WHAT WILL BE in for fall? From what was on the runway during New York Fashion week, it looks like cautious optimism.

During the week-long fashion fest, which previews looks for autumn, designers staked out distinct territories. While trendy Zac Posen skewed conservative, choosing not to feature a single gown, Ralph Lauren (RL) and Michael Kors traded their depression-era smocks and floral prints for furs and blaring colors. Meanwhile, Francisco Costa, the creative director for Calvin Klein, showed business-like wearable, tailored suits and outerwear.

Alison Lewis, the founder of the two-year old line, Lewis, skipped the shows altogether — but after having to trim prices on her trendy daywear last year in response to the downturn, she says she is feeling a little more confident. In the last few months, Lewis says she has picked up 20 new accounts — both department stores and boutiques in the U.S. and Europe — and logged a jump in sales. In 2009, the company took in $40,000, up from $12,000 in 2008. She expects the label to bring in $65,000 to $85,000 in 2010, and to turn a profit within two seasons.

SmartMoney asked Lewis about the ups and downs at her label. Here are her condensed answers.

You’ve worked as a designer for a small label prior to launching Lewis in 2008. How has that experience helped you?

When I launched my previous label, Mooka Kinney, I had a partner who had worked in public relations. Though we eventually split up, she introduced me to a number of influential fashion editors, and helped me get more attention for myself as a designer.  That experience gave me the opportunity to try some things, make mistakes and learn what works. I also learned that in fashion everyone is looking for the next new thing, which helped me most when I came out with Lewis.

How has launching your own label, at the height of the downturn, helped or hurt your business?

Prior to the downturn, I could sell a cotton dress for $400 and no one would blink an eye. Now stores want you to bring your prices down. At first, that notion bothered me. However, I soon realized that even bringing the wholesale price down $5 or $10 might mean I can sell 50 to 100 more dresses. The more I produce, the more I’m able to bring my prices down a bit.

Buyers are also more apprehensive about brining on a new line. They want to meet with you two to three seasons before taking you on. They want to know you’ll still be around.

Some high-profile designers appear to be more confident about the economy these days. What do you see; are people willing to buy $400 dresses again?

I don’t think so yet. I hope that people will keep doing creative things going forward, but I have noticed that some designers are becoming more focused on what sells rather than the art of fashion. Plus, the rise of sample sale web sites such as Gilt Groupe may have had more of a transformative effect on people than we realize. Even if the economy gets better, if people know that they can pay half price if they wait longer, I’m not sure if they will be willing to pay full price again.

Presenting collections at events like Fashion Week is costly. Is the expense worth it for young designers like yourself?

I’ve done presentations at Fashion Week in the past. However, I have mixed feelings about the event. While showing a collection at Fashion Week is a great way to generate buzz, most designers have editor appointments a few weeks after Fashion Week wraps up anyway. So, you typically get an opportunity to present even if you don’t show.

For us, this year, we decided to by pass on Fashion Week. Not only did the event creep up on us, it’s easy for small designers to get lost in the chaos of the week. Instead, we might have a party. In June, we’re being featured on the Red Hot Shop, an online boutique on Target's (TGT) web site. On one hand, throwing a party lets us try something new, while on the other, we can celebrate the opportunity with Target and invite editors to relax and come have a drink.

Given that so many fashion companies manufacture overseas to save money, why have you chosen to stay stateside?

While I now produce everything in New York’s design district, I’m not averse to looking for manufacturing opportunities abroad. In fact, the more we grow, the more it will make sense to explore overseas options. Still, a lot of buyers are drawn to the fact that my line is made in the U.S. Right now, especially, it’s a selling point.

As a small shop, you’ve had to wear many hats. Has handling not only the design end of things but also the business end been problematic?

While I have an advisor and an accountant, I do the bulk of the business stuff on my own. For instance, I do all the day-to-day accounting and all of the budgeting. Although designing everything and working on the business takes up a huge chunk of time, I find that being able to see my company’s profit margins and quarterly reports is invaluable. I can see what works and what doesn’t.

It also helps that Lewis is now represented by a showroom. In exchange for a commission of the sales and fee each month, that showroom acts as my sales staff. When I was doing my own sales during my first season, I only managed to meet with about 20 buyers. Instead, the showroom has connections with hundreds of buyers.

What is your best advice for future fashion entrepreneurs?

Ask questions. When I was starting out, I had a list of about 20 questions to ask people I met in the industry. For instance, I asked about where to find wholesale fabric and good factories. Fortunately, the bulk of people were happy to help. 
 

—Do you know of a small business that would make a good In Focus? Send your suggestions to: Editors@smSmallBiz.com