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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 />
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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 />
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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