New Kids on the Block take the Industry by Storm

New Kids on the Block take the Industry by Storm

Talented, new urban designers have imposed their will on the fashion industry with the same force, if not a greater one, as their fashion predecessors did. They have opened new doors to an industry that was difficult to break into. This phenomenon started in the early 1990s with the former companies Cross Color clothing and fashion designer Karl Kani. While they are no longer active companies, they were the trailblazers for FUBU, Phat Farm and many other clothing designers.

Trail Blazers

Cross Colors was founded by Carl Jones in the early '90s. Cross Colors. Upon its arrival on the market, the company was so hot, that they had major problems filling orders. With $130 million in pre-paid orders, they could only ship $89 million. The company grew at an uncontrollable rate. In its first year of business, Cross Colors made $15 million, and by 1992 it made $89 million. These figures are staggering and show the kind of market share that the new, urban market was able to capture easily.

Designer Karl Kani started his career with Cross Colors (Threads 4 Life), but left the company in 1994 to start his own label. In its first year the Karl Kani label had $22 million in sales, ranking him No. 38 on the Black Enterprise Industrial/Service 100 list. In the following year, Kani had $59 million in sales-a 37 percent increase over the previous year. The 1995 numbers earned him a leap from No. 38 to No. 25 on the Black Enterprise Industrial/Service 100 list. After such an impressive first two years, the line lost its market share, but Kani managed to reinvent himself and the company. Often called "the godfather of urban fashion," in 2002, Kani returned with the introduction of "Life" a new clothing line that made $25 million in its first year. Achieving success where Hilfiger failed, Kani partnered directly with Hip Hop artists, rather than just having them wear his product.

For Us By Us, (FUBU) was an inspiring slogan that motivated four friends from Queens, New York to follow their dream. According to legend the guys from FUBU went to the Magic Show in Las Vegas. Magic is the biggest clothing convention in America, and at the convention, buyers were so impressed with their designs that FUBU took $1 million in orders from stores across the country. Lacking the capital to fill the orders, they placed an ad in the newspaper for investors. It read: "One million dollars in orders. Need investors." The ad attracted the attention of the conglomerate Korean company Samsung, which made an investment in the company and helped FUBU fill the orders. Since then, FUBU has been a household name.

FUBU went on to take the fashion industry by storm. They went from selling hats on the street corners of New York to selling full collections in stores all over the world. Their operation moved from a basement in Queens to the entire 66th floor of the Empire State Building. In 1997 FUBU made $75 million, in 1998 they made $200 million; in 1999, $ 350 million and by 2001 their sales reached $380 million. Overall, the company's worth grew to $450 million.

While FUBU does not currently have the same market strength that they had a few years ago, last year, they still managed to make $12.1 million from international sales. It is this ability to capture both domestic and international markets that shows the versatility of the fashion industry.