The beginning apparel manufacturer faces the same problems associated with any new small business, plus many peculiar to the industry: the increasing efficiency and marketing ability of big firms; diminishing availability of skilled labor; fierce competition from other small manufacturers, and rapid changes in trends and styles. Perhaps one out of ten new manufacturers can overcome these problems and succeed; over 50% of new firms go out of business in their first year. A beginning manufacturer must know what she wants to manufacturer and if there is a market for her proposed product. She must produce clothes that will please two sets of buyers: the retail store buyers and the customers who will ultimately wear the garment.
Once she has chosen a specialty, the manufacturer must survey the competition in that line and price category. Workmanship, quality of fabric, and styling must be of comparative values. Retailers should be surveyed to determine their specific needs. Close ties with retail sources can provide the manufacturer with first-hand information about firms already engaged in the proposed specialty as well as data on customer buying patterns. The prospective manufacturer should also be aware of other firms' efforts to market the product she is considering; if they failed, she should find out why.
Salesmen in the field, trade associations and buying offices are often good sources of information. Trade papers and industry directories also provide market information for the new manufacturer.
Apparel manufacturing is traditionally a "downtown" business, particularly for smaller women's wear manufacturers. In California, over 80% of apparel companies are located in the Los Angeles metropolitan area and about 16% are headquartered in the San Francisco Bay Area. In recent years, congestion in downtown areas has made expansion difficult. Costs and crime rates have risen...............
