By Sally Kay
Hosiery manufacturing, much of which is centered in the Southeastern portion of this country, is at a critical stage of its evolution.
Global forces are affecting our industry - the producers of socks for the entire family, sheer hosiery and seamless active wear - like never before. And the rapidity of change has created whirlwinds of both excitement and apprehension among hosiery companies of all sizes, as they endeavor to succeed in a totally new marketing arena.
Hosiery, like many other manufacturing sectors, has experienced significant change over the years. Market consolidation, globalization and highly volatile economic conditions have created an environment such that it is challenged daily to make important decisions, many of which are dictated by necessity rather than choice.
More than 5,000 industry executives from across the globe convened in Charlotte last spring for the International Hosiery Exposition (IHE) and Conference 2003, an every-four-year event sponsored by The Hosiery Association (THA). In addition to viewing an array of exhibits featuring new technology and manufacturing concepts, participants had a unique opportunity to not only gather as an industry, but perhaps more importantly, take stock of where it is and where it is headed.
I believe it is critically important that hosiery companies discover answers to these questions in an effort to ensure their viability going forward.
Many leaders within our industry agree that hosiery has made a concerted effort to distinguish itself from other sectors of the textile business by taking a proactive stance in investing in the knowledge, raw materials and facilities required to constantly develop new, innovative products and train its work force to effectively and efficiently manage and operate the most technologically sophisticated equipment available.
The hosiery industry is actively pursuing every opportunity and delving into situations once considered to be impractical or non-conventional in nature.
The winds of political change have become increasingly intrinsic upon our current business environment and trade has an impact on us all. Now, more than ever, it is important for the United States' domestic hosiery industry to maintain a visible posture both at State and Federal levels.
There is no arguing the fact that there has been a pro-free trade administration in place since the Kennedy era, but the difference now is that the industry is quickly recognizing the fact that the fair trade elements of these agreements must be enforced.
Within the past year, THA has strategically reorganized itself to inform and educate its members on legislative and regulatory information in a timelier basis. Through efforts of both the USA Domestic Manufacturers Committee (DMC) and the Global Manufacturers Committee (GMC), the association provides its members with the necessary vehicles to convey their messages in Washington and to network with those that have similar goals and interests in succeeding in this intensely competitive environment. THA is responsive to these issues and its Board of Directors consequently revised its position on international trade as follows:
Given the present global environment, and working as a key partner to the domestic hosiery manufacturing base in the U.S., The Hosiery Association (THA) supports balanced and mutually beneficial fair trade practices between the U.S. hosiery industry and its global partners.
This position statement addresses trade practices and not agreements. To further clarify, it supports the development, adoption and enforcement of measures designed to identify and eliminate unfair trade practices, which disrupts US markets. The association calls for strict enforcement of U.S. trade laws where necessary.
As if that were not change enough, the industry's customer base here at home is also changing rapidly. Consumers are more demanding than ever before from our products. They are in pursuit of products that are not only fashionable but also functional.
Solution-based items are driving retail sales. What will make them look firmer, run faster, feel better and keep them in style with the latest fashion trends? According to Marshall Cohen, president of NPD Fashionworld, a major market research firm, "Today's consumers have different expectations. They increasingly seek value, and are willing to shop across categories (i.e., department stores, chains, mass merchants) to find it."
Additionally, apparel, including hosiery, now competes with entertainment, electronic products and home furnishings for consumer spending.
So what can our industry do? "You need to create a higher level of product differentiation, i.e. special brands, designs and price ranges," Cohen added. "You also need to decide which brands will compete up and down.
Today's consumers assimilate lifestyle brands with value. Private label programs should not be limited to promotional sales tactics. Successful companies are those which create fashion items more quickly and not remain complacent by simply garnering volume. Captivate the consumer … learn what he/she wants, needs. Differentiate your products and invest in the future. Understand and manage value pricing.
Cohen challenged our group with the following, "What are you doing to reposition your brand in today's new world?"
We all realize that the only constant in our lives is change. It is human nature to initially think, "well, if I work that much harder and do what I know how to do the best that I can, I will endure these waves of change." Unfortunately, that mentality is no longer a realistic option.
For those of us who refuse to settle for the status quo, we must commit ourselves to reinvent, retool and embrace a proactive philosophy rather than one of complacency. We realize that other segments, such as the athletics and microchip industries have successfully reinvented themselves, why can't we?
Yes, we may prefer to stay within our own comfort levels, thus minimizing our risks. But in order for us to evolve, taking risks has become a prerequisite for future success.
Hosiery is also unique in that the majority of the companies are family-owned businesses that are the lifeblood to the communities with which they reside. The citizens and the infrastructure of many towns throughout our country and beyond depend on the success of our mills.
According to THA Chairman Charles Cole of Alabama Footwear, "Being a mill owner myself, I realize the direct impact that my company has on my community and make a concerted effort to manage my business effectively but also realize that the employees are the foundation to a company's success. The tenacity and perseverance that these individuals possess is second to none and we should be ever grateful for their loyalty."
In the end, Cole said he believes that the industry's strength - and its ultimate success - lies in its heritage.
"We are one of America's oldest and most respected industries, and we have succeeded over the last century based on our commitment to hard work, the integrity of our products and our responsiveness to our customers," he stated. "These inherent values will be even more critical in the new world which we have entered - and one in which we will ultimately prevail."
Founded in 1905, we are approaching the close of one century and the beginning of a new one as it relates to the work and service by The Hosiery Association, formerly the National Association of Hosiery Manufacturers. Many of today's programs along with the numerous successes throughout the years are based on the foundation of leadership provided by individuals and their companies over the entire twentieth century.
The first industry volunteer leader was Harold Lamb from Union Manufacturing Company in Union Point, GA. Lamb served as president from 1905-06, and interestingly enough, he was followed the next year by Frank L. Chipman of Chipman Knitting Mills out of Easton, PA. For those that do not already know, these same two companies were merged together into Chipman-Union, Inc.
Lamb and Chipman undoubtedly worked closely together in those first two years of the association in an effort to bring the industry together into a national trade organization.
Consequently, Chipman-Union provided four leaders of the association over the years. However, other significant companies in the industry, such as Adams-Millis Corporation and the various entities that now comprise Sara Lee Hosiery, provided multiple industry leaders. Our records indicate that what is today Sara Lee Hosiery has provided five leaders, starting with James E. Millis in 1940-41, followed by James N. Weeks in 1945-47.
Entities that are now Golden Lady/Kayser-Roth Corporation appear to have provided four leaders to the association starting with John W. Mettler of the Interwoven Stocking Company from 1928 to 1931 and most recently Kevin Toomey from 2002-2003.
We have celebrated almost 100 years in this association … what will our children, tomorrow's leaders be celebrating during the next 100 years?
Sally Kay is president of The Hosiery Association (THA), Charlotte, NC.
