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Premium Denim Continued from page 1<br />

customers who are willing to spend more<br />

than they would a year ago, according to<br />

Zuidema.<br />

“The consumer is willing to pay the price<br />

if the wash and the details and the fit are<br />

right. It’s about perceived value, and in their<br />

mind, they can justify that price, w<strong>here</strong>as<br />

maybe a year or so ago, people walked away<br />

from that.”<br />

LASC offers jeans that range in price<br />

from $150 to $395, with at least three brands<br />

in the $300 range, including Diesel; G-Star;<br />

and Diesel Black Gold, Diesel’s higher-end<br />

denim line.<br />

Jeff Shafer, designer and owner of Washington-based<br />

Agave Denim, which is carried<br />

in L.A. boutiques such as T. Peterson<br />

and Jimmy Au’s, said the price of his premium<br />

jeans has increased about 15 percent<br />

over the past year.<br />

“The market is better, and people<br />

are feeling more secure. After<br />

the drop in the economy, retailers<br />

reacted by dropping prices at the<br />

cost of the product, and consumers<br />

got bored. Now the consumers<br />

want more and are willing to pay<br />

if the product is exceptional.”<br />

His Agave jeans retail for $155<br />

to $300, with most pairs averaging<br />

from $195 to $255 and $300<br />

for men’s selvage denim.<br />

Out of 98 brands listed on its<br />

website, Southern <strong>California</strong>–<br />

based American Rag carries 30<br />

brands of premium jeans priced<br />

at $200 and above, including<br />

PRPS, a label that retails as high<br />

as $500. American Rag sales associate<br />

Candice Dennis said she<br />

saw prices start increasing about<br />

a year ago and that the store’s average<br />

price is now $275.<br />

English cycling brand Rapha<br />

has developed $245 jeans made<br />

with “performance denim” for riding,<br />

brands such as True Religion<br />

provide selvage denim for $569,<br />

and luxury label Balmain offers<br />

high-fashion jeans for $2,120.<br />

True premium denim only has<br />

to do with better product, according<br />

to Shafer, so the increased use<br />

of higher-end fabrics and more<br />

elaborate washes and green technology<br />

has pushed prices up.<br />

“The word ‘premium’ in and<br />

of itself implies better and higher<br />

quality.” Shafer said. “To me,<br />

making premium denim means<br />

using premium textiles from mills<br />

in Europe and Japan and some<br />

American mills. It means washing<br />

them in places that have laws<br />

against environmental and labor<br />

abuses. It means delivering a<br />

product that justifies the higher<br />

price tag. Some designer denim is<br />

premium, and some is ordinary. It<br />

has to do with the integrity of the<br />

product and the supply chain.”<br />

According to Michael Buckley,<br />

chief executive officer of menswear<br />

company Robert Graham<br />

and former president of True<br />

Religion, novelty is also a driving<br />

factor in price. The company<br />

is launching a new line of designer<br />

denim that retails for $188<br />

to $350 and includes jeans made<br />

from denim woven in mills in<br />

Italy, Japan and Spain, with laserdesigned<br />

interior waistbands, embroidered<br />

signatures, and zipper<br />

pulls in antique brass and nickel.<br />

“Today’s consumer who wants<br />

a premium jean wants it with a<br />

point of difference,” Buckley said.<br />

“It has to have some novelty to the<br />

Elliot Schutzer Jason Schutzer<br />

dENIm REPORt<br />

(Above) IT’S ALL IN THE DETAILS:<br />

Imported high-end fabrics and innovative<br />

details such as antique brass and nickel<br />

zippers have increased premium-denim<br />

prices. (Pictured: Robert Graham denim)<br />

(Left) HIGHER QUALITY, HIGHER PRICES:<br />

Agave Jeans owner and designer Jeff Shafer<br />

said customers are now willing to pay more<br />

for a better product.<br />

jean. For instance, Robert Graham’s attention<br />

to detail and craftsmanship make<br />

the collection special, so the consumer<br />

Need quick<br />

responses?<br />

Let’s talk.<br />

doesn’t have a problem paying $250 plus.”<br />

Additional factors in higher prices include increases in textile<br />

and manufacturing costs and new technologies such as<br />

fabrics that hold their shape longer or offer more durability.<br />

The costs of “great denim” and “excellent washes” have<br />

shot up, and cotton prices and imported fabric from Japan<br />

and Italy have also increased sharply, according to Shafer.<br />

Cotton prices spiked to nearly $2.30 per pound this year<br />

because of bad crops brought on by inclement weather and increasing<br />

world demand. But cotton prices have recently come<br />

down over the past three months and are now at $1.08 per<br />

pound. Although cotton prices have dropped, Brad Mowry of<br />

boutique denim consulting and manufacturing company Olah<br />

Inc. said t<strong>here</strong> will be a delay before those decreases are seen<br />

at retail. “My idea is that retail is still up from the previous<br />

cotton-pricing situation, and it does take longer for retail to be<br />

affected by the cotton situation,” he said.<br />

The higher prices don’t seem to be deterring buyers, according<br />

to Zuidema.<br />

“It’s a more limited market and more particular consumer,<br />

but that consumer is out t<strong>here</strong> again—w<strong>here</strong> they had not<br />

been out t<strong>here</strong> before.” ●<br />

As our business has expanded,<br />

so too has our relationship with<br />

CIT. Why? Because, if we need<br />

something, CIT responds. Easy<br />

as that. Other factors have called<br />

us, but we know from experience,<br />

when it comes to credit<br />

availability, they can’t beat CIT.”<br />

EllIOT SChuTzER, CEO<br />

JASOn SChuTzER, CFO<br />

DISORDERly KIDS<br />

Disorderly Kids designs and sources<br />

children’s, junior and women’s apparel and<br />

sells to major retailers across the country.<br />

As the company expanded, CIT provided<br />

additional factoring and credit lines to<br />

help it diversify and grow. With a deep<br />

knowledge of retail, CIT understands<br />

the needs of apparel companies. That is<br />

why Disorderly Kids has been a satisfied<br />

CIT client since 2004.<br />

Want to talk about how CIT can meet<br />

your credit needs? Visit us at cit.com or<br />

call 800-248-3240.<br />

Credit Protection n Working Capital<br />

Factoring n Import/Export Financing<br />

Debt Restructuring n Growth Financing<br />

© 2011 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.<br />

August 5–11, 2011 CALIFORNIA APPAREL NEWS 13

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