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WHOLESALE CLOTHING REPORT:
Clothing Bargains and Trends

It is no secret that consumers are scrutinizing every expenditure. Price matters when it comes to selling clothing in this market, according to suppliers across a broad spectrum. These same suppliers, however, single out pockets of apparel prosperity, cite new opportunities and also offer some ideas for marketing and merchandising clothing to consumers who are pinching pennies.

Above all, "This is not the time to freeze buying," says Lisa Sperow, president of Madison Avenue Closeouts, which specializes in upscale clothing from major department stores. Her counterparts at other companies agree. "Retailers have to keep things fresh and keep bringing in new product," she says, "in order to entice customers into the store." There is more great product available to wholesalers like Madison Avenue, Sperow points out, based (unfortunately) on the struggles of department stores. "We haven't seen this kind of availability in years."

Sperow says two contrasting areas of her company's business are doing well. "Our budget lots are very popular," she reports, acknowledging that, to consumers, "price matters," a phrase often heard by apparel wholesalers. "These budget lots are primarily private label brands sold at department stores," Sperow explains. "They offer good quality and styling, and can be sold at moderate prices." Typically, her company offers these and all of its products below the wholesale prices originally paid by the department stores. "Most are between 75 and 90 percent off the original retail price," she says.

"On the flip side, we are also doing well with apparel by higher end designers," Sperow reports. "It's a good time to get these designer lines at a good price. That is something bargain hunting, fashion savvy consumers are well aware of," she adds. "It represents an opportunity for retailers to lure these shoppers in."

T-shirts are always in style and in demand. The wholesale market for blanks, however, is particularly competitive, which gives retailers an opportunity to obtain low wholesale prices. North Pines, in Salisbury, NC, carries blank Ts, sweat shirts, socks and other accessories. They include both first quality closeouts and irregulars, according to David Zirt, owner.

The company's blank T-shirts wholesale for a range from $6 per dozen to $39 a dozen for the better quality goods. The former typically sell for $1, while the higher quality units generally retail, "anywhere from $5 to $15," says Zirt. "More and more consumers are looking for price bargains," Zirt acknowledges. He reports that many of his retailer customers have found a way to offer bargains, while still raising the total ticket.

"Some stores offer them at five for $10," Zirt says. "Others that carry the least expensive models sell at ten for $10." White and black continue to be the number one and number two best sellers, Zirt reports, and those large urban Ts are still very popular.

Brook Textiles in Chattanooga also specializes in basic blank activewear. They include first quality and graded irregulars of T-shirts, sweatshirts, sport shirts, shorts and denim, according to Bob Brook, owner. "T-shirts are still a staple item and very popular," Brook says, "along with hooded sweatshirts." He agrees, "The market is very competitive. We give a significant discount. A white graded irregular short sleeve T from a major mill, for example, wholesales for as little as 85 cents. Colored Ts wholesale for $1 to $1.08."

Most of Brook Textiles' sales are to screen printers, embroiderers, resort stores and others that embellish the products. The retail prices are, "whatever the market will bear," he adds. "Everybody wears T-shirts, and they wear them year round," Brook points out. After 22 years in business, he says, "we've seen a lot of changes, but not in the demand for Ts. Our goal is not a single sale, but the ones that follow the first one. If our customer makes money, we do, too."

Belly dancer costumes are in increasing demand from HP Trading in Los Angeles, reports Haresh Patel, owner. "One size fits all," he says, "and a set consists of a scarf or skirt and a halter that attachés with Velcro, in order to fit anyone." These sets wholesale for $10 to $30, depending on the style. The suggested retail prices typically range from $29.99 to $80, and even $100. Many people have taken up belly dancing as an exercise, Patel notes.

In addition, HP Trading also supplies regular dresses, jackets and skirts, fancy scarves and several kinds of shawls, including Pashima shawls, which Patel says, "are very popular." He also notes that dresses are back in style. "Tie dye units are particularly popular," he adds.

Like other clothing suppliers, Patel echoes, "Price matters. Retailers should promote on price nowadays," he advises. "It is the factor that brings more customers into a store."

Trendy Clothing from Hudson

Hudson Wholesale, a clothing specialist in junior sportswear, targets smaller, independent retailers with fresh, trendy merchandise that can be ordered in small quantities. The company opened in 1976, primarily as a regional supplier, and has since grown to do business worldwide.

New merchandise arrives every day, and the website is updated with new arrivals twice a week. While the company sends customers email alerts two times a week, Jack Newman, owner, urges buyers to visit its two warehouses, which are within easy reach of New York City. "It is most beneficial for buyers to come in and pick merchandise themselves," he reasons, "because clothing turns very quickly."

Jeans represent the largest share of the product mix. "They account for between 40 and 50 percent of all," Newman says, "and we get about 10 new styles a week. There's always a market for jeans. We buy by the case and break them into six packs, so that retailers can, for example, buy 36 pair and get six different styles, from skinny legs to boot styles and others." Typically, jeans wholesale for $7.50 to $15 a pair, and retail prices generally range from $19.95 to $39.95, "Giving retailers a nice profit range," he notes.

Another specialty is club wear tops for young women. The wholesale prices for these items typically span from $6.50 to $8.75. Hudson also carries coats and suits and some men's clothing.

The minimum order is $250, and can include an assortment. Newman says that because he breaks down cases, "A retailer can get small, medium and large on one style, and get the most appealing variety in small quantities." On orders of $500, shipping is free.

The products are all first quality. Newman buys primarily through deals with manufacturers and can sell below the manufacturers' wholesale cost.

For more information, contact:
Hudson Wholesale
326 Hudson Street
Hackensack, NJ 07601
Toll Free: 800-832-1216
Tel.: 201-489-7282
Fax: 201-487-5490
Website: www.hudsonwholesale.com

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