In Swimwear, the Hottest Thing on the Beach Is Raisins
When Lori Jones visits her brother in Newport Beach every summer, more than a sibling reunion draws her here.
The 28-year-old resident of Longview, Wash., heads directly for the local swimwear shops. “California is the only place I can find a decent swimsuit,” she said.
And, when Jones recently walked into a summer swimsuit sale at Sky Stone, a Balboa Island swimwear shop, she was soon choosing among three bikinis made by Raisins, a San Juan Capistrano manufacturer that has quickly emerged as one of the hottest in the business.
In Orange County, regarded by many as the nation’s swimwear-making capital, industry executives say Raisins is quietly influencing the look and design of women’s swimwear. The styles of its swimsuits, shorts and tops are being mimicked by companies 10 times its size.
And, since 1984, it has evolved from just a swimsuit maker into a manufacturer of complete beachwear outfits, known in the industry as “active wear.” While a Raisins swimsuit costs $32 to $48, an active wear outfit--including a swimsuit, top and shorts--can easily exceed $100.
And to promote year-round sales, the beachwear firm recently took the unlikely step of also making women’s sweaters, and it enjoyed early success in that arena by selling out of its entire line last year.
But in order to maintain its image as a trailblazer and to avoid manipulation by department stores, Raisins sells only to specialty shops--shunning such retail giants as Saks Fifth Avenue and Nordstrom that keep knocking at its door.
The competition is keen, with an estimated 100 women’s swimwear manufacturers in the $1-billion-plus women’s beachwear marketplace. But in less than 10 years, Raisins has emerged as the market’s largest maker of swimwear for specialty shops. The $10 million worth of beachwear that Raisins expects to sell next year is 50 times the sales it posted just five years ago.
Phenomenal Growth
Raisins’ growth record has been phenomenal--even in an industry where fast growth and fast demise is the byword. Between 1982 and 1984, the company’s sales grew 400%. A decade ago, it had two employees; today it has more than 30.
Some industry executives credit Raisins’ startling success to its unique tropical designs and its unusual use of pastel colors. Others say it is the company’s knack at appealing to both the younger and older beach-going set. Yet others say that, unlike competitors that drastically revamp their lines each year, Raisins’ designs evolve from year to year and attract a strong customer base by that continuity.
But Pat Lingo, the 39-year-old president of Raisins, said the company’s success formula really is not all that complicated. The industry has grown a lot since the Cal State Fullerton graduate started the company in a Laguna Beach garage in 1973. Consumers’ demands, however, are basically the same.
“There just weren’t many suits around that a beach person really wanted to wear,” she said. So, she began designing her own swimwear while at college, and picked up spending money making custom swimsuits in her spare time.
“I knew I’d hit something,” Lingo said. “The stores were all calling me and asking me for suits.”
The name Raisins is a quirky label that Lingo devised at a time when other manufacturers, such as Apple Computers, were naming their companies after foods. She stuck with it--despite the advice of industry peers--and even coaxed one of the hottest surf shops around, Hobie Sports in Dana Point, to stock the brand.
Retailer Wasn’t Sure
But the store’s owner, Hobie Alter, who had never before stocked women’s swimwear, made Lingo promise that she would buy back anything he did not sell. She made the promise, but never had to live up to it. The suits soon sold out.
“A few years ago, no one knew the Raisins name. Today, everyone does,” said Laura Lee, swimwear buyer for Hobie Sports. Last year the store tripled its sales projections for Raisins swimwear, she said.
Industry experts are not surprised by Raisins’ success. “That little group at Raisins is composed of the most creative, twinkle-in-the-eye executives in the industry,” said Steve Lewis, co-publisher of Action Sports Retailer, an industry trade journal in South Laguna. Raisins’ management team is also composed of Lingo’s husband, Tom, who is chief executive and executive vice president, and Hugh Blue, the company’s vice president of finance.
But Raisins has run into some ruts over the years, and right now the company is facing a slowed growth picture that concerns some industry analysts. Raisins executives, however, claim the numbers do not faze them. The company’s annual growth rate is expected to fall to 40% next year from a peak rate in 1984 of 152%.
That could eventually force the company to change its marketing strategy. “You can only sell to so many specialty shops,” one industry executive warned. “Raisins will eventually have to sell to the majors (department stores). That’s where they eat you up and spit you out.”
Department stores, because of their purchasing power, often attempt to control development of the company’s product.
What could be more damaging is the appearance of a fashionable product such as Raisins in a department store. Many trend-setting buyers believe that an item can’t be hip if it’s in the department stores.
But the Raisins people say they have no intention of being eaten up by anyone. “When you sell to department stores, you might increase your volume dramatically, but you also increase your reliance on one customer,” said Tom Lingo. “When that customer goes away, you’re dead.” To avoid that, Raisins spreads out the business. Its largest customer--Hobie Sports--accounts for just 1.7% of sales.
Although Raisins executives can control where their products are sold, they cannot control the public’s reaction to their styles.
After years of success, consumers were slower to accept the company’s 1986 swimsuit line, which was a bit brighter and bolder than usual. By early spring, however, Raisins’ executives reacted by recalling part of the line and improving the color and designs. Despite the costly move, Raisins still expects to post its most profitable year ever in 1986.
Even as this summer draws to a close, a new season for the women’s swimwear industry has already begun. Raisins’ 1987 designs were put to bed months ago and, less than one month from now, buyers from the nation’s major retail outlets will be out shopping for next summer’s fashions.
“This year, Raisins tried to appeal to younger customers and a lot of the older customers strayed away,” said the beachwear buyer for one of the Southland’s largest specialty shops. “But we’re getting more and more people asking for Raisins by name. It’s almost become a cult following,” she said.
Indeed, if comparisons can be made to the men’s beachwear industry, Raisins is to women’s swimwear what the popular Maui & Sons of Costa Mesa is to men’s.
Shuns Men’s Swimwear
Although many manufacturers, such as the industry’s giant, Ocean Pacific Swimwear, have made the successful crossover from men’s to women’s beachwear, Raisins executives say they will stay exclusively with the female line.
“This is a very risky business,” explained Tom Lingo, “so we’ll stick with the things we know.”
What the company knows best of all, executives say, is how to design a swimsuit that fits well. “The color gets the suit off the rack and into the dressing room, but the fit keeps the women coming back,” Tom Lingo said.
Meanwhile, Raisins is watching the competition. For example, Eeni Meeni, the Capistrano Beach swimwear maker that 20 years ago was among the first manufacturers in the country to make bikinis, will soon be making a juniors maternity swimsuit line. “Competition from companies such as Raisins has helped improve the entire industry,” said Lee Horoszy, president and chief executive of Eeni Meeni.
With competition like that in mind, Raisins will be diversifying into even more lines over the next year, including an expanded line of fall and winter wear and more accessories such as jewelry and beach bags.
Executives are also hoping that a new line of solid-colored swimsuits with a light print pattern will catch on with the sun and surf set next year.
Odds are, they will. After all, the company’s successes have far outnumbered its failures. Raisins specialty shop accounts numbered 1,300 last year--and the number is growing.
Although Raisins’ biggest growth has been in California, Arizona and Nevada, it is now looking to the Midwest and Southwest for future growth, where its one-piece swimsuits are especially popular. And recent advertising campaigns in publications such as Glamour magazine have expanded its customer base nationwide.
But Southern California customers are still Raisins’ core market. “The locals walk in the door and go straight for the Raisins swimsuits,” said Shelly Barr, a salesclerk at Sky Stone on Balboa Island. “I own four of them myself.”
