Shoebuy.com Coupon:Cheap Chic Shoemaker Eyes New Products Amid Retail Slump

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In the Cypress parking lot of shoemaker Vybe Inc. is the company's calling card: a pair of 40-foot long bright pink trailers.

Inside are booming stereos, flat televisions, sofas and racks of shoeboxes. The company uses its Groove on the Go trailers to drum up sales at tradeshows, fairs and concerts.

"People see this huge trailer, they hear the music and they're automatically intrigued," Vybe President Leo Capulong said.

Vybe also sells its shoes at Macy's, Tilly Urban Outfitters, Zumiez and Hot Topic.

Each trailer is as much a marketing tool as anything else. They give off an energetic vibe that Capulong said is designed to reflect the company's shoes.

Vybe has grabbed a small piece of the crowded shoe business with trendy, affordable shoes for teen girls and young women, men and kids that sell from $20 to $50.

The company generates about $15 million in yearly sales under the Groove, GRV and Miss Groove brands.

Vybe has found a place in what's called disposable fashion, where cheap, chic retailers such as Los Angeles-based Forever 21 Inc. and Sweden's H&M Hennés & Mauritz AB 's H&M have thrived.

Vybe vamps up flip-flops, sandals, boots, flats and sneakers with bright colors and bold prints.

Think plaid round-toe pumps, rain boots with polka dots and striped flats.

"Customers like them because they're not made with animal products and they're still stylish and comfortable," said Jackie Horrick, owner of altemativeoutfitters.com, an Internet seller of vegan clothes and accessories.

Rivals are numerous. Direct competitors include stylish, affordable shoemakers such as Rocketdog, owned by San Franciscobased Golden Gate Capital, and New York's Steve Madden Ltd.

Vybe designs its shoes at its 30,000square-foot headquarters where it employs some 30 workers. The shoes are made in China and India.

The company has a handful of workers in China. They oversee quality control and sales abroad.

Capulong and partners Marisol Vasquez and Robert O'Hara left jobs at department stores and shoe wholesalers to start Vybe in 2004.

They started Vybe out of a 900-square-foot office in Costa Mesa. They've financed the business on their own, Capulong said.

The company started out making shoes for other clothing companies.

Vybe eventually made a push to sell its own brands including Groove, which targets teen girls and young women, and Miss Groove, a collection for young girls.

Vybe got into men's shoes earlier this year to drum up sales from fashion savvy guys, Capulong said.

"They're the counterpart to Groove," he said. "It's what the Groove girl's boyfriend wears."

Vybe's workers spend a good chunk of their time analyzing clothing and color trends. Most employees are in their 20s.

"Having young employees gives designers a fresh perspective on things," said marketing director Kristen Chocek, 23. "We're the company's target audience. We make shoes for us."

Vybe is one of several shoe companies here. Others include Irvine-based St. John Knits International Inc., Vans Inc. of Cypress, Lake Forest's Sole Technology Inc., Huntington Beach-based Quiksilver Inc.'s DC Shoes, Billabong USA's Element Skateboards of Irvine and Foothill Ranch-based Oakley Inc.

But shoe sales are slowing along with the rest of the apparel market.

More consumers are dealing with layoffs and many are less willing to spend on clothes, shoes and accessories as they're strapped for cash amid high gas, food and other expenses.

"It's really tough out there," Capulong said.

The company's inexpensive shoes could fare well in a tough economy, according to Capulong. But Vybe is feeling the squeeze from rising materials and labor costs, he said.

Often, Vybe has to eat the added costs of making its shoes because it's unable to pass them onto customers, Capulong said.

"You can't just raise the price and pass that onto buyers in today's market," he said.

Vybe is looking to other markets to generate more sales.

This year the company plans to launch a high-end line of women's shoes. The collec- tion is set to include a mix of pumps, sandals, boots, flats and other shoes for young professional women that will sell from $70 to $100.

Outsiders wonder if it's wise for Vybe to launch a pricier line. Capulong contends that consumers who can afford more expensive shoes still are buying them.

A line of clothes and accessories also could be in the works, he said.

Capulong's goal for 2009 is $17.5 million in sales, he said.

"People think I'm crazy to think that we can grow in 2009, but we're diversifying our business and being efficient," he said. "I think we can do it.'

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