Brian Weiss

China's Return to the U.S. Apparel Market in 2024: What Does It Mean for Margins and Domestic Manufacturing? China has made a significant return to the U.S. apparel market this year. Comparing the first quarter of 2023 to the first quarter of 2024, U.S. apparel imports from China increased by nearly 10%¹. Moreover, the average import prices of Chinese apparel fell by nearly 10% in 2024 compared to the previous year. China's market share of U.S. imports rose to almost 37% after declining over the past few years, with lower prices boosting imports from China¹. However, China is not alone in this trend. Global apparel imports also increased by 1.5% in 2024, while average worldwide prices for imported apparel fell by 8.5%². A strong dollar and competition among global suppliers have helped reduce price pressures. Nonetheless, consumer inflation for clothing rose by 1.3% for the twelve months ending in April 2024, significantly lower than the overall inflation rate of 3.6% (excluding food and fuel)³. Retail clothing sales increased by 2% in the first four months of 2024 compared to the same period in 2023, providing a bright spot in an otherwise challenging apparel market over the past couple of years⁴. Domestic manufacturing of apparel in the USA has also seen notable trends. From 2020 to 2023, the percentage of total apparel sold in the USA that was domestically manufactured has been as follows: 2020: 11% 2021: 12% 2022: 13% 2023: 13.5%⁵ With these results, I'm curious if margins have improved or if they remain squeezed. There's been a lot of discussion in the trade that inflation, Section 301 tariffs, and rising raw material costs have forced brands to pass these costs on to consumers. But with a low inflation rate, is that actually happening? Please let me know your thoughts. #ApparelIndustry #Retail #China #USManufacturing #Inflation #Trade #FashionBusiness Sources: ¹ U.S. Census Bureau - Foreign Trade Data ² World Trade Organization - Apparel Trade Reports ³ Bureau of Labor Statistics - Consumer Price Index ⁴ National Retail Federation - Retail Sales Data ⁵ American Apparel & Footwear Association - Domestic Manufacturing Reports & U.S. Census Bureau - Annual Survey of Manufactures Feel free to share your insights!

20

We estimate Toy'n vendors have a 3.2x higher likelihood of getting their bands supported 🚀. This is because we spend so much time dialing in our vendors presentations and focusing on what we know Target is looking for. For example, I just sat on a line review that was a 10/10. Here's are the top 5 reasons this brand is going to win business from their competitor in a very crowded segment:.   Focused: They did not throw 20 items at the buyer but had a focused approach, recognizing space is limited and spring POG changes are minimal. This meant that every item had a reason for being. It also earned favor from the buyer for recognizing her lack-of-space pain point. Data: They provided meaningful data on why the product would sell. If you're still pitching brands and don't have data, you're meaningfully behind the competition. Marketing: Everyone is so focused on product but equally as important is the marketing. If you cannot show you can drive people to the store to buy the product, then you're likely an impulse buy, and impulse buys mostly fail. Key Play Patterns: They put forth the play patterns that are proven, but all with slight innovations that made it better products. Remember, innovation does not have to mean reinventing the wheel if the wheel is what kids want and know. Target Initiatives: We created the brand so it solved as many problems as possible for the buyer and Target as a whole by including exclusivity, digital solutions, marketing, value, and diversity. Remember, the goal of a product is to solve as many problems as possible. Back to more line reviews, but someday I'll share the other 4-5 things we do to ensure our clients and our buyers win with our brands.

19

The New Double Lock Supertag 4 innovation helps to control both Internal Theft and External Theft.

2

Solid article from Retail Space Solutions including the following quote: “Use innovative retail store fixtures, like pusher trays, to keep products front-facing and organized, reducing false out-of-stocks and making it easier for staff to restock”.

12

Sometimes, the most valuable moments at trade shows aren’t the ones you schedule – they’re the ones that happen purely by chance! 🌊 Today at the licensing show, I experienced firsthand the magic of serendipity. I had the incredible luck of meeting Nancy, a smart and friendly licensing attorney. It turns out, she recognized me from my appearance on Shark Tank! 🦈 Nancy and I hit it off immediately. Her insights into the world of licensing are nothing short of impressive, and she understands the unique position TANDM Surf is in to grow through strategic partnerships. We talked about the potential paths we could explore, and I am thrilled about the opportunities that lie ahead. This chance encounter reminded me of the power of showing up and being present. You never know who you might meet and how they could impact your journey. So, to all my fellow entrepreneurs and business leaders out there: Keep your eyes open, be ready to engage, and embrace the unexpected connections that trade shows and similar events can bring! Here’s to finding opportunity in every handshake and conversation! 🌐🤝 #BusinessGrowth #Licensing #TradeShows #Networking #Serendipity #Entrepreneurship #TANDMSurf

30

3 Comments

Pricing opportunities to ratchet 2024 profitability are dissipating. Volume growth has hit a wall. Trade and shopper marketing expenses have increased significantly to prop up volumes and to hold on to shelf-space. COGS inflation is declining but is still higher than the price increase that can be captured at retail. If your profitability outlook for 2024 vs 2023 looks like the bridge chart below, a key question should be: "What are we going to do that is radically different in 2024 and in 2025 to reset the brand for growth for the next ten years?" Article links in the comments section of this post walk through a case study of a CPG brand that has moved and is moving through a boom-stall-bust-reset moments these last few years. #pricing #CPG #FMCG #CPGcategory #profitablegrowth #Grocery #revenuegrowthmanagement

3

2 Comments

Given the accelerating pace of business today, it’s easy to focus on the transactional. However, we can’t lose sight of the fact that anticipating, understanding, and meeting the needs of our customers is always relational. At '47, we have some of the most loyal and discerning customers—sports fans, for whom team pride is a part of their identity. We share that same spirit, which we express in our fundamental values: “undeniable attention to detail for 75 years,” “passion for quality materials,” and “every stitch counts.” These aren’t just slogans–they are integral to every piece of sports apparel, accessory, and fan wear we sell. The same holds true in our relationships with vendors. They are key partners in helping us deliver on our brand promise with incredible attention to detail, from team colors and logos to high-quality fabrics. That’s why I resonate with the words of Reggie Yativ, CRO of Incredibuild. In a recent Forbes article he described vendors as “an invaluable asset.” As he wrote, “This involves valuing the aspirations of the other party—something that can be done by taking the time to thoroughly comprehend their competitive landscape, industry challenges, and support needs.”  Vendor relationships are a two-way street. We listen to and learn from each other, in collaboration and cooperation—and always with a focus on delighting the customer. https://lnkd.in/gGhF3Wsy

125

I had an incredible conversation with Eugene Alletto, CEO of BEDGEAR, about how he is additive versus disruptive to the bedding industry! Eugene's journey from a million-dollar salesperson to an industry innovator is nothing short of inspiring. He shares valuable insights on the importance of education, innovation, and being additive rather than disruptive. Tune in, and leave your favorite quote in the comments.

27

3 Comments

I enjoyed chatting with Inside Retail US about the FTC’s attempts to block the Tapestry x Capri Holdings Limited merger. As I told them, the decision does a great disservice to the retail industry and to American companies trying to create brand houses to rival those in Europe – at least in terms of scale. More importantly, however, the case is based on extremely poor logic and a misreading of how the market works. The FTC is meddling in areas that it doesn’t adequately understand. It all too often operates in a theoretical bubble that is divorced from reality. More of my views in the article… https://lnkd.in/eqXTmefT #retail #retailnews #regulation #luxury #handbags

16

If you’re a brand owner or work for one, this insight is for you. New factory partners frequently share that our approach is a "breath of fresh air" in the industry. Unlike their normal partners—aggressive trade companies and commission hungry agencies—we are fully client-side representatives and don't take commissions. Let me break down how that's different and why it matters. Trade companies and most sourcing agencies bake their commission into: ➤ Client purchase orders ➤ Client mold costs ➤ Client sample costs ➤ Client shipping costs They normally make money on both sides—also taking a big piece of the profit pie from factories in the form of commissions. If you work with a trade company, not only is your cost inflated, but there is a factory out there making your order who is also getting squeezed. So, when we roll up to a vetted factory with a perfect fit client not wanting a commission, it's a huge surprise. A pleasant one. What's not to love? The factory gets to work directly with a great client, building a long-term relationship. With a trade company or agency, they rarely know who they are working with, as by design, they have zero contact. With our approach, the client gets introduced to the best fit factory and avoids the heavy middleman markups that are so standard in the industry. As a brand, it may often "seem" like a deal when you work with a trade company or agency, because you aren't paying anything upfront. But the additional cost is baked and hidden in the inflated unit cost. This often adds up to 30% more on your cost of goods on every order. It's significant. This is why Xiaofeng Wu, I, and the whole team at China Product Pros love coming to work every day. We're making a meaningful change, one client and one factory relationship at a time. What do you think? Have you experienced hidden costs with trade companies or sourcing agencies? 👉 Like this content? Don't miss out! Join my exclusive monthly newsletter written for ambitious e-commerce brand owners. Make better sourcing decisions in China. No fluff, no ChatGPT used. Subscribe now in 10 seconds via the link in the comments section. #chinaproductpros #sourcingagency #chinaproductsourcing #sourcingagent #doingbusinessdifferently

10

1 Comment

If you are in the retail business, I encourage you to give this white paper a read. It includes fundamentals that influence success and failure at retail.

8

In Best Life's recent article, "Is Ceramic Cookware Safe? How to Use It Correctly," I discuss the importance of proper ceramic cookware maintenance. Beyond preserving the non-stick coating, we need to think about the health implications of using high temperatures and harsh tools. Embracing these best practices can lead to safer and more sustainable cooking environments. Let's elevate our kitchen standards together. #FoodSafety #KitchenTips #KitchenHacks 

2

1 Comment

Great insights and super smart business moves for any company thinking about leaning into the running market. TL;DR: "REI's run business has consistently grown double digits, and it is growing “significantly faster” than total REI." More interestingly: "[...R]oad running footwear now accounts for roughly 60 percent of [REI's] running sales, with trail running accounting for the remaining 40 percent." That's an interesting flip from pre-pandemic data for this outdoor giant, and reiterates amazing growth in the running industry. Lululemon knows this, too, as they've also invested heavily in running (have you *seen* the #further campaign? #amazing).

3

3 Comments

Does anyone care about having AI-powered products?!?!   I know I do… and it turns out, other shoppers do, too. Circana's latest research shows that adults (18-44) are willing to pay more for products with AI enhancements. What’s so special about AI? Well, it's 2024, and AI is definitely all anyone can talk about – but it’s also a crucial differentiator for products to leverage. AI has broad applications that are reshaping our lives. Just look at the success companies like Airmeez Inc (with its AI-powered enterprise tools) and SoundHound AI (with its revolutionary voice AI platform) are enjoying.   On the Samsung side, AI in our TVs is so much more than you may think. It applies to everything from our features to processors, helping sharpen low-res images to 8K, providing life-like audio, and so much more. AI even allows us to make our TVs more accessible through features like Relumino Mode, which uses AI to help viewers with low vision discern content more clearly on their TV screens.   Just yesterday, Samsung hosted our Unpacked event, and the Galaxy Ring really grabbed my attention. I actually had the chance to check out a prototype before it launched, and I can easily say the way it uses advanced AI sleep algorithms is revolutionary. It gave me such a better understanding of my sleep patterns, and even provides personalized guidance for me to get better sleep (just the other night I got 5 hours in, instead of my usual 4 😊). What excites you most about AI in products? Which products do you think could benefit most from AI? I'm eager to hear your thoughts and learn from your insights!

42

5 Comments

Moose Toys enters phase two of strategic growth plan with four senior leadership hires Top toy industry veterans have been tapped to lead transformational growth in marketing, design, entertainment and licensing at Moose Toys. Moose Toys is on a mission to expand and meet the ever-increasing demand for its toys with the creation of four strategic senior leadership roles. These new positions were created to propel the company forward across several key areas: develop and nurture long term Moose-owned brands like ten year evergreen Little Live Pets, further expand its booming partner-brands business, which includes Bluey and Despicable Me 4 amongst others, and continue to build its burgeoning games portfolio. Joining Moose in its mission and vision are proven industry veterans John Coyne, chief Brand officer; Craig Drobis, global general manage, Licensed and Preschool: Deirdre Cross, senior vice president of Games and Stephen Davis, Entertainment and Franchise advisor. #toy #toynews #toyindustry #toys #newhires #growingteam

114

3 Comments

For bedding retailers, the question should never be "Should we be marketing?" but "How should we be marketing?". When the economy shrinks, businesses of all sizes need to become more judicious with their spend, but also more: ✓ Creative: Differentiated marketing to "wake up" the audience and get attention with a unique offer (the hook). ✓ Strategic: Focus on key (underserved) audiences with proven success instead of broadcast messaging to a general audience. ✓ Efficient: Optimize marketing channels and tactics to ensure maximum return on investment by leveraging data analytics and performance metrics We chatted about that recently with Bedding News Now about marketing budgets and advertising approach. ✭ ✭ CATCH US AT LAS VEGAS MARKET AND WE'LL CHAT ✭ ✭ Alex Milstein Stephen M. Ferguson (Mattress Weirdo) Anna H. Brent Batterman #BedderMarketing #BedderAdvertising #Mattress #Bedding #MattressRetail #BedheadMarketing

20

1 Comment

Let's talk about how we can make your vendor orders effortless....

5

1 Comment