S•T•I•T•C•H•E•S Embroidery Business Insights
dots dots www.stitches.com dots dots dots dots Volume 113 / February 25, 2010 dots dots

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VIDEO | TRENDS & TECHNIQUES : ASI San Diego Show Update | Hot Markets for Decorated Apparel
Customer Service Is Key
| Innovations Abound at MAGIC Apparel Show | Hot Hue: Purple
NEWS BRIEFS | ASK PHIL | EMBROIDERY TERMS
PRODUCT RELEASES & RESOURCES | CALENDAR

[ VIDEO ]

Dear Stitches: Spinnin' My Bobbins and Going Nowhere

In this second installment of "Dear Stitches," we offer advice to a 10-year shop owner who feels that she needs to refine her management skills so she can focus her time on the most profitable tasks. See what the Stitches Editorial Advisory Board thinks she should spend her time on – and what she should delegate. Click here to watch the video.

What did you think of this video? Send your feedback (and your decorator dilemmas) to us at nrollender@asicentral.com

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[ TRENDS & TECHNIQUES]
ASI San Diego Show Update

The ASI Show in San Diego opened yesterday with a full slate of education and networking sessions. Check out some of the tips our editorial team picked up.

Winning Big-Time Business
Danny Friedman, vice president of Added Incentives Inc., had some great advice for working with lawyers, accountants and other professional sectors yesterday at his education session titled, "Become a Professional Services Master."

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While there's plenty of competition for these coveted accounts, you'll separate yourself by providing outstanding service, coming through for your clients and your ability to quickly come up with unique and creative ideas. Another thing is to become a "human Daytimer," Friedman said, and call your clients monthly to ask if they have any promotions coming up and how you can help. All of this creates credibility.

"The main thing is not to be intimidated by the big guys," Friedman said. "They're no more important than you. Never feel like they’re doing you a favor. And, most importantly, don’t take business personally."

Green Terms Decoded
Eco-friendly apparel is poised to make comeback, predicted Marc Held, national sales manager for Bodek and Rhodes (asi/40788), in the session titled, "Green Terms A-Z." He said, "In the past two months I’ve had more quotes and requests for organic than the past two years combined." Why? Held believes that green apparel has been in hibernation the past two years because of the economy, with clients liking the ideas behind it but hesitating at the higher prices it carries. He expects the category will thrive again this year as clients open up their marketing budgets.

Held covered four major eco-friendly categories: organic, transitional cotton, recycled fibers and bamboo. He said the demand for organic cotton is so strong that farmers in the U.S. can’t switch over fast enough to meet it (it takes three years to transition a conventional farm to organic). He covered a multitude of markets that are interested in green apparel and suggested key techniques to upsell it, such as including an organic shirt as a thank-you gift with a large order. "If you don’t mention it, they’re never going to know you offer it," he said.

Internet Key to Capturing Teen and Tween Market
Media Tree President Rob Watson gave a spirited presentation titled, "Hot Niche Markets: Teens, Tweens and Twentysomethings." Watson said teen spending is expected to grow to $151 billion by 2011. "You need to discover cool and hip products that engage this demographic," he said. "This age bracket spends 164 minutes a day on the Internet, and more than 25% of this audience spends money online."

Watson also said that the Internet is the primary source of entertainment for this age group. Because of the high usage of the Internet, he said using creative ways to engage this market is vital. "You can increase online response rates by giving a free gift instantly for participating in a sweepstakes," he said. "Teens and tweens like to feel in control, and the number one premium with this age group is music."

Philanthropy is another area that teens and tweens are big on. "People like to feel like they’re part of something bigger than themselves and they want to give back," Watson said. "They have high disposable income, and they’re the future."

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Hot Markets for Decorated Apparel

Despite a down year for apparel sales in 2009, studies continue to show end-buyers believe wearables deliver consistent visibility and a high return on investment. In fact, end-buyer respondents in a recent ASI survey identified T-shirts as the most effective promotional product in reaching client program goals.

Hoping 2010 provides that springback, many in the industry are optimistic about growth in apparel sales. "That's what we're budgeting for," says Ray Hughes, the distributor relations director at American Apparel (asi/35297). "I don't see why we can't get back to 2007 levels. We could see growth in the high teens."

Here are three markets that you can target in 2010 for decorated apparel sales.

Target Market: Government-Related Projects
In South Dakota, construction has begun on a new water-treatment plant that will serve 300,000 people in three states. In Colorado, an electric car manufacturer has ramped up production, driving plans to hire 3,000 workers in the next three years. In New Mexico, a major reconstruction project is underway on Interstate 40, designed to improve conditions for heavy trucks that often use the highway. What do all three projects have in common? They're largely being funded by the government, which is providing $116 million for these projects alone.

"You have to follow the money," says Ken Purington, director of affiliate relations at iPROMOTEu (asi/232119). "You sort of have to be a detective in your community, but frankly, politicians want you to have this information so people know the money is being used."

Finding potential government-related selling opportunities has recently gotten easier, thanks to online sources. An excellent tool for decorators, www.recovery.gov provides state data and work summaries that can help salespeople create and track leads. Decorators can also apply to be included in bidding for specific government contracts.

"It's a competitive business, but the volumes are good and if you follow procedures, bills are usually paid on time," says Gerry Barker, president of Barker Specialty Co. Inc. (asi/132690). "You have to bid on repeat orders, but because of the complexity of embroidery, you're in a better position to get the deal."

Barker Specialty has a history of working with government agencies on projects, often providing apparel to security personnel. "We did a program for state marshals who go out and serve papers," Barker says. "When they approach people they need to show they have some authority and they're not some random individual."

Barker says these officers order "toned down," durable apparel. "It has to be quality and stand up," he says. Barker also thinks 2010 will be a solid year for government-related apparel sales because of the upcoming census. "There's a push to make sure people are counted in inner cities," Barker says. "There will be corps of workers that need to be outfitted."

If you can't win a larger contract, there are smaller ones to be filled, as well. For example, Embroidery Magic LLC serves personnel at Robins Air Force Base in Georgia. Felix St. Peter, a now-retired technical sergeant, sews name tapes on uniforms. "I can provide the work by the next business day," St. Peter says. "I've also done work for the Air Force Chiefs Group. They're like a Lions Club, and they'll often have functions and projects."

Target Market: High-Tech Sector
Boasting corporate giants like Microsoft, Apple, Google and Intel, few markets have the intense competition and seemingly bottomless pockets found within the technology sector. As recently as 2006, Microsoft alone spent a whopping $11 billion on marketing efforts, dwarfing the roughly $2 billion spent by Coca-Cola the same year. Despite cuts to some advertising budgets, technology firms appear to be a solid market play.

"The technology market is very good for promotional apparel," says Gateway CDI's Chief Marketing Officer Conrad Franey. "Technology companies are very cutting-edge and they're learning from retail. They want more quality cuts, stripes and other popular looks."

In early 2009, at the height of the economic downturn, Gateway struck a deal with a major technology firm to provide apparel at a massive convention. "We're talking tens of thousands of people that were going to be at this convention," Franey says. "The client wanted snazzy decoration, special eco-friendly packaging and they wanted the wearable to tell a story about their company. Then, the economy really went sour."

Overnight, the client's budget was slashed by 60%. "They loved what we could offer them and we showed them that we had some expertise," Franey remembers. "We still were able to work with them and offer a more basic, but still eco-friendly T-shirt. It was a decent sale for us and they hit their budget."

While you might think your chances are slim to acquire an account with a large  technology firm, your odds improve when you consider the hundreds of smaller tech firms scattered around the U.S. Specializing in robotics, networking, data tracking and fraud prevention, many tech companies are located outside the Silicon Valley area, in states like Massachusetts and Texas. "I'd say the key is to get in the door and show you have knowledge and can provide solutions," Franey says. "Then you prove you can take care of any of their needs."

Target Market: Media and Entertainment
Similar to the technology sector, major media and production companies are jockeying for greater market share. "On the surface it seems like media ad dollars are down, but competition for ad dollars is huge," says Larry Cohen, president of Axis Promotions (asi/128263). "If you take primetime shows on the networks, there's still spending there to get attention."

The Ice Box (asi/229395), an Atlanta-based firm, often helps studios launch new shows with a variety of promotions. "We've done tens of thousands of T-shirts," says Jordy Gamson, president of The Ice Box. "Sometimes we'll send them out as part of kits along with a DVD that plays a trailer. Other times, we'll help with the kitting."

Gamson agrees with Cohen that the media and home entertainment market has great potential for apparel sales in 2010. "More people are on their couches," Gamson says. "Whether they are still taking staycations or just not going out, that's what's happening."

Choppy Guillotte, an account executive with PromoShop (asi/300446), does the bulk of his business with entertainment clients. He believes the market is trending upward. "I think people have been holding back a bit, but I see 2010 as being positive," he says. "Making the contact is easy. Maintaining the relationship is the key."

One of Guillotte's strongest accounts is with Fox, which has broadcast the show American Dad since 2005. "The show is about to go into syndication, so we put together a package with a royal blue, baseball-themed T-shirt. We sent the shirt with a card to stations that were being courted."

In addition to television and film, the music industry could also be a profitable target for apparel sales in 2010. "People like wearing shirts with rock bands," says Josh Ebrahemi, a sales partner at Jack Nadel (asi/279600). "You have to avoid pushing product, though. The shirts also have to have a trend, with a retail look and feel."


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What's Your Problem?
Are you having decorating dilemmas? Well, we'd like to hear about them, whether it's problems with machinery, embroidery, customer service or anything you suffer through on a regular basis. We'd like to help. Send us your best questions, and they might be featured in Stitches' fun and informative new online video series, "Dear Stitches," along with our answers. E-mail us today at nrollender@asicentral.com.


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Customer Service Is Key


Good business owners don't do anything out of the ordinary to better understand their customers, according to Mindy Schwaig, owner of Punxsutawney, PA -based Stitches Mound. For example, Schwaig does something extraordinarily simple to grow her business: She listens. "You'd be surprised how many repeat customers I've had over the years because I care more about their everyday lives than the orders they placed," she says.

Schwaig tries to "find something in common" with her customer on her first meeting with that person. "In my showroom, I display plenty of pictures of my family, pets and projects I've done in the past," she says. "Usually a customer will invariably ask, 'How old is that girl?' or 'How did you make that?' That's my opening for a more personal conversation-starter."

When Schwaig completes a project, she also includes a handwritten thank-you card with the decorated apparel or an additional imprinted garment to make the customer feel appreciated. "My customer went out of the way to order something from me, so why shouldn't I thank her?" says Schwaig, who'll even embroider a dog bandana for a client if she learns he has a dog. "Then, I send the bandana as a special thank-you to the client for his order. It makes everything much more personal."


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Innovations Abound at MAGIC Apparel Show

Optimism ran high at The MAGIC Marketplace show in Las Vegas last week. But while things were looking up, apparel innovators were setting their sights lower. Specifically, we're referring to the hips and backside, with three companies offering new innovations in comfort and shape for the most neglected of areas:

  • M'Chic is on a mission to eliminate the dreaded "muffin top" forever. The company has created designer jeans with a built-in cotton/spandex panel to create a slimmer silhouette for women across their midsection. "A lot of women wear girdles and Spanx, so this is an all-in-one solution for them," says Tracey Kerr, the company's director of sales. The spandex is breathable and comes in black and nude colors.
  • One product that certainly is "behind" the times is the Booty Pop, a padded pair of cotton/spandex underwear designed to give women the backside they always wanted. "Women like to have a nice shape," says Shelia Showalter, national sales manager. "For a lot of women, that's where they're lacking. And there are already several padded products for bras out there." The product, which comes in black and nude colors, will be making its way into select retail outlets starting in April.
  • The guys weren't left out of the underwear innovations. A company called (B)RIEF underneath is touting a two-in-one solution for men – 100% cotton briefs sewn into boxers, lounge pants and thermals. "Underwear for the consumer today is changing," says company President Eddie Betesh. "You can't go to bed in your tightie-whities anymore."

Another major trend that emerged from MAGIC was the use of the shoe as a promotional vehicle. One company, RacerTreadz, is capitalizing on the green trend by making flip-flops out of used racing tires. The company has a license with Goodyear (which supplies the tires for NASCAR) and can customize the sandals with the names, numbers and cars of individual NASCAR drivers, making the footwear out of their very own tires. The manufacturer also is making shirts, hats and other items from the material; one tire helps create 500 hats.

MAGIC also showed that bags have gotten an intriguing technological upgrade, thanks to a company called Scratch Tracks. Its Fydelity line features brightly-colored "Stereobags" that include built-in speakers and a jack to plug into an iPod or smart phone. The bags – which include coolers, backpacks, fanny packs and tote bags – require four AA batteries to play. For those who want to do without the batteries, another line called Neon Green utilizes an attachable solar panel that recharges electronics. The panel can clip on to most bags and will recharge outdoors or indoors. The company offers similar technology to attach to keychains and the backs of phones.


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Hot Hue: Purple

Because the color purple occurs very rarely in nature, it has remained an enduring cultural symbol of mystery and majesty. Violet is one of Pantone's featured hues for spring 2010, and this season's ready-to-wear men's and women's fashions from the likes of BCBG, Isaac Mizrahi and Naeem Khan put purple in the spotlight.

Image consultant Clare Siegel weighs in on the purple craze. "Purple is a great choice for 2010," she says. "It's classy for both sexes, and it's easy to find accessories in all shades to complement and complete a look."

Purple is an ideal color to pair with neutrals, particularly black and white. Lighter gradations of purple such as lavender and lilac go well with pastels such as mint, pale yellow and powder blue. Darker shades like violet and blackberry pair best with toned-down versions of those same colors, such as dark green, gold and turquoise, in addition to bright pink.

Mindy Anastos of L.A.T. Sportswear (asi/65948) says, "Purple presents a great palette for a variety of designs," and cites spas and resorts as key industries for implementing it. She emphasizes its popularity among children and offers suggestions like gift shops catering to kids at zoos, aquariums and amusement parks as essential clients to promote it to.

Purple is also a favorite among teen girls. Companies specializing in products geared toward this group should consider using purple in promotional products bearing a company logo.


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[ NEWS BRIEFS ]

Broder Bros. Co. (asi/42090) has announced it has become a full-time supplier of the complete Anvil collection and will carry all of the styles, colors and sizes the brand offers.

Debco Bag (asi/48885) has announced that Jules Scheck Associates will provide sales representation in 13 Northeast states.

Image Source (asi/230121) and Branded Solutions by Edgar Martinez (asi/145076) have selected Cutter & Buck (asi/47965) as their Supplier of the Year for 2009.

KTP Design Co. (asi/63773) was honored with a Suppliers Achievement Award in the category of "Screen Printing on Textiles" at the PPAI Expo.

Stitch Designers (asi/741145) has announced the addition of Azra Beganovic to its customer service team.

The Icebox (asi/229395) has been selected as the T-shirt vendor for three major divisions of the American Cancer Society's Relay For Life. The company will provide T-shirts for events in IN, MI, TX, OK, KS, NE, MO, HI and CA.


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[ ASK PHIL ]

Hello Phil,
Maybe you could help me locate waterproof baseball hats. I've had no luck whatsoever.
Thanks!
Anthony

You must coach a baseball team in Seattle. I think it rains 365 days out of the year there. Not to worry though! Try Carhartt Workwear & Haws USA, Inc. (asi/43861); (919) 267-3231; www.hawsusa.com; product X00629SFT. This 100% cotton twill cap features a waterproof membrane. Or, try Rockpoint Apparel (asi/63751); (866) 316-7025; www.rockpoint-apparel.com; product WLY004. This six-panel structured cap with mossy oak breakup pattern features a waterproof bill. Also, try Century 21 Promotions Inc. (asi/44485); (800) 935-2100; www.century21promotions.com; product 749. This unstructured waterproof nylon cap features a breathable waterproof coating and a moisture-wicking sweatband; it's available in six colors.

Phil,
I have a customer who needs a tall hoodie in any color. I've looked through all of my vendors and can't any tall hoodies at all. Can you help me please?
Thanks,
Dayna

Try One Stop Inc. (asi/75085); (800) 968-7550; www.onestopinc.com; product EZ340. This ladies hooded shirt with a full-zip front features double-needle stitching and ribbed cuffs; it's available in tall sizes. Or, try Bishop The Garment Co. (asi/40585); (800) 797-9629; www.bishopwear.com; product 440. This men's long-sleeve hoodie features contrast side and sleeve panels and it's available in tall sizes. Finally, try G & L Clothing (asi/55570); (515) 243-7431; www.gandlclothing.com; product J149. This thermal-lined sweatshirt features a brass zipper front closure and locker loop for convenient storage; of course, it's available in tall sizes.


Got a question for Phil? If you can't find what you're looking for in the Embroiderers Sourcing Guide, write to: Stitches, Attn: Phil Stitch, 4800 Street Road, Trevose, PA 19053. Or fax your question to: (215) 953-3107. For the quickest response, e-mail askphil@asicentral.com. For RN inquiries, visit www.stitches.com for the RN Database link. Although I try my best, I can't always answer every request, so please continue your search on your own. Remember, if you call the companies that I mention, tell them you heard about them here!


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[ EMBROIDERY TERMS ]

Knowing these terms will make a new embroiderer seem like they've been in the business for years.

Balboa Stitch: A technique used to produce tone-on-tone designs that feature the actual stitches as a background and give the fabric prominence. Has an embossed appearance.

Pad Printing: Pad printing uses a flexible silicone rubber transfer pad that picks up a film of ink from a photo-etched printing plate and transfers it to an item. Pad printing is usually used for 3-D items.

Stability: The property of a bonded fabric that prevents sagging, slipping or stretching. This is conducive to ease of handling in manufacturing, and helps the fabric to keep its shape in wear, dry cleaning and washing.


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[ PRODUCT RELEASES & RESOURCES ]

Boxercraft (asi/41325) has added new custom tie-dye options on a variety of its apparel. Choose from a heart, paw or peace sign custom-dyed in the center of a shirt, available in rainbow or two-color patterns. Also, its new one-color designs include a spectrum and vintage circle design available in the color of your choice.

Great Garment Graphics has added two new educational videos to its Web site: www.greatgarmentgraphics.com. The first video is "Creating Wall Graphics;" the second is "How to Decorate Sweats and Flannel Pants."

Siser North America offers EasyWeed CAD-Material in new colors, including light pink, hibiscus, light blue, green apple and lilac.

Transfer Express offers five new distressed patterns that can be applied to almost any Easy Prints layout: splatter, rain, crackle, leather and grunge.


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[ CALENDAR ]

FEBRUARY
Feb. 28-March 3, Marlboro, MA
New England Apparel Club Show
(781) 326-9223; www.neacshow.com

MARCH
March 1-5, Minneapolis, Des Moines, Omaha, Kansas City, St. Louis
Advantages Roadshow
(800) 546-3300; www.asishow.com

March 5, St. Louis
Stitches Roadshow
(800) 546-3300; www.asishow.com

March 12-14, Atlantic City
ISS Show
(800) 241-9034; www.issshows.com

March 15-18, Dallas, Austin, San Antonio, Houston
Advantages Roadshow
(800) 546-3300; www.asishow.com

March 18-20
The Family Reunion of the Embroidery Industry
(800) 866-7396; www.nnep.net

March 23-26, Orlando, Tampa, Sarasota, Ft. Lauderdale
Advantages Roadshow
(800) 546-3300; www.asishow.com


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