Swimsuit makers looking to license brand names.

Swimsuits leave little to the imagination. There's absolutely nowhere to hide and every woman knows it. So that's why designers of women's swimwear say it's crucial that the suits fit well and look great.

"We like to say it's a very small canvas but it's a very important painting," said swimwear designer Susan Crank, CEO of Anaheim-based Lunada Bay Corp.

But over the past five years, another element has muddled the waters of the $1.4 billion U.S. swimwear industry and driven manufacturers to change the way they do business: brand names.

"I always said it's not the name on the swimsuit that sells it, but that's changed. Now it's 'brand wars,' "said Howard A. Greller, president of Carson-based Beach Patrol Inc., a swimwear designer and manufacturer whose brands include Esprit Beach.

Local swimsuit makers seeking to sell product by licensing well-known brand names include Lunada Bay and Tustin-based Raj Manufacturing Inc., which recently scored a coup when it signed a licensing deal with L.A.-based Guess? Inc. In response, other makers, such as Rancho Santa Margarita-based Point Conception Inc., have tried to build their own brands, while swimwear powerhouses such as Costa Mesa-based Quiksilver Inc. continue their in-house efforts.

Typically these branded swimsuits, whose labels are as much a part of the design as the suit itself, average $90 retail, compared with $50 to $60 for a swimsuit without a popular label.

"If a customer is going to spend that kind of money for a suit, they want you to know what brand it is," said Lisa Bhathal, marketing director for Raj.

"Manufacturing companies that have a designer brand are doing well with it - the Anne Kleins, Anne Coles, Polo Ralph Laurens, Calvin Kleins and Nautica," said Karen Capone, swimwear marketing manager for Lycra division of Wilmington, Del.-based E.I DuPont de Nemours and Co. "Ralph, Calvin and Nautica are making the most noise."

Analyst Nate Franke of Deloitte & Touche said retailers place heavier emphasis on branded products because they are more reliable in terms of delivery and quality - and consumers tend to buy labels that are familiar.

"Our customer is very brand-conscious," said Anne Spangenberg, a buyer for swim and active wear for 85 stores operated by San Francisco-based Macy's West. "Fashion in ready-to-wear translates well into swim. Customers who are comfortable in ready-to-wear brands will look for the same label in swimwear."

But Greller said the brands are looking for "the licensee who is best equipped to design and deliver the product with the right fashion and fit. The name alone won't do it."

Raj Manufacturing had built its 30-year-old swimwear business on its own labels - Athena Collection, Beach Lingo, Beach Lingo Girls, Barefoot Miss and Rajman - but two years ago it became a player in the branded swimwear industry when it signed to design and manufacture the BCBG Max Azria Swim brand. The two companies' design teams meet weekly in Los Angeles to discuss product details and fine-tune their work.

"The trend started about five years ago," said CEO Raj Bhathal. "If you are not one of the mega-brands it's harder to do business. Department stores want these mega-labels."

Raj reinforced its position this year with a license to design and manufacture swimwear for Guess. The $472 million Guess, whose marketing campaigns feature supermodels such as Claudia Schiffer and Naomi Campbell, will launch its first swimwear line in July for the 2000 season.

With branded swimwear fast becoming the retailer's best friend, other swimwear labels are feeling the heat.

Point Conception has maintained its $7 million in annual sales the past two years, but it has taken several steps to avoid drowning in a sea of brand labels.

The 21-year-old company, owned by siblings Jamie and Jeff Jung, manufactures and designs its own labels: Point Conception, Kechika and Point Sol. "Competition has gotten stiffer and that has forced us to stay more on our toes and to stay abreast of what is going on, as well as make a better product year after year," Jamie Jung said.

Point Conception has added 12 private-label brands including Local Motion in Hawaii, and two years ago it added its first branded label: OC-based Toes on the Nose.

Surfwear brands such as Quiksilver Inc. and Rusty Apparel have established in-house swimwear departments under their women's divisions. But Billabong USA in Irvine has yet to dip its foot into the swimwear product category in the United States.

"Billabong does produce ladies swimsuits in Europe and Australia and has done so for quite some time," said Paul Naude, president of Billabong USA. "It's not on our calendar immediately, but in the future."

Naude added that Billabong likely would handle design in-house.

Meanwhile, the swimwear industry is competing for two other fashion labels seeking swimwear licensees: Tommy Hilfiger and Donna Karan. Both companies have attempted swimwear lines in-house, but have since been seeking specialists to design and manufacture their swimwear.