NYC-Fashion-Wholesale-Report_081209.pdf

7/29/2019 NYC-Fashion-Wholesale-Report_081209.pdf

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STRENGTHENING NYCSFASHION WHOLESALE MARKET

An NYCEDC Study2009 NYCEDC Study


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office of the mayorMichael R. Bloomberg, Mayor

Robert C. Lieber, Deputy Mayor or Economic Development

Jed Howbert, Senior Policy Advisor, Ofce o the Deputy Mayor or Economic Development

New Yo City Economic Deveopment CopoationSeth Pinsky, President

Tokumbo Shobowale, Chie Operating OfcerJason Wright, Chie Financial Ofcer

Maria Torres, Chie o Sta

Business DevelopmentSteven Strauss, Executive Vice President

Michael Meola, Senior Vice President

Patrick Murphy, Vice President, Head o Fashion/Retail Growth Initiatives

Eric Johnson,Assistant Vice President

marketingPeyton Sise, Senior Vice President

Shelby Hodgen, Vice President

Randi Press, Vice President

Matthew Sudol,Assistant Vice President


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Table of Contents

Intodction

Acnowedgments

Exective Smmay

Capte One: Cent Sitation: NYC Fasion Woesae Indsty

OverviewofNYCFashionIndustry

NYCFashionIndustryEcosystem

Capte Two: Economic Impact o Fasion Woesae Indsty

Employment Spending

Visits

FashionWeek

Capte Tee: NYCs Competitive Position

NewYorkCityLeadsintheNumberofFashionTradeShows,ButLasVegasHostsLargerEvents

NYCFashionTradeShowProducersRequireMoreExhibitionSpaceintheCity

NYCComparedtoOtherCities

Capte Fo: Aeas o Oppotnity

AdvancedSchedulingofTradeShows

EnhancedWholesaleInformation ImprovedTravelAmenities

IncreasedDifferentiation

GarmentCenter

SupportforYoungDesigners

Capte Five: NYCEDC Initiatives

FocusonGrowthOpportunities

AdvancedSchedulingofTradeShows

EnhancedWholesaleInformation

ImprovedTravelAmenities

IncreasedDifferentiation

GarmentCenter SupportforYoungDesigners

Stengtening NYCs Fasion Woesae Maet: 2009 NYCEDC StdyFAShION INDuSTrY rEPOrT

2009

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a 2009

DearFriends:

ThefashionindustryhasalwaysbeenavitalpartofNewYorkCity,thanksinlargemeasuretoourunparalleledwholesale

market.Werecommittedtoensuringavibrantfuturefortheindustrybyimprovingthewholesalebuyingexperienceand

makingiteasierthanevertodobusinesshere.Aspartofourefforts,wevepreparedthefollowingreport,Strengthening

NYCsFashionWholesaleMarket,whichprovidesathoroughexaminationofthefashionwholesalemarketanditsimportant

contributions to our Citys economy.

FashionwholesaleactivitiesarecriticaltoNewYorkCityscompetitiveedge.Thatswhywereprovidingbuyerswithbetter

information,bothaboutbusinessopportunitiesandhowtomakethemostoftheirtimeintheCityduringtradeshowsandotherindustryevents.WevealsocreatedacomprehensivenewwebsiteNYCFashionInfo.comtohelpretailers,manufacturers

andemergingdesignersmakevaluablebusinessconnectionsduringandafterMarketWeeks.Improvingthebuyerexperience

willincreasethenumberofshowroomandtradeshowvisitsmadepertrip,boostinglocalbusinessesatatimewhenitsneeded

most.Afterall,NewYorkCityistheFashionCapitaloftheWorldandwearecommittedtoensuringthattheindustryremains

strongforthefuture.

Supportingandinvestinginthefashionindustryismoreimportantthanever.Byrecognizingareasofpotentialimprovementin

thewholesalemarket,wewillhelpkeepthefashionindustrymovingforwardthroughthesedifculttimesandmakeourCity

an even greater place to live, work and visit.

Sincerely,

m r. Bb

Mayor


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Introductiona 2009

DearFriends:

The fashionindustry is a large and vital contributorto New York Citys economy, accountingfor 6% of theCitys private

employment and 175,000 jobs.

Acknowledgingthis,in2007,NYCEDCconductedastrategicreviewoftheindustry,whichwasdesignedtoidentifyareasin

whichtheCityscompetitivepositioncouldbestrengthened.Thisstrategicreviewidentiedthefashionwholesalesub-sectoras

theCitysmostpromisingsub-sectorofthefashionindustryforgrowth.

Thisreportfollowsupontherecommendationsofthestrategicreview,providinganupdatedanalysisofthesizeandscaleofthis

sub-sector,togetherwithamoredetailedexaminationofwhereopportunitiesinthesub-sectorcanbefound.

Amongtheareasstudiedinthisreportarethefollowing:

FashionWeekThesemi-annualeventheldinBryantParkandvenuesaroundtheCitytoshowcase

eachseasonscollections,drivemediaattentionandcreateindustrybuzz.

TradeShowsTheeventsthattakeplaceduringthevariousMarketWeekseachyear,helping

designersandbrandsbringproductstoretailersanddrawhundredsofthousandsofwholesale

fashionbuyersfromaroundtheworld.TheprimaryvenuesfortheseeventsaretheJavitsCenterandPiers92/94.

WholesaleShowroomsThe5,000showroomslocatedthroughouttheCitythatprovide

wholesalemarketingopportunitiesyear-round.NoothercityinNorthAmericahasNewYorkCitys

concentrationoffashionandapparelbrandsandmanufacturers.

WholesaleFashionBuyersThebuyersfromtheworldsretailers,rangingfromthelargest

departmentstorestosmall,specialtyboutiques.TravelingtoNewYorkCityannuallyorinmany

cases,anumberoftimeseachyearisaritualforhundredsofthousandsoftheseindividuals.

DesignersThetalentthatcreatesthevisionandgeneratestheproductsthatdenetheindustry.

NewYorkCitybothdrawsyoung,emergingdesignersandprovidesahomeforsomeofthemost

inuential,iconicnamesindesign.TheCityservesasheadquartersformostoftheleadingfashion

andapparelbrandsintheUnitedStatesandcontainsaconsiderablemanufacturingbaseaswell.

Theresearchdatapresentedinthisreportweregeneratedfromanumberofsources,includingsurveysofapparelbuyers,trade

showexhibitors,showroomownersandtenants,aswellastradeshowproducersandfashiondesigners.Over2,000individuals

andorganizationsparticipatedinthisstudyin2007and2008andNYCEDCwishestothankeachandeveryoneofthemforthe

invaluablecontributionsoftimeandenergy.

Wehopeyoundthisstudyinformativeandlookforwardtoyourfeedbackaswecontinueinoureffortstosupportandexpand

this vital industry.

Sincerely,

s W. p

President,NewYorkCityEconomicDevelopmentCorporation

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AcknowledgmentsNYCEDCacknowledgesandthanksthefollowingorganizationsforassistancewiththisimportantstudyandreport:

AdvanstarCommunications,Inc.

BusinessJournals,Inc.

CouncilofFashionDesignersofAmerica

Designers&Agents

TheDonegerGroup ENKInternational

FashionCalendar

FashionCenterBusinessImprovementDistrict

IMGFashion

Launch Collective

NYC&Company

Tradeshow Week Research

front cover photography:

BuTTON kIOSk:FashionCenterBusinessImprovementDistrict(Photographer:KellyCampbell) ruNWAY MODElS:NYC&Company,2008(Photographer:DanaPerrotti)

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eXecutive summary

1. Current Situation: NYC Fashion Wholesale Industry Overview of NYC Fashion Industry

Today,thefashionindustryisoneofthelargestandmostprominentsectorsinNewYorkCity.Includingfashionretail,it

accountsfor6%oftheCitysprivateemploymentand175,000jobs.Theindustrycontributes$10billioninpayrollwages

andprovides$1.7billioninannualtaxrevenue.FashionisoneofthefewindustriesintheCitythatdrivessignicantdirect employment, visitor spending and wholesale sales activity.

NYC Fashion Industry Ecosystem

The multifacetedNew York City fashion industry can bedescribedas anecosystemwith variousinter-connected

sectors and communities. The wholesale sector, including trade shows, buyers, showrooms and designers among others,

iscriticaltotheCitysfashionecosystem.

2. Economic Impact of Fashion Wholesale Industry Spending

Fashion-relatedwholesalespendinginNewYorkCityissubstantial,resultinginmorethan$18billionindirectspending

withNewYorkCitybusinesses.ThisspendingfeedstherestoftheCitysfashionecosystem.Ontopofwholesalepurchases,theaveragetravel-relatedspendingbyU.S.-basedbuyersandvisitors(thosebasedmore

than50milesoutsidetheNewYorkMetroarea)isasignicant$7,031pervisit.Internationalvisitors,whilea smaller

percentageofallbuyers,spendanaverageof$11,903pervisitandarehigh-endandhigh-spendvisitorscompared

to average conventioneers.

Visits

VisitsgeneratedbythefashionwholesalesectorcompriseasubstantialpartoftheoverallNewYorkCityconvention

business. Morethan 578,000 individual wholesale buyersand fashionevent attendees visitNew York Cityannually,

accountingfor14%ofallconventioneerstotheCity.

FashionbuyersareveryactivewhentheyareintheCity.Duringeachtrip,theaveragebuyerattends2.6tradeshows

andvisits8.9showrooms.

3. NYCs Competitive PositionTheprimarycompetitivethreattotheNewYorkCityfashionwholesaleindustryistheriseofappareltradeshowsin

otherpartsofthecountry,mostnotablyLasVegas.BuyersarendingthattheydonothavetovisitNewYorkCityas

oftenbecausetheycanattendcomparabletradeshowsclosertohome.Thisisalong-termthreatthatneedstobe

recognizedandaddressedinorderforNewYorkCitytomaintainitsleadershipposition.

4. Areas of Opportunity Advanced Scheduing of Trade Shows

Thestudyuncoveredtheneedforamorecoordinatedapproachtotradeshowandeventschedulingandforbetter

communicationamongindustrygroups.Twentypercentoffashiontradeshowattendeessurveyedindicatedtheyhave

missedatleastonetradeshowrecentlybecausetheyreceivedinformationabouteventstoolatetomakeplans.

Enhanced Whoesae Information

ThestudyalsodiscoveredalackofaggregatedinformationaboutshowroomsandtradeshowsintheCity.Infact,89%

offashionbuyerssurveyedsaidtherewasnocitywideshowroomguidewithanup-to-datelistofshowrooms.

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Improved Trave Amenities

GettingtoandfromtradeshowsandshowroomsinNewYorkCityisconsideredmorechallengingthaninothercities.

Approximatelyone-thirdofbuyerssaidthattransportationbetweentradeshows,showroomsandhotelsinNewYork

City was lacking.

Increased Differentiation

SomefashionprofessionalsbelievethatNewYorkCitysoverallbuyerandvisitorexperiencehasbecomelessdifferentiated

fromitscompetitorsthanitshouldbegivenNewYorkCitysmanyuniqueassets.Thirty-onepercentoffashionbuyers

saidthatNewYorkCityhasbecomealessimportantplacetoattendfashionandapparelevents.Themostcommonreasonscited:thecosttoattendeventsintheCity;andtheriseofothermarketsandtradeshowsaroundthecountry.

Tomaintainitsvalueproposition,theCityandindustrywillhavetoofferprogramsandexperiencesthatcannotbe

duplicatedinothermarkets.IncreasedmarketingofthevalueofthefashionindustrycomponentstobuyersinNew

YorkCityisalsorequired.

Garment Center

TheGarmentCenterisakeydifferentiatorforNewYorkCityandprovidesaconsiderablestrategicadvantage.Fifty-one

percentofU.S.fashionbuyersratedtheNewYorkCityGarmentCenterasbetterthansimilardistrictsinothercities.What

buyerslikedbestabouttheGarmentCenterwasthediverserangeofdesigners,includingaccesstointernationalbrands.

Support for Emerging Designers

Helping emergingdesignersenter and thrivein theindustryisseenas akeyopportunityfor theindustry andCity.

Basedonasurveyofleadingdesigners,supportingnewdesignertalentwasthenumberoneissueidentiedasveryimportant,criticaloverthenextvetotenyears.

5. NYCEDC Initiatives

Asaresultofthesendings,NYCEDCdevelopedandexecutedinitiativestoaddresstherisksandopportunities.

Advanced Scheduing of Trade Shows

InFebruary2009,NYCEDCannouncedthefullscheduleof2009NYCFashionMarketWeekstoallowbuyersandexhibitors

toplanaheadandscheduletripsfurtherinadvance.Thefullschedulecanbeviewedat:www.nycfashioninfo.com.

NYCEDCwillbeworkingwiththetradeshowoperatorsandvenuestoplan2010schedulesandbeyondsothatshow

dates can be announced well in advance.

results

85%ofout-of-townbuyersaremorelikelytoreturntoNYCbecausetheyknowthecomplete2009MarketWeekschedule

73%aremorelikelytostaylonger

Enhanced Whoesae Information

Inresponsetothe89%ofbuyerswhosaidtherewasnoeasilyaccessibledatabaseofwholesaleshowroomsforNew

YorkCity,NYCEDClaunchedNYCFashionInfo.cominFebruary2009.NYCEDCalsopublishedanddistributed6,500NYC

WholesaleGuidesduringtheWomensFallMarketWeekinFebruary2009.

results

58%ofout-of-townbuyerssaidtheywereabletovisitmoreshowroomsduringWomensFallMarketWeekbecause

ofthenewservicesofferedbyNYCEDC

84%ofbuyerskepttheirWholesaleGuidesforfutureuse,with77%planningtousetheguidetondnew

showrooms;53%planningtouseittolearnaboutfutureMarketWeekdates;and38%planningtouseittohelpplanfuturetripstoNYC

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Improved Trave Amenities

To address buyer complaints about NYC being more difcult tonavigatecomparedto othercities, NYCEDCtested

severalamenitiestoenhancethebuyerexperienceatWomensFallMarketWeekinFebruary2009,including:

MarketWeekExpressShuttlesbetweenthetradeshows,intheGarmentCenterandMidtown:

results:81%ofbuyerssaidtheywouldbelikely/verylikelytoridetheExpressShuttleagainduringfutureMarket

Weeks

Exclusivediningandentertainmentdeals:

results:4outof5out-of-townvisitorssaidtheMarketWeekservicesmadetheirtripeasier,moreenjoyableandproductive


NYCEDCwillbeexploringwithindustrystakeholdersadditionalprogrammingandamenitiesduringNYCFashionMarket

WeeksthatleveragethetalentanduniqueNYCenvironment(e.g.,uniqueandvariedretailenvironments)thatother

cities cant duplicate or match.

Garment Center

TheCityiscurrentlyworkingwithindustrystakeholdersonarezoningoftheSpecialGarmentCenterDistrictwiththe

goalofmaintainingitasthevitalcoreoftheNYCfashionindustry.


AkeyneedidentiedbyNYCEDCisforbetterinformationresourcestohelpyoungdesignersnavigateNYCastheytrytostartandbuildbusinesses.AkeypartofthenewNYCEDCwebsite,NYCFashionInfo.com,includescomprehensive

informationtohelpemergingdesigners.

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c o:c s: nyc f W id

Overview of NYC Fashion Industry

The garment and fashion industry beganto emerge inNewYorkCity inthe1800s. The roots oftodayswholesale fashion

industrytracebacktothe1940swhentherstPress Week,theprecursortoFashionWeek,waslaunchedandtherstfashion

andappareltradeshowswereheldinhotels.MostofthemoderntradeshowsexistingtodaywerelaunchedfollowingtheopeningoftheJavitsCenterin1986.

Today,thefashionindustryisoneofthelargestandmostprominentsectorsinNewYorkCity.Infact,thefashionsectorrepresents

6%oftheCitysprivateemploymentwithover175,000jobs.Theindustrycontributes$10billioninpayrollwagesandprovides

$1.7billioninannualtaxrevenue.FashionisoneofthefewindustriesintheCitythatdrivessignicantdirectemployment,

visitor spending and wholesale sales activity.

WhatsuniqueaboutthefashionindustryinNewYorkCityisthateveryaspectoftheindustryisservedonalargescale.Withover

5,000wholesaleshowrooms,noothercityinNorthAmericacomesclosetoNewYorkCityintermsofconcentrationoffashion

andapparelbrandsandmanufacturers.FashionWeek,tradeshowsandshowroomsdrawover578,000annualvisitstotheCity.

NYC Fashion Industry Ecosystem

ThemultifacetedNewYorkCityfashionindustrycanbedescribedasanecosystemwithvariousinterconnectedsectorsand

communities.Theseincludedesign,media,manufacturing,textiles,realestate,retail,highereducation,theaterandtourism.ThewholesaleaspectsoftheindustrycompriseacriticalpieceoftheCitysoverallfashionecosystem.Thewholesalesector

includesdesigners,brandsandmanufacturersthatuseshowrooms,tradeshows,FashionWeekandotherfashioneventstoreach

wholesalebuyersandmedia/pressfromaroundtheworld.

Inaway,NewYorkCitycanbeseenasagiantfashionandapparelmarketplace.Thechallengeandopportunityisthateach

sectoroftheindustryisinterconnectedandneedstoremainhealthyfortheentireindustrytothrive.

An Interconnected Industry: Segments Served by the New York City WholesaleFashion Industry

NYC Fashion Industry

Fashion Week,Fashion Shows

Designers

and Brands

HigherEducation

Trade Shows,Market Weeks

Theater andthe Arts

Global Trade,Imports & Exports

Manufacturing

Fashion RetailFashion Media

Tourism

Showrooms

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c tw:e i f W id

Spending

SpendingrelatedtofashionwholesaleinNewYorkCityissubstantial.ThefashionwholesalemarketsimpactontheCityresultsinover

$18billioninannualdirectspendingwithNewYorkCitybusinesses.ThisspendingfeedstherestoftheCitysfashionecosystem.

Ontopofwholesalepurchases,theaveragetravel-relatedspendingbyU.S.-basedbuyersandvisitors(thosebasedmorethan50-

milesoutsidetheNewYorkMetroarea)isasignicant$7,031pervisit.Internationalvisitors,whileasmallerpercentageofallbuyers,

spendanaverageof$11,903pervisit.Thesearehigh-endandhigh-spendvisitorscomparedtoaverageconventioneers.

Ove $18B in Anna Diect Spending wit NYC Bsinesses

WholesaleSpendingAdjusted*

VisitorTravel-related

Spending

Showroom andTrade ShowOperations

$11.9B

$4.2B

$2.7B

0

2

4

6

8

10

12

*Adjusted Wholesale Spending is calculated by multiplying NYCs total fashion wholesale sales ($38.6B)

by average fashion wholesale margin (31%).

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LocationofBuyerVisitor

NumberofVisits

AverageTravel-

related SpendingPerVisit

TotalAnnual

Travel-relatedSpending(Bil)

TotalAnnualEconomicImpact

fromTravel-relatedSpending(Bil)

U.S. 357,460 $7,031 $2.5 $4.0

International 105,882 $11,903 $1.3 $2.0

New York City Metro 114,997 $3,448 $0.4 $0.7

t 578,338 $7,210 () $4.2 $6.7

Ot-o-Town Bye Tave-eated Spending


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Where Fashion Buyer Visitors to New YorkCity ae Based

18%

62%

20%

International

New York CityMetro area(within 50 milesof New York City)

U.S. (at least50 miles outsideof New York City)

Visits

VisitsgeneratedbythefashionwholesalesectorcompriseasubstantialpartoftheoverallNewYorkCityconventionbusiness.

Over578,000individualwholesalebuyersandfashioneventattendeesvisitNewYorkCityannually,accountingfor14%ofall

conventioneers to the City.

Fashionvisitorsareunique,astheytendtostaylonger,visittheCitymoreoftenandspendconsiderablymorethantypical

conventioneers,accordingtoNYC&Company.Thesevisitorsaremostoftenwholesalefashionbuyersthatworkforarangeof

retailcompaniesfromtheworldslargestdepartmentstorestosmall,specialtyboutiques.Itisestimatedthat82%ofNewYork

CityfashionvisitorsarebasedthroughouttheU.S.and18%comefromoverseas.

TradeshowsdrivethebulkoftotalfashionbuyervisitstoNewYorkCity,followedbyvisitstoshowroomsandFashionWeek.

FashionbuyersareveryactivewhentheyareintheCity.DuringeachtriptoNewYorkCity,theaveragebuyerattends2.6trade

showsandvisits8.9showrooms.

*Within 50 miles of New York City

** At least 50 miles outside of New York City

LocationofBuyer

AverageAnnualVisits

NewYorkCityMetro* 5.5

U.S.** 3.3

International 2.5

Total 4.2(Average)

169,000

293,000

116,000

Trade Shows

Showrooms

Fashion Week

Tota Number of NYC Fashion Visits

TOTAl VISITS: 578,000

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Note: Chart accounts for out-of-town visits only (578,000).

Attendance by NYC residents: Trade Shows = 37K; Showrooms = 89K; Fashion Week = 116K

Note: Chart accounts for out-of-town visits only (578,000).

Attendance by NYC residents: 242,000


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TheaveragebuyervisitsNewYorkCity4.2timesperyeartoattendfashiontradeshowsandtypicallystays4daysand3.4nights.

Seventy-ninepercentofthesebuyersstayinhotelsintheCity.Sixty-ninepercentofbuyerssaytheyhaveeitherincreasedor

maintainedtheirnumberofvisitstotheCityoverthepastfewyears.

WhatbuyerslikemostaboutNewYorkCityisthebreadthofthebrandsandproducts,thelargenumberofshowroomsand

retailstores,andtheoveralluniquenessoftheNewYorkexperience.NewYorkCityalsoprovidesthebestaccesstointernational

designersandexhibitors.Noothercityhasthevarietyoffashionindustryresourcesandtourism-relatedexperiences.

Herearequotesfromout-of-townbuyersontheirreasonsforcomingtoNewYork:

IthasbecomemoreimportantforusbecauseNYCisconsideredtobeagreatplaceforthenewestandfreshestfashion.

Iwantthemerchandiseinmyboutiquetoreectawiderrangeofdesignsandqualitytoattract

mycustomerstoup-to-datefashion.

Mystoreisattractingmoreafuentbuyerswhoneedworldclasschoices;NewYorkisacenterfor

theworldsbest.

Fashion Week

OneofthemostvisibleandimportantcomponentsoftheNewYorkCityfashionindustryisFashionWeek.ThetwoNewYork

FashionWeekshaveincreasedinsizeoverthepast15yearsfromapproximately32,000attendeesannuallytoanestimatedtotal

of232,000attendeestoday,ofwhich50%areout-of-townvisitors.FashionWeekvisitorsincludefashiondesigners,international

mediaandpress,seniorexecutives,buyersandothers.

Citywide,FashionWeekgenerates$466millionindirectvisitorspendingperyear($233millioneachFashionWeek),leadingto$773millionintotaleconomicimpactperyear($386millioneachFashionWeek).

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SHOWS MARKETSHARE

. . i i

Other U.S. Cities

i l

New York CityLas Vegas Los Angeles

1,370,911

490,000

300,000

24,000

0

300,000

600,000

900,000

1,200,000

1,500,000

Other U.S. Cities

New York City

Las Vegas

Los Angeles22%

40%36%

2%

www..

27%

13%

58%

2%

Other U.S. Cities

New York City

Las Vegas

Los Angeles

Other U.S. Cities

. . i i

New York City Las Vegas Los Angeles

257

70

33

6

0

50

100

150

200

250

300

i l

SHOWS MARKETSHARE

c t:nyc c pThe fashion and apparel industry is vital to thestrength of the New YorkCity economy, but the City is facingincreased

competitionfromcitiesaroundthecountry.TheprimarycompetitivethreatisthatNewYorkCityisbeingimpactedbythetrend

ofregionalizationinthetradeshowindustrymostprominentlybythegrowthofLasVegasfashionindustrytradeshows.

LasVegaseventscontinuetogrowtheircapacity,aidedbybeingeasytoaccesswithlesscostlyamenities.Thisismakingitmore

attractiveforbuyersinwesternpartsofthecountrytovisitNewYorkCitylessoften.RegionalizationhasthepotentialtoreducetheCitysprominenceasawholesaledestinationandcouldhaveadverseeffectsontheoverallfashionindustryandtheCityseconomy.

Thisisalongtermthreat.ThisthreatneedstoberecognizedsoNewYorkCitycanadaptandmaintainitsleadershipposition.

Furthermore,fashionbuyersandprofessionalshighlyvaluetheNewYorkCityfashionexperience,but31%ofattendeesandbuyerssay

thatNewYorkCityhasbecomealessimportantplacetoattendfashionandappareleventsoverthepastfewyears.Themostcommon

reasonsforthisarethecoststoattendeventsintheCityandtheriseofothermarketsandtradeshowsaroundthecountry.

In the U.S., besides New YorkCity, theleading cities fortradeshows are primarily Las Vegasand LosAngeles. Secondary

competitivecitiesincludeAtlanta,Dallas,ChicagoandMiami.The variousquantitativesurveysaskedindustryparticipantsto

compareNewYorkCitytomanyofthesecompetitivemarkets.

ThetablesbelowprovideacomparisonofNewYorkCityfashiontradeshowactivitywiththetwoprimarycompetitivemarkets

forshows,LasVegasandLosAngeles.

New York City Leads in the Number of Fashion Trade Shows But Las Vegas HostsLarger Events

NewYorkCity stillleadsintotalnumberoftradeshows,butLasVegashasgrownverylargetradeshowsanddrawsmore

attendees and buyers due to larger venues.

Nmbe o Fasion Tade Sows

Source: Tradeshow Week

Fasion Tade Sows Attendance Estimates

Source: Tradeshow Week


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Byes on Wic City Tey Conside to beNew Yo Citys Pimay Competito

Buyers

LasVegas 50%

LosAngeles 22%

Atlanta 8%

Chicago 7%Dallas 4%

Paris 4%

Miami 2%

London 1%

Milan 1%

SanFrancisco 1%

NYC Fashion Trade Show Producers Require More Exhibition Space in the City

TheprimaryissueimpactingNewYorkCityfashionandappareltradeshowproducersistheirdemandformoreconventionand

exhibitionspace.ThestudyuncoveredtheirinteresttogrowexistingtradeshowsandtolaunchneweventsinNewYorkCity.IfNewYorkCitycannotaccommodatethisgrowthduetolackofexhibitspaceandvenuedates,thereisariskoflosingmarket

share to other cities over time.

Expansion/New Tade Sows Cod Dive an Incementa $173M in Anna Tave-eated Spending

Source: NYCEDC Event Producer Survey/Interviews *Conservative estimate = of average direct spending

NYC Compared to Other Cities

NewYorkCityratesthesameasorbetterthancompetingcitiesinmostcases,withshowroomsprovidingthemostdifferentiation.

NewYorkCityisnot signicantlydifferentiatedonpositiveattributescomparedtomajorcompetitors.However,showrooms

areapositivedifferentiatorfortheCity.

Byes and Attendees rate New Yo City vs. Competitive Cities

NumberofExpandedorNew

Shows

AverageEstimatedAttendance

Total EstimatedAttendance

Travel-relatedSpendingPerVisit*

EstimatedAnnualTravel-related

VisitorSpending

24 2,000 48,000 $3,605 $173M

OVERALLVISIT ATTENDINGTRADESHOWS

35%39%

26%

NYC is Better

NYC is Worse

NYC is the Same

30%

24%

46%

NYC is Better

NYC is Worse

NYC is the Same

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Buyers and Attendees Rate New York City vs. Competitive Cities on Overa Visit Broken Out by Buyer

location

Intermsoftheoverallbuyerexperience,internationalvisitorsratetheCitythelowest.

VISITINGSHOWROOMS

SENSEOFSAFETY/SECURITY

ROI(RETURNONINVESTMENT)

Byes and Attendees rate New Yo City vs. Competitive Cities (contined)

24%

33%

43%

NYC is Better

NYC is Worse

NYC is the Same

33%

26%

41%

NYC is Better

NYC is Worse

NYC is the Same

NYC is Better

NYC is Worse

NYC is the Same

31%

58%

11%

NYC NYCMetro U.S. Intl.

NYCisBetter 39% 37% 36% 23%

NYCisWorse 16% 21% 27% 27%

NYCistheSame 45% 42% 37% 50%

l B

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c f:a o

Advanced Scheduling of Trade Shows

Thestudyuncoveredtheneedforamorecoordinatedapproachtotradeshowandeventschedulingandforbettercommunicationamongindustrygroups.Twentypercentoffashiontradeshowattendeessurveyedindicatedtheyhavemissedatleastonetradeshowrecentlybecausetheyreceivedinformationabouteventstoolatetomakeplans.Addressingthisissuecouldhaveasignicantimpact.Increasingthenumberofbuyervisitsby5%coulddrive$2billioninincrementaltravel-relatedspendingover10yearsandasignicantincreaseinwholesalesales.

Typically,leadingfashiontradeshowsinNewYorkCityhavehadtheirschedulessetlessthan12monthsbeforetheevent.ThelargesttradeshowsintheU.S.havevenuedatesbookedmanyyearsinadvance.Forexample,theMAGICLasVegastradeshowshave secure dates booked out twenty years.

ThereisanopportunitytoorganizeandmarketNewYorkCitywholesaleMarketWeekstoprovideconsistentschedulesandrelated travel and hotel services. The concept is to bring together multiple trade shows occurring at the same time and market

theseasonelargeNewYorkCityevent.ThiswouldturnMarketWeekswholesalefashionactivityintoaninternationalevent,leveragingthepowerandprestigeofboththeNewYorkCityfashionindustryandtheCityofNewYork.

DevelopingamorecomprehensiveMarketWeekoftradeshowsandothereventswouldbesimilartothebrandingsuccessofFashionWeek.

Enhanced Wholesale Information

ThestudyalsofoundthattherewasalackofaggregatedinformationaboutshowroomsandtradeshowsintheCity.Infact,asignicant89%offashionbuyerssurveyedsaidtherewasnocitywideshowroomguidewithanup-to-datelistofshowroomsavailable.Over60%ofbuyerssaidtheywouldusesuchaguidetondnewproductsandvisitmoreshowrooms,whichcouldleadtoasignicantannualincreaseinwholesalesales.

Bye Svey Qestion: Is tee an easy way to ocatep-to-date ists o NYC sowooms?

11%

89%

Yes

No

www..

Pecentage o Ot-o-Town Byes tat have Missed NYCTade Sows Becase Tey Wee Not Notifed in Time

59%

20%21%

No

Dont Know

missed a trade show

Yes;


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: : 17 : :

Buyer Survey Question: If there were an organized, informative,up-to-date ist of showrooms, what woud you use it for?

Find newproducts by

category

Visit moreshowrooms in

relevant category

Other uses ordesign requests

63% 62%

6%

0

10

20

30

40

50

60

70

80

90

100

Bye Svey Qestion: Wat cod be done to mae yoovea visit to NYC easie and moe podctive?

U.S.-basedBuyers

International-basedBuyers

NYCMetro-based

Buyers

32%

39%

30%

0

10

20

30

40

50

60

70

80

90

100

BETTERTRANSPORTATION

Improved Travel Amenities

ThebuyersurveyfoundthatgettingtoandfromtradeshowsandshowroomsinNewYorkCityisconsideredmorechallenging

thaninothercities.Thisisseenasacompetitivedisadvantage.Othercitieshavesmallerdowntownsandgarmentdistricts,but

approximatelyone-thirdofbuyerssaythattransportationbetweentradeshows,showroomsandhotelsinNewYorkCityis

lacking.Asimilarpercentageofthemarketsaidthatimprovedtransportationwouldenhancethevisitorexperienceandmake

theirtimeintheCitymoreefcient.

Othertravelamenitiesandservicescouldincludeimprovedsignageandshowroomguides,restaurant,entertainmentandspouse

packages,abuyercenterandmoreinformationaboutthebestwaystomovearoundtheCity.

Thegoalofimprovingvarioustravelamenitiesthatenhancetheoverallbuyerexperienceistoencouragemorebuyerstovisit,

staylongerandbemoreefcientwhenconductingbusinessintheCity.

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: : 18 : :

Bye Svey Qestion: how wod yo ate yo ovea NYC expeience wen yo visit o tadesows and/o sowooms/mats compaed to te city yo maed (as te most competitive to NYC)?


ThestudyuncoveredthatsomefashionprofessionalsbelievethatNewYorkCitysoverallbuyerandvisitorexperiencehas

becomelessdifferentiatedfromitscompetitorsthanitshouldbegivenNewYorkCitysmanyuniqueassets.Whileitispositive

that69%ofbuyerssaidthattheNewYorkCityexperiencewasbetterorthesameasothercities,alongtermissueistofocus

onthosebuyerswhodonotfullyappreciatetheattributesandopportunitiesthatmakeNewYorkCitytheFashionCapital.

Accordingtothebuyerssurvey,31%offashionbuyerssaidthatNewYorkCityhasbecomealessimportantplacetoattend

fashionandapparelevents.ThemostcommonreasonsforthiswerethecoststoattendeventsintheCityandtheriseofothermarkets and trade shows around the country.

ItisimportanttopointoutthatNewYorkCityisnotdoinganythingwrong.Theissueisthatcompetingcitieshavegotten

strongerbyinvestinginconventioncentersandexhibithallsandbypromotingnewtradeshowsthathaveessentiallybeen

broughttobuyersinWesternandSoutherncitiessuchasLasVegas,LosAngeles,AtlantaandDallas.Inshort,theconcepthas

beenbringtheshowtothebuyers,insteadofbringthebuyerstotheshow.

Tomaintainitsvalueproposition,theCityandindustrywillhavetoofferprogramsandexperiencesthatcannotbeduplicatedin

othermarkets.IncreasedmarketingofthevalueofNYCsfashionindustrycomponentstobuyersinNewYorkCityisalsorequired.

TRANSPORTATIONTO/FROMFACILITIES TRANSPORTATIONINTOTHECITY

Buyer Survey Question: Over the past few years, has NYCbecome a moe o ess impotant pace to attend asion

and appae indsty events?

More Important

Less Important

Same

31%

25%

44%

16%

27%

0

10

20

30

40

50

60

70

80

90

100

NYC is Better NYC is the SameNYC is Worse

31%

18%

0

10

20

30

40

50

60

70

80

90

100

NYC is Better NYC is the SameNYC is Worse

22%

33%

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: : 19 : :

Garment Center

Thereareover5,000showroomsintheCitythatprovidewholesalemarketingopportunitiesyear-round.Theseshowroomsserve

asdesignerandbrandheadquartersaswell.NoothercityinNorthAmericahasNewYorkCitysconcentrationoffashionand

apparelbrandsandmanufacturers.TheGarmentCenteristheshowroomcoreofNewYorkCity.

TheNewYorkCityGarmentCenterisakeydifferentiatorcomparedtoothercitiesandprovidesaconsiderablestrategicadvantage.

Fifty-onepercentofU.S.fashionbuyersratetheNewYorkCity GarmentCenterasbetterthansimilardistrictsin othercities.

WhatbuyerslikebestabouttheGarmentCenteristhediverserangeofdesigners,includingaccesstointernationalbrands.They

alsovaluetheareasstrategiclocationintheheartoftheCitywithitsproximitytohotels,restaurantsandotherattractions.

Eighty-eightpercentofshowroomtenantsandownersagreethathavingalargeclusteroffashionandapparelshowroomsina

denedNewYorkCityGarmentCenterisimportant.Also,43%ofshowroomownersandtenantssaytheyexpecttheimportance

ofhavingashowroominNewYorkCitytoincrease.

A majority of industry professionals surveyed and contactedduringthe research phase agreed with theneedto focus on

strengtheningtheGarmentCenter.

Buyer Survey Question: How does the NYC GarmentDistict compae to tose in ote cities?

10%

51%

39%

Better

Worse

Same

Garment Center Showroom Survey Question: Howimpotant is aving a age cste o asion andappare showrooms in a dened NYC Garment Center?

12%

88%

Important

Not Important

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The Top Five Ways in Which the Garment Center Coud Be Improved According to ShowroomManagement

Support for Young Designers

HelpingemergingdesignersenterandthriveintheindustryisseenasakeyopportunityfortheindustryandCity.Basedon

asurveyofleadingdesigners,supportingnewdesignertalentis thenumberoneissueidentiedasveryimportant,critical

overthenextvetotenyears.TheCityandtheindustrycollectivelyneedtoensurethatthenextgenerationofgreatAmerican

designersishereinNewYorkCity.

NYCEDCconductedasurveyoffashiondesignerswiththeassistanceoftheCouncilofFashionDesignersofAmerica.Thegoal

wastogatherthefashiondesignercommunitysrecommendationsonhowbesttopromoteindustrygrowthandpoliciestosupporttheindustry.Thedatatablebelowpresentssomeofthendingsfromthissurvey.

Majo Isses Fasion Designes Fee te City o New Yo Cod Eectivey AddessOve te Next 5 to 10 Yeas

: : 20 : :

VeryImportant,Critical

Providingsupportfornewdesigntalent 63%

Providingsupportforlocalfactoriesandmanufacturing 60%

ProtectingtheclusteroffashionbusinessesintheGarmentCenter 56%

HelpingtomarkettheimportanceandvalueoftheNYCfashionandapparel

industrytobuyers,tradeshowexhibitorsandeventproducers

53%

ImprovingschedulingofMarketWeeks/FashionWeek 47%

HelpingtomarketNYCMarketWeeks/FashionWeek 40%

Improvingtradeshow/runwayshowfacilities 27%

Other 17%

PercentageofShowroomManagement

Lowercostofrenting 90%

AddmoreshowroomstoincreaseclusterinGarmentCenter 52%

Create mart with dedicated trade show space 52%

Improvesignage,mapsandway-ndingdirectionals 47%

Establish a visitor or buyer center with computers, bathrooms 47%

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c f:nyceDc iAs a result of these ndings, NYCEDCdeveloped andexecuted initiatives to

address the risks and opportunities.

Advanced Scheduling of Trade Shows

In February 2009, NYCEDC announced the full schedule of 2009 NYC FashionMarketWeekstoallowbuyersandexhibitorstoplanaheadandscheduletrips

furtherinadvance.Thefullschedulecanbeviewedat:www.nycfashioninfo.com.

NYCEDC will be working with trade show operators and venues to plan 2010

schedulesandbeyondsothattheycanbeannouncedwellinadvance.According

toarecentNYCEDCsurvey,85%ofout-of-townbuyersaremorelikelytoreturnto

NYCfortradeshows;and73%aremorelikelytostaylongerbasedontheiraccess

tothecomplete2009tradeshowschedule.

Enhanced Wholesale Information

Inresponsetothe89%ofbuyerswhosaidthere

was no easily accessible database of wholesale

showrooms for New York City, NYCEDC launched

NYCFashionInfo.cominFebruary2009.Thesiteincludes

informationonallaspectsoftheindustryincluding

abrowseableandsearchabledatabaseofover5,000

NYCwholesaleshowroomsarstforNYC.

NYCEDCalsopublishedanddistributedover6,500NYCWholesaleGuidesduringWomensFall

MarketWeekinFebruary2009.Theseguidesincludedthecompletelistingofall2009Market

Weeksaswellasover5,000NYCshowrooms.

Theresponsetotheseinitiativeshasbeenoverwhelminglypositive.DuringWomensFallMarket

Week,58%ofout-of-townbuyerssaidtheywereabletovisitmoreshowroomsbecauseofthe

servicesoffered.With84%ofbuyerssayingtheykepttheguideand77%planningtouseitto

ndnewshowrooms,thereisthepotentialtodriveadditionalincrementalshowroomvisits.

Improved Travel AmenitiesToaddressbuyercomplaintsaboutNYCbeingdifculttonavigatecomparedtoothercities,

NYCEDCtestedseveralamenitiestoenhancethebuyerexperienceduringWomensFallMarket

Weekincluding:

MarketWeekExpressShuttlesbetweenthetradeshows,theGarmentCenterandMidtown.

Over2,500totalridesduringWomensFallMarketWeek.Eighty-onepercentofbuyerssaid

theywouldbelikely/verylikelytoridetheExpressShuttleagainduringfutureMarketWeeks.

DuringWomensFallMarketWeek,roughly4,500diningandentertainmentdealswere

takenadvantageofbyattendees.

results: MarketWeekConciergesdistributed:

6,500WholesaleGuides

8,900RestaurantWeekGuides3,000NYCVisitorGuides

85%ofbuyersfoundtheseservicestobehelpful/veryhelpful.

: : 21 : :www..


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Theresultswerepositive:NYCEDCwillbeexploring,inpartnershipwiththetradeshowoperators,thesetravelamenitiesduring

futureNYCFashionMarketWeeks.


With industry stakeholders,NYCEDC will be exploring additional programming andamenities during NYC FashionMarket

WeeksthatleveragethetalentanduniqueNYCenvironment(e.g.,uniqueandvariedretailenvironments)thatothercitiescant

duplicate or match.

Garment Center

TheCityiscurrentlyworkingwithindustrystakeholdersonarezoningoftheSpecialGarmentCenterDistrictwiththegoalof

maintainingitasthevitalcoreof theNYCfashionindustry.Aspartof thiseffort,theNYCEDCwillpartnerwithstakeholders

todevelopastrategicplanfortheGarmentCentertoensurethedistricthastherightservicesandamenitiesthatwillattract

designersandbuyersforyearstocome.


AkeyneedidentiedbyNYCEDCisforbetterinformationandresourcestohelpemergingdesignersnavigateNYCastheytry

tostartandbuildbusinesses.Manyemergingdesignersrelyonwordofmouthtogettotheresourcestheyneedtostarttheir

businesses.AkeypartofthenewNYCEDCwebsite,NYCFashionInfo.com,includescomprehensiveinformationtohelpemerging

designers,including:

AsourcingdatabasewithsuppliersandfactoriesInformationonhowtostartabusiness

Informationondesignresourcesandincentiveprograms

Informationonundergraduate,graduateandcontinuingeducationforfashion

: : 22 : :www..


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110 William StreetNew York, NY 10038

Visit nycfashioninfo.com. The official source for NYC fashion information

Documents

NYC-Fashion-Wholesale-Report_081209.pdf