BUSINESS & MARKETPLACE:
Knot So Fast:
Declining Neckwear Industry Unsupported by Facts,
Readers Say
By Jackie Rosselli
Last month, UniformMarket columnist Deb Webster wrote an article which suggested the neckwear industry was in decline, a state which could render it as viable as the buggy whip industry. The piece, titled "Fit to be Tied," advised readers to steer clear of the tie business, citing market trends and societal attitudes as reasons for the pessimistic outlook.
Soon after, the emails started arriving.
Readers generally agreed with the article's premise: the proliferation of the business casual workplace and the country's seemingly endless love affair with relaxed, retail-inspired designs had transformed the industry landscape, rendering ties, in many cases, unnecessary. However, most were unconvinced that the industry was on life support. In fact, many believed the opposite: while past its heyday, the industry was stable, thriving, and in some segments, booming.
So, which is it: are ties a relic of the past or a re-emerging staple of the future? UniformMarket decided to find out.
Just the Facts
More than 100 establishments were engaged in the manufacture of men's and boys' neckwear in the United States in the late 1990s, according to the U.S. Census Bureau.
Shipments from these businesses were $607 million in 1998 and $500 million in 1990, and industry employees totaled 4,985. Other reports, unsubstantiated, placed the figure much higher, citing sales as rising well above $1 billion during the same period.
Whiles precise sales revenues may be murky, the industry's growth was crystal clear, driven by the rise of the service industries and a professional strata within the United States. The shirt-and-tie style of dress of the ‘80s and much of the ‘90s provided a substantial market for the neckwear industry. New trends at the end of the century, as well as competition from abroad, would undermine this demand.
By 2000, the Census Bureau reported shipment of neckwear from the above cited businesses down to $457 million, and job losses had totaled over 1,000. Most recently, between April 2007 and April of this year, U.S. tie sales fell some $47 million, according to the market research firm NPD Group.
Sound bleak? The numbers, it seems, turn out to be misleading.
All Tied Up and Up: Rising Sales
While revenue is down, the number of ties sold actually increased from 43.7 million to 45.1 million since April 2007. Why the discrepancy? Price. The average price of ties sold plunged 10 percent from $16.95 to $15.37. This may seem like a negative, but anecdotal evidence suggests otherwise, if the pages of several consumer magazines are to be believed. Attracted by the lower price point, these publications are reporting renewed interest in ties by a younger, hipper market, who, or course, have less disposable income than their baby boomer counterparts. Upscale retailer Brooks Brothers has seen its tie business grow 25 percent in the last 4 years, and is planning to launch a women's tie line later this year.
UniformMarket readers also suggest that the downward turn in the economy may translate into an uptick in tie sales. Notes one reader: "people out looking for jobs or businesses trying to attract customers generally want to put their best foot forward, and ties create that impression."
That is because ties, which are considered the ultimate accessory, are also the best communicator of how a person feels about himself, according to industry veteran Michael Broome, president of the 90-year-old Samuel Broome Uniform Accessories. "I don't know many people who feel dressed without a tie," says Broome. "Ties allow people to truly express themselves, where a polo shirt is, well, just a polo shirt."
Rather than an across-the-board contraction as some would believe, Broome notes a resurgence and even a boom in several market segments. "Upscale hotels, restaurants, banks and the school apparel industry are all markets where tie sales are strong," notes Broome. The picture is even brighter in Europe and Asia, where tie sales are also on the upswing.
But Broome is no Pollyanna. He readily admits that there are probably fewer uniform programs utilizing ties these days, victims of what he sees less a result of Casual Friday than of an industry that has lost its message. "Clothing should be what it needs to be to get the job done, and not about the tastes and desires of the employee," observes Broome. "We as an industry have allowed our product, without a fight, to become a commodity; our uniforms are now seen as just another article of clothing. That mindset has threatened our livelihood more than Casual Friday ever could."
Perception vs. Reality
If Broome and other readers are right, if tie sales are actually healthy, what then, has fueled the negative perception?
One answer may lie in the recent announcement by the industry's trade group, the Men's Dress Furnishings Association. Citing declining membership, the 60-year-old group shut its doors for good last month, citing declining membership as the driver behind its demise. Over the years, membership had plunged from a high of 120 members to just 23, with some of the loss coming from members going out of business.
But solely focusing on that point tells half the story, readers insist. As with other associations, much of the loss in membership occurred due to industry consolidation. "The big keep getting bigger," says Broome.
Then there was the widely reported Gallop poll which found that a mere 6 percent of the population wore a tie to work. The survey, which landed on the front page of the venerable Wall Street Journal and distributed across the wire services, was treated as gospel by many. Yet as UniformMarket readers noted, Gallop conducted a poll, not an in-depth industry report. "What the media reported as truth was merely a snapshot in time, the results varying with the whims of those polled," says one reader.
Think about how often you've read about the "death" of a particular trade segment, only to discover that in most cases, the conclusion was premature. Has the internet killed retail sales? Are real estate agents threatened by home-owners who choose to go it alone? And in the case of dress, you'll be hard pressed to find more than a handful of instances where our two presidential candidates appeared in public without a tie. Dressed for success still means a suit and tie in most circles.
What Goes Around…
Perhaps the best reason not to write off the tie business can be found in the adage, "everything old is new again." Whether or not you agree with the sentiments expressed in this article, ties will come back for one important reason - everything in fashion always does. "You can't find a single thing in this country that doesn't cycle," adds Broome. "In the meantime, be flexible, and make the product that is needed today."
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