Rags to riches: hip-hop moguls use groundbreaking designs and star power to challenge major clothing labels and become a force in the $164 billion fashion industry - The Hip-Hop Economy: Part 4 Of A Series

Black Enterprise, Sept, 2002 by Jeffrey McKinney

POWER OF CELEBRITY

Developing new products takes money and marketing. For the most part, hip-hop entrepreneurs have effectively used their roster of rap artists, music videos, and movies as a way to promote their brands. To gain this competitive edge, one apparel company has developed an entertainment venture as a revenue source and cross-promotion vehicle. In 2000, 10-year-old FUBU (which stands for "For Us, By Us"), the clothing manufacturer that has grown as a major competitor of Donna Karan, launched a record division through a joint venture with Universal Records. At the time of the deal, Carl Brown, FUBU Records president and one of the founders of the clothing company, said, "The synergy between [FUBU and Universal] will undoubtedly open new avenues for us to explore in the fashion and music industries."

The marriage enabled them to develop innovative ways to market their products. For example, when it released its first CD, The Good-life--featuring rapper and company pitchman LL Cool J--a red baseball cap with the FUBU logo graced its cover. At the time of the release, Macy's devoted window space to the company to promote the new album, as well as unveiled its new women's line, "Fatty Girl," the name of a cut on the CD.

Other companies, however, will rely on the ubiquitous presence of their founders. For instance, the entertainment-oriented cable network E! developed a two-hour special on Combs, complete with a live taping of Sean John's annual grand fashion show. As a result, the clothing line was exposed to 85 million viewers daily for four weeks, increasing awareness of the line in households that never heard of Sean John. Of course, the company engages in traditional marketing--promoting its annual fashion show and increasing advertising--an effort that has been budgeted at $7 million to $8 million this year, up from $4 million to $5 million last year. But having a CEO who is a superstar that "kicks it" with other big-time celebrities does not hurt Sean John's fortunes. In fact, Combs regularly sends items to Hollywood stars like Leonardo DiCaprio, Will Smith, and Denzel Washington, who can possibly generate greater exposure for the line.

Combs and others have demonstrated that marketing, music, movies, and fashion will continue to be strong threads that bind the Hip-Hop Economy. And judging by the acumen and tenacity of these empire builders, hip-hop will not only be a part of the fabric of black entrepreneurship for decades to come but also tie African American participation in the business mainstream as well.

Dressed for Success

Whether it's baggy jeans or men's couture, hip-hop designers are making their presence known on runways from New York to Milan. They are demonstrating that, like movies and music, fashion is a strong thread that binds the Hip-Hop Economy. Who are the leaders of urban fashion? Who's creating the hottest urban styles and trends? Here are a few of the bigger players in the apparel industry.

--Compiled by Christina Morgan