It was a unique experience to have had my father, Kevin
Burke, be the chosen speaker for this past week’s lecture. My father is
the President and CEO of the American Apparel and Footwear Association,
which is located in Washington D.C. The AAFA represents a long list of
well-known companies, such as Polo Ralph Lauren, Northface, and True
Religion. Its main purpose is to advocate and educate members on issues
like international product safety and restricted substances, international
sourcing and logistics, sustainability, and international trade
agreements.
The presentation began by comparing the fashion industry two years ago with the current time. Two years ago, sales were up. U.S. consumers bought $370 billion worth of clothes and shoes. This meant that the average person would have spent $1200 on 67 new garments and 8 pairs of shoes. Currently though, those numbers are not so positive. In 2008, sales for women’s pants were down 4.7 % and sales for intimate apparel were down an astonishing 7.9%. He explained that even the big retail stores are doing poorly. For instance between 2008 and 2009, Macy’s is down 4.5 % and Old Navy is down 34%. My father’s plan was not to "sugar coat" any of this information because this is reality, and what we must deal with when coming into the industry. CEO’s of the major retail companies must use "innovation" to turn their companies around financially. One of the undisclosed CEO’s said, "Focus on what makes your brand great. Keep these core competencies and don’t get distracted from long-term goals – and success."
Since 1975, retail production has shifted from the U.S. to countries like China and the Dominican Republic to reduce costs. My father made us check our clothing tags. Each student had a different country of origin ranging from the U.S. to Russia to Italy. U.S. apparel and footwear imports have drastically increased since earlier years. In 2008, 97% of all garments and about 99% of all pairs of shoes were imported.
Innovation in the supply chain will help regulate and improve the industry’s financial state as well. New technology, such as Radio Frequency Identification, will replace the barcode in retail stores. Companies must sell the right product to the right market at the right time as well. The innovation in the design and quality of the product is what consumers are looking for. The item must have better fabric, better construction, and better fit if it wants to be competitive in the marketplace. Sizing simulators have been created to give each consumer the absolute best fit possible by just standing in an oversized scanner that records a person’s measurements.
My father then discussed proposed legislation that is currently favored by designers such as Diane von Furstenburg and Nicole Miller. This legislation would allow designers to copyright their designs, but it would cause delays in the entire production cycle. Ultimately, it would stifle the creative process.
He closed his presentation with a pitch for what we as consumers and future industry leaders need to do to strengthen the economy. We must buy clothes and shoes, find better ways to make them, and find better ways to get them to the market.