There are mixed reviews when it comes to determining what the future of Hip Hop Clothing holds. There are those who say that these clothing companies are doomed and simply don’t have the staying power they need to survive. Retailers have criticized some brands as being arrogant, disorganized and overextended. They also feel that the prices are too high and can’t reach the broader markets. The problem is that many entrepreneurs want to go it alone. The urban market is so closely linked to rap music that the sale of clothing is really determined by the popularity of the music and the artist. So as long as the future of rap is good then the future of urban clothing will be good.
There are those that believe that many of the hip hop clothing brands are in trouble because of their large debts and the slump in the economy. Kellwood that owns Baby Phat and the XOXO brands was nearly forced into bankruptcy. The company had a $140 million bond issue against them but were able to defer the bond payment and restructuring the debt in a last minute deal. The Wall Street Journal claimed that Kellwood was $500 million in debt and $800 million in annual sales. Along with these companies the Ecko Enterprises was also selling their spin off business to cut cost in the company. The company had been put on the market to raise cash. They had to get cash together to pay off Ecko Enterprises $170 million in debts to the creditor group CIT as well as their manufacturer Li and Fung USA.
The future of buying urban wear is changing. There are those people who would rather buy smart brands. There are local markets and whole sale markets who deal in bulk hip hop clothing. They serve as a barrier between the producers and the retailers. There are many native wholesalers that have good prices. Quality is also considered when fixing the price. The more liked brands are sold at higher prices. There are those who don’t care about the price and raise the value of the stock. The easiest way for manufacturers to earn more profits is by selling the stock to wholesalers who buy it in bulk. This all leads to a rise in the price of urban clothing.
The best way to gauge the future of hip hop clothing is to look to the streets and what society is wearing. The Generation Xer’s have talent and are youthful and street smart. Clothes are being mixed and matched and whatever is hot on the street will pave the way for the future of urban clothing. It seems that going into the future urban clothing will be as simple as designer t-shirts, slim jeans and fancy footwear in unique styles. Fashion is becoming more mainstream but the core influences will stay the same.
