LOGISTICS
Flashback Part 27 20th- to 21st-Century Fashion Industry History: Los Angeles By Ron Friedman
Hello again! Fall is just around the corner, bringing us the beginning of college football, the NFL season and the MLB playoffs, with the Dodgers hopefully going for three in a row. I hope they can do it. I always look forward to this time of year, as the summer heat ends and the cool fall weather approaches. My current research indicates that the toy and fragrance/skincare industries are performing better than the apparel industry. The food industry has also seen tremendous growth since COVID changed everything. The days when everyone came into the office five days a week are over, even though employers want them back. It appears that the new norm is at least three days a week, if that. That means people aren’t buying as much apparel, since they work from home in shorts and T-shirts. I can only hope for the day when everyone comes back to the office on a regular basis, which will benefit the apparel industry and also bring more lunchtime business to restaurants. Back to the office will also mean more collaboration and better training opportunities. I know I may be old-fashioned, but I see the benefits of being in the office.
28 | FM
August 2026
The 2026 edition of Magic Las Vegas was held Aug. 10 to 12 at the Las Vegas Convention Center, and I had the privilege of speaking on a panel with moderator Edward Hertzman, Maria Contino of Rosenthal Capital and Chris DeRosa of First Citizens Bank. The audience of 100 owners and buyers listened to us discuss how to finance an apparel company using the following financing methods and requirements for borrowers:
Growth Remains Modest
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Rather than pursuing aggressive expansion, many brands are focused on protecting profitability through tighter inventory management, pricing discipline and cost control. Increasing sales is difficult, with limited retailers to expand the business and consumers less interested in apparel and more interested in spending their money on other activities.
Asset-based lending Factoring Purchase-order financing Inventory financing Lending underwriting criteria
The discussion led to many great follow-up questions from the audience, and our panel was very insightful for the participants. I am always curious to know the number of attendees at the show. While I do not have that information directly from Magic, I asked taxi drivers and restaurants how busy they are when Magic comes to town. The prevailing answer was that attendance at the show seems to be light this year. What are the economic factors that are impacting the apparel industry?
Industry analysts broadly characterize 2026 as a low-growth year for fashion and apparel. Market growth has continued, but generally at low single-digit levels, as consumers remain selective with discretionary spending. Several industry studies cite ongoing economic uncertainty, inflationary pressures and shifting consumer priorities as limiting factors.
Tariffs and Trade Pressures Perhaps the most significant issue discussed across the industry in 2026 has been the impact of tariffs and changing trade policies. Industry reports note that tariffs have forced many apparel companies to reevaluate sourcing strategies, diversify manufacturing locations and absorb higher costs throughout the supply chain.
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