Los Angeles FashionTech 2016 Industry Analysis Daniel D. Gutierrez, Data ScientistAMULET AnalyticsJanuary 27, 2016

AMULET Analytics is pleased to work in collaboration with GRID110 to use data science methodologies to show how the fashion industry is a strong economic driver for DTLAAMULET Analytics is the consultancy of LA-based data scientist Daniel D. GutierrezI am a long-time data science & machine learning practitioner, educator, author and journalistI work with The New Mart to use social media to extend brand reach

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Data Science via Strategic Partnership

Public Data Sources – data.lacity.org – open data resource for the City of Los Angeles– www.labormarketinfo.edd.ca.gov – California Employment Development

Dept.

Privately Procured Data – GRID110 building a private data repository data set for LA FashionTech– Data set includes: business starts, head count, revenue history, investment totals– Data set is updated each Quarter and is available on a subscription basis

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Data Sources

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LA Fashion Industry OverviewLA Fashion District’s Uniqueness

New York and London is all about design ✔Los Angeles is all about “the business of fashion” ✔

LA’s Apparel Industry Success DriversThe pull of design talent ✔Favorable cost economics ✔The appeal of casual clothing (particularly denim) ✔Fashion ✔Speed to market ✔

Apparel and Textile Sector Strength Continues

More than $46B in apparel imports comes through LA ports ✔Local companies capture more than $18B in revenues and $6.4B flows to local workers

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Buyer Reach for The New MartNational and Global Buyer Reach

The New Mart is at the pole position in LA’s Fashion District – at “The Intersection”As a premier fashion mart in DTLA, The New Mart is a great example of the strength of LA fashionBuyers from nearly every stateBuyers from many countries around the word

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LA Fashion Industry Business StartsBusiness Starts by Sector

Data for 2006-2015Retail dip in 2014 due to changes in NAICS classification, e.g. e-commerceManufacturing dip in 2014 due to evolution of sector and NAICS classificationFashionTech as a new sector coming on strong

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Business Starts – Industry Code by Year

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Jewelry Store Clusters

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Other Clothing Store Clusters

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Shoe Store Clusters

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Family Clothing Store Clusters

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Men’s Clothing Store Clusters

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Clothing Accessory Store Clusters

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Children/Infant Clothing Store Clusters

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Women’s Clothing Store Clusters

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Leather Goods Store Clusters

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Apparel, Piece Goods & Notions Clusters

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Textile Mills Clusters

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Apparel Manufacturer Clusters

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All Industry Code Clusters

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All Industry Code Clusters + FashionTech

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LA Fashion Industry Annual RevenueRevenue by Sector

Data for 2006-2015Retail dip from 2008-2010 due to Great RecessionManufacturing only flat during this periodAverage 2.5x separation between Retail & ManufacturingFashionTech as a new sector coming on strong

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Analysis, Conclusions & SuggestionsStrong Activity Continues: 1,130 store openings • retail/mfg revenue reboundedDTLA Remains Dominant: Density clusters overwhelmingly in neighborhoodFashionTech is spread randomly throughout LA CountySUGGESTION: FashionTech companies should gravitate toward DTLA over other parts of LA County, and the traditional Fashion Industry should welcome them

Proximity to business resources expressly for fashionPress CoverageInfrastructureEvents: Market Weeks, Melange, etc.

SUGGESTION: The industry should advocate for a new NAICS Code: Fashion Tech

Helps to more accurately understand market trendsAllows for more precision in analyzing market nichesShows increasing power of tech in fashion

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What’s Next for Fashion Tech Analytics?Today is Just the Start!

Early stages of using data science for looking at LA’s Fashion IndustryEarly stages of a private effort for collecting FashionTech data (first of a kind)

Continue to Build the LA FashionTech DatabaseCollect data for business starts – geospatial data analysisCollect revenue dataCollect investment dataCollect labor dataComparison with LA fashion industry as a whole

Build New Resources and TechnologyNew industry analysis reportInteractive web applicationsLook for final results in Summer 2016

Thank You!Follow me: @AMULETAnalyticsContact me: daniel@amuletanalytics.comwww.amuletanalytics.com