Chip and Pepper Debut Licensed Apparel

Under a New Business Model, Chip & Pepper Debuts Licensed Apparel, California Apparel News, Deborah Belgum

As the economy has suffered and the recession took precedence, most apparel companies either went bankrupt or have taken another turn to licensing. In the article it talks about two brother, Chip and Pepper Foster have decided to split the Chip & Pepper denim company and go their separate ways after working more than 23 years side by side. Pepper Foster has decided to team up with his father in law, Charles Perez, to create Venice Intelligence according to California Apparel News. The new company will license out the Chip & Pepper name in the United States from shirts and sunglasses to surf boards and sneakers. Chip & Pepper extended their brand name by offering C7P jeans at JCPenney at lower retail price points than their Chip & Pepper label. With Makers USA being the first license, Chip & Pepper hopes to expand the brand name at new price points.

The article is important to the fashion industry from a licensing perspective. With the economy the way it is, a lot of apparel companies have either filed for bankruptcy or taken a completely turn in the company. Chip & Pepper has been around since 1981, and have down what Mossimo and Vera Wang have done. They have done a brand extension and now taken licensing. Not only is this great for Chip & Pepper, but by doing this they will see profit growth as well a brand marketing. Their price points will also go down and they will see their items in their retail shops but also in other retailers.

*source: California Apparel News