ACTIVEWEAR: NAMING THE GAME
Byline: Rosemary Feitelberg
NEW YORK — At a time when many activewear makers are vying for floor space in any store, a crop of sport-specific firms are committed to small specialty stores. Determined not to be eclipsed by Nike, Reebok and other powerhouses, some lesser-known labels — such as Bellwether, Trek Wear and SportHill — are reporting double-digit percentage gains. Targeting specialty retailers, they say, has enabled these smaller companies to develop niches in specific sports. A key factor is that salespeople in specialty stores really understand the product.
Some manufacturers attributed the growth to their expanded offerings for performance-oriented apparel, high tech fabrics and more women participating in sports. Others said they would increase sales in 1996 through consumer catalogs.
In the last 10 years, women’s apparel sales at SportHill have increased to 45 percent from 30 percent of the company’s overall volume, according to Jim Hill, president of the Eugene, Ore.-based firm. Sales have climbed steadily due to the firm’s ability to expand its offerings of “authentic, performance-oriented apparel” made of innovative fibers and fabrics.
Designed for running, cycling, cross-country skiing and other outdoor activities, the 25-piece women’s line wholesales from $15 for nylon shorts to $75 for a Supplex nylon ski jacket with a CoolMax liner and a built-in fanny pack.
Price is an issue with runners, but not with outdoors women, Hill said.
“We try not to put many whistles and bells on the running gear. They think $60 is too much for running tights, but skiers won’t think twice about paying $90 for ski pants,” he said. “In the outdoor category, we’re able to build great clothing without worrying about price.”
With more women participating in sports, the outdoor category gaining popularity and SportHill expanding its offerings, sales should climb by 20 percent in 1996. For 1995, women’s apparel sales jumped by 30 percent, he said.
“We’re small enough that we’re able to operate and grow in a nice specific niche,” Hill said. “We’re in the accounts we need to be in.”
SportHill, which was sold at Foot Locker briefly in 1988, is better suited for REI and L.L. Bean — retailers that cater to white-collar professionals who are willing “to spend some money for apparel,” he said. While Hill said he would not defer orders from major sporting goods chains, he said he is not actively pursuing them. He said he prefers to serve established specialty stores as opposed to “category killers,” like Colorado, a 13-store division of The Foot Locker.
“I like to support guys that have been in it for a while and who know the business,” he said, noting that SportHill routinely uses feedback from retailers to design lines. “If you want to go camping or hiking in the Himalayas, they know what you need.”
“The problem with a lot of sporting goods chains is they treat it as clerks and cash registers. Aside from the shoe department, they usually don’t have anyone on the floor who knows about the products,” said Edward Dembowski, chief executive officer for Bellwether, a San Francisco firm that specializes in cycling apparel. “If they can’t sell it in all 400 of their stores, they don’t want to deal with it.”
At Bellwether, women’s apparel sales in 1995 totaled $1.8 million — 32 percent of overall volume — representing a 10 percent increase from five years ago.
The company has seen gains despite the challenges of the bike industry, said Dembowski, adding that many people discouraged him from getting into the business in 1981.
“The industry is pretty chauvinistic. Many stores aren’t willing to recognize that women are cycling,” he said. “Most bike stores don’t relate to apparel. They don’t want to deal with a dressing room — they’re more interested in the latest shift mechanism. They’re totally hardcore toy- oriented.”
Nevertheless, most cycling apparel is sold in the country’s estimated 7,000 bike stores. For 1995, women’s apparel sales at Bellwether increased by 15 percent, nearly twice the rate of the men’s business, Dembowski said.
With existing accounts increasing their orders for women’s apparel by as much as 20 percent, business should continue to grow. For 1996, the company plans to invest at least $20,000 in point-of-purchase displays for its accounts.
Women cyclists also pose a growth opportunity for Trek USA, the Waterloo, Wis., firm that produces its own line of bicycles and apparel as well as both categories for Trek Wear, Fisher, Bontrager, Gary Klein and Le Mond. “It’s fairly apparent that women are demanding more technical clothing for cycling,” a Trek USA spokesman said. “They want apparel that fits better. They don’t want to look like people in sacks.”
With an estimated 24 percent of the bicycle market share, Trek sells its 15-piece line of women’s apparel in 1,500 bicycle specialty stores.
“We don’t sell to sporting goods stores. We’re committed to supporting independent bike dealers,” he said. “We like to emphasize the technical aspects of bikes and clothing.”
For 1996, Trek has increased its advertising budget 20 percent to $1.8 million. It will send its apparel catalog to 500,000 consumers — 11 percent more than 1995.
“With the focus we’re placing on the women’s market, we expect to see an increase of 25 percent,” the spokesman said.
For 1995, Dash America, the Boulder, Colo.-based firm that distributes licensed Pearl Izumi activewear in the U.S., has a double-digit-percent increase for women’s apparel sales by offering more styles each season, said Susan Duda, marketing manager.
Known for its technical, performance-oriented looks, Pearl Izumi is designed for cycling, running and outdoor training. Wholesale prices range from $10 for a polyester mesh tank to $150 for a laminated nylon jacket.
“Our concentration is on specialty stores. We’re not looking to break into the chains,” she said. “We want to know that the salesperson selling our products knows what they’re selling. You usually find that at specialty retailers.” To build brand awareness in 1996, Pearl Izumi plans to distribute 50,000 brochures to consumers through magazines and direct mail. It also plans to sponsor more local and regional sporting events.
“With grass-roots programs, we can get the news out there to people who are getting into the sport,” Duda said. “We also give away fliers and have apparel for testing and raffles.”
For fall, the company plans to introduce its first consumer advertising campaign.
Unlike its competitors, InSport is counting on sporting goods stores to increase distribution.
By focusing on technical, performance-oriented apparel and offering at least one new fabric each season, the Beaverton, Ore.-based firm has found a place in major sporting goods stores such as Lady Foot Locker and the Sports Authority.
“It’s harder to get into small specialty stores because they have limited space,” she said. “We’ve developed a rapport with the big guys. Our line is consistent with technical wear.”
In 1995, women’s apparel accounted for half of InSport’s $17 million in sales, a spokeswoman said.
InSport executives plan to launch a mail order business this year. They will send a catalog to 130,000 consumers. Setting up a catalog on the World Wide Web and introducing a print campaign should contribute to the 5 percent increase that is planned for 1996, she said.
Colt Mercantile International is stepping into the arena with three new licensed lines of activewear.
The company has an ongoing agreement with Campri Leisure Sport BV, a London manufacturer, to produce and distribute Iguana Lifewear in the U.S.
Designed for snowboarders, in-line skaters and surfers, Iguana Lifewear is a 50-piece line that wholesales from $9.50 for a brushed cotton T-shirt to $150 for a rip stop nylon jacket. First-year projected wholesale volume is $3 million, according to Steve Chalk, president of Colt Mercantile.
In addition, Colt Mercantile recently completed ongoing licensing agreements with Kaipa Sportswear, an activewear manufacturer based in Heilbronn, Germany, to produce Beasty skiwear and Canyon snowboard apparel. Each line should generate $1 million in first-year sales, Chalk said.
Iguana Lifewear, which will debut at Magic Jan. 30 – Feb. 2 in Las Vegas, will be marketed through department, sporting goods and specialty stores.
Beasty and Canyon, which will bow at the Outdoor Retailers Show at the end of the month, will be available through sporting goods stores and specialty retailers. Each line will have about 40 styles and will wholesale from $25 for a cotton and polyester fleece pullover to $200 for a rip stop nylon one-piece ski suit.
“We’re not looking to do huge volume,” he said. “We want to make sure the brands are placed correctly,” Chalk said.
He observed that sport-specific lines offer growth opportunities.
“We know there’s a huge surge in young activewear for sports,” he said. “Better goods and activewear are driving the fashion business in this country.”