November/December 2007

10th Anniversary

Gone are the days when an apparel order meant a one-color T-shirt imprint. Today's marketplace is diverse, high-tech and brand savvy - making a big difference in how decorated apparel is perceived.

By Tonia Cook Kimbrough

The ’90s don’t seem that long ago, do they? In 1997, the year Wearables was founded, Madeleine Albright became the first female secretary of state and Tony Blair was appointed U.K. prime minister. Mother Teresa passed away; Diana, princess of Wales, died following a car crash in Paris; and rapper The Notorious B.I.G. was killed by a drive-by shooter. The Hale-Bopp comet made its closest approach to Earth, and in San Diego, 39 Heaven’s Gate cultists commited mass suicide at their compound. The hybrid car Toyota Prius made its appearance in Japanese showrooms, and would come to the United States in 2000.

"If I told you in 1997 that well over half of the top-selling apparel items in the market would be made of polyester in 2007, you’d have laughed at me."

 Gary Thorne, River’s End Trading Co.

Fashion, as always, has changed a lot too. In the ’90s, remember it or not, fluorescent and neon clothing, parachute pants, and baby-doll dresses were hot. Now, they’re not. For the wearables industry, though, a decade has made a huge difference. In the early ’90s, tees and sweatshirts were about the extent of promotional clothing.

“Up till the mid-’90s, corporations got their logoed apparel from uniforms manufacturers. The designs were often simple and they didn’t have a lot of apparel choices,” says George Arroyo, president of Deerfield Beach, FL-based Brookteam Corp. “Nevertheless, the garments carried the name of the company and the employee’s name, and then the corporation moved onto the next thing on the agenda. Today, company buyers see that business or custom personal apparel can be comfortable and stylish, and logos can also have an artistic appeal that impacts the viewer, and in turn creates better exposure.”

Now, the wearables industry’s a veritable treasure trove of every imaginable type of clothing for all types of people with all types of bodies. Colors, fabrics, styles and cuts reflect very closely what’s at retail. The wearables market has grown up, and people actually want to wear logoed apparel. We’ve got the lowdown on how the market’s changed, and some of the exciting trends we’ve got to look forward to.

Trends Trend Out The thing about trends is they don’t last forever, although they do cycle around. Here are a few hot ones distributors and suppliers have seen wane: “Denim shirts were huge and were really the first step in business casual. Today, denim shirts are a very small percentage of woven shirt sales but they opened up a huge category in woven shirts in this industry for men and women,” says Gary Thorne, director of sales for Hopkins, MN-based River’s End Trading. “Sublimating specialized, more expensive T-shirts proved to be too costly and quality printing results were difficult to achieve on a consistent basis,” says Michael Briggs, owner of Orlando, FL-based Cool Ways Promotional Products Inc. “Heavyweight, 8 oz. piqué fabrics have been very popular, but were literally too hot to wear. Lighter-weight performance fabrics are what we’ll be seeing most of in the near future,” Briggs says.

THE UBIQUITOUS T-SHIRT

Remember the days when imprinted apparel meant a boxy white T-shirt in unisex sizing? It actually wasn’t that long ago.

“Ten years ago, T-shirts and sweatshirts were still king. Gildan was little more than an upstart company out of Canada, just beginning to have an impact on the United States’ T-shirt market. Industry private label brands such as River’s End (L.A. Loving when it started), Port Authority, Ultra Club and others were in their very early stages,” says Gary Thorne, director of sales for Hopkins, MN-based River’s End Trading Co.

“If a brand offered 10 to 12 styles, the supplier considered that to be a huge offering. This gave customers very few options in apparel,” Thorne says. And, for example, the industry’s idea of a wide selection of products was a T-shirt coming in 30 colors.” Today, he says River’s End offers more than 130 styles in its eponymous brand.

Add to that thousands of other styles, sizes and colors offered by nearly 400 suppliers, as evidenced by Trevose, PA-based Advertising Specialty Institute’s ESPOnline promotional products database, and you’ve got a major shift in the marketplace.

But that’s not all. The price of a T-shirt has become a selling point in and of itself. “There’s a 99 cent white T-shirt sale almost every week – it’s been a real winner,” says Michael Briggs, owner of Orlando, FL-based Cool Ways Promotional Products Inc. “Ten years ago, you’d be fortunate to find one at $20.” Briggs’ distributorship, which specializes in casual wear, has had its business quadruple in the last decade, thanks to the growing demand for garments of all kinds – not just T-shirts.

Decade of Decorating Sense As with everything else apparel related, decorating options have also evolved during the last decade. There are new inks, applications and processes from sublimation to temperature - and light-reactive threads and inks that are making imprints more exciting than ever. That said, though, the classics continue to reign. “The apparel industry’s still primarily about embroidery and screen printing,” says Bruce Korn of Malvern, PA-based ZakBack Inc. “Some new techniques such as puff embroidery and digital direct to garment printing have come out, but most people still turn to the same basic screen-printing and embroidery processes.” Tom Vann, CEO of Naperville, IL-based Target Graphics Ltd., says he’s seen the most significant changes in screen-printed garments is a turn toward retail. “I’d say while the straightforward logoed shirt remains the leader, 30% or more designs favor a retail flavor,” he says. Also, besides the obvious use of glitters, gels and other common retail special effects, Vann sees a combination of fashion-forward T-shirts with hipper logo treatments. “In other words, the shirt still does its job of advertising, but with a retail flair,” he says. “This is sometimes done with direct links to an ad campaign with a four-color process or simple, but different, approaches to logo placement and/or compositions.” However, there has been a directional change in terms of decoration placement and how much of it clients want. Conrad Franey, vice president of St. Louis-based GatewayCDI, says his clients prefer tone-on-tone logos, usually embroidered, for a more subtle impression. “I’d say the decorating trend now is to go smaller and more subtle,” he says. Franey anticipates more requests for decorating-on-demand programs. “Clients will want personalized garments that ship on the same day,” he says. “Right now the ability’s there, but the prices are high and the quality isn’t quite there. That’s the next decorating challenge.”

TECHNOLOGY TRICKS OUT

What makes apparel a more appealing ad specialty item for distributors and their clients is its evolution into more function- and wear-friendly promotions. “The biggest difference in garments over the past 10 years is technology – specifically polyester. We’re not talking about your dad’s polyester pants,” Thorne says.

Today’s polyester keeps the wearer feeling cool (better breathability and lighter-weight fabrics) and looking cool with great styles and colors. These new polyester fabrics wick moisture, are easy care (from the washer to dryer to you over and over again retaining shape and color), offer UV protection, and give companies endless opportunities for styling. “If I told you in 1997 that well over half of the top-selling apparel items in the market would be made of polyester in 2007, you’d have laughed at me,” Thorne says.

Fabric technology has also expanded selling opportunities for distributors. Take performance wear, for example. Briggs has found these garments to be excellent tools for getting in with new clients who are sports driven. “New athletic markets have opened up and performance wear has become one of those ‘gotta have it’ products,” he says.

Expert Lessons Learned Three distributors and suppliers who’ve been successful during this last decade share their most important secrets to success: Gary Thorne, River’s End Trading Co.: “The most valuable lesson I’ve learned about selling apparel is to stay open to change. Keep your eyes open for new trends, fabrics, styles; stay current; and be creative. Offer your customer lots of options. And, help them create opportunities.” Michael Briggs, Coolways Promotional Products: “Provide only the best quality products with the best designs, serviced by the best trained salesperson, and stand behind everything that you do. The referrals will do the rest.” Bruce Korn, ZakBack Inc.: “To be truly successful in the corporate apparel business, stay on top of current trends. I’ve seen golf shirts go from 100% cotton piqué to 100% Pima cotton to 100% polyester. While changes are less frequent in the T-shirt and sweatshirt arena, corporate apparel styles and colors change almost every year. To provide truly professional service, you must be a fashion consultant, as well as a promotional consultant.” Tom Robinson, The Vernon Co.: “Without a doubt, I’ve learned to order samples so my customer knows that the fit and size he’s read about will work when the product’s decorated and delivered. Fortunately, I’ve had few miscues in this area, and have realized it’s better to spend a little extra time than to eat profits.”

AN ELECTRONIC ASSIST

To process an increase in wearables sales, of course, distributors need robust systems in place. Again, thank technology.

“Our garment suppliers have stepped up to the plate and then some,” Briggs says. “They’ve been the largest contributor to change and have started using the latest technologies to provide a seamless and very efficient distribution program that makes our jobs as distributors obscenely easy.”

Some examples of this are: e-commerce, e-mail, online catalogs, garment-rendering files and automated graphics programs. These are just a few of the many tools Briggs has found extremely helpful in building his business.

The evolution of technology in apparel sales has also changed outsiders’ perception of the industry. “I used to get kidded a lot about what I do,” Briggs says. “People viewed screen printing and embroidery as a mediocre trade, but once they see how things are actually done these days, they’re impressed.”

There’s also the Internet, which boosted apparel sales via online company store programs during the last decade. The benefit for distributors and their clients has been the ability to set up online catalogs in stages. Whereas print versions are typically revised annually, an online catalog can be altered regularly to reflect changes in stock or season, or to offer specials for holidays or events. This has given buyers the confidence to build entire programs around imprinted apparel for incentive plans or uniforms.

1990s: Anti-Fashion The 1990s is called the decade of “anti-fashion,” but in reality, anti-fashion was only one of many trends in fashion to rock the decade. Characterized by minimalist styles and many overlapping, often contradictory, trends, it was the decade of grunge, khakis, punk rockers, retro styles and sagging (wearing pants way below the waist). 1. Relaxed-fit jeans were a trend, but were replaced by bell-bottoms. In ’94 wide-leg jeans became all the rage until late 1995, when a full revival of mod fashion followed the new trend of boot-cut and Levis 501 style jeans. In the late ’90s, hip-hugger, flare-leg jeans became popular. 2. Corduroy fabric was in for pants and overalls. The most popular colors of “cords” were black, tan and gray – colors that became even more popular in 1997, a trend that continued through 2001. 3. Fluorescent and neon clothing, such as T-shirts, sweatshirts, socks, shoelaces, hair scrunchies and fanny packs, was especially popular. Fluorescent colors were replaced by colors such as coral, hot pink and turquoise, until the popularity of bright colors declined in 1995. 4. Parachute pants were popular with boys and men. They had a relaxed fit, tapered legs and drawstring waists, and came in a variety of colors, including fluorescents. 5. Hypercolor shirts that changed color depending on the wearer’s body temperature were popular in the early ’90s. They were made in several color choices and were predominantly tie-dye in pattern. 6. Spaghetti-strap tank tops became popular among women, allowing them to show more skin. Some institutions banned spaghetti-straps on grounds of modesty.

BRAND BOOM

The Internet has also driven imprinted distributors’ confidence in brand names. Many brands – which tend to be more fashion sensitive than off-labels – have shied away from the slower-moving promotional and uniform arenas. Today, however, imprinted apparel suppliers can keep pace with retail forecasts, thanks to technology.

“The introduction of retail brands into our market was another huge trend that’s made a significant impact in our industry,” Thorne says. “Bill Blass was one of the first retail brands, if not the first, in our industry. Today there are many more, including Nike, Tommy Hilfiger, Lacoste, Columbia and North Face. And the list goes on.”

The branded bandwagon is, in part, a reflection of a growing consumer demand for quality. “Today, by and large, my clients, which are mainly Fortune 200 companies, are looking for the same quality they see at retail,” says Conrad Franey, vice president of St. Louis-based GatewayCDI. He marvels at the fabrications and workmanship suppliers now offer – everything from fine fibers such as ring-spun cotton to cashmere and detailing such as double stitching or premium buttons. These are often the markers that set branded apparel apart from the pack. They’re also the details that can boost a price point. In fact, Franey’s clients typically spend more than $40 per garment, compared to the average $8 to $12 per piece that they spent a decade ago.

This trend delights distributors such as Briggs, who previously were stumped when clients requested branded apparel, particularly at higher price points. “High-end brands have become one of the most sought after items in the last couple of years,” he says. “When someone wants a quality, brand-name garment, I can offer them a lot of choices.”

WOMEN'S WEAR EXPLOSION

Heading into 2008, distributor salespeople feel confident with the selection of female styles, colors and sizes to show their clients. Of course, that wasn’t always the case

“As we all know, women’s styles and sizes were pretty much nonexistent 10 years ago,” Franey says. “There’s been a major league change.” In fact, a recent search on ASI’s ESPOnline product database brought up more than 4,300 options in women’s and girls’ clothing.

“I can walk into a school or business and literally have something for everyone,” Briggs says. “It used to be difficult for a woman to size up into a man’s garment. It was embarrassing for them to be wearing men’s garments.” Briggs noticed that circa 2002, the selection of women’s garments in the industry really ramped up.

Selection ranges not only in sizing and colors, with sherbet and jewel tones, emerged, along with more feminine styling. There are basic shirts, pants and shorts to dresses, skirts, yoga wear, loungewear and even undergarments.

Speaking of undergarments, perhaps it’s thanks to women’s wear that intimate apparel got a pass into the imprinted arena. In the last few years, the category has expanded from the occasional women’s brief to everything from “tap pants” to thongs. There are also sports bras, camisoles and lingerie options. The category – particularly cotton panties – has made headway as a head-turning trade show giveaway, to surprising direct mail enclosures for markets as broad based as casinos to colleges.

WHAT'S AROUND THE CORNER?

So with giveaway thong panties, do you think you’ve seen it all? Look ahead. What goes around comes around, as they say. “I think we’ll see 100% cotton products make a comeback, but it’s going to be like polyester, new and improved,” Thorne says.

This, in part, is a reflection of another emerging trend that’s expected to flourish in the next few years. “During the last 10 months, we’ve seen the green movement generate a huge spike in demand for eco-friendly apparel,” Franey says. Businesses are pushing for garments made from bamboo, hemp, recycled cotton or fibers made without chemical processes. Right now, there’s a fairly limited product range, but I expect it’s going to get bigger. This is the trend we’ll be talking about 10 years from now.”

Briggs predicts more wearables opportunities overall. “The market will continue to diversify. Schools will always be strong. Industrial uniforms will shift more to our industry versus the rental industry because companies are finding the costs of rentals to be excessive,” he says. “Corporate apparel will remain a staple in distributor sales, and suppliers will continue to cater to this market with styles and fits. The diversification will help solidify sales for distributors and prevent dips in business cycles.”

In addition, Briggs sees opportunity to keep the cost-to-profit ratio on the upswing. “I think overseas apparel manufacturing will continue, which will make profits strong,” he says.

Suppliers, in turn, are looking for ways to secure distributors domestic sourcing with an eye toward trends that require quick turnaround. “The industry will be solidly built around being able to fulfill an order of one personalized product delivered in a nearly same-day fulfillment criteria,” says Dan Greene, owner of Denver-based Colorado Timberline. “The necessity for software that supports this focus will isolate the competitors and limit the number of products that can be adapted to this fast-growing concept. All industries are developing some version of this hybrid, be it a shoe company that allows customized colored soles or booklets that are run one off with totally unique content.”

Certainly, industry distributors seem optimistic about suppliers’ ability to improve offerings, as well as operations. “Our apparel suppliers will make even greater gains in style, availability and streamlining the buying process with even better technology,” Briggs says. “Give credit where it is due; all of our suppliers have got it right.”

Big Things Ahead We asked Mary Ellen Hudicka, marketing director for Philadelphia-based Bodek and Rhodes and Dan Jellinek, senior vice president of sales and marketing at Alpharetta, GA-based CorpLogoWare to forecast what we can expect to see in the industry in the next five years. Wearables: How will online ordering look in the next five years on distributor and supplier sites? Mary Ellen Hudicka: On the supplier side, I predict a majority of ordering will be done online. More and more customers are finding it a necessity to work by their own schedule and have all the info they need, 24/7, on the Web. Every ordering and accounting function has to be there when they need it; therefore, every single wearables supplier or wholesaler will be working very hard to make its site the ultimate in customer responsiveness and friendliness. There will also be an increase in online ordering on the buyer side. More buyers will want to use shopping carts to place their orders, but also to send firm leads to their distributors for quoting purposes. The ‘design your own virtual sampling’ will also become a necessity. Dan Jellinek: I always felt we’d see a larger increase of Internet sales on distributor sites, but the reality is people like to buy from people, and they also like to touch and feel a garment. So, I don’t think there will be much of a change there. In regards to online ordering from suppliers, I do feel we as distributors will be ordering more online through supplier sites.  WEARABLES: Do you think more distributors will be one-stop shops, where they’re offering decorating capabilities? Do you think more suppliers will be decorating their blanks as well? MH: I don’t think more suppliers will be decorating because that would make suppliers compete with their customers. Plus, as a wholesaler, our business forte is speed. We have the brands distributors want and can ship quickly. We aren’t decorators. We leave that creativity and expertise to our customers. Many distributors who market themselves as creative agencies will continue to outsource their decoration. However, those that are seeking additional profit centers may turn to decoration because they can make money there, just as decorators can turn to promotional product sales. DJ: It really depends on the way the distributor is set up. The majority of the time, CorpLogoWare always tends to gravitate to local decorators because it’s easier and more convenient to outsource because of the volume of orders we fill. For us, a one-stop shop would be really tough. But, one area that may change is with the advent of digital printing. If there is a significant drop in the price of equipment, people may try to buy the machinery and do decorating on their own. Wearables: What new embellishment options do you see becoming available in our industry? What options would you like to see in our industry? MH: We have to keep our eye on the youth market because that’s where the embellishment trends are coming from. We’re seeing all-over screen printing. And for logo placement, that old left chest isn’t the only vehicle anymore. People are using backs, sides, cuffs, collars and hems to decorate. So location is wide open now, but people are using rhinestones and faded vintage looks and mixing techniques to create their own looks. Decoration is a reflection of a company’s. It’s not just one-color logos. It’s “how can I creatively convey my brand and message?” WEARABLES: What’s one change you think needs to happen in the industry? MH: If people want to stay competitive and grow their business (because competition isn’t going away), they need to market themselves. They have to do outbound, proactive marketing. From what we hear, a lot of people don’t do it. They wait for orders to come. There are so many wonderful tools available to generate new business and protect what they already have. And they’re going to have to market themselves as solution providers, not simply, ‘Here’s the latest cheapest T-shirt out there.’ But that’s the industry’s own Achilles heel. Here we are recommending to our clients and prospects that they must reinforce and promote their image, but yet we as an industry aren’t creatively promoting our own. Those who aggressively market their business will come out on top. DJ: There needs to be some consolidation on the supplier side. Do we need 15 blank suppliers who sell the same Gildan T-shirt? As a distributor, I’d really like to see two or three companies offering the same products. But now, we have 15 suppliers offering the same item for one or two cents cheaper than their competitor – and it’s very time-consuming for our salespeople.

TONIA COOK KIMBROUGH is a contributing writer based in Florida.