Advise Me on Intriguing Int'l Trade Oppty

Re: [spiers] Advise Me on Intriguing Int'l Trade Oppty

Well, if this a test of what I should have learned from the Spiers
Approach, then let me see, I'm feeling ornery...

Are you competing on quality or price? I am unclear on the
perceived advantage of the Hong Kong fabric selection and the HK
style. Given the American consumer preference for buying something
they can see and hold, and for that which is "in-stock", the (huge)
cost advantage may not be enough. At least for well-heeled impulse
buyers. And most Americans are not aware that HK's fashions are the
peer of Paris and Milan, but rather think HK suits are a "Chinese
product" that should be sold at a discount. But ... sales will prove
this point wrong.

You have found one retailer in HK to make suits. Presumably he sends
the measurements to a factory in HK to do the work. Since you
apparently have not identified this factory, then you will
essentially be buying retail from HK. This poses 2 problems: 1) you
pay too much (maybe not a problem); 2) you can't scale, because all
the orders flow through a guy who is a retailer rather than through a
factory.

When I had a suit tailored in Seoul, I sat for initial measurements,
then sat again for a rough-cut, which consisted of coursely-cut
segments of fabric, then sat again for a final tailoring, which
necessitated some on-the-spot adjustments. In your biz process, you
cannot support the rough-cut step, unless you incur 2 additional
mailings, which would be expensive but more importantly, introduce
delays (tho maybe not huge with overnight international Fedex).

Finally, shouldn't you have a salesman pushing this product rather
than acquaintances and the odd auctioneer? It may be a perfect way
to get initial market testing accomplished, but does the industry
have such a thing as "suit marketers" that can setup business
arrangements with all the tailors around the country?


On Jul 12, 2006, at 12:41 PM, John Spiers wrote:

> Folks,
>
> My Hong Kong tailor is importuning me to open a biz here in USA
> having custom clothes
> measured in USA and made in Hong Kong.
>
> I think I mention in my book a fellow in Seattle who did exactly
> this for 25 years here in
> Seattle, but through in the towel when congress made the paperwork
> process overwhelming
> for this biz.
>
> I would never run such a business, but owning it would be fine. To
> investigate this
> possibility, I put on my 3 piece pinstripe suit made by these Hong
> Kong tailors, and visited
> the competition in the Seattle area. I walked in and introduced
> myself, mentioned I lived
> locally but bought tailored suits in Hong Kong. Then i said, "tell
> me how come I should buy
> from you and not from Hong Kong". (Mustn't ask "why"... "how come"
> is much less
> threatening...)
>
> He looked at the suit, and his first best answer was "well, that is
> a fall weight suit..." that was
> his best shot!
>
> Then he explained how tailoring works in USA. The customer selects
> fabric, the tailor takes
> your measurements, and sends them to a plant back east which
> executes the suit, and a
> second fitting is done back here in the shop. Same with shirts,
> but different factory.
>
> I read all about this in Forbes once, the biggest such plant being
> Oxxford in Chicago. Inn
> essence USA tailors are simply measurement taking storefronts, and
> you select from a set
> range of avaialble fabrics.
>
> Hong Kong on the other hand, with the worlds widest selection of
> fabrics on hand, and
> efficiently managed, can give one a wider range. Next, their
> ability to accomodate outside
> the box is unsurpassed. I've read several tests that put hong kong
> tailors ahead of Saville
> Row tailors.
>
> What occurred to me was these USA tailor shops are for people who
> must wear suits, wheras
> a Hong KMong tailored product would be for people who love to wear
> suits.
>
> And the trick in buying suits tailored is not to get a $500 suit
> for $300, but a $3000 suit for
> $700. I was surprised the normal price point for the local tailors
> suit is about $900 he said.
> Rather low i thought.
>
> Seattle's premier tailor shop works on the same basis as the
> others, so it seems to me there
> is room for very high end, upscale tailor shop.
>
> Now some people do have suit made in hong kong and sent to USA. To
> avoid the heavy costs
> and taxes and paperwork, it is commonly misprepresented as to what
> is coming in. A formal
> entry done by a broker can be $90 - $150 .... and takes time... and
> there isd I believe a 10%
> tax... much is done to get around these legal hurdles.
>
> Avoiding the tax is foolish, i think, but the broker fees are
> hefty. Happily I can fill out those
> forms myself, or teach a clerk to do it cheap, since it will be the
> same thing over and over. I
> will have a reality check conferenced with a customsbroker on this.
>
> I have an associate who has connections with real tailors, so that
> part is covered. Starting
> small and financing a few suits a week is no big deal. And a
> tailor shop can be anywhere.
>
> I am meeting with an auctioneer this afternoon, who often works
> charity events. For
> advertising, we'd auction off a tailored suit, such as the
> auctioneer wears, one of ours. We
> get our name in front of high rollers who in turn buy one of our
> suits, named in the auction,
> and then we sell the winner 2 other suits when he shows up to be
> fitted for his tuxedo.
>
> By the way, this Tailor will be in Seattle on July 18 and 19 if you
> want to meet him yourself
> and get a gorgeous suit made to fit. he takes credit cards, and
> you pay in advance, but I've
> worked with him 30 years now...
>
> But to the point... anything I am missing here? Anything I should
> cover...problems I should
> look out for?
>
> john

Bookmark this post --- Email this post