In early 2004, Russell Simmons sold Phat fashions to The Kellwood Company for $140 million in cash. He stuck around for two years to make sure that the company stayed on track and judging by the numbers reported above it did. Russell, job well done!
"You see, most people don't understand the fashion business. You start a brand and you make it hot! And then you start licensing out the name to other companies to create more products and that helps to build your brand and your company. That's how you get to the billion-dollar mark. And when you do licensing deals, others do the work and you get a cut of the action. Why? Because it's your name! I love this business!"
-Jay Arrington co-owner of www.startingaclothingline.com
Rocawear was founded by the Shawn "Jay Z" Carter, Damon Dash and Kareem Burkes in 1999. Since its inception, the company has been a force in the fashion world, bringing in an average $300 million annually. As Jay Z states in the lyrics of his song The Watcher, "I had it laid out before you knew what a plan was $300 million later now y'all understand us." Rocawear's annual sales are currently up to a staggering $700 million making it one of the highest earning clothing lines in the industry. Carter recently reported selling Rocawear to the Iconix Brand Group, Inc. for $204 million in cash and $35 million in stocks. Two years before the sale, Damon Dash sold his stake in the company for $22.5 million in cash and controlling interest of several spin-off apparel and fashion brands. His business manager estimated the total value of the deal to be approximately $30 million.
Another Hip Hop star to cross over into the fashion business is Sean Combs. Known during his musical career by several different names, he has made his mark on fashion with the Sean John line. As Sean Combs would say, "It's not a brand, it's a lifestyle." And apparently it is a lifestyle that the world is buying. In the first year of Sean John's full arrival, the company received great reviews and quickly shot past $100 million in sales. In 2002 Sean John brought in $325 million; in 2003, $450 million. In the short time that Sean John has been on the market, the company has consistently maintained an average of $400 million a year. With the upcoming introduction of his women's line, earnings in the billions can only be expected in a short time as well. Comb's has also signed a licensing deal with power house Estée Lauder to distribute his fragrance worldwide. The fashion business is not local or regional, it is global, and those who really succeed in the business for years and years know how to capture a global market share.
"You know one of the reasons why I always praise this industry is because you can be a self-taught clothing designer and still make millions or even billions of dollars! Tommy Hilfiger, Liz Claiborne, Karl Kani, Christian Dior, Yigal Azrouel are all self-taught, but a lot of people don't know that."
-Michael Harper co-creator of www.digitalfashionpro.com
Miskeen is a new company that in 2002 started out making t-shirts into wearable art canvases. They created original designs on each shirt and in the first year Miskeen made $502,000. In 2003 they made $4 million and in 2006 the company increased sales to $12.5 million! Like with many other companies, Miskeen could go far, so I will be keeping my eye on them. With sound business practices along with great designs and good marketing strategies, they could be another FUBU or Phat Farm. And who knows? Maybe one of you will be the next hot clothing designer that catches the public eye. Until then, think fashion and you will always look your best!
Nigel Christopher is a fashion stylish, designer, industry insider and researcher. He currently resides in New York City as free lance clothing designer. He is also a budding fashion writer so be sure to look for more articles from him.
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