Thursday, January 20, 2000

School Uniforms = A+ or C-: Interview with Made to Measure Magazine

MTM looks at the booming industry of school uniforms—its pros & cons. We interviewed several manufacturers, among them: Barbara Black—AA Uniforms; Lester Reif—Rifle; Steve Royal—Royal Park; Beth Silver—French Toast. This is what we discovered:

Purposes of School Uniforms
In recent years, the market has mushroomed.  Once a small specialty area, school uniforms have become a national trend, encompassing every child of school age.  Why—a movement in our country believes that sameness among our children will: Decrease peer pressure; control appearance by establishing dress-codes, which would eliminate inappropriate styles (some potentially cult-like); encourage monetary savings; put education before socialization.

Market Diversity
For decades, the market has been catering to more affluent private and parochial schools.  Now, middle class charter schools and public schools have gotten involved.  These are 2 economically diverse philosophies, which split the industry down the middle.   Those who, for years, have been involved in the tightly supervised, quality-controlled, contracted arena, are wary of mass marketing—a less expensive more diversified direct sales approach.  Similarly, those who manufacture more cost effective, less specialized items, have turned away from customized pricey-ness of the past.

Marketing to the Masses
Beth Silver, brand manager of French Toast Uniforms, supports her company’s integrity and focus: “We sell to the big chains—Target, Sears, K-Mart—and to uniform specialty stores, wherever people buy clothing.  We’re accessible, we’re visible.  We’re involved with a $30 million inventory in a micro-market.  We manufacture over 150 items, with 5000 SKU’s (Stock Keeping Units).  We offer high quality garments at affordable prices.

“We mass merchandise direct to parents and to retailers.  We have our website, we are visible to the people we serve, but we do not sell direct.  We learn our market areas, we stock local stores accordingly.  We give the people what they want, just like any other clothing manufacturer.  We started out with only 4 items 10 years ago, and we’ve grown as people have asked for greater diversity.  We speak directly with educators—we poll them—we find out what they want.

“People in the private sector are amazed that we can make reasonably priced garments for less money.  The public school clientele is relieved that there are no custom measurements, no special arrangements to be made 5-7 months before the next school year.  We sell all year round, and our uniforms are continually available.  We’re no longer a seasonal item.

“We have a Partners in Education program where we go into the schools and educate our customers.  Now, they’re saying, ‘Wow!  Purchasing uniforms is exciting and fun,’ instead of the hassle it used to be.  When you empower people to handle their own programs, it becomes easy for them.”

Mass Customization/Selective Merchandising
Steve Royal, head of Royal Park Uniforms, is equally as involved as Beth, but in a different market.  “We cater primarily to the private and parochial schools,” he says.  “The public schools don’t have a uniform code; they have a dress code.  There’s no real continuity there, and for our business, no money to be made.  The difference between the 2 is that a dress code is about colors, items.

“Public schools cannot demand standardized garments because of Constitutional law.  All they can say is, ‘Go buy a white shirt and a pair of tan pants.’  Do you know how many styles and fabrics and colors there are of tan pants?  Then, there’s the label.  A designer-labeled pair of tan pants still out-sparkles a discount-labeled pair of tan pants.  The main point of uniforms is to make everybody equal.  In a private school, everything is the same, everything is specified.  Everything is equal.  There are no labels.”

Lester Reif of Rifle Uniforms agrees. “There’s a tremendous difference between the public and private sectors.  In private, the market is our trading partner.  We plan our business based upon school compliance and standardized garments.  We know what to expect, and how many styles and fabrics to anticipate for the coming year.  In the public sector, there is no compliance, no specific market.  Everything is generic and last minute.”

Steve Royal continues, “We sell to 14,000 –15,000 private institutions a year.  We are able to do this by going through uniform specialty dealers.  Every school has a different color scheme, plaid, and/or style.  We frequently cut just 3 garments per size per color per style at a time.  Rather than issuing mass uniform styles and colors in stock sizes, we only supply a store with particular school items for that designated target area.  We respect the individuality of our customers.

“10-11 years ago, we solely made plaids, but we found people weren’t using our merchandise because we couldn’t provide a complete package to the schools.  So, we added everything, from barrettes and headbands to sweats, shorts, and sox.  We do yarn-dyed vs. less expensive printed plaids; our fabrics are more costly but they wash and wear longer.  People have to decide what’s cheaper in the long run: Our uniforms last for at least 3 years; the lower end garments begin to fade after 10-12 washings.

“Ironically, we owe our increase of business to the public school sector.  When it got involved, dress codes relaxed, and the private sector wanted that for its children, too.  Now, instead of uniforms just a few months a year, sold in the fall, we’re doing business all year round, transitioning and continually providing different accessories to our dealers.”

Room for Both
Barbara Black, president of AA Uniforms, acknowledges both points of view.
“The school uniform business is going Kaboom!  Private schools are quality driven; public schools are price driven. What’s unfortunate is that most consumers don’t recognize that higher price means higher quality.    

“The question is which market different uniform manufacturers want to target, because that’s how they will stay in business.  If a company wants to mass market, it needs to work with the principals of the schools, it needs to find out what it is people want, it needs to figure out how to keep manufacturing garments all year round that are primarily shopped for during August and September.  It needs to figure out what to do with inventory that is only saleable during back-to-school time.

“Department stores and big-box stores will have to figure this out, too.  Once school is in session, very few families go shopping for uniforms the rest of the year, unless it’s for a special situation.  Once the uniforms are purchased, they’re often handed down from sibling to sibling.  School uniforms are very different from seasonal items and fashion trends.

“Customized manufacturers, on the other hand, have to continue to sell in small stores but mass market so that they reach their clientele.  They have to be able to provide all those uniform items the mass marketed manufacturers do, and be able to convince their dealers that the extra cost is worth it.  Manufacturers for the private sector must continue to have contracts with the schools, guaranteeing production and purchasing of garments.  They have to go the extra distance in service through their partnerships with dealers and schools.”

Bottom Line 
Beth, Steve, Lester, Barbara, are all successful school uniform manufacturers.  They’ve done their homework regarding the marketplace and what it takes to stay in business.  What is true is that the lure of the lucrative school uniform business is also involving a lot of folks who don’t understand the pitfalls of the industry: The result is that many businesses, which either specialize in school uniforms or add them as a major part of their lines, fail.

Many of the companies, in order to succeed, are forced to buy goods and manufacture some if not all of their merchandise offshore.  Even Steve Royal, who prides himself in labor compliance outside of the U.S., says that there is no way labor compliance within the ‘States can be competitive.  The cost of living is simply too high.

If dealers and manufacturers aren’t prepared for enormous inventory outlays, (replenished by consumer purchases only a few months during the year), their businesses are lost.  If dealers don’t understand the challenges of properly measuring, fitting, planning for potential growth spurts, expectations for store inventory will be incorrect, customers will be ultimately unhappy, overheads will soar. 

Planning begins in December of the previous school year.  Projections are made on previous years’ sales.  Contracts with the schools need to be in place.  Orders begin in early February.  Measuring takes place in April and May.  June-July is high anxiety delivery; August is purchasing. 

During August, a manufacturer has to have at least half again as much inventory in stock for unexpected orders and/or, mis-calculated sizing.  For the most part, once September has passed, the industry is dormant.  So is income.
Few dealers are experienced with today’s “soccer moms.”  These are the tough, independent, demanding, educated, consumer-savvy women who are strong advocates for their kids, have answers for everything.  Once they’re alienated, a shop can go out of business; without the art, know-how, and finesse of handling this particular group, an entire school contract can be lost.

There is only so much business to go around.  Even with an ever-expanding marketplace, the more savvy manufacturers and dealers will survive, the majority of them won’t.  It will be interesting to observe how the bigger department stores handle uniforms as they become increasingly aware of all of the above.  It will be equally as interesting to observe how the private and public school markets will benefit and learn from one another.  At present, each is giving the other a run for the money.