Economic profile from Dr. Saez-2008

Clothing
Rag-trade deals

As prices fall, clothing firms are making new plans for their brands
ONE of the certainties of visiting an American department store—and stores in many other countries too—is the familiar offerings from some of the world's most recognised clothing brands: stacks of Levi jeans, shirts from Polo Ralph Lauren, collections from Liz Claiborne and, of course, lots and lots of Tommy Hilfiger. All this sameness is a big problem for the apparel business. Department stores are increasingly being squeezed by specialist retailers on one side and discount chains on the other. At the same time, prices everywhere are falling as many items of clothing become commodities. For the brands concerned, this loss of sparkle could lead to yet more consolidation.
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As clothing prices fall, department stores and specialist retailers need changes to win the market.


Fashion in New Zealand Kiwis on the catwalk

Feb 28th 2008 WELLINGTON

From The Economist print edition

Made in New Zealand Icebreaker

The unlikely rise of New Zealand's fashion industry

WHEN it comes to fashion sense, New Zealand has a reputation—but not in a good way. ...

But things are changing. New Zealand is now home to a vibrant and steadily expanding fashion industry, with some 50 established labels, up from a handful ten years ago, half of which sell abroad. The World Trade Organisation says clothes exports were worth NZ$315m ($216m) in the year to June 2007, up from NZ$194m a decade earlier. The largest market is Australia, followed by America, Britain, Hong Kong and Japan.
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New Zealand's fashion market grew rapidly.
Copyright © 2008 The Economist Newspaper and The Economist Group. All rights reserved.



H&M Defies Retail Gloom
As a purveyor of stylish clothing at reasonable prices, retail chain H&M looks at the economic slowdown as an opportunity to expand

by Kerry Capell
With the credit crunch in full swing, retailers around the world are slashing prices and shuttering shops. But Sweden's Hennes & Mauritz (HMB.ST), a pioneer of cheap but chic fashion, is managing to buck the trend: opening stores, entering new markets, and adding new brands. "Our strategy is based on the concept of fashion and quality at the best price," says H&M Chief Executive Rolf Eriksen. "It helps us stay balanced even during economic downturns."

Defying tough times, H&M will enter one of the world's most competitive fashion markets with the opening of its first store in Japan on Sept. 13. The initial outlet, in Tokyo's Ginza shopping district, will be followed by a second store in Harajuku on Nov. 8. At the same time, H&M will also launch its latest high-profile design collaboration with Japanese designer Rei Kawakubo, the founder of cutting-edge fashion brand Comme des Garçons. A third Japanese store in Shibuya is expected to open next fall.
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A Global Expansion
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The Outsourcing Advantage
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A Huge Potential
... ... there's huge potential to make the new businesses more efficient and expand internationally by having access to H&M's sourcing and logistics...

..."The multiformat strategy allows mass fashion retailers to cover a broader market space, both in terms of price points and fashion content,"...
H&M will be sustaining it, no matter what happens to the economy.
International business has more competitive advanteages.
Capell is a senior writer in BusinessWeek's London bureau.
Copyright 2000-2008 by The McGraw-Hill Companies Inc. All rights reserved.



Weak dollar could be a hit at NY Fashion Week
By Michelle Nichols
NEW YORK (Reuters) - A weak U.S. dollar may be the hit accessory at fashion shows in New York this week, luring British and other European buyers and offering newer designers a chance to impress U.S. retailers hoping to buy locally.

U.S. consumers are tightening their purse strings in the face of lost jobs, home foreclosures and surging food and gas prices but some designers and analysts say that may not necessarily spell doom and gloom for the fashion industry.

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For foreign designers showing in New York, it's a different battle -- keeping clothes affordable for the U.S. market.
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Weak exchange rate could stimulate trade.
(Additional reporting by Astrid Wendlandt in Paris, Jo Winterbottom in Milan and Jan Paschal in New York, editing by Ellen Wulfhorst and John O'Callaghan)
© Thomson Reuters 2008 All rights reserved