties of between $5,000 to $25,000 for the willful misclassification of independent contractors, defined as avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor.

Written Commissions Agreement

Assembly Bill 1396 requires employers who have commission-pay arrangements to put those agreements into a signed written contract that sets forth the method by which the commissions will be computed and paid.

Notice of Pay Details

Assembly Bill 469 requires employers to provide nonexempt employees, at the time of hire, a new notice that specifies, among other things, specific information regarding payment of wages. This legislation also increases penalties for wage violations.

Genetic Information

Senate Bill 559 amends the Fair Employment and Housing Act (FEHA) to state that employers are prohibited from discriminating against employees on the basis of genetic information.

Gender Expression

Assembly Bill 887 amends the Fair Employment and Housing Act to further define, gender to include both gender identity and, gender expression, as defined by the new law, and to make clear that discrimination on either basis is prohibited.

E-Verify

Assembly Bill 1236 allows employers to continue to choose to use E-Verify but prohibits California state agencies and local governments from passing mandates that require employers to use E-Verify.

Leave Laws

Assembly Bill 592 adds language to the California Family Rights Act (CFRA) and the Pregnancy Disability Leave law (PDL) that makes it unlawful to interfere with or, in any way, restrain the exercise of rights under these laws.

Administrative Penalties

Assembly Bill 240 allows an employee that alleges a minimum-wage violation to recover liquidated damages pursuant to any complaint brought before the Division of Labor Standards Enforcement.

Wage Penalties

Assembly Bill 551 increases the maximum penalty from $50 to $200 per calendar day for each worker paid less than the determined prevailing wage and increases the minimum penalty from $10 to $40 per day for violations of prevailing wage obligations.

Non-Discrimination Insurance Act

Senate Bill 757 prevents employers that operate in multiple states from discriminating against same-sex couples by not providing the same insurance coverage for domestic partners as they do for spouses.

State Contracts

Senate Bill 117 outlaws the state of California from entering into contracts of more than $100,000 with companies that discriminate against employees on the basis of gender or sexual orientation with regard to benefits.

Workers’ Compensation

Assembly Bill 335 requires the workers’ compensation administrative director (AD) to work with the Commission on Health and Safety and Workers’ Compensation (CHSWC) to develop regulations regarding notices to injured workers; requires AD and CHSWC to develop and make accessible a booklet written in plain language about the workers’ comp claims process; and streamlines and simplifies other notices to employees. The new law also states that workers’ compensation notices posted by employers must now include the website address and contact information that employees may use to obtain further information about the workers’ compensation claims process and an injured employees rights and obligations, including the location and telephone number of the nearest information and assistance officer.

Human Trafficking

Under Schwarzenegger, Senate Bill 657 was passed, making it mandatory for California manufacturers and retailers to let their consumers and suppliers know what they are doing to fight human trafficking. Under the California Transparency in Supply Chain Act, retailers and manufacturers are required to post this information about their policies on their website’s home page starting Jan. 1.

Minimum Wage

The California minimum wage remains at $8 an hour, but San Francisco is boosting its minimum wage from $9.92 to $10.24 an hour. San Francisco’s minimum wage started going up after voters in 2003 approved an annual increase based on a formula tied to inflation.

San Francisco Based Companies –

Beginning January 1, 2012, all employers must pay to each employee who performs work in San Francisco (including temporary and part-time employees) wages not less than $10.24 per hour.

The minimum wage requirement, set forth in the San Francisco Minimum Wage Ordinance, Chapter 12R of the San Francisco Administrative Code, applies to adult and minor employees who work two (2) or more hours per week. Each year, the City will adjust the amount of the minimum wage based on increases in regional consumer price index.

Under the Ordinance, employees who assert their rights to receive the City’s minimum wage are protected from retaliation. Employees may file a civil lawsuit against their employers for any violation of the Ordinance. The City can investigate possible violations, shall have access to payroll records, and can enforce the minimum wage requirements by ordering reinstatement of employees, payment of back wages unlawfully withheld, and penalties.

If you should have any questions or require additional information, please contact the Office of Labor Standards (OLSE) at (415) 554-6292 or Email MWO@sfgov.org

If you have EVER considered manufacturing in China, before you do ANYTHING else, read the book “Poorly Made in China”! We cannot emphasize enough that there are many pitfalls to manufacturing in China and they have nothing to do with quality!

This book is a wild account of manufacturing in China as reported by someone who has had more than 30 years experience manufacturing just about everything in China and provides insights that are worth more than the price of the book!

“Poorly Made in China” is one of the BEST books ever about manufacturing overseas!

Read more: Poorly Made in China: An Insider’s Account of the China Production Game

Taking Advice to Learn By – But are WE Ready? – Advice for Profit!

Over the past 13 plus years, since writing my book Fashion For Profit and founding the Fashion Business Incorporated I must have met with, and advised an average of around 300 new members per year for the FBI and even more through my public speaking engagements and publications.  As part of the FBI annual membership ($250.00) you receive a one hour free consultation with your choice of a variety of industry experts (listed on the website). However, as I am the “face” of the FBI, that “expert” for this initial consultation has usually been me.

I have to say that I have had a very interesting few years meeting an amazing cross section of people from all kinds of occupations. It has been a pleasure getting to know them and advising some fantastic creative people and hearing all about their new business ideas. There have been a few that were not such great ideas!:)  But the interesting thing I have learnt being Dr. Fashion For Profit physiatrist during this time is, unless people are really ready to take my advice then it can often be a waste of everyone time to try to help them.

Starting a new business venture demands a great deal of time, focus and forethought.  Often the new entrepreneur has decided there is a real need for their creation as it is not already being offered in the market place. So, a new product is developed and born. But is there in fact a real need for their brain child? Do these new entrepreneurs understand the apparel industry and the complexity of the industry? ,

This week I received a holiday greeting email from one of my FBI members who I consulted with for more than the initial one hour free consultation. She is a brilliant highly educated physicist who also has a wonderful creative side with a dream of owning a fashion label, which she is now energetically perusing. As you will read below she now realizes that she should have listened to my initial advice and kept her line small and focused before the expense and the energy she needed in developing a full blown line. She has the talent but not the industry connections or the funding to take on board such a large commitment.

“Hi Frances,…  still optimistic. I understand that I’m not out of the woods with the fashion business, so to speak, but I hope that this time with the narrow focus I’ll make it. I often remember your initial suggestion to start selling my skirts first before doing anything else – that was the best advice – but I fully appreciate it only now, when it’s too late for me to do only that.”….

Confession! I have also found it hard to stay focused and take my own advice. Maybe my New Year’s resolution will be to take my own advice and keep a narrower focus on what I do and try not say “yes” to too many opportunities that I have been fortunate to be offered and often found hard to turn down!

Just returned from London and Europe where they wear every kind of exotic fur know to man and beasts to learn about this interesting story from Hollywood or as some call it Hollywird!

West Hollywood recently became the first city to officially put a ban on fur, and though it won’t come into effect until September 2013, retailers in the area are already expressing their grievances.

I would be interested to know how many of you have an opinion one way or the other?  Should we ban the sale of fur and all that goes with the production and association of fur products or not?

While living and working in Munich 20 plus years ago I was guilty of purchasing a “waschbaer” (raccoon) jacket. After learning more about the farming and the killing of animals used to keep us warm and beautiful I sold it at a garage sale here in LA for $10.00.

My feeling now is, why have any animal die in pain and suffer if there is no really NEED to do so?  We have many other choices of clothing to keep us warm and beautiful. I now look at fur and can only hear and see suffering eyes, cries of pain and confusion.

So I say GOOD FOR YOU HOLLYWOOD! Congratulations on leading the pack!  

NO!!! It is not alright to scan and copy original artwork, graphics, prints then change it 20% to 30% and claim ownership!

It amazes me how often I hear from people in the industry that they think it is fine to scan original art work, which include graphics and prints, then make certain changes. Some industry experts, instructors and students think that by changing them a certain percent that they can then claim ownership to producing them for resale commercially. They have been ill-informed.

I have just successfully completed another expert witness case that involves these copyright infringement issues. Many cases that I have given my opinion on have been more or less the same scenario. Once the original art work has been created a textile firm, and or designer will register copyrights to this original art work. The copyright piece could have been either created by an individual, or a company with their own designers, or it could have been purchased from a design house who sells their art works, which may include graphics, and surface designs. Then a few months pass only to discover their designs have been “copied” and hanging in a major department store. Often textile firms who make their living from selling their original works have records of the “headers” being borrowed for review by manufacturers then returned as unordered yardage. In years past when working in design rooms I often witnessed this practice. Rather than buy the graphics or prints from the textile firm it is cheaper to “create” and produce their own prints to then print onto fabric or t-shirts.

Role of Copyright
Copyright is a form of protection provided to the authors of “original works of authorship,” including literary, visual art, dramatic, musical, artistic, and certain other intellectual works. This protection for apparel products is typically for the artistic expression of the work. Copyright protection generally gives the owner of the copyright the exclusive right to use and to authorize others to reproduce the work in copies, and to prepare derivative works based upon the work.

Important to note: As a rule of thumb. If the print looks like the original copyright art work from approximately 10 feet, then IT USUALLY CAN BE PROVED THAT IT IS A COPY! Another dead giveaway; if you lay one print over the other over a lightbox or up to the light, and there are similarities then it is often obvious that it has been scanned and altered.

Things to compare when looking at copyright issue infringements. Original copyright art work, which include prints and or graphics when compared to the knock-off print, has the same look and feel of the original design arrangement is suspiciously similar, e.g.
• ·Size and scale of the prints
• ·Execution of art work
• ·Novelty of overall layout design
• ·Rich coloration of detail
• ·Refined artistic aesthetic

WARNING! Don’t DO IT! It could end up costing you your life savings, and or your company! Create your own original artwork or pay to use copyright art work.