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


On Wed, 12 Jul 2006 20:37:23 -0700, Paul Snyder
wrote :

> Are you competing on quality or price? I am unclear on the
> perceived advantage of the Hong Kong fabric selection and the HK
> style.

***Quality and charging a premium price. Now that I know the local price
points, I'll expressly
avoiod those areas. A big cost in this business is the management of what
fabric is where. A
tailor in new york can have fabric delivered to him in next day, and I can have
first fitting suit
delivered to me in 2 days from hong kong. Much management skill and time is
shifted to lower
cost managers in hong kong and in the distribution channel. A selection of
fabrics, the best from
the world over, takes skill to manage inventory and care for it. As, to HK
style, their ability to copy
anything, or create with you, is world class. I brought in patterns for both an
english riding jacket
and a levis jacket and we made 2 coats blending the two styles, one in harris
tweed and the other
in corduroy. Most people noticed nothing, but it was fun when the occasional
englishmen or
cowboy would pause and wonder...***

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.

***It hasn't occurred to me to promote these as Hong Kong suits, Hong Kong to my
mind
represents cheap management and selection and efficiency... and I agree, my
customers could
care less. this would be very much a seattle thing. All your observations may
be correct, but I
only need a few exceptions to make it pay. Indeed, the first suit will turn a
profit. My first
custoomer is an auctioneer who said he needs a new tux. He was going to pay
$1200 at
Nordstrom. He can pay me that, for better quality. "May I recommend something
in a paisley?"***
>
> 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.

***Well, paying too much is a noon issue when customers cover all costs and
profits... and as to
scale, well, something tells me a cantonese offered more biz will figure out how
to scale up.
Something that would cost too much to manage in USA.***
>
> 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).
>

*** that's the process... the rough cut is what is sent to USA, and it stays
here, local tailors do the
second and third fittings. $350 for what is fedexed from honk kong, $200 for
local tailoring,
$1000 suit, comparable to $2000 suits. Now you got me thinking, comparable but
you cannot get
the $2000 kitons fitted so well... so I must charge the same $2000 and offer
merely better fit.

or $2500, due to better fit. See what a challenge this is... As an american i
want to compete on
price and win ALL the business... I should resist being so greedy and charge the
$2500, and get
only a little bit of biz.***

> 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?
>
***Yes, the auctioneer is exactly what you said, test marketing.. i am selling
the sample to the
'"rep", and we'll see what happens. Full disclosure... my daughter appears
intent on a career in the
fashion biz, she is in high school, so at her request we are sending her to
Italy for a year to learn
italian and some art, etc, and she will be handed this when she gets back...
another garment biz
owner wants to do women's suits as part of this, and the idea is in a year this
established woman
and my daughter do what they will with what I am setting up now. She is only a
sophomore this
year, but she is tagging along at all the meetings, taking sewing classes etc. I
am setting up the
supply & logistics end, they will set up the market end as they see fit next
year. I hope I never
have to learn how the rag trade works, I'll leave it to them.

John


> 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

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