Differentiate to make the grade - School Uniforms - Industry Overview

DSN Retailing Today, Feb 10, 2003

The school uniform business is still getting straight A's--especially if the teacher is marking on a curve.

Yet, differentiating product is a growing challenge in a market more and more companies have entered over the past half-decade. The very word "uniforms" implies uniformity.

Compelling contrast is even more crucial considering that market demand is beginning to level off, the natural result of a maturing business. Though 300 percent growth was par for the course a few years ago, these schools now feed a steadfast replenishment business, alongside continued category expansion.

"It remains a strong, extremely reliable business," says Alan Lacy, ceo of Sears. "It is one of the few apparel categories we've carried on Sears.com thus farbecause of the demand for product."

This trend holds true across school districts and channels. "The school uniform business continues to grow steadily' says Melissa Berryhill, a spokeswoman for Wal-Mart.

Vendors also concede that, though the initial boom is over, the business is still strong.

"We're seeing 18 percent growth in sales, not the level that we were seeing when the bulk of schools were adding programs, but still phenomenal growth," says Gigi Perkins, marketing coordinator for French Toast Official Schoolwear. Perkins also recognizes 5 percent growth in the number of educational centers still adding uniform programs.

Kmart meets market demand selling French Toast uniforms, and added the line to some of its stores in January because two school districts decided to implement uniform programs midyear, bringing the total number of stores carrying uniforms to 661.

Though it is a year-round business, the school uniform industry obviously hits its stride during back-to-school. At that time, some companies that do not even regularly carry school uniforms as part of their assortments will add them to capitalize on demand.

Such is the case with The Children's Place, which instituted a private label seasonal uniform line four years ago under The Children's Place label, marketed as Uniformity.

Each year, school uniform producers update their lines, but how to make merchandise stand out? The two most popular colors across school districts remain basic-navy and khaki. Most schools do not allow picot or other fashion trims that can prompt sales.

However, via branding efforts, fabrications and subtle product details within limitations, companies are trying their-best to stand out.

Many are using brand equity to lend products the halo effect of quality. It's no accident that top brands like Lee and Dickies entered the market to leverage their reputations in this profitable area.

"Our school business continues to grow in the double digits," notes Jon Ragsdale. "We feel our customers are most interested in the value they associate with the Dickies brand, and try to carry that through to product."

Haddad is banking on Dockers' reputation for high-tech performance features--like wrinkle-free and Stain Defender--to resonate with customers as it produces uniforms under its relatively new license.

Even fashion brands can help sell school threads. "We're seeing a lot of interest in our FUBU line, even though because of school guidelines we are limited in the degree of fashion we can add to merchandise, and from adding logos to garments," says Harriet Cook, vice president of licensing and marketing at Longstreet.

Numerous other factors can help prompt purchase, including fit, functionality, durability and fashion.

At Krnart, "We believe that function and durability are No. 1," says a spokeswoman. "Mom washes these every week and needs them to last."

"The most important elements in the purchase decision are functionality and fit," agrees Sam Haddad, principal, Haddad Apparel.

Fit is critical. These everyday garments must be comfortable to maintain popularity with their end users. It is essential to have n range of sizes that encompasses the variable dimensions of children, with husky, regular and slim offerings.

"We update our specs yearly to make sure they're roomy enough for kids," notes Perkins of French Toast, which just added a footwear licensee, Braha Industries, to produce coordinating merchandise for the Lollytogs Ltd.-owned brand.

As to silhouettes and styles, there is not much room for innovation. Adding yet another wrinkle to differentiating product, uniform regulations are determined regionally, so companies. need to examine school districts on a case-by-case basis.

"Local PTAs and school districts come out with guidelines, but there are no national standards," adds French Toast's Perkins.

There are certain commonalties--regarding skirt length, for example--that are fairly standard. However these restrictions inhibit the use of trends popular in children's wear. For example, the cargo pockets that are still driving sales in boys' pants are not permissible in many schools, for fear that children will fill them with concealed weapons.

"Our most popular SKUs are still basic items like the pleated skirt, although we try and bring in new trends each season, and these fashion items usually sell out every year," says Jessica Cappuccio, school merchandiser, French Toast.