September 10, 1998

To:Economic Development Committee

From:Joe Halstead, Commissioner, Economic Development, Culture and Tourism

Subject:Fashion Industry Liaison Committee Membership and 1997/1998 Activities

Purpose:

This report includes the Fashion Industry Liaison Committee's (FILC) Annual Report for 1997 and Workplan for 1998. The Committee's membership list for the current term of Council is also forwarded for approval.

Funding Sources, Financial Implications and Impact Statement:

Funding is included in the City of Toronto, Economic Development 1998 Operating Budget.

Recommendations:

It is recommended that:

(1)the membership of the Fashion Industry Liaison Committee be approved, as outlined in Appendix B, to reflect changes amongst participating member organizations;

(2)a member of the Economic Development Committee be appointed to Co-Chair the Fashion Industry Liaison Committee, together with Councillor Olivia Chow (Councillor Chow represents Ward 24, which contains the City's King-Spadina Fashion District); and

(3)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Background:

One of the largest industrial employers in Toronto, the fashion/apparel industry is made up primarily of small, Canadian-owned companies who can benefit from our support. The Fashion Industry Liaison Committee was established by Toronto City Council in 1984 to support and promote Toronto's fashion industry. The Committee is comprised of volunteers who represent all sectors of the industry, including education, design, manufacturing, wholesale, retail and labour. Subcommittees are created to work on various projects such as Marketing; Human Resources Development; Education; Awards; Technological Innovation; Export Promotion; Fashion District Revitalization; and Quick Response.

The City has established a proven track record in adding value to the industry and increasing Toronto's international reputation as a centre of excellence in fashion design. By bringing all sectors of the industry together and focussing on key issues and needs, FILC provides valuable information and advice to the City and the industry. Program initiatives have, in the past, been predominantly funded and supported by Economic Development in the range of $100,000.00 per annum.

Comments:

A.STRENGTH OF THE INDUSTRY:

According to Statistics Canada's latest sector competitiveness profile, "The Canadian apparel industry has taken important steps in adjusting to major changes in its environment. Firms that have developed the ability to respond quickly, flexibly, and have a reputation of excellent design and high quality have succeeded in gaining a foothold in export markets. However the industry will continue to face intense competition in both domestic and international markets."

Key facts:

• apparel accounts for 1.6% of Canada's manufacturing sector shipments and 6% of employment;
• the national market for apparel is in excess of $8 billion (wholesale);
• domestic shipments account for 58% of the market;
• Ontario's domestic shipments of apparel in 1996 were valued at $1.2 billion;
• Toronto has 80% of the province's apparel manufacturing jobs;
• the City's apparel shipments are estimated at almost $1 billion;
• clothing exports have risen steadily during this decade;
• Ontario's apparel exports accounted for almost $450 million in 1996; and
• preliminary figures suggest that Ontario's 1997 exports will be up 25% over 1996.

Toronto's fashion industry is making its mark as Canada's premier fashion centre. Many of our best designers and manufacturers are carried alongside top international lines at prestigious retailers such as Bergdorf Goodman, Saks Fifth Avenue and Harrods. The value-added through design is a important component of the industry's competitiveness, and is often overlooked when viewing the apparel sector from a traditional manufacturing standpoint.

Following the implementation of the Free Trade Agreement in 1989, and the recession of the early 1990's, the industry underwent a major restructuring. This process appears to be complete, and since 1994, employment in Toronto's apparel manufacturing has experienced annual growth in the range of 2-5%, resulting in almost 1300 new jobs.

The apparel industry is highly clustered with major agglomerations in the King-Spadina Fashion District, at Dufferin-Keele South, Tapscott Employment District, Dufferin-Keele North, Carlaw Avenue, Malvern and Progress Employment Districts. Employment figures for the fashion industry are difficult to obtain, since they cross many sector codes. However, we estimate Toronto has:

• 18,000+ apparel manufacturing jobs;
• 11,000+ apparel retail jobs; and
• 9,000+ fashion-related jobs (e.g. photographers, stylists, choreographers, media, makeup, etc.).

B.HIGHLIGHTS OF 1997 TORONTO FASHION SUPPORT PROGRAM:

• almost 100 media and consumer events were held in the March and October Fashion Weeks;
• media coverage for the Ready-to-Wear Collections was valued at $16 million in 1997;
• the 1997 Awards for Excellence in Fashion Design featured increased industry sponsorship, prestige, media coverage and recognition for the Award winners;
• American Express sponsored the printing of 100,000 copies of Shop Canadian;
• $40,000.00 in federal and provincial sponsorship allowed the Committee to begin implementing pilot training programs for the industry;
• more than 15,000 people attended Street Style, the second annual consumer fashion and entertainment extravaganza; and
• with the Committee's support, Toronto became the third city in the world to host the Hollywood Costume Collection, seen by almost 70,000 people.

i.)Toronto Fashion Weeks

Two very successful Toronto Fashion Weeks served to increase awareness of the capabilities of Toronto's fashion industry as well as to promote sales of the spring/summer and fall/winter collections. In March and October, approximately 7,500 copies of the Toronto Fashion Week Calendar were distributed to the national media and industry representatives, and local consumers. Roughly 15 trade and 30 consumer events took place each Week. The Toronto Fashion Hotline broadcast the schedule. In September the schedule was also available in Flare magazine, on the City's website and the Toronto Star's City Search.

Under the sponsorship of the Matinée Fashion Foundation, the Ready-to-Wear Collections have grown in size and professionalism. Twenty of the country's top designers launched their Collections to the media, buyers and consumers with the support of our best show producers, choreographers, stylists, hair and makeup artists, sound and lighting professionals, dressers and support staff. 60% of the designers were from Toronto. Media coverage of the shows was estimated at $8 million per season, or $16 million annually. With internationally syndicated television coverage on such programs as City tv's Fashion Television and CBC's Fashion File, the Ready-to-Wear Collections place Toronto and its designers on the international fashion map. Roughly 2500 people attended, including approximately 160 media and 175 buyers.

The City's position as a founding sponsor of the event has not diminished under this new sponsorship arrangement. In order to ensure the continued success of the shows, FILC's support was targeted toward a buyer attraction strategy, including sponsorship of the buyer's lounge, mailings to out of town buyers, and co-sponsorship of a buyer's luncheon with a well respected industry guest speaker. Early results have been positive, and continuation of this strategy is recommended.

In September, FILC's forty Fashion Week banners were hung in areas where events were taking place to broaden awareness amongst the trade and consumers. Industry members expressed their appreciation for this additional promotion.

ii.)Where Shop Canadian Supplement

Produced in co-operation with Where Toronto and American Express Canada, a supplement entitled Shop Canadian was included in the September and October issues of the magazine. This is the second edition of the supplement, designed to get information about where to buy local designs to the City's tourists. The City of Toronto paid for the writing of the piece. American Express underwrote the printing of 100,000 copies, a tenfold increase over our printing last year. As a result, the City was able to sponsor distribution to City visitors and residents through information kiosks across the GTA, as well as tourism organizations, transportation providers and international trade offices throughout the world. The response from the distributors, the retailers included, and additional retailers who have seen the piece and who would like to be included next year has been extremely favourable. The publication has grown in scope, is being adapted to other sectors, and has served as a catalyst for a national promotional initiative.

iii.)City of Toronto Awards for Excellence in Fashion Design

The 1997 Awards for Excellence in Fashion Design were presented on December 18^th at the York Street Gateway to:

• Designer of the Year - Hoax Couture;
• New Designer - Joeffer Caoc and Crystal Siemens (two winners);
• Fashion Graduate - Kelly Smith (honourable mention in this category went to Angela Chen and Alec Popik for headhunter);
• Accessories Designer - Karyn Gingras for Lilliput Hats;
• Specialty Designer - Zalia Ribau for Moka Designs; and
• Industry Achievement award winners Jeanne Beker of Fashion T.V. (Image Builder) and Designers Ontario President Franco Mirabelli (Innovator).

For the first time the award winners were not notified in advance of the event and the three finalists in each category were presented to the audience. With creative input for the ceremony provided by the production team of Richard Lyle and Anthony Majanlahti, the '97 Awards ceremony was one of the most memorable to date and generated a great deal of excitement among the hundreds of guests who attended. News releases announcing the winners were sent out nationally following the event. CITY TV provided live eye coverage from 6-7pm, as well as a piece on the 11pm news. Both the Star and the Sun ran articles, as did the Toronto Fashion Incubator newsletter, Style Magazine, Audrey Gostlin's Inside Fashion and Canadian Apparel Magazine.

Once again Smirnoff generously agreed to co-sponsor the reception. Awards co-sponsors included: Flare magazine, who provided a full-page ad to Designers of the Year Hoax Couture; the Ontario Fashion Exhibitors, who provided shared booth space to the new designers, Crystal Siemens and Joeffer Caoc; Jeanne Beker, who donated her $1500.00 appearance fee for an industry event to the new designer winners; wenches & rogues who provided a $1,000.00 cash award to the student winner Kelly Smith; Welly, who provided a $500.00 cash award to the honourable mention in the student category Angela Chen and Alec Popic; the Mode Accessories Show, who provided booth space to Karyn Gingras; and the Toronto Fashion Incubator, who provided Outreach memberships to the student winners and the three finalists in the specialty designers category.

iv.)Retail Awards

Held in conjunction with the Toronto Ready-to-Wear Canadian Designer Collections during the spring Toronto Fashion Week, the Retail Awards were co-sponsored by FILC, the Bloor Yorkville Business Improvement Area, Style Magazine, and Designers Ontario. Recognizing retailers who promote Canadian fashion, the awards have been very well received. Nominations are provided by designers, industry members and the media. Selection is made by an independent jury of industry representatives. The awards are presented to the winners at a special luncheon attended by the fashion media, which results in good coverage.

The winners of the 1997 Awards were:

• Style Magazine - Canadian Fashion Retailer of the Year - Holt Renfrew;
• Designers Ontario - Ontario Fashion Retailer of the Year - At Izzy's;
• City of Toronto - Toronto Fashion Retailer of the Year - wenches & rogues; and
• Bloor Yorkville Business Improvement Area - Bloor-Yorkville Fashion Retailer of the Year - Accessity.

v.)Training Project

With $40,000.00 in funding from the Canada Employment Insurance Commission and the Ontario Ministry of Education and Training, the Fashion Industry Human Resources Adjustment Committee (FIHRAC) was established to begin to implement industry-wide pilot training projects for fashion industry workers. Initiated by the City of Toronto and FILC, this subcommittee includes representation from labour, management, educators and the City.

A full-time co-ordinator was hired in March 1997. Outreach was undertaken to inform the industry about assistance provided by the Committee and research was done to locate funding sources for the delivery of programs. A pilot sample-maker training course was held at George Brown College during the summer. Good employment opportunities resulted for the participants who were very pleased with the course.

Following the conclusion of the co-ordinator's contract and a brief transition period, a new co-ordinator was hired in November. Industry members are very supportive of this project, and are anxiously awaiting the development of new courses. The City of Toronto provides office space for the coordinator at Metro Hall.

vi.)Education Sector Initiatives

Under the leadership of the Toronto Chapter of the Fashion Group International, local educators and industry representatives developed a day-long seminar called Fashion Forum to educate first year fashion students about the wide variety of jobs available in the fashion industry. Over 500 students attended the panel discussions which were presented by some 40 industry specialists.

The City and FILC has a long history of cosponsoring the student's year end fashion shows. These shows can be very difficult for the students to finance, yet represent an important part of their education. In 1997 the schools were given the opportunity to change the form of the sponsorship. Several FILC bursaries were established for top students and some badly needed equipment was purchased in the Committee's name. Other schools elected to retain the show support, and ads were placed in the show programs thanking the City for its sponsorship.

vii.)Hollywood Collection

In December of 1997, the Hollywood Collection made its North American debut in Toronto as a result of the efforts of FILC and its members. The exhibit offered Toronto film and fashion fans alike the opportunity to see the breathtaking gowns and costumes worn by such silver screen legends as Greta Garbo, Marlene Dietrich and Claudette Colbert.

Dorothe Feldner and Bev Moore of International Arts and Cultural Connections, Inc. secured the rights from the Fashion Institute of Design & Merchandising (FIDM) in Los Angeles to bring the Collection to Canada. Through ongoing consultations between this company and FILC, a beneficial partnership was formed.

Combining the launch of the exhibit with the opening of the new Varsity Cinemas provided an opportunity for a major event that included a reception, fashion show and film festival. Other key sponsors included FIDM, the Matinée Fashion Foundation and Cineplex Odeon Corporation. Jeanne Beker, host of Fashion Television, m.c.'d a fashion show including the most glamorous designs of some of the City's top designers which were presented with jewels on loan from Birks. The show was followed by screenings of the newest holiday releases and fashion-related classic films.

Some 750 members of the fashion and film industries and media attended the opening party, almost double the expected number, establishing a linkage between the City's film and fashion industries. We were also provided with the opportunity to include a few pieces Toronto designers created for film and television in the exhibit, which was seen by approximately 60-70,000 people over a six week period.

viii.)Street Style

The second, annual, day-long consumer fashion and entertainment extravaganza, Street Style was held on Saturday, August 23^rd along Queen Street West between McCaul Street and Spadina Avenue. Its purpose was to showcase alternative fashion to the public and tourists, and participation resulted in additional business for many companies. FILC's cosponsorship provided funding to hire staff to develop and promote the event. Fifty visual and performance artists shared an outdoor stage with six bands and five fashion shows featuring twenty-eight designers. Booth space was rented by over 30 organizations including designers, artists, accessories companies, restaurants and other food vendors, consumer products companies and social service agencies.

Other sponsors included The City of Toronto (Economic Development Partnership Grant), Smirnoff, Labatt's, Westbury National, A.G. Hair Care, Plutino Group, Pizza Pizza, Smart(fx) and Liberty Entertainment Group. NOW distributed the official program and Energy-108 FM provided live to air broadcasts of the event. Additional media coverage was obtained from CITY TV, Global, CFTO and CFMT, The Toronto Star, Globe & Mail, Style Magazine, What's on Queen and Watch magazines, CFRB, CIUT, CBC Metro Morning, EZ Rock 97.3, CKFM 99.9, CISS FM 92.5, CHFI FM 98.1, CFTR AM 680, CHUM AM 1050, CHUM FM 104.5, CJRT FM 91.1 AND CFRB AM 1010. Advance information was provided on the Street Style Hotline and on a pixel board at Bathurst and Lakeshore Blvd. Event organizers estimated that more than 15,000 people attended the event.

ix.)Community Marker for the Spadina LRT

The Fashion Industry Liaison Committee has wanted to honour the important historical contribution made by the industry in the King-Spadina area for many years. In 1997, in co-operation with Metro Toronto and the Toronto Transit Commission, a Fashion District Community Marker was added to the public art competition for Spadina Avenue. Located at the northwest corner of Richmond and Spadina, Stack, by Stephen Cruise, was officially unveiled in October. A small reception for the guests was hosted by FILC in the Fashion District. Coverage was received in the Globe and Mail, Canadian Apparel magazine and urban zoo, a local Vancouver fashion television program.

C.1998 WORK PROGRAM AND BUDGET:

i.)Toronto Fashion Week

Many designers, manufacturers and retailers will hold independent shows, and thus the co-ordinating and promotional role played by the Toronto Fashion Week Calendar will continue to grow in importance. Development of a web site to assist with scheduling and promoting industry activities throughout the year is also under investigation.

For the March Fashion Week, FILC and the Cityworked with the Ontario Fashion Exhibitors (OFE) and Designers Ontario to try to build a link between the two key trade events. The shows were scheduled in the same week and a Designers Way was created at the OFE Market. Designers participating were very pleased with the results.

The 1998 Fashion Retailer Awards were presented to:

• Visa Canada - Canadian Fashion Retailer of the Year - Roots
• Where Toronto Magazine - Shopping Destination of the Year - Toronto Eaton Centre
• City of Toronto (FILC) - Toronto Fashion Retailer of the Year - Maxi Boutique
• Designers Ontario - Ontario Fashion Retailer of the Year - Saffron Road
• Visa Canada - Canadian Designer U.S. Retailer of the Year - Jacobson's Stores Inc.

The first of the two annual Matinée Fashion Ready To Wear Collections was a resounding success. Attendance increased by approximately 25%, with 3000 attendees including approximately 200 media and 225 buyers.

The Fall Fashion Week will be held from September 16 - October 3, 1998.

ii.)Fashion Industry Promotion and Marketing

FILC's work has enabled the City to establish a great deal of credibility within the fashion sector. The Committee Coordinator (Economic Development staff) serves as an advisor to several industry boards and committees, and responds to a variety of requests for information, advice and assistance from industry members, people wishing to enter or do business with the industry, and American and international investors and firms seeking opportunities to do business here.

FILC was allocated part of the City's transit shelter advertising space in 1998. A new poster was developed to promote the industry during the spring Fashion Week.

Funding has been disbursed to continue the distribution of the Shop Canadian fashion brochure through hotels and information centres across the GTA. The brochure will be updated in the fall.

iii.)Awards for Excellence in Fashion Design

The City's successful Awards program are proposed for the fall and will continue to develop, adjusting to suit the needs of the sector. Particular attention will be paid this year to increasing: representation across the new City; involvement of the various industry subsectors; the publicity received by the award winners; and corporate sponsorship.

iv.)Training

An additional $175,000.00 in funding has been provided to The Fashion Industry Human Resources Adjustment Committee from Human Resources Development Canada and the Provincial Ministry of Education and Training. Projects under development include industry-specific ESL training, a Sewing Machine Repair course, the second edition of the sample making course (available as a whole or in modules), development of a sewing co-op and cosponsorship of management training through industry seminars.

v.)Education

The FILC Education Subcommittee, made up of the heads of the Toronto area fashion programs, have undertaken the sponsorship of the Fashion Forum, student shows and awards, which forms the core of the program. The feasibility of establishing a regular program of industry seminars and networking opportunities is also being investigated.

vi.)Export Assistance

FILC has been approached by a customs brokerage firm interested in developing a special program to assist Toronto-area fashion/apparel companies increase their exports. Staff will work to support the company in their efforts to develop an initiative that meets the needs of the industry, and to disseminate information about the program.

vii.)Project Development Fund

Each year funding is set aside in the project development fund to undertake new initiatives or respond to sector requests for assistance.

• In 1997, a proposed export mission to New York proved to be infeasible and therefore was not undertaken. However, a new proposal is being developed which includes a high profile advertising feature supported by merchandising and publicity events in key U.S. cities. It will likely be forwarded with a request for support later in the year.
• The Ontario Fashion Exhibitors (OFE) is revising its market weeks to increase sales for participants. This year FILC is assisting in a direct mail campaign targeted at retailers in the Northern United States to encourage them to visit Toronto's Fashion Week and buy Canadian.

D.MEMBERSHIP:

The Committee's current structure includes representation from provincial associations and other regional bodies. It therefore is now able to broaden its mandate to represent the industry across the new City without a substantial change in membership or structure. An outreach and consultation program is required to contact individual businesses outside of the former City of Toronto to determine how the Committee can best serve their needs. A workshop planning session will be held, as a component of the Economic Development Strategic Plan Consultation Process, with FILC, staff and industry representatives.

The membership of the Fashion Industry Liaison Committee must be updated to reflect changes in its member organizations. Tom Abrahams has been replaced as the representative of the Advisory Committee by its new Chair, Mr. Mike Canhas. Karen Leyland, Marketing Coordinator of The Bloor-Yorkville Business Improvement Area has replaced Lisa McGee, as their representative on the Committee.

Increased representation from across the new City is being sought. The names of the new members will be forwarded to Council for approval later in the year.

Conclusion:

Business retention, attraction, growth and export development are all key goals of the City's sector support for the fashion/apparel industry. FILC is unique in its ability to act as an advocate for the industry and bring all of the players to the table, providing them with the opportunity and the support to work together to benefit the sector.

By working with other private and public sector partners through the Fashion Industry Liaison Committee, the City is able to leverage its investment and provide the assistance required by the industry. In 1998 businesses will be consulted and strategies developed to ensure that the Fashion Industry Liaison Committee's initiatives continue to meet the needs of the fashion/apparel industry across the whole City. Activities such as the co-sponsorship of the Collections launch, export missions to the U.S., the promotion of industry stars through the Awards program, training, marketing and education will continue to enhance economic activity in this important sector of the City's economy.

Contact Name:

Brenda J. Librecz

Managing Director

Economic Development

Laurie Belzak, Coordinator

Fashion Industry Liaison Committee

Phone: 392-1296

Fax: 392-0675

E-mail: lbelzak@city.toronto.on.ca

Joe Halstead

Commissioner

Economic Development, Culture and Tourism

ECO-98-29

APPENDIX A

FASHION INDUSTRY LIAISON COMMITTEE 1998 WorkPlan

1)Toronto Fashion Week

-Spring Fashion Week Program$2,500.00

-Co-sponsorship of Spring Collections Launch$20,000.00

-Fall Fashion Week Program$2,000.00

-Co-sponsorship of Fall Collections Launch$7,000.00

-Co-sponsorship of Retail Awards$4,000.00

TOTAL$35,500.00

2)Fashion Industry Promotion and Marketing

-production of TTC Shelter posters$4,500.00

-distribution of '97 Shop Canadian brochure$5,500.00

-production of '98 Shop Canadian brochure$2,500.00

TOTAL$12,500.00

3)Awards for Excellence in Fashion Design

-reception, fashion presentation and awards$11,500.00

4)Training and Education

-Fashion Forum Co-sponsorship$500.00

-Co-sponsorship of Student Year-End Fashion Shows & Awards$1,500.00

TOTAL$2,000.00

5)Project Development Fund

-cosponsorship of export mission to New York City

-support for OFE markets

TOTAL$3,000.00

6)Strategic Planning Session

-event organization and promotion$1,000.00

7)General Expenses$2,000.00

TOTAL$67,500.00

APPENDIX B

FASHION INDUSTRY LIAISON COMMITTEE

MEMBERS

Chair (to be appointed by Council)

Mike Canhas

Toronto Dress and Sportswear Advisory

Alexandra Dagg

Union of Needletrades, Industrial and Textile Employees Locals 12, 14, 83, 92 & 136

Peter Duck

Ryerson Polytechnic University

Mel Fruitman

Fruitman Consulting Group

Stewart Halliday

Jones New York

Lynda Jagros May

Fur Guild of Canada

Bob Kirke

Apparel Ontario

Arpi Kunugus-Wilson

The Couture Association of Toronto

Susan Langdon

Toronto Fashion Incubator

Karen Leyland

Bloor-Yorkville Business Improvement Area

Franco Mirabelli

President, Designers Ontario

Karen Palmer

Chameleon Accessories Inc.

Rosalie Starkey

George Brown College

Astor Zieper

Ontario Fashion Exhibitors