In the quest for the perfect pair of jeans, shoppers today have more choices than perhaps ever before. And increasingly, despite the rocky economy, they are turning to high-end options from the premium denim category. The number of consumers willing to drop $50, $100 or even more on a pair of jeans has skyrocketed over the past decade, making for “a remarkable success story,” according to Marshal Cohen, chief industry analyst with leading retail market research company The NPD Group.

 

“Just a decade ago, purchases of jeans that cost $50 or more accounted for only 7 percent of the overall denim business and now it is closer to 17 percent,” Cohen explains. “Premium denim has certainly made its mark in reaching a fair share of the customer in a short amount of time.”

 

The idea of luxury denim has also changed consumer mindset about the use and cost of jeans, which have evolved from their utilitarian history into today’s must-have wardrobe staple. “When consumers today see jeans for $150 dollars, they feel if the jeans fit well and are from a visible brand, it is worth the investment. The consumer’s appetite and willingness to spend more money on denim has been stretched, and that’s starting to pay off for the upper-end brands,” Cohen explains.

 

“The popularity of the luxury denim category is based on consumers’ desire to show off their status. The jeans make them feel like part of the ‘in’ crowd,” adds Nicolas Peyrache, director of denim design for Lucky Brand Jeans. In addition, jeans have become the garment consumers depend upon most, so frequent wearing helps consumers justify the higher prices. And high-end jeans have a sexiness factor that can’t be overlooked, says denim industry veteran Andreas Kurz, president of Los Angeles-based fashion consultancy Akari Enterprises. “Premium brands are known for giving wearers that perfect fit that boosts sex appeal,” he says.

 

That focus on a universally flattering fit is what started the premium denim revolution, which traces its roots to brands like Earl Jeans and 7 for All Mankind, brands that began producing hand-made jeans in Los Angeles in the late 1990s. “The formula for success at the beginning was soft, stretchy denim from Italy or Japan and a perfect boot-cut fit in a darker wash suitable for the office as well as going out at night,” explains Kurz, the former CEO of 7 for All Mankind.

 

Today, the premium denim market has soared to about $2.2 billion of the almost $14 billion in total denim sales, according to NPD, which categorizes “premium” as jeans priced above $50. (Industry-wide, however, premium denim prices are closer to $100 or $150 and up, says Kurz.) The niche today is dominated by established brands such as True Religion, 7 for All Mankind, AG Adriano Goldschmied, Joe’s Jeans, J Brand, Citizens of Humanity, Hudson Jeans, and Paige Denim, and is thriving despite the recession hangover that has plagued consumer spending. “In the last year or so, luxury spending has picked up again and the premium denim brands are benefiting from that,” Kurz says. “Even throughout crisis, the premium brands suffered the least.”

 

Consumers are now in a replenishment cycle when it comes to jeans, Cohen adds. If they held back on purchasing premium denim over the past few years, their favorite pair may be worn out, and they are now ready to update. Paige Adams-Geller, founder and creative director of Paige Denim, can attest to that: “We did see a leveling off period during the past few years, but luxury denim is growing again and this has been our best year yet,” she says.

 

The premium niche’s enduring boom — despite the fact that spending $100-$200 or more on a pair of jeans is still a luxury for many — can be traced to the industry’s laser focus on fit and versatility, as well as its heritage and base in Los Angeles. At a time when global manufacturing and production is the norm in most fashion categories, luxury denim retains a proud “made-in-L.A.” ethic that sets it apart.

 

As consumers become more aware of the impact of offshore manufacturing on U.S. jobs as well as the labor and environmental abuses common in many low-cost manufacturing locations, made-in-America products are increasingly in demand. “Customers want to buy garments that come from places where they know the supply chain is legal and ethical, and the companies are not damaging the environment or paying unfair wages,” says Jeff Shafer, founder and president of L.A.-based Agave Denim, a premium brand known for its organic, high-end textiles.

 

Patriotism and environmentalism aside, an L.A. location is smart business for companies making premium jeans. Because L.A. is home to a myriad of companies devoted to denim, each step in the process of putting together a pair of jeans can be completed practically in the same zip code. Brands can keep a tight eye on quality control while maintaining flexibility and collaboration.

 

“The premium denim business thrives in L.A. because all the greatest development facilities are here — like wash houses and contractors. They are essential to creating new washes, finishes and innovative details to keep denim fresh and relevant,” explains Peyrache of Lucky, which produces its luxury vintage line, Lucky Legend, in L.A.

 

“To get the high quality and consistent fits we demand requires having the laundries local to production,” adds Agave’s Shafer, who works hand-in-hand with L.A. contract manufacturers on sourcing fabric, bindings, trim, buttons and labels; and with pattern makers on perfecting fit. “Being in L.A. gives us the ability to be on top of our production and make sure that every cut fits and all the jeans are of the highest quality.”
 

For Paige Denim, producing in L.A. allows the company to be “obsessed” with fit. “We produce, design and manufacture our denim in L.A. because I am a stickler for consistent fit, so I want to be able to see every aspect of the jeans as they are made. We make all the patterns in L.A., and can fit the garments here for accuracy,” says Adams-Geller, a former denim fit model who founded the brand in L.A. in 2004.
 

Adams-Geller also points to the number of skilled local wash houses as a major benefit of L.A.’s denim industry. “The best wash houses are all in L.A.,” she says. “While the sewing costs are cheaper overseas, the wash houses are not as strong there, so the overall appearance of garments will not meet the same standards as we have in L.A.”

 

Wash has become a key ingredient in the denim recipe, and each high-end brand has its own preferences, guarding their wash formulas like top-secret documents. “The wash is what gets customers to pick a pair of jeans up off the rack,” explains Wesley Chung, president of US Garment, which does premium washing for a number of brands including 7 for All Mankind, Hudson Jeans, Polo Black Label, and Levi’s. The company — which maintains a 72,000-square-foot facility, one of the largest in the United States — credits its L.A. area location for its ability to work closely with premium brands to develop custom washes. “The convenience and speed-to-market in L.A. are second to none,” Chung says. “Fashions change quickly and being here allows us to adapt well because we can collaborate so easily.”

 

US Garment’s L.A. customers can pay daily visits to its facility to work on wash development, tweaking the shade and hand details of a wash repeatedly until they settle upon the right formula. “We may get fabric in the morning and we can produce a wash for the brand to see in the afternoon. They give us feedback and we are able to work through the night and show them something the next day. That collaboration and speed is a real advantage,” Chung explains.
 

The speed and collaboration are also a necessity, considering how many production steps go into each pair of jeans. The Lucky Legend line’s labor-intensive process, for example, starts with Peyrache “pulling information and inspiration from various resources to leverage trends that make the most sense for our brand.” Then, after its design and merchandising teams have settled on the right fabrics and styles for the collection, the production and manufacturing process begins.
 

“Our first set of fit samples arrive and we ensure the perfect fit. Once the fit is approved, it goes to marking, grading and cutting. When the sewing is done, the final style will go to the laundry for the wash process which will include dry and wet processes like stone wash, resin, hand sanding, and whiskering,” Peyrache explains. The jeans are then sent back to the factory for finishing, and finally shipped to Lucky’s DC for distribution. “More than 100 sets of hands touch a single style before the consumer even knows about it,” Peyrache notes.
 

The extensive back and forth between brands and their partners that is the hallmark of premium jean production is what really makes the L.A. hub a key advantage for speed and productivity. From inspiration to trend research to design, production and manufacturing, L.A. provides the backdrop for a niche that has managed to successfully capture the consumer’s attention — and wallets.

 

Amy Roach Partridge is a New York-based Apparel contributing writer specializing in business and technology.

 

 

The idea of a $200 pair of jeans seems foreign to many, especially when the overall average price for jeans is less than $25, according to retail research firm The NPD Group. But the high-quality denim, hand-made details, and expert fit of premium denim have convinced many buyers of the value.

 

The high cost starts with the fabric itself, explains Jeff Shafer, founder and president of L.A.-based Agave Denim. Agave uses high-quality Japanese denim, which runs roughly $12 per yard to import to the United States. With one pair of jeans requiring slightly less than two yards of fabric, material costs alone come to about $20. “Then, you have to add  $10 for sewing; $3 in trim; and depending on the wash, anywhere from $6 to $30,” says Shafer, whose jeans range from about $70-$120 at wholesale, and retail for anywhere from $90 to $285.

 

“Wholesale price ranges for made-in-L.A. premium denim average from $70 to about $110 and up,” confirms Andreas Kurz, president of fashion consultancy Akari Enterprises.

 

Wash accounts for a large chunk of the manufacturing cost because of all of the hand labor involved, explains Wesley Chung, president of US Garment, an L.A. area wash house. “The biggest misconception is that we just throw everything into a washer. There is actually a lot of skilled detail work, like hand-sanding to distress the denims. We sand only in certain areas, and feather it to make it look natural — even the intensity of how hard you sand the fabric makes a difference,” Chung says.

 

The highly trained denim workforce in L.A. is part of the draw of manufacturing there —and part of the jeans’ elevated pricetags. “The cost of the labor here is much higher than in places like Bangladesh or India, but so is the quality. Workers in LA have been doing this a lot longer than in other countries. We’re also more in tune with the trends and the fashions as they change,” Chung says. “I do believe you get what you pay for.”