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

SOURCE B.E. RESEARCH, HOOVERS.COM, DOW JONES & CO.

FUBU

CEO Daymond John

Year founded 1992

Gross sales 2001 $380 million

Apparel & accessories Men's, women's, and children's sportswear, footwear, outerwear, swimwear, watches, suits

Outlets Nordstrom, Macy's, Dillard's, Foot Locker, Dr. Jay's

Sean John

CEO Sean "P. Diddy" Combs

Year founded 1998

Gross sales 2001 $250 million

Apparel & accessories

Men and boy's sportswear, suits, hats, underwear, outerwear Big and Tall menswear

Outlets

Bloomingdale's, Macy's, Dr. Jay's

Phat Farm

CEO Russell Simmons

Year founded 1992

Gross sales 2001 $175 million

Apparel & accessories

Men's sportswear, cologne, deodorant, sneakers, outerwear, hats, underwear, women's sportswear, dresses, outerwear, lingerie, children's sportswear, outerwear, hats

Outlets

Macy's, Bloomingdale's, Phat Farm NYC/Montreal

Rocawear

CEO Damon Dash

Year founded 1999

Gross sales 2001 $150 million

Apparel & accessories

Men's, women's, and children's sportswear, outerwear, hats

Outlets

Macy's, Dr. Jay's. Available in Canada, Germany Austria, England, France, and Japan

Karl Kani Infinity Inc.

CEO Karl Kani

Year founded 1989

Gross sales 2001 $77 million

Apparel & accessories

Men's sportswear, loungewear, footwear, women's sportswear, loungewear

Outlets

Macy's, Dr. Jay's

RELATED ARTICLE: Competing with celebrity lines is a hard sell.

Urban fashion has never been an easy market to break into. And with celebrity-attached clothing lines such as Sean John, Rocawear, and Phat Farm dominating the industry, it may be harder now more than ever. But while the average entrepreneur doesn't have the financial backing of music mogul Sean "P. Diddy" Combs, a number of savvy individuals have found a way to capitalize on the urban apparel explosion.

"We rely heavily on a grassroots campaign," says Gerard Murray, who along with his wife, Carol, created the apparel company School of Hard Knocks (SOHK). The Murrays came up with the clothing line in 1996 after developing a T-shirt imprinted with the words "Queens 7, "which paid homage to their local Queens neighborhood. "We have a good sense of what people want because, as retailers, we get opinions when our customers come into our store."

Since SOHK's inception, the Murrays have expanded their family-owned store and entered into a licensing agreement, making the company's array of men's and boys' sportswear available nationwide. SOHK earned an estimated $22 million in sales last year.

"A celebrity line is only as popular as the celebrity," says Murray.

Grassroots marketing is key for urban clothing entrepreneurs seeking success. Dwayne Lewis, CEO of the apparel company DADA, and his partner, Michael Cherry, began their business in 1995 with only a polo-style hat. The two men, who were living in the Washington, D.C. area at the time of the Million Man March in 1995, took advantage of the event to promote their product.

"We took a cardboard box, put the hats on the back, and sold [them] to people from all over the world. We realized that it wasn't a fad," says Lewis, whose company now features footwear, sportswear, accessories, and another fashion line, DAMANI DADA. Last year, DADA earned an estimated $50 million in sales.