A local intimate apparel wholesaler best known for its provocative Halloween costumes is continuing its push into foreign markets in order to keep a leg up on the competition.
Leg Avenue, based in City of Industry, started exporting to Europe two years ago, with sales to the United Kingdom, France and Austria that bolstered business overall by 10 percent.
Now, thanks to pursuing international trade opportunities in Latin America, South Africa and the Philippines this year, the company expects to see an additional 10 percent to 15 percent in growth, said Mike Tsai, Leg Avenue’s chief executive.
“Halloween is our biggest season in the U.S., but internationally there are all kinds of holidays and celebrations when people use our apparel,” Tsai said.
Tsai plans to open an international distribution center in Asia within the next five years to respond to demand.
The company’s lingerie and themed costumes are designed here, but the products are manufactured in Asia. So a regional distribution center would eliminate redundant transit costs.
Tsai said United Parcel Service helped set up its international business in a joint program between the package shipping company and the U.S. Commerce Department designed to assist small businesses pursue trade opportunities.
“A study we conducted showed only 27 percent of the nation’s small businesses export, mainly because it can be a daunting task,” said Kaj Engberg, UPS’ international portfolio marketing manager in Atlanta. Engberg is in charge of setting up partnerships such as Leg Avenue’s. “With the U.S. dollar weak, it’s a good opportunity for U.S. exports, and one of the few bright spots in trade right now.”
Trucker Wins Suit
A Los Angeles Superior Court judge wrote that federal law preempted the state attorney general’s lawsuit against a Long Beach trucking company over classification of its employees.
Judge Elizabeth Allen White had ruled against Attorney General Jerry Brown Jr. in September. Her opinion in the case, which was a victory for the trucking company, was issued Oct. 15.
Brown sued Pac Anchor Transportation Inc. and a few other companies last year, alleging that the independent truckers at the business should have been classified as employees. The suit also named Pac Anchor manager and truck dispatcher Alfredo Barajas.
The judge said Brown’s actions would create entry controls that discourage independent contractor drivers from working in the harbor. That would be illegal under federal law.
“I’m pleased with this win on a case that never should have been brought because it was groundless,” Barajas said.
When Brown filed the lawsuits, he announced a crackdown on harbor companies he suspected of violating labor laws and avoiding state taxes by improperly listing employees as drivers.
White found that Brown’s claims, brought under the state’s Unfair Competition Law, were preempted by the Federal Aviation Administration Authorization Act. The act prohibits state and local entities from enacting regulations that would impact trucking prices, routes or services.
In a separate lawsuit, the American Trucking Association is challenging the Port of Los Angeles over a provision in the Clean Trucks Program requiring all truckers to be employees of a trucking company. A federal court will hear that case in February.
Plugging Away
Businesses at the port are increasingly electrifying their environmental efforts. The latest shipping terminal to do so, SSA Terminals/Matson Navigation Co., is partnering with the Port of Long Beach to offer more electric power to docked ships. The electricity allows the vessels to decrease pollution by switching off their diesel engines.
The $6.5 million docking station project was launched recently at Matson’s Pier C facility, and by its completion, scheduled for summer 2010, will be the fourth site at the port to offer shoreside power.
Last year, International Transportation Service Inc. on Pier G became the first container terminal at the port outfitted with shore power. This summer, the BP Terminal on Pier T went electric, to become the first oil tanker terminal equipped with shore power in the world. Cement carriers at Mitsubishi Cement Corp.’s terminal at Pier F have been plugging into landside electricity since 2005.
Viva Espana
Companies looking to conduct business in Spain can attend the California Spain Business Forum at the Omni Hotel in downtown Los Angeles this Monday and Tuesday. Tickets are available through the Los Angeles Area of Chamber of Commerce. … The Port of Los Angeles has scheduled an international trade workshop for small business owners from 2:30 to 5 p.m. on Thursday at the Doubletree Hotel in San Pedro. Attendees will learn how to expand market reach, finance and insure overseas sales, and use the export services at the ports and local airports. Those wishing to attend must register by e-mailing [email protected] or calling Maria Alva at (310) 732-3841.
Staff reporter Francisco Vara-Orta can be reached at [email protected] or (323) 549-5225, ext. 241.
