NIKE DOES IT: NET JUMPS 100%/2 MEXX HUNTS FOR DEAL/2 Women’s Wear Daily • The Retailers’ Daily Newspaper • June 25, 2004 • $2.00 WWDFRIDAY Beauty Raising The Flag NEW YORK — With its American Beauty brand, the first project out of the gate from its new BeautyBank division, the Estée Lauder Cos. is showing its colors. The new venture will be exclusive in North America to Kohl’s Department Stores, will include more than 200 color and skin care items and could do $40 million at retail in its first year. For more, see page 6. PHOTO BY ROBERT MITRA; STYLED BY BRYN KENNY The Weinberg Way: No Theology, Please — Just the Numbers By Miles Socha PARIS — “Let’s be clear: Only facts will tell,” said Serge Weinberg, chief executive officer of PinaultPrintemps-Redoute and interim president of Gucci Group. “At the end of the day, it’s about our customers’ willingness to buy our products. I believe in facts and figures.” In an exclusive interview, Weinberg was responding to skeptics who question PPR’s ability to succeed in the luxury business. At present, some 29 percent of PPR’s profits stem from its luxury pole, a figure Weinberg said is destined to See Weinberg, Page 4 2 WWD, FRIDAY, JUNE 25, 2004 Nike Earnings Soar in Quarter, Year By Carrie Melago NEW YORK — Nike Inc.’s earnings were off and running for the fourth quarter, aided by strong sales around the globe and a weak dollar, while income for the year gained nearly 100 percent. For the quarter ended May 31, the footwear giant on Thursday posted a 23.9 percent hike in net income to $305 million, or $1.13 a diluted share, from $246.2 million, or 92 cents, in the same year-ago period. Revenues for the quarter leaped 16.8 percent to $3.5 billion from $3 billion. “It was a great year for the Nike brand around the world, complemented by outstanding results across our brand portfolio and the acquisition of Converse,” Nike Inc. chairman and chief executive officer Philip Knight said in a statement. He added that the company recorded its “highest gross margins ever” for both periods. For the year, Nike’s income spiked up 99.5 percent to $945.6 million, or $3.51 a diluted share, from $474 million, or $1.77, last year. Excluding a one-time charge for an accounting change, earnings a year ago would have been $740.1 million, or $2.77. Revenues gained 14.5 percent to $12.3 billion from $10.7 billion. Nike shares on Thursday closed at $72.40, up 11 cents, in trading on the New York Stock Exchange. The company released its earnings report after market. “Nike’s international businesses [50 percent of sales] are growing at a faster rate than the U.S. businesses,” analysts from Goldman Sachs wrote in a report previewing the results. “Asia is expected to be the primary driver of growth going forward, taking the lead from Europe, which was the key driver over the last decade.” In the U.S., Nike’s apparel revenues rose 4 percent during the quarter to $359.4 million from $345.7 million a year earlier. For the year, apparel sales jumped 6.1 percent to $1.43 billion from $1.35 billion. Apparel sales overseas swelled, led by a 33 percent jump in Europe, the Middle East and Africa in the fourth quarter to $382.9 million from $288 million. For the year, apparel sales rose 17.8 percent to $1.33 billion from $1.13 billion. “European apparel had chal- lenges early in fiscal 2004 but has posted accelerating growth over the years. Revenues for the fourth quarter advanced 33 percent, driven by marketing and product initiatives focused on the European football championship,” said Donald Blair, chief financial officer, during a conference call Thursday. Apparel sales were nearly as strong in the Asia-Pacific region, which saw a 31.9 percent increase for the quarter to $174.4 million from $132.2 million, and a 23 percent jump for the year to $612.3 million from $497.8 million. In the Americas, apparel sales rose 23.7 percent for the quarter to $48.5 million from $39.2 million, but only 12 percent for the year to $165.8 million from $148.1 million. A weak dollar contributed to the boost in overseas sales. “Our brands continue to build momentum around the globe and our U.S. retail distribution strategy began to bear fruit, driving our revenues over $12 billion, up 15 percent versus last year,” Blair said. “Changes in foreign currency exchange rates accounted for almost seven points of the growth.” Mexx Seeks European Buys By Miles Socha AMSTERDAM — Liz is looking for new friends in Europe. Detailing its plans to expand Liz Claiborne Inc. brands throughout the Continent at a press conference here Thursday, officials of Claiborne’s Mexx subsidiary also expressed a sharp appetite for acquisitions. “Hopefully, within a year, we should be able to do one transaction,” said Rattan Chadha, chief executive officer of Mexx Holding Europe BV, which Claiborne acquired in 2001. “We’re looking across Europe…and at sectors where we don’t already compete.” Chadha declined to identify targets, but described potential candidates as any “midsize” company doing a minimum volume of 100 million euros, or $121 million at current exchange. He said there are scores of retail concepts and fashion brands, most of them family-owned and centered in their home markets, that are ripe for pan-European expansion. Indeed, Transatlantic acquisitions seem to be heating up, with VF Corp. recently snapping up a European firm of its own: the bag and accessories brand Kipling Belgium BV. From its new nine-story, modernist design headquarters on the outskirts of Amsterdam, Mexx is gearing up to bring to Europe select brands from Claiborne’s stable of three dozen names. Among imminent initiatives are: ● A freestanding Lucky Brand jeanswear store to bow in Antwerp, Belgium, in September. ● Three shop-in-shops for Ellen Tracy bridge sportswear at El Corte Ingles department stores in Madrid, Barcelona and Lisbon this fall. ● Two freestanding Liz Claiborne stores in 2005 — in Holland and Belgium — and four Monet & Co. jewelry units in The new Mexx design headquarters in Amsterdam. France next year. “We plan to do the same thing Liz has done in the U.S.,” Chadha explained. “We want to address different consumer segments and in multiple channels of distribution.” The press conference showcased how Mexx, which operates some 600 stores in 50 countries, has retooled as a platform to grow the likes of Lucky, Enyce and Lady Enyce in Europe. Liz Claiborne — touted by Mexx as the first American sportswear brand “for her” to differentiate itself from Polo Ralph Lauren and Tommy Hilfiger — plans to invite select retailers to Amsterdam soon to see a springsummer 2005 line tweaked for European tastes. Next year, Mexx plans to launch about 25 Liz Claiborne shop-in-shops along with a global marketing and communications effort, the company said. At present, the Liz Claiborne brand is present in about 200 European doors, mainly in Spain and the U.K., with only one freestanding store, on Regent Street in London. Patricia Royak, president of Liz Claiborne Europe and new brands, said Claiborne would be positioned in Europe between Esprit Collection and Max Mara Weekend, with an average retail price of 75 euros, or $90.75 at current exchange. Fashion-wise, the label has been given a Continental makeover, since European women value stylishness over appropriateness, contrary to their American counterparts. Royak noted, for example, that European women wear jeans with high heels, not sport shoes as they do Stateside. Meanwhile, Chadha said he expects Mexx to continue growing its global franchise at a double-digit pace as the 19-year-old brand expands into Southern and Eastern Europe and adds sport and junior collections in its strongholds of Germany, France and the Benelux countries. Convinced the lower-price segment is “too crowded” and that consumers are seeking to upgrade from value-driven fast-fashion players like H&M and Zara, Chadha also said Mexx would improve its fashion and fabrics. “We definitely want to become one of the leading companies in Europe in the next three or four years,” he said. “We have the platform for growth and becoming truly a multibrand organization.” WWDFRIDAY Beauty 1 6 7 8 11 GENERAL Serge Weinberg, ceo of PPR and interim president of Gucci Group, discusses the firm’s plans for retail and luxury brand growth. BEAUTY: Estée Lauder Cos.’ BeautyBank division unveiled American Beauty, its first homegrown cosmetics and skin care brand in 14 years. Some 20 years after launching the provocative Poison scent, Parfums Christian Dior will introduce Pure Poison this summer. Nearly a year after Gianfranco Ferré launched his GF Ferré young clothing line, Italian perfumer ITF has unveiled the label’s first fragrance duo. Facing a huge gender-discrimination suit, Wal-Mart must ensure that the case doesn’t impact profits, workers or customers, observers said. SUZY HAS THE DAY OFF Classified Advertisements........................................................................19 To e-mail reporters and editors at WWD, the address is firstname.lastname@fairchildpub.com, using the individual’s name. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 187, NO. 132. 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MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. In Brief ● MIXED MOODY’S: Following Revlon’s refinancing last week, Moody’s Investors Service on Thursday issued a slew of ratings actions affecting about $1.4 billion of the company’s debt. Among the moves, the ratings agency assigned a “B2” rating to the company’s new $160 million senior secured credit revolver and a “B3” rating to the new $750 million senior secured term loan facility. Additionally, Moody’s affirmed Revlon’s “B3” senior implied rating, upgraded to “SGL-3” its speculative grade liquidity rating and downgraded both its senior unsecured notes and senior subordinated notes to “Caa2” and “Caa3,” respectively. Moody’s maintained the rating outlook at negative. “The rating actions, which follow Revlon’s announcement of a signed, fully committed refinancing agreement, reflect Revlon’s improved near-term liquidity position, but also recognize the company’s persistent intermediate-term liquidity concerns and its exposure to what remains a challenging mass cosmetics market,” said Moody’s in a statement. ● ONE COOL BILLION: Jones Apparel Group Inc. secured a $1 billion five-year revolving bank credit facility, providing it with “substantial financial flexibility as [the company] continues to pursue [its] multibrand, multichannel diversification strategy,” said the company in a statement. Combined with an extant credit facility, Jones now has $1.5 billion in committed bank credit. The new revolver, which extends until June 2009, was led by Citigroup Global Markets and J.P. Morgan Securities, with a total of 26 banks and other financial institutions participating, Jones said. ● CFO SHUFFLE: Kenneth Cole Productions Inc. announced that David Edelman, senior vice president of finance, will assume the role of chief financial officer as of July 12. According to the company, current cfo, treasurer and secretary Stanley Mayer has elected to reduce his role in the company in order to “spend more time with his family.” Mayer, who has been with the company for 16 years, will stay on as a vice president and senior adviser. Michael Colosi, corporate vice president and general counsel, has been appointed secretary. ● HEADING OUT: Sears Canada revealed its first off-the-mall specialty store locations — four 12,000-square-foot Sears Appliances & Mattresses units and two 10,500-square-foot Sears Coverings stores. All are in Ontario. Five will open in the fall; the sixth will open next spring. “As the most extensive multichannel retailer in the country, Sears is in virtually every market. However, with the absence of new shopping mall growth, our new specialty format store strategy will bring our key product categories and decor solutions to a growing customer segment [that shops] in conveniently located power centers on a regular basis,” said Mark A. Cohen, chairman and chief executive officer of Sears Canada, in a statement. Sears plans to open 30 new-format stores, including Sears Wellness stores, by the end of 2005. Bye-bye ultra dry. Discover Never Say Dry Extra-rich moisture cream © Origins Natural Resources Inc. ™ While dry is fine for wit and wine, it drags a complexion down. Extracts found in Cherries, Plums, Apples and Pears satisfy even deeply depleted skin’s major moisture cravings. And big softies including Shea Butter, Grape Seed and Apricot Kernel Oil help parched skin look happy, healthy and well-hydrated for hours. www.origins.com 4 WWD, FRIDAY, JUNE 25, 2004 Weinberg Focuses on t Continued form page one grow as losses at start-up brands ease. “We want to grow the two businesses, retail and luxury, but luxury will grow faster,” he said. As interim president of Gucci, Weinberg has kept a low profile and imparted little strategic information. At PPR’s annual meeting in May, he noted that watches, jewelry and home products were areas to develop at Gucci. He has also hinted that investment in emerging brands — Alexander McQueen, Balenciaga and Stella McCartney — would be kept in check by limiting retail expansion to major fashion capitals. During the interview at his office here earlier this week, he would not discuss brand strategies, although he expressed repeatedly a particular fondness for Bottega Veneta, which is currently logging sales growth in excess of 50 percent. “The challenge of luxury brands is to have really creative designs,” he said. “Also, I’ve asked all our brands to really pay a lot of attention to quality.” Shedding some light on Gucci’s new life as a PPR subsidiary, Weinberg said he plans to continue providing financial results per major brand. PPR reports its first half sales July 20. Many in the industry impart the end of the Tom Ford and Domenico De Sole era at Gucci with historical import — marking the closing of a chapter in the fashion business and a business strategy based on direct control and Ford’s star power. But Weinberg said he is loathe to anoint it with any special import. “One of the big errors in business is to be a theologist,” he said. And drawing conclusions from the exit of Ford and De Sole “doesn’t take into consideration that each brand has a specific DNA. Recipes do not exist in Serge Weinberg PHOTO BY JOHN ACQUINO PHOTO BY STEPHANE FEUGERE A Gucci look for resort. business. It would be too easy.” Although some have suggested cost controls would be an important task for Gucci’s new ceo Robert Polet, who starts July 1, Weinberg said that is not the answer. “It’s not a cost story; it’s a sales story, being more successful in selling your goods. You can’t succeed in this business only by cost controls,” he said. And Weinberg painted a positive picture of the mood at PPR in the post-Tom-and-Dom era, scoffing at those who suggest the competition is taking advantage of the turmoil. “People are very focused on work and making progress. There is, in most [Gucci] companies, a big excitement,” he said. “I’ve found a lot of talented and dedicated people eager to show that the companies they’re in and the brands they work for are very strong.” Although he declined to give figures, Weinberg cited strong reaction to the resort collections for Gucci and Yves Saint Laurent, designed by Alessandra Facchinetti and Stephano Pilati, respectively, both from its internal buying teams and wholesale clients. “I think [the collections] were very strong,” said Weinberg. “Although it’s not such an important public moment in terms of the business, [it was important] for morale, in terms of testing the strength of the teams.” Weinberg said Polet has met with most of the group’s designers and brand managers. “He’s been already touring a lot,” Weinberg said. “He’s a very easygoing, open person.” Asked what Polet would do on the job in his first days and weeks, Weinberg demurred, insisting he would not set any directives. “Already we’ve started working together on some major issues so he can really take the lead,” Weinberg said. He declined to elaborate on what those issues might be. To be sure, Gucci has suffered a string of exits in the wake of Ford and De Sole leaving, ranging from Boucheron creative director Solange Azagury-Partridge to Toshiaki Tashiro, president of Gucci Japan. But Weinberg downplayed the exodus. In the case of Japan, for example, he said the group ceo position would become less critical as brand chiefs are further empowered, as is the case across Gucci Group. “The organization will adapt to take into consideration the needs of each market,” he said. “Because of the changes in the organization, some jobs have been suppressed and there have been very few resignations. Most of the departures have been happening at the corporate level and not on the operating side.” As for the outlook, Weinberg said the prospects for luxury in the second half depend on the outcome of the U.S. election and “the international situation.” That said, he has few worries about Asia, although question marks still hang over Europe, which continues to experience low growth. “It’s an improved environment,” he said, borrowing a famous phrase from Federal Reserve Board chairman Alan Greenspan to reflect his guarded sentiment: “I don’t think we should be irrationally exuberant.” WWD, FRIDAY, JUNE 25, 2004 the Numbers A look from Yves Saint Laurent’s latest resort collection. 5 Gucci Goes Out Quietly AMSTERDAM — Gucci Group made its last gesture as a publicly traded company here Thursday with an annual shareholders’ meeting as brief as it was perfunctory. But thanks partly to bad weather in Holland, it made for a few amusing moments. If Gucci Group’s new owner, French retail giant Pinault-PrintempsRedoute, is often criticized for being a novice in luxury and style, all of its heavy hitters arrived fashionably late on the company jet, unable to land because of high winds. If it was a runway show, they would have been right on time — the proceedings started about an hour behind schedule. “Our apologies for starting so late. We couldn’t control the weather,” Artemis chairman François-Henri Pinault, told a handful of shareholders gathered at the Dorint Sofitel airport hotel, practically within walking distance of where PPR’s jet set down. And they were just a handful, only seven, outnumbered by the panel of eight Gucci Group and PPR officials lined up in a small, sparsely appointed room. One lone shareholder took advantage of simultaneous translation into Dutch. PPR, which owns 99.23 percent of Gucci following a month-long tender offer, is in the midst of a court-mandated buyout procedure to get 100 percent of the Italian fashion conglomerate. The stock was already taken off the New York Stock Exchange and won’t be publicly traded in The Netherlands after mid-July. And so the voting proceeded swiftly, with shareholders chuckling every time PPR’s corporate secretary and chief financial officer Patrice Marteau, representing the French group’s 102 million-plus shares, raised his hand. No one even bothered to ask any questions. Among the motions were to appoint Robert Polet, who arrives July 1 from Unilever’s frozen food and ice cream unit as Gucci Group’s new chief executive, to the management board. Serge Weinberg, ceo of PPR and interim president of Gucci Group, gave shareholders an overview of the luxury conglomerate’s 2003 performance, highlighting the “sound resilience” of its brands and high operating margins. He gave no forward-looking projections, other than to assure that moneylosing brands like Yves Saint Laurent are on the road to profitability. — Miles Socha Fashion Scoops RECORD HAUL: Versace just logged its most successful trunk show to date at its Fifth Avenue flagship, selling $850,000 of fall merchandise over three days, led by — of all things in the world of Versace — cashmere twinsets. Other top sellers included: bouclé skirt suits, priced from $3,360 to $3,900; a black-and-white pair of pants and a sleeveless shift dress in an exaggerated Prince of Wales plaid, for $618 and $1,375, respectively; a camel cashmere coat with fox collar, for $6,700, and cashmere twinsets ranging from an oversized cardigan ($794) with a long-sleeve V-neck ($534) to a red cardigan ($589) and short-sleeve shell ($429) to a black-and-green animal-print combo ($1,741). What’s more, the store has taken 200 advance phone orders for Versace Barbie, which doesn’t go on sale in New York until Wednesday. HITS AND MRS.: Stevie Wonder’s wife, Kai Milla, is the latest celebrity spouse to enter the fashion business. A bestseller from Versace. Milla has been scouting locations in New York to introduce her signature label in September, following in the recent footsteps of Marie Claudinette Jean (Mrs. Wyclef Jean) of Fusha, Susan Dell, Ivana Trump, Sadie Frost and many more. Milla is no novice, however, having graduated from the Corcoran College of Art and Design and picking up needle and thread to design her first dress at age 13. “It was an ugly pink dress, which is a color I will not use anymore,” Milla said, laughing. “Seriously, I really decided to make this a full-time career for the past three or four years.” To date, Milla has created custom dresses for herself, such as a white silk crepe number she wore to the Songwriters’ Hall of Fame benefit recently, and dresses for friends such as Veronique Peck (Mrs. Gregory Peck) and LaTanya Richardson (Mrs. Samuel L. Jackson), but she plans to introduce a ready-to-wear collection that will be launched more formally with a runway presentation next February. She described her look as “very polished, with a little bit of chic flirtiness to it. I knew it was eventually going to lead me to doing a full show.” EYES ON AGNELLI: More than 100 pieces — including French and Russian furniture, works of art and porcelain — from the New York apartment of Marella Agnelli will be displayed at Sotheby’s July 12-23 and Oct.16-22. She was married to the late Giovanni Agnelli, the former chairman of Fiat. The sale will be held Oct. 23 and is expected to bring in between $7 million and $10 million. A Louis XVI bureau plat by renowned cabinetmaker Jean-Francois Leleu, which once belonged to the Comte de Flahaut de la Billarderie, the illegitimate son of Talleyrand, is expected to reel in between $3 million and $5 million. A rare pair of Louis XVI neoclassical, kingwood, amaranth and bois satiné commodes, dating back to circa 1780, are expected to go for $500,000 to $800,000. SEXY SHOTS: Domenico Dolce and Stefano Gabbana are throwing an erotically charged bash in their Milan men’s store Sunday night. The designers are toasting “Nude Look,” an instore exhibit of photos by Sixties Playboy magazine shutterbug Angelo Frontini. Evidently snagging the rights to the images was a tricky business, but the designers said it was worth it to kick off Milan Men’s Fashion Week with a testosterone-fueled bang. “We really want to celebrate being a man,” Dolce said, adding playfully, “It’s going to be molto hard.” WWD, FRIDAY, JUNE 25, 2004 The Beauty Report Lauder Banking on Beauty With Kohl’s By Pete Born and Julie Naughton NEW YORK — The Estée Lauder Cos. took a leap into its future this week when the new BeautyBank division unveiled American Beauty, the first homegrown cosmetics and skin care brand created inside Lauder since the advent of Origins in 1990. The division and Origins have one driving force in common: William Lauder, who will assume the role of chief executive of his family’s company next Thursday. During an interview Wednesday, Lauder said while American Beauty is the first installment of a trio of major brands that will form an entire beauty department destined for Kohl’s Department Stores, this is not a case of Lauder entering the private label business, but of creating independent brands that will eventually be marketed elsewhere around the world. While the Menomonee Falls, Wis.-based retailer — which topped $10 billion in sales in 2003 — will enjoy an indefinite exclusive for the U.S. and Canada, Lauder has aspirations of eventually rolling the lines out in other markets. “The brands have the opportunity to be brought to many other markets, although there are no concrete plans yet,” Lauder said. Dan Brestle, the Lauder group president who oversees BeautyBank, noted that when the brands are marketed elsewhere — per- Dan Brestle, Jane Lauder, Jane Hudis and William Lauder. haps in Europe or Asia — they will likely be sold as prestige items. Across the three lines, more enter at Kohl’s at launch time. American Beauty, in addition to being the first than 600 stockkeeping units are planned, Brestle said, noting each will have a distinct persona and differing brand unveiled, is also the largest of the three planned. It will have about 200 sku’s — including more than 70 price structures. Or, as Jane Hudis, senior vice president and general lip shades, as well as eye shadows, mascaras, eyeliners, manager of BeautyBank, put it: “All of these brands foundations, pressed powders, moisturizers, repair products and spa items. The products range in price have firepower of their own.” However, Lauder noted, Kohl’s market position from $10 to $12.50 for a lip color to $27 for Beauty Boost made the retailer the logical choice for the brands’ Overnight Radiance Cream, a 1.7-oz. repair product. North American debut. “Kohl’s is a great retailer with American Beauty won’t include scent, mostly because a great niche between traditional mass retailers and Kohl’s already operates a fragrance department. upscale prestige department stores,” he said. “They However, there is the potential of adding fragrance to sell brands, and their consumer is very conscious of the overall mix later, said Hudis. The products also address how women shop, keeping them, but [Kohl’s] has had little presence in our category. Their consumer has been shopping somewhere shade names consistent across foundation and powder else for beauty, but she likes shopping in this chan- categories and offering skin care items that don’t have to nel.” In the past, the only beauty category Kohl’s car- be used as part of a complicated regimen, said Jane ried was fragrance, an area Lauder doesn’t plan to Lauder, vice president of marketing for American Beauty. The brands are expected to appeal to women from 20 to 50, with a majority of users likely to be thirtysomething suburban mothers. In addition, American Beauty is the only one of the three initial brands that will be driven by national advertising. As reported, actress Ashley Judd will be the face of American Beauty in a national print advertising campaign that will break in November fashion, beauty and lifestyle magazines, following the Oct. 1 debut of the three lines. The question of whether Judd will make in-store appearances has gone unanswered, but during an interview Wednesday, the actress said she intends to embark on her own private tour of stores once the line launches. While executives declined to spell out volume targets or promotional budgets for any of the planned brands, industry sources estimated American Beauty alone could generate retail sales of $40 million in its first year on counter. More than $12 million is expected to be spent on advertising and promotional efforts, sources said. American Beauty and its yet-to-be-revealed sister brands bring a significant point of difference to the retailer: they are designed to comprise a complete beauty department, just like any other store. Except, unlike nearly all other cosmetics departments, all of the brands at Kohl’s will come from one source. Kohl’s has 589 stores across the U.S., and plans to add 45 this fall. Initially, the line will enter 288 Kohl’s stores, and will continue its rollout market by market. While all three brands will make their debut in October, they will not reach full distribution in the chain until fall 2005. As well, there are hints that a fourth line is in the works, which could begin rolling out next summer. The brands and any future additions will be marketed in 600- to 1,000-square-foot departments bearing the Kohl’s Beauty Boutique banner. Kevin Mansell, president of Kohl’s, said during a phone interview Thursday that the topic of how to enter the beauty category has been discussed occasionally during 22 years he has been at Kohl’s. While the store has built a huge business in catering to women with families under the banner of brandsvalue-convenience, the chain had not found an effective way to enter beauty, save offering a few fragrances — which left its customers to shop the category elsewhere. The decision to recruit a single supplier for its major entry into beauty, Mansell said, grew out of the Kohl’s habit of forming partnerships with vendors in building businesses. He noted that Kohl’s top 50 vendors generate 60 percent of the chain’s business. When the decision was made to enter beauty, the chain looked for “an industry leader” with the ability to create brands and imagery. Lauder, with its then 18 nameplates, fit the bill as a multi-brand creator, Mansell said. Mansell added that Kohl’s plans on strongly promoting the department with an advertising campaign, including newspaper inserts and direct mail. Brestle noted that Lauder also chose to supply not only products, but an entire department to Kohl’s, complete with sales consultants. Since Kohl’s has only dabbled in the beauty business before, “there are no existing rules” for how American Beauty and its two upcoming sister brands must be presented, he said, adding that dedicated salespeople for the beauty items will be hired in every Kohl’s door, with at least one full-time person and four to five part-timers in the plans. Lauder will provide education to the consultants, although they will be Kohl’s employees. All of the brands will have dedicated counters with an assisted self-serve layout, allowing consumers who know what they’re looking for to quickly service themselves, but also offering those who require more guidance an experienced salesperson. Brestle believes this will create an atmosphere that will put consumers, especially those intimidated by traditional department store beauty counters, at ease. “It’s naive to think that the customers [who will buy these brands] aren’t buying elsewhere, but we think that we can convince them to trade up,” he said, adding he expects a lion’s share of them to come from the mass channel. “At the end of the day,” Brestle said, “the customer looks for choice. [With these three lines] we are offering a different feel and a different breadth. To the consumer, these are intended to look like three separate lines.” Any future additions will follow that model, he said. Kohl’s desire to enter beauty in a big way coincided with Lauder’s desire to return to the entrepreneurial spirit on which the company was founded. While Lauder as a corporation grew by leaps and bounds during the Nineties, all of the brands it added after 1990 were acquired rather than founded in-house. It set a plan in place to reverse that trend with the founding of BeautyBank late last year. In fact, Jane Lauder likened the division to “an indie film company attached to a big mother ship.” Continuing the homegrown ethos, BeautyBank pinched top talent from other Lauder divisions, including Hudis, who had previously overseen the company’s Donna Karan Cosmetics business and also worked at Prescriptives, and Jane Lauder, who had held a major marketing role for Stila. And unlike traditional divisions, which are strictly segmented, BeautyBank’s personnel — from packaging designers to senior marketing executives — are seated in open space on one floor of Lauder’s headquarters here. The intention behind that, said Hudis, is to foster a sense of camaraderie and creativity. “Every aspect is a team effort,” she said. “We’re breaking a lot of rules, but the structure has allowed us to create things very quickly.” In addition to its presence in Kohl’s stores, American Beauty will also be available through an ecommerce site, americanbeautycosmetics.com, and on kohls.com. The first Web site will be up later this summer, although product sales won’t be a part of the mix until fall. PHOTO BY KYLE ERICKSEN 6 WWD, FRIDAY, JUNE 25, 2004 Dior to Offer Pure Poison By Jennifer Weil PARIS — The myth of Poison continues. Nearly 20 years after launching the provocative blockbuster scent of that name, Parfums Christian Dior will introduce Pure Poison, starting this summer. “When you have a legendary fragrance in your portfolio, you have a duty to keep it alive,” said Thomas Du Pre de Saint Maur, international marketing director for the LVMH Moët Hennessy Louis Vuitton-owned brand’s fragrance products. “Poison is rooted in the universe of legend. Everyone remembers it because it gave an outstanding message of seduction.” It’s a seduction, he said, that while deeply rooted in the brand’s DNA, also changes with the times. Pure Poison represents “a new chapter in the legend of seduction by Dior,” explained Du Pre de Saint Maur. The original Poison, from 1985, was “dark” and about “selfish seduction” — embodying the greedy spirit of the Eighties, he said. “Today, seduction is still a major preoccupation of women, but it has become more generous,” explained Du Pre de Saint Maur, citing as an example the character of elf princess Arwen in “The Lord of the Rings.” “She was very pure-hearted,” he said. So, too, was Beauty in the fairy tale “Beauty and the Beast,” a primary reference for the creation of the Poison scent, which was then followed by Tendre Poison in 1994 and Dior’s Pure Poison. Hypnotic Poison in 1998. Myths, Dior executives believe, help form women’s realities. “Is there any young girl that didn’t dream of being Snow White?” asked Du Pre de Saint Maur. Since many fairy tales have a phial and a mirror, Dior created a fragrance bottle with reflective qualities. The flacon recalls Poison’s apple shape but comes with an opalescent sheen that contains shifting colors, thanks to a top-secret “plasma treatment.” For the scent’s juice, Dior went beyond the looking glass, as well. International Flavors & Fragrances’ Carlos Benaim, who worked with Dominique Ropion and Olivier Polge on the project, said: “Dior always tries to go to the other side of the mirror, so we looked at the well-known facets of ingredients and then used their [lesser-used] aspects to do things in a new way.” For instance, instead of opting to use jasmine’s night- time, animal-like aroma, Dior chose to include the flower’s fresh and green morning scent. Pure Poison opens with top notes of jasmine, sweet orange, bergamot from Calabria and Sicilian mandarin; middle notes include orange blossom and gardenia, and base notes include sandalwood and white amber. The advertising campaign, shot by Jean-Baptiste Mondino under the art direction of Dior’s John Galliano, will break in single and double pages. It features model Leticia Birkheuer sporting a black beaded Dior necklace and balancing the Pure Poison bottle on her fist. There will also be 20- and 30-second videos destined for TV and movie theaters. In the U.S., Pure Poison’s launch will be supported with a promotional campaign, including ads in 14 magazines, such as Glamour, Lucky and Oprah, plus more than 14 million scented impressions. Industry sources estimate promotion alone — including sampling, inserts and rotaters — will take in about $3 million for the first year in the U.S. An additional $2.5 million reportedly will be spent on print and TV advertising for the fourth quarter. “Pure Poison brings magic and mystery back to the world of fragrance,” said Pamela Baxter, president and chief executive officer of LVMH’s Perfumes and Cosmetics Group in the U.S. “From the iridescent white bottle to the seductive white floral and amber fragrance to the sexy advertising directed by [John] Galliano, Pure Poison is pure Dior.” While company executives would not discuss projections, industry sources estimate Pure Poison will generate $60 million in global wholesale sales its first year. Those sources expect retail sales in the U.S. will reach $10 million through yearend. Also in the U.S., Pure Poison will launch at Nordstrom on Aug. 1 before rolling out to Federated, Saks Fifth Avenue, Lord & Taylor and Sephora in mid-September. Global introduction is slated for Sept. 1. The Pure Poison lineup will include 3.4- and 1.7-oz. eau de parfum sprays, which will retail for $75 and $55, respectively. There will also be a 6.8-oz. body moisturizer for $31, a 6.8-oz. shower gel for $25 and a limited-edition 1-oz. eau de parfum spray for $41. — With contributions from Brid Costello and Jenny B. Fine Kenzo Embarks on Worldwide Rollout of KenzoAir PHOTO BY STEVE EICHNER NEW YORK — Kenzo will introduce its latest men’s scent, lion, in the first year after the rollout. In the U.S. market, called KenzoAir, in the U.S., as well as other world mar- which represents about 3 percent of Kenzo’s beauty busikets, in September. The LVMH Moët Hennessy Louis ness, the scent will be distributed at Nordstrom and Vuitton-owned brand launched the blend of vetiver and Sephora USA, about 180 doors. “We’d like to develop in the U.S. in selective distrianise accords in France and Italy last fall and now will bution,” said Lobadowsky, and “let confollow with Germany, Spain, Latin America sumers discover the brand.” A major hurand Asia, in addition to the U.S. dle to customers “understanding the phiThe firm hopes the initiative will help losophy of Kenzo,” she added, is identifyboost Parfums Kenzo sales by 60 percent in ing the ideal venues to show off the comthe next few years. Kenzo’s beauty busiplete assortment, or “story,” as Lobadness reportedly generates wholesale sales owsky likes to say. KenzoAir is the of 170 million euros, or $205.5 million at brand’s fourth men’s scent. It joins Kencurrent exchange rates, which is about half zo’s six women’s fragrances and KenzoKi of the overall Kenzo fashion and accessory skin care line. franchise’s sales worldwide. The September rollout of KenzoAir will The firm marked the coming worldwide feature a slightly tweaked version of the rollout at the Mercer Hotel here on Monscent’s original frosted glass bottle, a piece day. Parfums Kenzo president and chief exthat’s reminiscent of an ice cube but is inecutive Odile Lobadowsky and creative ditended as an abstract representation of a rector Patrick Guedj gathered along with portion of sky, according to Guedj. Glass North American general manager Philippe producer Saint-Gobain Desjonqueres Lesne for a daylong event and private dinOdile Lobadowsky and made the wavy, opaque bottle slightly ner Monday. Patrick Guedj more transparent and an interior blue col“It’s significant, very important,” Lobadoring was made brighter. owsky said of Kenzo’s beauty business, A 50-ml. eau de toilette spray and a 90-ml. eau de toiwhich has more than doubled worldwide, she added, in the past four years. Added Guedj, “The inspiration for the lette will be available in the U.S. for $50 and $65, respecfashion comes from the fragrance and [vice versa]. It’s an tively. Ancillaries, including shower gel, deodorant spray, deodorant stick, aftershave lotion and aftershave balm, exchange between the different parts of the company.” Industry sources estimated KenzoAir could generate will accompany KenzoAir. global wholesale sales of 20 million euros, or $24.2 mil— Matthew W. Evans The L’Instant de Guerlain Pour Homme ad. Guerlain Launching L’Instant Pour Homme PARIS — Guerlain plans to seduce men in an instant this fall. The LVMH Moët Hennessy Louis Vuitton-owned brand will introduce L’Instant de Guerlain Pour Homme, a male partner for its women’s fragrance L’Instant de Guerlain, which was introduced last year. The new scent is meant to add muscle to Guerlain’s men’s fragrance business now driven by the Habit Rouge and Vetiver scents, which are 39 and 45 years old, respectively. “Clearly, we have potential in the segment,” said Renato Semerari, president and managing director at Guerlain. He added that following the launch of L’Instant de Guerlain Pour Homme, men’s scents should generate 35 percent of the brand’s total fragrance business, versus the less than 30 percent they comprise today. Semerari declined to discuss sales projections for L’Instant de Guerlain Pour Homme, but industry sources estimate it could generate $20 million in wholesale sales during its first 12 months. The new men’s scent is meant to be the perfect mate for L’Instant de Guerlain. “It completes the story about a couple, a love story between a man and a woman,” said Semerari, adding, “The women’s side [of the story] was about the magic of a moment when everything changes. The men’s talks about taking action to change life, it’s more proactive.” There’s continuity in L’Instant de Guerlain Pour Homme’s advertising, as well. The fragrance’s print visual pictures model Sergio Muniz stroking Ingrid Parewijck’s back as they stand in front of a window. The scene recalls L’Instant de Guerlain’s ad in which only Muniz’s hands are visible on Parewijck’s back. The men’s campaign, shot by Azim Haidaryan and directed by Tho Van Tran of Air agency, will break as single pages and double-page spreads. There will also be cinema and TV ads, as well as sampling, including scent strips. The design of L’Instant de Guerlain Pour Homme’s bottle, created by Jerome Faillant Dumas of Love agency, echoes that of its female counterpart, in part. While both are rectangular, heavy glass bottles, the men’s bottle has a dark Bakelite cap, while the women’s is topped with a translucent glass stopper. Whereas the lower part of the feminine scent’s flacon is tinted amethyst, the masculine flacon’s bottom section is engraved with vertical lines. The scent’s juice, concocted by International Flavors and Fragrances’ Beatrice Piquet and Guerlain’s director of evaluation and development Sylvaine Delacourte, is a luminous woody. Its notes include lemon, bergamot, star anise, pepper, jasmine petals, Mysore sandalwood, Lapsang tea, bitter cocoa beans, hibiscus seeds and patchouli. The eau de toilette will be available as 75- and 125-ml. sprays that will retail for $54.40 and $78 at current exchange, or 45 euros and 64.50 euros, respectively, in France. The ancillary line for L’Instant de Guerlain Pour Homme includes two deodorants, a hair-and-body wash and an aftershave lotion. The new scent will bow worldwide in September, except for the U.S., where the fragrance is expected to be on counters in 2005. — Brid Costello 7 WWD, FRIDAY, JUNE 25, 2004 The Beauty Report Ferré Set to Launch Fragrance Duo Miyake’s New Eau for Men By Jennifer Weil By Stephanie Epiro any new fragrance licenses that were up for grabs, Martone laughed, “ITF is not about collecting licensMILAN — Nearly a year after Gianfranco es — that’s not our style. If anything interesting Ferré launched his younger clothing line, comes along, then of course we’ll look into it, but called GF Ferré, Italian perfume power for the moment we are busy with the licenses we ITF has unveiled the label’s first frahave,” he said. grance duo. The GF Ferré flacons, created by Serge The fragrances, called GF Ferré LeiMansau, have metal caps on the tall narrow clear Her and GF Ferré Lui-Him, will be on glass bottles that reveal the colored juice — a shelves in Italy in September. The launch pale violet for Lei-Her, and a pale blue for Luiplans also include a September introduction Him. The outer packaging features chromatic in the U.S. and a rollout to the rest of Europe versions of the colors. Designer Gianfranco in October and November. The distribution Ferré said the decision to color the juice was to plan includes some 8,000 doors worldwide, incommunicate the youth of the fragrances. cluding 1,400 doors projected for Italy and 150 “We wanted to make these fragrances doors initially in the U.S., including young visually as well as olfactively,” said Nordstrom. Full U.S. distribution is expected to Ferré. “The colors and the chroming effects eventually reach 400 to 450 doors by next year. are testimony to the freshness, energy and Roberto Martone, president of ITF, said he poetry to this young project. The colors expects the duo to pull in $18.2 million, or 15 represent the soul of GF Ferré.” Visuals for the dual launch were shot by million euros at current exchange rates, globAmerican photographer R. Phibbs and ally by yearend. In the U.S., industry sources feature a couple: Brazilian model estimate the scents could combine to generate Alexander Varaga and Russian model wholesale sales of between $3 million and $5 Anya Dubik. The image is intended to million during the duo’s first year on counter. evoke the fragrances’ “Get Free” tag According to the licensing deal, Gianfranco line. The scents will be advertised in the Ferré will take 35 percent of the profits that the United States via a print ad campaign fragrances earn. in selected national and regional publiThe scents are aimed at younger fragrance cations. Sources estimate about $1 million wearers, aged between 20 and 35 years. The inspiwill be spent on the print effort in the U.S. ration, according to designer Gianfranco Ferré, was The Lei-Her scent belongs to the fruitythe outlook of today’s youth. floral family and was created by Symrise. “Young people in the new millennium have inTop notes include lychee, apple sorbet spired the new GF Ferré Lui-Him and Lei-Her and cassis; middle notes include rose fragrances, and with them, their needs, dreams petals and magnolia, and bottom notes and their way of grasping the world and reacting consist of Virginia cedarwood and white to it,” said Ferré. “GF means looking ahead, and amber. International Flavors & that’s what the inspiration for these fragrances Fragrances created the masculine frais — the future, new ways of dressing and new grance Lui-Him, which belongs to the ways of being in a modern world.” spicy-woody-aromatic family. Top notes inMartone said he believes the fragrances clude Calabrian bergamot and cardamom will quickly garner sales from their target from Guatemala, middle notes of coriander group due to their accessibility in price and and nutmeg and bottom notes of Indonesian attractive packaging. patchouli and Moroccan cedarwood. “Today customers are more price-sensiThe fragrances will be available in Europe tive; consumers want a famous fashion in two sizes, a 30-ml. eau de toilette spray for brand but don’t want to pay a lot of money $35, or 29 euros, and a 60-ml. eau de toilette for it,” said Martone. spray for $49.60, or 41 euros. Both fragrances The fragrance duo is the second are accompanied by bath and body ancillaries: Gianfranco Ferré launch ITF has conducta 200-ml. shower gel priced at $18.10, or 15 ed since acquiring the Gianfranco Ferré euros; a 100-ml. spray deodorant for $20.60, or perfume license. Martone said ITF’s 17 euros, and a 200-ml. Lei-Her body lotion for launch program for Ferré included a dis$20.60, or 17 euros, and a 75-ml. Lui-Him deodortributor cleanup and plans for a men’s ant priced at $24.20, or 20 euros. Gianfranco Ferré fragrance launch in In the U.S., the fragrances will be available in October 2005. a 2-oz. size for $52. Lei-Her spray deodorant and “We wanted to revitalize the brand, bath and shower gel will be priced at $25 each. A increase distributors and stop distribuwomen’s body lotion will be priced at $30. Men’s tion in those doors that were not profshampoo and spray deodorant will retail for $25 itable anymore,” said Martone. “It’s a new concept that’s working brilliantly GF Ferré Lei-Her each. A men’s deodorant stick will retail for $23. and GF Ferré Luiwith the Ferré fragrance portfolio.” — With contributions from When asked about plans to acquire Him fragrances. Matthew W. Evans in New York Desazars to Head BPI’s U.S. Operations NEW YORK — Paris-based Beauté Prestige International remain that way.” Using Gaultier’s existing Le Male fragrance brand has appointed Louis Desazars president of its New Yorkbased subsidiary. Desazars will take the helm of BPI as an example, Desazars spoke of the potential in the U.S. Given Le Male’s reported 6 percent USA on July 1, three months after Maggie market share and turnover of 100 million Ciafardini exited BPI as executive vice preseuros, or $121 million, in Europe, ident and general manager. She subseDesazars maintains that there’s room for quently joined YSL Beauté to head its U.S. growth in the U.S., especially since BPI’s operations. U.S. distribution numbers only 800 doors, Eric Henry, BPI’s chief operating officer, compared to 8,000 in Europe. Le Male rehas overseen U.S. operations in the interim. portedly generates $12 million in wholeHenry introduced Desazars, 40, during the sale sales in its limited U.S. distribution. U.S. presentation of Issey Miyake’s new men’s Desazars believes developing the business scent. [See related story, this page.] “What a challenge,” Desazars remarked in those existing doors is key. Aside from the launch of Miyake’s newly while discussing his new assignment after Wednesday’s event. “The U.S. is the biggest minted scent in September, another of worldwide market, for one, and the company Desazars’ initial tasks will be the rollout of has given me another challenge — to boost Rodriguez’s scent to Bloomingdale’s in the Louis Desazars our brands in this market.” While Desazars same month. It is said to be the number one serves out his last week as vice president of scent at Saks Fifth Avenue, where it has been Europe for BPI, he’s wasted no time setting his sights carried exclusively chainwide since launching last fall. on the U.S. “Jean Paul Gaultier does well in the U.S. Prior to joining BPI in 1996, Desazars had run various but it has to do better,” he said. “With Narciso regional businesses for Parfums Christian Dior since 1988. Rodriguez, the U.S. is the biggest market, but it has to — M.W.E. DESAZARS PHOTO BY THOMAS IANNACCONE 8 PARIS — Issey Miyake’s aquatic adventure continues. One decade after the launch of L’Eau d’Issey Pour Homme, the Japanese designer and his beauty licensee Beauté Prestige International are set to introduce L’Eau Bleue d’Issey Pour Homme, a scent meant to boost Miyake’s men’s business and lure a younger demographic, this fall. “It is a major launch for the brand, which has had no introduction for six years,” since Le Feu d’Issey, said Eric Henry, chief operating officer at BPI. “It is a big event and a new expression of the brand.” “We are really proud of the fragrance. It is not a flanker,” said Remy Gomez, BPI’s president. “It is a new product, fully.” While company executives would not divulge numbers, industry sources estimate the scent — whose core consumer is expected to be the 25-to-35 set, slightly younger than that of L’Eau d’Issey Pour Homme — could ring up $48 million in retail sales during its first 12 months. In the U.S. alone, sources added, the scent could generate roughly $7 million in first-year wholesale sales. Among the project’s starting points, according to Gomez, was the idea of water as a source of life and Atlantis, the legendary sunken island. “Atlantis was the theme, but how to express it in bottle form?” asked Gomez. Miyake’s answer was to dream up and create for L’Eau Bleue d’Issey Pour Homme an upright cobalt-colored, rhombus-shaped glass flacon topped with a silverhued metal cap that is engraved with the brand’s name. Its outer packaging is fronted with a white panel with large blue lettering. The box’s side and back plains are also of cobalt blue. BPI executives said there’s no fear the new men’s scent will steal business from L’Eau d’Issey Pour Homme, which they believe has a faithful clientele and differs all around. “L’Eau Bleue d’Issey Pour Homme is in a totally different olfactive territory than L’Eau d’Issey Pour Homme,” said Henry. L’Eau Bleue d’Issey “L’Eau d’Issey Pour Homme Pour Homme is like a geyser; this [new] fragrance is like the serenity of water, when you go inside pure water,” explained Firmenich’s Jacques Cavallier, the perfumer behind all of Miyake’s scents. “Imagine an ocean without salt.” The new scent was concocted to be enveloping, warmer than L’Eau d’Issey, but still light, added Marielle Belin, vice president of Issey Miyake Parfums. Note-wise, there is nothing in common between the two Miyake men’s juices, said Cavallier. The new fragrance, an aromatic woody, includes top notes of tangerine, lemon grass, elemi pepper, badian star anis and rosemary; middle notes of ginger absolute, rose of May absolute, palma rosa, pink pepper and capuchin, and base notes of patchouli, sandalwood and ambrette. “For me, it was clear about how to create an image of deepness without creating something marine or heavy or dark,” said Cavallier. “I spoke with Issey and he made it very clear.” The print advertising campaign for the new men’s scent, shot by Tyen, will include a single-page shot of L’Eau Bleue d’Issey Pour Homme’s bottle. It will break in numerous countries including the U.S., a first for the Miyake fragrance brand. The new scent is slated for launch Sept. 1 in the U.K., where Harrods will have an exclusive, and in the U.S., where Bloomingdale’s will have a three-week exclusive. The U.S. introduction will then be extended to Sephora before the countrywide rollout takes place. The rest of the world is due to get the scent Oct. 1. The L’Eau Bleue d’Issey Pour Homme lineup will include 125- and 75-ml. eau de toilette sprays, for $78.50 and $54.40 at current exchange rates, or 65 euros and 45 euros, respectively, in France. The 200-ml. shower gel will go for $29, or 24 euros. Henry and U.S.-based BPI executives gathered for a launch event at the New York Public Library’s Celeste Bartos Forum Wednesday morning. “We are expecting a lot from this launch — it’s a key opportunity for us,” Henry remarked. “We’re reinforcing our market share with Issey Miyake and the new men’s fragrance will be helpful in that respect. “Our mission,” he continued, “is to establish a long-term success, a new men’s classic for 10 years to come.” — With contributions from M.W.E. WWD, FRIDAY, JUNE 25, 2004 MGM Makes Beauty Premiere NEW YORK — There’s always been synergy between Hollywood and the beauty business. Now, MGM Consumer Products is hoping that link will kick off a fruitful licensing business for the logo. The first starring products will be four shades of a foundation called MGM Premiere. “We decided cosmetics fit as a natural extension to our Hollywood icon that represents an image and lifestyle and the feeling of glamour established by the likes of Greta Garbo, Jean Harlow and Judy Garland,” said Travis Rutherford, senior vice president MGM Consumer Products and Interactive. Rutherford believes MGM is well suited to make the foray into beauty, thanks to the high recognition of the brand and the image it conjures. Metro Goldwyn Mayer has the highest unaided awareness of all studios, with 74 percent of those polled knowing the name, according to research from MindClick Group Inc. MGM also has teamed up with another medium — television — to see if that awareness can produce rave reviews. MGM’s Premiere foundation bowed during Thursday night’s Beauty Solutions segment on QVC. Dollar figures were not known at press time, but QVC executives were optimistic about the launch. “We get so many options on our desk that our commitment to this proves the potential we see,” said Allen Burke, director of beauty and cosmetics at QVC. “This is an interesting proposition. There is a clear movie culture and there is a connection to films and makeup, especially foundation. Foundation is such a big part of our business that we think the rationale behind it is strong.” Makeup artist Cheri Minns demonstrated the foundations during an eight-minute makeover segment using two models. Minns has 25 years of experience as a makeup artist and worked on MGM films including “Honeymoon in Vegas” and “The Birdcage.” She demonstrated the four shades of the foundation — ivory, beige, walnut and espresso. The formula is designed to provide a flawless finish that doesn’t rub off easily on clothing. In a market where J.Lo and Jessica Simpson are becoming the new faces of beauty, promoting a Hollywood icon as a foundation is not seen by some experts as a far stretch. Industry sources estimate the initial products could surpass $1 million in sales with ease. According to Rutherford, MGM is delivering the name and marketing experience. A manufacturing partner, Absolute Amenities, is charged with producing the products. Absolute Amenities has established private label TOP NOTES LAUDER AWARDED POSTHUMOUSLY: The late Estée Lauder was among the honorees at the White House on Wednesday, when her sons Leonard and Ronald Lauder accepted the Presidential Medal of Freedom from President George W. Bush. The Medal of Freedom is the nation’s highest civil award, which recognizes achievement in public service, science, education, entertainment, the arts, athletics and business. Bush presented medals to 13 recipients this year, including Pope John Paul II, who received his award three weeks ago in Vatican City, Arnold Palmer, Rita Moreno and Doris Day. In bestowing the award, Bush said Lauder’s name “became one of the most famous American names in the world.” The president quoted Estée Lauder, saying that “she built a global cosmetics company, ‘not by dreaming, or hoping for it, but by working for it.’” In a fitting gesture that would have made his mother beam, Leonard Lauder actually helped the President out after he fumbled with the clasp on the back of the medal for a fellow recipient and handed it to him instead of hanging it around his neck in the East Room of the White House. Lauder leaned over, quickly unfastened the clasp and slipped it over the honoree’s head. beauty care lines for specialty stores. QVC has become a perfect test market for launching new products. At the recent WWD CEO Beauty Summit in Miami, QVC’s president of U.S. Commerce Darlene Daggett praised the power of beauty and how marketers can get immediate feedback from QVC viewers. Brands such as Philosophy, Beauty Escentuals and Prescriptives have found new life via the wavelengths on QVC. “We think QVC is a good match for our target audience,” said Rutherford. QVC now reaches more than 85 million American homes and ships more than 107 million units of all types of merchandise per year. Although QVC is the initial point of distribution, Rutherford hopes MGM Premiere will expand to other beauty venues, especially specialty stores. Based on consumer acceptance, MGM also plans to extend into color, skin and hair products all priced in the $25 to $30 range. The first planned extension area is in eye kits, followed by face kits. “We’ll know more about rolling it out after we see how well the initial products perform,” said Rutherford. “We want to do this right. We want to make sure we have a solid place in the marketplace and expand strategically.” Despite the connection between Hollywood and makeup, there have been no other examples of Hollywood properties inking deals for beauty launches. Max Factor, however, has done a credible job tying its makeup to the movie business, and Revlon has recently reaped sales blips by dovetailing color promotions with theatrical films. Rutherford said MGM is eyeing other natural product extensions to lend its name to such as consumer electronics and loungewear. “But you won’t just see MGM on products where there isn’t a value to using the name,” he cautioned. “We want to marry the consumer experience and the product.” ● ● ● Critical Mass Rite Aid recently completed a monthlong promotion of Almay Cosmetics. Rite Aid turned to Cosmetic Promotions Inc. to help staff and promote the event, which included four-hour makeover events at 600 stores. The chain used dollars-off coupons, counter cards and ballot boxes to help tout the event. Several Almay beauty baskets were raffled off in sweepstakes. The demonstrators were able to sell what normally takes several weeks in only four hours, according to Joann Tyson, president of Cosmetic Promotions. In total, almost 3,000 makeovers were performed. Rite Aid sales of Almay products were up 38 percent for the month, Tyson added. By Faye Brookman Leonard and Ronald Lauder with President Bush. NEW LASZLO PRESIDENT: Jana Reichle has been appointed president and general manager worldwide of Erno Laszlo, a skin care brand operated by Cradle Holdings. In her new position, Reichle will oversee global marketing, sales, product development, training and operations. Saul A. Fox, chairman of Cradle Holdings and chief executive of Fox Paine & Co. LLC, Cradle’s primary owner, said, “We are very fortunate to have an accomplished executive with Jana’s breadth and depth of experience join Cradle Holdings.” Reichle most recently served as president of Berard Associates, a strategic design and marketing consulting firm. Reichle also has served in various senior executive capacities within Avon Products Co. Perfumery Congress Held in Cannes The WPC explored the state of the business. “We must figure out a way to make fine fragrance an object of desire, a gift of choice, a precious gift with emotional value — not just price value,” he said. Many speakers at the WPC stressed the need to put a stronger emphasis on creativity. Jean-Pierre Subrenat, chairman of WPC 2004 and president of Creative Concepts Corp., noted in his opening address that 227 new scents were introduced last year. “Are they all qualitative and creative enough to survive?” he asked. “Are we creating new perfumes, or are we subjecting consumers to our version of elevator music?” But, despite such pressing issues in a glum fragrance market, executives managed to see a silver lining. As Nicolas Mirzayantz, vice president of global business development, fine fragrance and toiletries at International Flavors & Fragrances, said, “Historically, a renaissance always comes after a period of slow growth.” — Brid Costello LAUDER PHOTO BY KYLE SAMPERTON; MGM PHOTO BY ROBERT MITRA CANNES, France — How best to pull the global fragrance industry out of the doldrums was among the main points discussed at the World Perfumery Congress, a five-day event that began June 1 here. The event, which included conferences and a trade show, attracted 1,300 attendees, 20 percent more than the last session held in 2001. Neil Fiske, chief executive officer of Bath & Body Works and co-author of “Trading Up: The Transformative Power of Mass Luxury Brands,” tackled the issue by drawing helpful hints from other industries. Fiske highlighted numerous brands that have been able to revitalize their businesses by trading up, or adding a more prestigious element to their marketing mix. Fiske pointed to Victoria’s Secret’s launch of its Body by Victoria lingerie line as an example. Before it was introduced, he said the general belief was that significant volume could not be generated with bras priced over $20. But because of the new product’s technical innovation and the emotional connection it created with consumers via the tag line “All you see is curves,” Body by Victoria, priced at $34, soon became a bestseller. So, while the brand’s average price for a bra rose from $15.50 in 1995 to $26 after the Body by Victoria launch, the average amount spent per bra in U.S. department stores remained stagnant at $15 in the same period. Fiske said there have been similar successful trading-up phenomena in other industries, including the growth of upscale casual restaurants and high-end vodka brands. “Among the industries absent from the trading-up phenomenon is the fragrance industry,” he said. “There have been no major breakthroughs, and there isn’t a super-premium segment on a significant scale.” Peter Lichtenthal, senior vice president of global marketing at Estée Lauder, focused on the importance of finding the right market for fine fragrances. “We are at a critical crossroads,” Lichtenthal said. “We have to decide if we will trade fragrance further down or back up.” Lichtenthal noted that in recent years, fragrances have lost their stature as first-option gifts, due to ramped-up competition from items in other sectors, including electrical goods and gourmet food. LANCOME SIGNS ROBERTSON: Lancôme has just added a new star — Jamaican model and actress Georgianna Robertson — to its constellation of spokesmodels. “Her personality, which is very much open to the world and to others, and her generosity are a magnificent reflection of the values of universality we cherish at Lancôme,” stated Marc Dubrule, international general manager of the L’Oréal-owned brand. Robertson was already featured in advertising for Lancôme’s Purple Rain makeup collection for fall-winter 2002 and its Color ID foundation line. In other brandrelated news, Lancôme is giving its L’Institut Lancôme a facelift. The space — a boutique and beauty institute on the rue du Faubourg Saint Honore here — is set to reopen in September after it is revamped to resemble the Lancôme concept store that debuted in Hong Kong last year. It will have a selling space on its first floor and six treatment rooms on the second level. The brand also recently opened a concept store in Shanghai and is planning to open one in Seoul, plus a third Hong Kong door by yearend. 9 10 WWD, FRIDAY, JUNE 25, 2004 The HBA Report New Moms Targeted With Belli By Allison Altmann NEW YORK — When Annette Rubin became pregnant two years ago, she knew not to drink coffee or alcohol, but she became curious when she read an article warning pregnant women not to dye their hair. According to the article, certain toxic chemicals can seep through the scalp and harm the baby. Rubin, who was an account executive at Estée Lauder at the time, immediately saw a niche in the beauty Belli Cosmetics industry that needed to be filled. skin care items. “I was very familiar with what was sold at the cosmetic department, [but] I couldn’t find anything that spoke to the specific concerns of pregnancy,” Rubin said. In January, Rubin, along with her husband, Dr. Jason Rubin, launched Belli Cosmetics, a Seattle-based company that makes skin care items formulated specifically for new moms’ and moms-to-bes’ skin care needs. There are 10 items in the line, with Elasticity Belli Oil a top seller, one that is tailored to prepare skin for stretching. Stretchmark Minimizing Cream formulated with darutoside, a plant molecule shown in research to help minimize the appearance of stretch marks, is another top seller. Another product in the Belli line is a Foot Relief Cream. Prices range from $5 for Belli Soothers, a holistic candy, to $60 for the Stretchmark Minimizing Cream. Currently, Belli is sold in 165 doors, including A Pea in the Pod, Pickles and Ice Cream, Nordstrom and select spas and boutiques. In the past six months, Belli has generated approximately $500,000 in retail sales, according to sources. What makes Rubin’s line stand apart from others on the market is that hers, she said, uses only ingredients safe for fetal development. Rubin added that she conducts exhaustive research on each potential ingredient using an independent national prenatal toxicology database. For further medical support, Rubin and her husband turned to nursing journals. There they found that pregnant women have been effectively treated for upset stomachs using lemon and peppermint, a finding that led to the addition of the two scents to many Belli items, and the development of a holistic candy. “We are the go-to line that has done all of that testing….It is our goal to set the new standard of safety in the industry,” said Rubin. In addition to safe and effective products, Rubin wanted to make Belli luxurious. In pursuit of this goal, the Rubins conducted focus groups where expectant moms chose their favorite scents and described their dream products. From this research, Rubin learned that expectant moms often cease using their favorite fragrance and opt for a clean smell rather than a strong scent. Lavender was an overwhelming favorite and was consequently included as a key aromatherapy scent in many Belli items, such as the Comfort Cleansing Body Wash. As of July 1, Belli will launch in Bath & Body Works’ 10 flagships nationwide, including stores in Dadeland, Fla.; Houston; Woodfield, Ill.; Copley Plaza, Mass., and South Coast Plaza, Calif. Industry sources estimate the company could ring up $5 million in sales for the year. Despite the sales potential, successfully educating consumers is as important to the executive couple as increasing profits, which is why they personally train retail salespeople on topical precautions. “Women need more education about common skin care concerns when they are pregnant,” said Dr. Rubin, the co-founder who serves as the company’s medical director. “Not many people realize they are prone to [skin discoloration] after they become pregnant.” In the works at Belli is Belli L.A.B., for Life After Baby. The line is designed to help moms cope with post-childbirth skin care needs such as an invigorating eye treatment to defend against the signs of sleepless nights, and a mild antibacterial hand wash that won’t cause dryness with repeated cleansing, which is required of new parents. PARIS — Parfums Azzaro plans to boost its presence Azzaro on women’s fragrance counters by growing the Visit for franchise it kicked off last year with Visit for Men. Women. Groupe Clarins, which owns the Azzaro fashion brand’s beauty business, will introduce Visit for Women starting in October. To date, Azzaro’s men’s scents, which include Chrome and Azzaro pour Homme, generate about 85 percent of its total fragrance sales. Gerard Delcour, president and chief executive officer of Parfums Azzaro, said while it is good to be strong in the men’s market, “it’s also good to [have a strong position] on the feminine side, which represents 65 percent of the worldwide fragrance market.” Following the launch of Visit for Women, Delcour hopes Azzaro’s women’s fragrances will progressively grow to represent 25 to 30 percent of the brand’s total business. While executives at the company declined to divulge sales estimates, industry sources believe Visit for Women could generate $7.3 million in wholesale volume in France in its first 12 months. While the advertising campaign for Visit for Men is about a man’s encounter with a mysterious, unseen woman, the visuals for Visit for Women reveal her identity. The new ads, shot by photographer Anne Menke, picture model Anna Huber opening a door, presumably to Olivier Bjerrhus, the face of Visit for Men. “It’s like a teasing campaign,” said Patrice Vizioz, international marketing director at Parfums Azzaro. “[Visit for Men] was the first act. Now, we’re seeing the second.” The two scenarios may be played off one another, as Azzaro could run the visuals as two halfpage ads on opposite sides of double-page spreads. An outdoor poster campaign is planned during the holiday season. Sampling will include 1.2-ml. sprays and 5-ml. miniatures. Federico Restrepo and Parfums Azzaro’s marketing team designed Visit for Women’s red glass, upright bottle, which is half covered in metal. The amber woody floral juice was concocted by International Flavors and Fragrances’ Domitille Michalon and Olivier Polge. Its notes include pepper, bitter orange tree leaves, jasmine, rose absolute, Bulgarian rose essence, cedar essence, cashmeran, patchouli, tonka bean and amber. A lighter version of Visit for Women’s juice may also be made available in some Asian countries, said Delcour. The eau de parfum will come in 25-, 50- and 75-ml. sprays that will retail for $47, $71 and $91 at current exchange, or 39 euros, 59 euros and 75 euros, respectively, in France. There will also be a 200-ml. body lotion retailing for $40, or 33 euros. Visit for Women will first bow in France, Belgium and Switzerland in October. Then, it will be introduced in Italy and Germany in time for Valentine’s Day 2005 and South America by March. The rest of Europe will get the scent by Easter and Asia by the end of 2005, the same year the U.S. is expected to start selling Visit for Women. Countries’ domestic launches will take place in tandem with travel-retail introductions. — Caitlin Murtha — Brid Costello BELLI AND I-BELLA PHOTOS BY ROBERT MITRA I-Bella Plans for Growth Azzaro Revisits Beauty Market NEW YORK — A former Avon lady has come calling on the beauty business. Wendy Clark, the onetime general manager of the Avon Salon and Spa, based here, has begun rolling out hair care products for color-treated locks with her new company, I-Bella, and this fall will expand her offerings with personal care products. Clark is keeping distribution tight, taking her line into top-tier salons in the U.S. Her aim is to have 200 salon and spa doors by yearend. I-Bella’s products are formulated with antioxidants derived from olive leaf extract, keratin protein and natural botanicals, aloe, chamomile and rosemary, she noted. The current hair care line includes cleansers, conditioners, styling and finishing products ranging from $18 to $22. Two new hair care products, specifically created for the summer months, rolled out this month: Leavein Styler-Conditioner, $18, and Maximum Hold Finishing Mist for $20. Both give the customer, according to Clark, “the maximum flexibility with the least number of products.” She’s particularly proud of her leave-in stylerconditioner, noting it makes strong antihumidity claims, as well as promising no tangles and smooth texture. Clark said the salon-spa experience offers “one-stop shopping,” and added she strongly believes dedicated specialists, along with strong product knowledge, will I-Bella products. ultimately result in better customer service — and generate higher average sales. This fall, I-Bella will add personal care products to the mix. Its upcoming Home and Body Collection consists of four stockkeeping units, designed to “provide the ultimate hydrating experience.” They include Rejuvenating Body Wash, 8 oz. for $15; Body Lotion, 8 oz. for $15; a purse-size Hand Lotion, 3 oz. for $15 and Romantic Liner Spray, 8 oz. for $18. All the products have been created to complement the existing line, said Clark, because “for the consumer, it can be frustrating to have more than one fragrance while using a product.” While she wouldn’t comment on projected sales for the Home and Body Collection, industry sources estimated it could do about $700,000 in its first year on counter. Sources estimated the company will produce retail sales of about $3 million in the next 12 months. And Clark coyly hinted she would consider a move back into the direct-service business at some point. When asked whether she had any interest in eventually opening a spa-salon under the I-Bella name, she playfully responded, “Never say never!” In addition to her experience at the Avon Salon and Spa, Clark also helped open the John Barrett Salon at Bergdorf Goodman. WWD, FRIDAY, JUNE 25, 2004 11 Saving Face at Wal-Mart tive bonuses to hiring goals. Meanwhile, Wal-Mart’s sales “already feel a little sluggish this quarter,” noted NEW YORK — Wal-Mart has lot of ruffled feathers to smooth. Darrell Rigby, director of Bain & Co.’s retail practice. “If only three or four people out Facing the largest gender discrimination lawsuit in U.S. history, the retailer must of 100 customers decide to shop elsewhere, sales could flatten.” ensure that costs springing from the case don’t convert into long-term losses with The biggest impact, he believes, will be on Wal-Mart’s labor costs, historically a sigshareholders, associates and its predominantly female customer base. nificant competitive advantage. Edith Weiner, a futurist and president of Weiner, Edrich, Brown said consumers, when “Wal-Mart may need to adjust its hiring, training, evaluation, compensation, promaking buying decisions, are interested in four factors: price, quality, convenmotion and termination policies. These systems need to adapt quickly and ience and assortment. While some retail issues such as customer service significantly, and that could affect its competitive strategy,” Rigby and availability of product may give one retailer the edge over a noted. “Keep in mind that Wal-Mart currently enjoys a 20 percent competitor, if those considerations are equal at both stores, then cost advantage over major competitors. Labor costs account reputation could become the deciding factor, she noted. for nearly a third of that advantage.” “For all the negative publicity that Wal-Mart has for Ellen I. Rosen, a visiting scholar at Brandeis abusing people, if consumers are shopping for eggs, University in Waltham, Mass., has interviewed about 50 corn flakes and shampoo, they’ll still go into Wal-Mart. current and former Wal-Mart employees for a book If they want dishes, underwear or fashionable picshe plans to publish next year on Wal-Mart’s relationture frames, they may head to their nearest Target,” ship with women. Several people she interviewed Weiner observed. have gone to work at Target after leaving Wal-Mart. Robert Passikoff, president of customer-loyalty “One woman I spoke to who had done that said specialist Brand Keys, noted: “The measure that she received better training, and that she felt one takes is whether people will still go into the you could do a good job and be rewarded for it,” store to buy and continue their buying patterns Rosen noted. when determining the strength of the loyalty to Jeffrey A. Hyman, a lawyer with Denver firm the Wal-Mart brand. Unless there will be an onLohf Shaiman Jacobs Hyman & Feiger, said he’s going and constant attack on the brand on a daygotten at least a dozen calls in the last 18 months by-day basis, much like we saw with the bad about gender discrimination at Wal-Mart. He’s news with Martha Stewart, there won’t be much litigated or settled about 30 cases in the past decade against Wal-Mart. impact on Wal-Mart.” Passikoff noted that corpo“The Smiley Face ads you see on TV is not rations, like Wal-Mart, that sponsor local, semiwhat you get in the actual workforce,” he said. professional sports teams see that as having a “They are trying to change but they are a bit greater impact on reputation than issues of emJohnny-come-lately. It’s a gigantic undertaking they ployment discrimination. have on the line to redo their employment practices Still, that doesn’t stop observers from worrying the as far as women are concerned.” lawsuit will fray the Bentonville, Ark. company’s relaTo be sure, it isn’t just future customers who Wal-Mart tionship with its core constituency of women shoppers and needs to further its growth plans. The discounter needs the hourly associates, as well as provide more fodder for unions, continued support of Wall Street, and it is a must that the firm antisprawl groups and other detractors who have waged fierce, stays on the radar screens of analysts for all the right reasons. expensive and well-publicized campaigns against the retailer in Anita Green, director of social research at Pax World Funds, said major urban markets. Some said Target, already popular with shopher company divested itself of its Wal-Mart stake in the mid-Nineties. ping moms for its charitable works, could quietly gain ground. “There were various factors. Wal-Mart, we decided, didn’t cut it for us. We were Eric Beder, senior equity analyst with JB Hanauer & Co., believes Target will be able to capitalize as a female-friendly shopping alternative, but he expects the getting a sense that as the company grew, it was not as committed as it was in the past in retailer to send its message subtly, such as working more prominently with women’s engaging investors. It was more forthcoming in the beginning [of our investment]. There charities. The Minneapolis retailer has already been somewhat successful in this was a cooling off of our relationship and then the sweatshop issues came up. We’ve since area. “Take Charge of Education” has been “a crucial differentiator for Target be- taken a look at Wal-Mart, but have decided against getting back in,” she disclosed. Green said companies that have faltered, but later meet Pax’s investment criteria, cause it drives the affluent mom to shop there,” the analyst said. So what does Wal-Mart do to prevent further stumbling in its quest to maintain are usually the ones that can show improvement in operations or a commitment by management to ensure that the “old sins are no longer in place.” market share and gain loyal shoppers? There’s also now another trend among investors regarding corMatthew Harrington, president of the eastern region of public porate social responsibility. relations firm Edelman and a specialist in corporate positioning “Investors and consumers are increasingly looking at how the and reputation management, observed, “On the customer front, companies they are patronizing are treating employees, before a Wal-Mart needs to get the message out about what they stand for in ■ Discrimination case threatens crisis becomes news,” said Peter Himler, managing director for customer care. For the moment, they are defined by those who Wal-Mart’s reputation. corporate reputation research firm Burston-Marsteller. “There is a filed the lawsuit, and Wal-Mart needs to get aggressive on what ■ Wal-Mart needs to redefine trend right now toward funds comprised of companies that are forthey do for employees.” ward-thinking in regards to CSR.” Harrington said the message needs to be repeated constantly. itself to shoppers, its associates While Wall Street and Wal-Mart’s competitors hawkishly watch the “This puts the burden on the company all the time to assert that and Wall Street. discounter for signs of flagging growth, at least the chain won’t have they are not guilty of the charges. The communication is important ■ Target Corp. may steal market to worry about the overseas component of its business operations. because consumers do care since the majority are women. How Richard Ratner, chief retail analyst at Seymour Pierce in Wal-Mart is perceived as treating its female employees matters to share amid Wal-Mart’s legal woes. London, said, “I think Asda customers could care less about the women shopping the aisles. Wal-Mart shouldn’t wait because what’s going on with Wal-Mart. The case is not tarnishing the repthe issue is already being tried in the media,” the executive said. The retailer declined to comment on its reputation, saying through a spokes- utation of Asda at all.” Richard Fitzpatrick, managing director of Retailmap, a clothing retail consultancy, woman it would have “more news in a couple of weeks.” On Tuesday, Wal-Mart said it strongly disagrees with the class-action lawsuit. The retailer has also previously stat- observed: “In the U.K., the average Asda customer has no idea what Wal-Mart is. They may recognize the name, but it’s a distant company in a distant place. Asda, however, ed it treats workers fairly. The firm has been working hard on reputation over the past year. Among other ac- is well-known, well-liked, and famous for taking great care of its staff.” In 2002, Asda was voted the number one company to work for in the U.K. in the antions, it surveyed how vendors, employees, and communities perceived the company, launched a multimillion-dollar ad campaign focusing on “Good Jobs” and “Good nual (London) Sunday Times survey of U.K. employers. Works,” established offices of diversity and corporate compliance, and tied execu— With contributions from Samantha Conti, London By Vicki M. Young and Katherine Bowers KEY TAKEAWAYS Wal-Mart’s Legal Woes Tarnish Brand Image as Well as Hiring Prospects NEW YORK — The Betty Dukes et al. vs. Wal-Mart Stores Inc. discrimination case is one of numerous employment actions filed against the retailer, which experts say is negatively impacting its brand equity and position as a top employer. Aside from the class-action case, Wal-Mart is a defendant in 44 employment actions filed in 31 states, in which employees allege they are forced to work off the clock. Wal-Mart’s filings with the Securities and Exchange Commission also note a federal court action in New Jersey alleging that Wal-Mart conspired with floorcleaning contractors to deprive immigrant workers of overtime pay. There are also four actions pending in federal courts in Michigan and California where assistant store managers are challenging their “exempt” status under the Fair Labor Standards Act. While not as large as the San Francisco gender discrimination case, class-action status is pending. Anthony Sabino, an attorney and associate professor at the Peter J. Tobin Business School at St. John’s University, said the negative publicity relating to these cases continues to have an impact on the brand, and could affect the discounter’s hiring needs. “Wal-Mart needs a squeaky-clean image. It should be making headlines such as Wal-Mart being a great retailer where America shops, not a place that discriminates on the basis of gender,” Sabino said. He said the notoriety isn’t going to affect someone on school breaks needing temporary work, but “could impact someone looking for a middle- to upper-level management position who has the option of being choosier. In addition, there may even be some impact on the hiring of men, who have family members and friends pressuring them about why they want to work at a company accused of sex discrimination,” Sabino said. Alan Siegel, chairman of global strategic branding firm Siegel & Gale, noted there are “tremendous business benefits for being a respected brand.” “Wal-Mart can present a more responsible image to the community through advertising and educational programs. When conducted nationally and in the local communities, [a program] will do a great deal to educate management, consumers and the financial community as to what the firm is doing to correct the supposed exploitation of women and lower-paid employees,” he said. Siegel concluded: “Wal-Mart has such a reputation for pushing the hell out of its vendors and employees to keep margins up. If you’re big like that and exploit people by not acting in a responsible manner, there’s a risk that all that could hurt business.” — V.M.Y. 12 WWD, FRIDAY, JUNE 25, 2004 Laws of Recycling PARIS — Good design, even damaged by time, can become good again. A handful of cutting-edge industrial designers here are focusing their current projects on refuse, either gently repairing damaged products or, in some cases, exercising some extreme plastic surgery — turning space heaters into floor lamps and broken pianos into coffee tables. The trend gained steam at the Paris and Milan furniture fairs earlier this year, where a design team known as 5.5 set up a makeshift furniture hospital titled “Reanimate,” complete with waiting, examination and operating rooms. There, the 5.5 designers presented a first aid kit for furniture, including prosthetic chair legs and visible back supports. “We use our knowledge to increase the life expectancy of rejected pieces of furniture,” said Anthony Lebossé, one of the designers with 5.5. “Imperfect objects have a story to tell.” Industrial designers Hélène Autheman and Wilfried Bechtold also make sure nothing goes to waste. Down a narrow passageway in Paris’ 15th arrondisement, the duo recently opened a workshop called Mobo where they convert discarded furniture for new uses. Broken bistro chairs are repaired and painted, a sewing unit becomes a minibar and a decrepit cabinet gets covered with floral paper and outfitted with wheels. “It’s not just about getting things to work again, it’s about giving objects a new identity,” said Autheman. “Customers like having custom-made furniture at affordable prices.” Floor lamp made of lampshade skeletons by 5.5; Commode by Tramp, reconstructed from an old desk, inset. Design Chair with repaired leg by 5.5 designers. Cerruti’s 2nd Career MILAN — Three years after taking his last bow on the runway, designer Nino Cerruti is taking his aesthetics and style to the world of interior design through a collaboration with furniture manufacturer Baleri Italia. “This project is about my concept of the home and how I view it, but I don’t have the technical abilities to design furniture,” Cerruti said. “[Italian fashion] designers today talk too easily about [combining] fashion and design, but they have nothing in common, except that they are both anchored in Milan and both are responding to people’s growing sense of aesthetics.” The project comes at an opportune time for Cerruti, who is set on mixing touches from the past with modern elements as he renovates his house outside Biella, in the north of Italy. Meanwhile, Tramp, a boutique at 25 Rue du Rosiers in the Marais district, takes a high-end approach to recycling. “We redesign objects to become more sophisticated than their original form,” said owner and designer Jean-François Lebrun. In some cases, old furniture is simply raw material for a new form. For example, Lebrun converted an old barber’s chair into a stylish leather lounger for 1,400 euros, or $1,681. Meanwhile, an old teacher’s desk was transformed into an elegant commode for 2,465 euros, or $3,000. — Emilie Marsh Design Award Nominees NEW YORK — Marc Jacobs, Narciso Rodriguez and Yeohlee Teng are finalists in the fashion design category of the National Design Awards, the Smithsonian’s Cooper-Hewitt National Design Museum said Thursday. This is the second year the awards, which are sponsored by Coach, have included fashion design as a category, having recognized Tom Ford at the event last year. The museum also said Aveda Corp. will receive the Corporate Achievement Award at the event on Oct. 19 in Manhattan. The Minneapolis-based beauty company, a subsidiary of The Estée Lauder Cos., is being recognized for its attention to design in products and packaging, as well as its record of environmental responsibility. Graphic designer Milton Glaser, a co-founder of New York magazine and the creator of iconic images such as the cover of Bob Dylan’s “Greatest Hits” album, the “I Love N.Y” logo and the interiors of Windows on the World and the Rainbow Room, will receive the Lifetime Achievement Award. Finalists in the other award categories are James S. Polshek of Polshek Partnership Architects, Jos Spear of HOK Sport + Venue + Event Architecture, Rafael Viñoly of Rafael Viñoly Architects and Rick Joy of Rick Joy Architects for architecture design; @radical.media, MTV Networks’ Design and Promos Department, and Second Story for communications design; Andropogon Associates, Ned Kahn and William McDonough + Partners for environmental design, and Burt Rutan, Interface Inc. and Yves Behar for product design. Furniture designed by Cerruti with Baleri Italia. “The ground floor is typical of a country house, with lots of wood and whitewashed walls, but I’ve added two different hanging rugs, one with a traditional hunting scene, the other a Cubist painting,” he said. “My bedroom and studio on the second floor are modern and all in yellow. I enjoy the harmony of these two worlds.” According to Cerruti, furniture today is often “too big” and does not easily fit into an average apartment. “We want our furniture to be easily assembled, as people are increasingly nomadic,” he said, adding that Baleri’s furniture is suited for interior and exterior spaces, and it also works for hotels, waiting rooms and libraries. Baleri does not employ wood — an “ecologically correct” choice, he said. Baleri Italia, founded in 1984 and based in Bergamo, an hour from Milan, has worked with designers such as Philippe Starck and Hannes Wettstein, and for companies such as the American Luminaire Inc. Cerruti said he’s always been interested in design as he’s “been lucky enough” to see artists such as Vico Magistretti, Gae Aulenti and Antonio Citterio at work on his brand stores and apartments. “I think there is still something interesting to say,” said Cerruti, who sold his company to Fin.part in 2001. “As I did with my fashion, I always ask myself, ‘What do people want?’ I am interested in the real home for real people.” — L.Z. PHOTO BY DAVIDE MAESTRI A New Golf Hazard — Iceberg Ahead SAN GIOVANNI IN MARIGNANO, ITALY — Paolo Gerani Iceberg, the Italian brand known for its colorful, cartoon-inspired patterns and edgy advertising, might seem an unlikely sponsor for a golf club. But with the opening last month of Rivieragolfclub by Iceberg’s creative director Paolo Gerani, the company is playing against its hip-hop image. “This is a young, fun place to meet with friends and, though focused on golfing, it offers leisure for the entire family,” said Gerani, noting that a spa, soccer fields, tennis courts and a children’s playground — a Hansel-and-Gretel-style wooden house off the fields — were conceived to entertain those who are not engaged in golfing. A few minutes from the Adriatic beaches and popular nightlife spots, and not far from the headquarters of Gerani’s family-owned manufacturing company in San Giovanni in Marignano, the Rivieragolfclub centers around a steel and glass building. “With the help of architect Marco Gaudenzi, we wanted the club to be part of the territory, with references to water and Venice [further north, also on the east coast of Italy],” said Giancarlo Tirotti, a friend of Gerani’s and a partner in the golf club project. The property also features suites and bungalows designed by 14 international architects. “Each room reflects the style and vision of each architect,” said Tirotti, noting the rooms range from one with a red padded bed nestled in a dark wenge-wood structure to another inspired by Austin Powers, complete with plastic tables and fur rugs, to a third with an all-white minimalist décor. The bungalows are surrounded by private gardens and fenced in by olive trees and holm-oaks, a staple in the region. Apart from the Iceberg water bottles sold at the restaurant and bar, there are no other evident signs of the brand at the Rivieragolfclub. “I don’t believe in that kind of aggressive marketing,” said Gerani, whose personal touch comes through in the choice of the restaurant’s beautifully ornamental and hand-crafted candelabra and cutlery — silver at lunch, gold-plated for dinner — or the white lamps from Spain surrounding the pool. Gerani and Tirotti invested $14 million on the resort, and plan to expand it between 2005 and 2006 with additional rooms. Also, the golf course, which currently covers 30 acres and has only 11 holes in operation, will eventually double its space. — Luisa Zargani WWD, FRIDAY, JUNE 25, 2004 Media/Advertising 13 THE NAME GAME: Condé Nast is nearly ready to reveal the name of its new home furnishings magazine, and don’t be surprised if it’s a bit of a head-scratcher. Among the monikers being considered are Domino, Plum and Love It!, according to a source at the company. “There might have been some like Room or Space, dull things like that, but they immediately went out of memory,” added the source. A spokeswoman for Condé Nast (which, like WWD, is a unit of Advance Publications Inc.) had no comment. Whatever it ends up being called, the new title will be modeled on the shopping magazines Lucky and Cargo. It will launch sometime in 2005. A new addition to the editorial team, Sara Ruffin — whose title hasn’t been determined yet — was previously editor in chief of another start-up, Happy Home, for American Media. She jumped ship earlier this month, forcing American Media to delay the launch, originally scheduled for October, by several months. — Jeff Bercovici YM Gets Older, Maybe Wiser MEMO PAD By Jeff Bercovici NEW YORK — YM is waking up to the teen market’s fragmented new reality. With the redesigned August issue, on newsstands July 8, the 70-year-old title is officially done trying to be all things to all teens. Under new editor in chief Linda Fears, YM is taking a more targeted approach, focusing on fashions and trends meant to appeal to girls at the older end of the teen range. The repositioning effort comes as something of a tactical retreat for YM, which has slashed its guaranteed circulation to 1.5 million from 2.2 million over the past year. YM’s chief competitors, Seventeen and Teen People, have also been forced to scale back circulation, although less dramatically, as the teen audience has become ever-more segmented by age and reader preference. Newer books like Teen Vogue, Elle Girl and Cosmogirl reflect this fragmentation. In such an environment, the key to survival is to pick a niche and defend it, said Axel Ganz, president of Gruner + Jahr International. “We had to look for a specific positioning within this market, which is now very dense,” said Ganz, who recently installed Russell Denson as the new chief executive officer of YM parent G+J USA. “We think this positioning is unique.” The days of talking about “teens” as though they constituted a single demographic are history, said Fears, who was deputy editor at G+J’s Parents before her predecessor at YM, Christina Kelly, abruptly quit under heavy criticism from Ganz. “I The new back-page feature as seen in the August issue. These days, if you edit to a 15-year-old, you get a 10-year-old “reading your magazine. ” — Linda Fears, YM Before the redesign (top) and after. truly don’t believe you can talk to all teens in the same way,” Fears said. “You cannot edit a magazine that will appeal to a 13-year-old and also appeal to 19-year-olds who are very into fashion. These days, if you edit to a 15-year-old, you get a 10-year-old reading your magazine.” To give YM a more sophisticated feel, Fears began with the cover. Going forward, color schemes will be more muted, with the palette for type limited to one bright color plus black and white. “Whenever you start throwing a lot of neon colors on the cover, it just looks very junior,” Fears said. Future covers will resemble that of the August issue, with subjects shot in an environment rather than a studio, wearing a minimum of makeup. “She looks like somebody that you’d want to hang out with,” said Fears of August’s cover girl, actress Lindsay Lohan. “She’s not looking like a sex bomb.” Another notable change is the lack of any cover lines that immediately identify YM as a teen title.” In general, cover copy “is not going to be as giggly,” said Fears. In terms of fashion and beauty coverage, going older means erasing some of the distinctions between YM and some of the younger-skewing adult titles, such as Lucky and Jane, said fashion director Elizabeth Kiester. In addition to increasing the number of fashion pages, there will be more studio-based stories and more designer labels sprinkled in with the youth brands. The effect is to bring YM’s approach to fashion closer to that of Lucky or In Style. “You can really see the clothes. You can really shop from the pages,” said Kiester, a three-year veteran of the magazine. (Fears has kept the editorial staff she inherited largely intact, although YM is looking for an entertainment director to replace Alyssa Vitrano, who is headed to MTV.) The distinction between teen and adult fashion is virtually nonexistent, said Kiester, noting that actress Kate Hudson kept the True Religion jeans she got at a shoot for the July issue of YM and wore them in a subsequent shoot for Vogue. “We can present the same fashion message to a 19-year-old mind-set that any of our older counterparts can,” she said. “It’s just not all label-laden and heavy on price point.” The challenge now will be to coax advertisers back into the magazine. Year-to-date through June, the title’s pages were down 45.6 percent versus last year to 270.5, according to Media Industry Newsletter. While it’s easy to blame the losses on last year’s damaging disclosure that YM had inflated its circulation reports, the title’s mushy positioning hasn’t helped, said Michael Wood, vice president of Teenage Research Unlimited. A well-defined niche of its own may be just the thing YM needs to win some of those pages back, he said. “Advertisers are saying, ‘What are you giving us that the other magazines can’t? Who are you delivering?’ And the magazines have to be able to answer that pretty clearly.” MOONLIGHTING WITH THE FAB FIVE: The cautionary tale of Ozzy and Sharon seems to have been lost on many reality show talent handlers. Going against the less-is-more publicity strategy, the hosts of Bravo’s “Queer Eye for the Straight Guy” have been testing the boundaries of overexposure lately, turning up at events en masse and striking multiple book and endorsement deals while the straightening iron is hot. Now, after Tivo-ing their way into guilty pleasure status last year, the fulsome fivesome are back with season two, which includes stints in Dallas and possibly London, as well as a “Queer Eye for the Queer Guy” episode that will air during Gay Pride Week. But rather than curbing the public’s enthusiasm for “Queer Eye,” the Fab Five’s ubiquity so far has translated into higher ratings. The June 1 season premiere saw a 50 percent increase over last year, up to 1.7 million viewers for the 25- to 54-year-old audience. As for the group’s outside projects, following closely behind the February release of their eponymous Clarkson Potter book, currently ranked 4,006 on Amazon.com, is Carson Kressley’s “Off the Cuff,” a dressing guide for men published by Dutton, to hit shelves on Sept. 27. In addition to illustrated fashion tips, the book will feature items photographed from “Carson’s Closet,” including patchwork corduroy shorts and 1960s-era daisy-print swim trunks. Kressley will continue to multitask when he makes his acting debut in the upcoming Hilary Duff vehicle “The Perfect Man.” “I play a bartender,” said Kressley. “It’s a stretch for me. I’ve never been a bartender. Though I’ve been to many, many bars.” The “Queer Eye” grooming guru and former colorist for Child magazine, Kyan Douglas, is also finishing up his new book, this time lending his queer eye to the straight girl. “Beautified,” also published by Clarkson Potter for an October release, offers hair care, skin care, makeup, diet and fitness tips for women. Harper’s Bazaar beauty director Kerry Diamond collaborated with Douglas on the book. Meanwhile, frequent Esquire contributor Ted Allen is at work on his sixth book, about food and wine, to be published in the spring of 2005; Jai Rodriguez is recording an album and is once again performing in the New York cast of “Rent” (July 5-17), and Thom Filicia continues to hawk housewares as a spokesman for Pier 1. The company, which has seen a recent dip in sales, will overhaul its current advertising campaign next month. — Sara James BEHOLD A LADY: It’s love. Kate Moss will star alongside hip-hop dandy Andre 3000 in a fashion spread in Rolling Stone’s fall fashion issue, on newsstands Aug. 13. David Lipman, who is the issue’s guest creative director, described the spread as “a love story” and said the pair had “amazing chemistry” during the three-day shoot. “I can tell you it’s one of the biggest things I’ve ever been a part of,” said Lipman, who is chairman and creative director of his own ad agency. “It fuses fashion and music in a way that’s never been done before.” At one point on the shoot, said Lipman, Andre 3000 — who is the issue’s guest fashion editor — and Moss had the ageold Beatles vs. Rolling Stones argument. The psychedelic rapper, not surprisingly, favors the Beatles, while the British supermodel prefers the Stones. In case you were wondering. — J.B. FORD-ING AHEAD: The Gucci Group may have let him slip away, but Tom Ford doesn't seem to have lost any momentum since exiting the company in November of last year. His forthcoming 416-page coffee table book "Tom Ford" will go on sale on the one-year anniversary of his announcement that he would be stepping down as creative director and designer for Gucci and Yves Saint Laurent. With more than 300 images from notable lensmen such as Mario Testino, Richard Avedon, Steven Meisel, Annie Leibovitz, Herb Ritts, Terry Richardson, Helmut Newton, Todd Eberle and Craig McDean, Ford’s $125 oversize tome, published by Rizzoli, will also feature a foreword from Vogue's Anna Wintour, an introduction from Vanity Fair’s Graydon Carter and interview and text by Bridget Foley, executive editor of W and WWD (all four publications are owned by Advance Publications Inc.). — S.J. WRONG NUMBER: Get it straight, people: Michael Wolff is the celebrated media critic who left New York magazine for Vanity Fair after his attempt to buy the former fell short. Michael Wolfe is GQ’s associate publisher. Both work for Condé Nast, which inevitably leads to some confusion. “I’m getting all these calls for the wrong Michael Wolff,” said Wolfe Monday at a GQ-hosted party that featured performances by Q-Tip and the Jungle Brothers (although no appearance by editor in chief Jim Nelson, who was preparing for next week’s men’s shows in Milan). “I got a call from Time asking if I wanted to write a profile of Rupert Murdoch. I got a call from CNN asking for my viewpoint on the Martha Stewart trial.” Wolff, for his part, said he has yet to receive any errant insertion orders. — J.B. 14 WWD, FRIDAY, JUNE 25, 2004 WWDWalkthrough: A Vintage Affair Many women today, especially in the fashion industry, prefer buying vintage because...time and time again, the ensembles they wear that draw the most admiring responses are those they’ve unearthed in a thrift store. relatively affordable, ranging roughly from $75 to $200. There were many amazing things, but the prices were just steep enough that I knew I had to confine myself to only one piece. So I picked a turquoise brooch for $150, but the vendor only took cash or a check and well, as any shopaholic worth her salt will tell you, all purchases must be made with plastic. So I demurred and moved on, meandering into one of the cavernous ballrooms where I browsed through racks of elaborate evening gowns spanning every major decade of the 20th century, along with beaded bags, furs and lingerie. One of my girlfriends joined me just as I happened upon a series of silk chiffon dresses from the Twenties in glorious floral prints. They all were priced around $400 and were in great condition. The saleswoman made a little makeshift fitting area by angling a clothing rack in a corner. The prints were all beautiful and very evocative of the floral chiffon ones that were so prolific in stores this spring. As desperate as I was to buy at least one, the lines just didn’t suit me. They were long and straight and very modest. The silhouette was more appropriate for someone with a swimmer’s body — T-shaped à la Princess Stephanie. My friend kept looking at me a tad pityingly, communicating silently with her eyes to please put them back. So I did. We perused the remaining booths, which all contained some unique items or even reworked pieces that looked fresh — cotton floral print frocks, tie-dyed silk dresses, floaty cocktail numbers as well as tons of fabric swatches that design house scouts scoop up for research. The shopper turnout was rather sparse, and clearly those in attendance were either clothing designers in search of inspiration, the requisite drag queens or just eccentric types who have a maudlin attachment to vintage. That said, many women today, especially in the fashion industry, prefer buying vintage (as opposed to regular retail) because working among people who spend their waking hours assessing clothes, time and time again, the ensembles they wear that draw the most admiring responses are those they’ve unearthed in a thrift store. In part, because they are unique and also because no one else can get them. Now, part of the allure of shopping for vintage pieces is that you can find amazing things for equally amazing prices. Buying a dress made in Thailand with exquisite detailing A Twenties that fits perfectly for about $100 is pretty sweet. brooch. And while there were so many stunning pieces at the show, clearly the vendors knew the worth of their wares, so purchasing goodies at face value wasn’t quite as magical as sussing out that great vintage Paco Rabanne from a seller at a flea market who doesn’t know any better. I continued to parade around, trying on more chiffon dresses and more antique nightgowns — clearly what I had on the brain — before stopping at Jean Claude Mastroianni’s booth, where I found two lovely items. One was an evening bag with turquoise and gold embroidery, which Mastroianni had reconstructed for $150. More than I would usually pay for a vintage evening bag, but it was a stunner. (I took it to a wedding recently and got more compliments on it than anything else.) Next I picked up a beautiful green brooch Mastroianni placed as from the late Twenties for $80 — which sadly, broke the first time I wore it, on my shawl to the CFDA Awards. Had I been able to spend freely, I could have easily dropped $10,000. But in an effort at conservative consumption, I stopped, waltzed past the gorgeous chiffon dresses I so desperately wanted and got on the subway — a cost-saving measure if A reconstructed vintage bag. ever there ever was one. On Track With New Show, The Train NEW YORK — Jean-Pierre Mocho, chairman of the French Fashion & Garment Association, which owns Prêt à Porter Paris, is finessing plans for The Train, a new designer trade show geared for buyers with a well-trained eye. Set for Sept. 27-29 at the Terminal Stores in Manhattan, The Train will feature upscale ready-to-wear, accessories and home products in a nontraditional format, with art displays, exhibitions and performances. “We had the feeling that something was missing in the States,” said Mocho, who also serves as vice president of the French Union of Arts & Costume. “We want to bring collections that are not made in the market at the moment. This is not a matter of selling space. We want to sell collections.” Fashion specialists and editors are currently scouting for the show’s rtw and accessories resources. European and Asian firms are expected to make up 60 percent of the exhibitors, with American designers accounting for the remainder. In return, Mocho hopes the experience will encourage more American designers to participate in European shows. In addition, a European delegation will travel to the U.S. for the inaugural show. “The idea was to not just work for France, but also for Europe,” he said. The Train will target buyers by invitation only, using email and personal phone calls. Mocho wants stores to be motivated by what they see at the show. “You don’t buy a product because you feel cold,” he said. “You buy a product because you want to look different from others.” The Train will be staged twice a year, in February and September. Terminal Stores is located on 11th Avenue between 27th and 28th Streets. The Train will occupy more than twice as much space as The Tunnel nightclub, which used to be at that location. The interior has been restored with red brick and the ceiling has been painted black. Finding the right location was essential for this project, Mocho said. “The collection can be good, but if the location itself is not that attractive, it doesn’t matter,” he said. — Rosemary Feitelberg VINTAGE PHOTOS BY DAVID TURNER NEW YORK — It was a muggy, sun-drenched Saturday and while the rest of the free world convened in Central Park or wrangled a lounge chair at some rooftop pool, I found myself in the rather shabby confines of the New Yorker Hotel at 34th Street and Eighth Avenue. Lest this sound tawdry, let me clarify — I was shopping. Having long been a vintage clothing lover, it was with great anticipation that I set out to the New York Vintage Fashion & Antique Textile Show last month. On the hotel’s second floor, myriad vendors had set up booths to show off some impressive vintage wares ranging from Art Deco brooches to Charles Jourdan platform wedges from the Seventies to dresses from the Twenties. As my eyes scanned the floor, a wealth of goodies screamed to be purchased, or fondled at the very least. Now, for a true shopper, the sight of such treasures serves only to quicken the pulse — both in panic that A Thirties you won’t have enough time to see lingerie everything and that you won’t, gasp, be blouse. able to afford everything that you want. Regaining my composure, I began to go through the booths in a measured, deliberate manner. I stopped first at Sheila Feeney’s, the event’s coordinator, and after sifting through dresses, blouses and fabrics found a beautiful pink lingerie top with cream lace trim that Feeney thought to be from the Thirties. It had a small tear in the back, but for $48 it seemed rather a steal. Especially compared with how much one would pay at retail for a new vintage-inspired lingerie top. Once that was in the bag, I wandered over to a series of jewelry cases that had a plethora of beautiful pieces, from ornate brooches to whimsical charm bracelets. Everything was ▼ By Anamaria Wilson September 2004: JANE’s Seventh Anniversary Issue is the Ultimate Makeunder. SEPTEMBER SHOCKINGLY GOOD NOT SHOCK VALUE PRIMP THOUSANDS OF LIPSTICKS, ONE (BIG) MOUTH DRESS MORE FASHION EXTRA CREDITS MORE MUSIC COVERAGE THAN ANY OTHER WOMEN’S MAG IN HISTORY REBELLIOUS? SO NINETIES The Seven Year Itch. A new girlfriend…without the cheating. On-sale: August 24. Contact Eva Dillon, VP, Publisher at 212.630.3960. 16 WWD, FRIDAY, JUNE 25, 2004 NEW YORK — “Fashion has to be funny,” says Leo Fabrizio, designer of the fledgling collection called Tra’shic. “Women should feel happy when they dress.” Well, as it happens, “funny” is something Fabrizio might as well have stamped right on his résumé, since he worked as the head designer for Moschino Cheap & Chic’s women’s, men’s and children’s collections for nine years before going it alone. However, as Fabrizio tells it, his sense of humor is innate and surfaced long before his days in the Moschino studios. Tra’shic’s comedy begins with the name of the line, which insinuates a melding of the very chic with fashion’s baser elements. But, yucks aside, after launching Tra’shic softly for spring, Fabrizio is moving full steam ahead with his fall collection. The question he poses with Tra’shic is, “Why not?” — as in “Why can’t a woman dress all day in eveningwear?” Fortunately, the answers are delivered with a modicum of restraint. There are no ballgowns intended for a day at the office. Instead, the designer tacks a collar of rhinestone-studded chiffon onto a puffy nylon down jacket. A sleeveless mohair turtleneck gets a coating of flaking silver leaf on the body and sequined flowers on its chunky collar. More sequins plus bugle beads and fluffy bits of marabou make their way onto T-shirts, pants and jackets as trim. And, most of the time, it works. Fabrizio, a big fan of leather, also designs a line called Stephen for the Florentine leather factory that produces his work. His leather pieces for Tra’shic include a hooded toggle coat and a stylish wrap skirt to be worn over a black tiered crinoline, both in a buttery soft stretch lamb. For now, the collection, which wholesales from $85 for an embellished T-shirt to $828 for a leather coat, is available only at two boutiques: Skye in Denver and Xin in Los Angeles. Fabrizio, however, is hoping his sartorial comedy will soon capture a wider audience. The designer’s sense of humor is most palpable in the papery rectangles of cloth basted onto a few of the black jersey dresses. “Mirror, mirror on the wall, Who is the Tra’shic of them all?” reads one. Another source of whimsy is the label, which is attached to the clothes in seemingly random places with a snap button. The eight-inch tag is printed with a long ode to Fabrizio’s inspiration in charmingly iffy English. “Made in Italy with the best quality materials to enjoy girls all over the planet,” it begins. Then it continues, “Inspired by thousands of girls, ladies, young, oldies, whites, blacks, tall, small. For all nice and funny girls.” The tag can be left on to flap in the wind, snapped off for later use, or cut on Leo Fabrizio the dotted line marked, “Cut here.” So what will the Tra’shic girl do when given such options? Fabrizio isn’t sure, but he’s convinced there’s a bit of Tra’shic in everyone. “It’s a funny girl that takes herself not so seriously,” he explains of his hypothetical client. “She could be a housekeeper or a model.” — Meenal Mistry Tra’shic’s wool and cotton top over leather and silk tulle skirt. Canan Cullu Wins at ITKIB’s Young Designer Competition By Suna Erdem ISTANBUL — It was no surprise to those who contributed to the loud applause that greeted Canan Cullu’s dark, intricate fourpiece Samurai collection when she was announced as the latest winner of Turkey’s ITKIB young designers’ competition. The 24-year-old’s designs, which were drawn from the theme of “force” — one of four offered to the competitors — and conceived before “The Last Samurai” hit the movie screens, used mainly black, injected with beige, a smoky gray and the thinnest of red stripes for a clever, modern interpretation of an ancient way of dressing. “I tried to make the samurai costume relevant to today. I think the idea is relevant anyway as we are all fighting for things and running after things,” said Cullu, clutching her trophy, before adding with a breathless laugh: “Sorry! I’m probably talking nonsense….I’m so overwhelmed.” The showcase piece, worn by leading Turkish model Selin Toktay, was dominated by a big cloak-like coat cut in the shape of a kimono. Hand-embroidered beading referred to the body armor of the Japanese warrior and a separate large, loose hood flapped above the kimono neckline. A deep slit at the back revealed a pair of pants that played on the baggy Turkish shalvar idea with a loose, low crotch that actually was a skirt. Another black jacket in velvet-like fustagno, which Cullu said also began as a kimono but moved much further from the original concept, was an intricate patchwork of cuts and folds, with an asymmetric wrap-over front fastening, button-like beading on the sleeves and a belt tied at the back. Cullu, who studied at LaSalle International Fashion School of Design and Istanbul’s Bilgi University, also has taken classes at Philips Exeter and Rhode Island School of Design in the U.S. and spent time as an assistant to designers such as Bahar Korcan, a former ITKIB young designer. She won a year’s scholarship to a leading European fashion school and the chance to take her designs to the CPD fair in Düsseldorf. She beat off a challenge from second-placed Giray Sepin, who was a finalist last year. Although there was much debate about those competitors who placed below Cullu, the judges expressed little doubt about her right to first place in the 13th edition of a competition set up to help bring more design talent into the sizeable Turkish clothing manufacturing industry. “Her designs are really strong,” said Donna Kernan, lecturer on the BA course at Saint Martins in London and one of the 16 members of the jury. “The garments stand up on their own, the fabrics were great and the cutting was interesting….I think she could do really well in the future if she does a good apprenticeship and keeps improving.” If Kernan had one criticism of the entrants as a group, though, it was that they could make more use of fabrics, print and color. “I really thought when I came to Turkey that it was going to be all about color, and yet it was all very monochrome,” she said. ITKIB officials said they are hoping to expand the competition to attract international entrants next year, so pleased are they with its success so far. Suleyman Orakcioglu, the current ITKIB chairman who presented the prize, said the competition is “a national treasure” and the entrants are proof of the changing image of ready-to-wear production in Turkey. It is an image that is changing partly out of necessity, as Turkey’s status as a cheap manufacturing base is being chal- A Breezy Season in the Windy City By Beth Wilson CHICAGO — Midwestern retailers completed their fall collections at a quiet but productive market this month at the Apparel Center here. “I like the laid-back environment,” said Pamela Kindschuh, who owns Only Her, a specialty store in Ripon, Wis. “It’s not too busy. It’s easy to go into a new place without an appointment.” Kindschuh, who was looking at buying sweaters with rhine- stone buttons and jackets from Willow, said she did more ordering at the June 4-7 market than at the larger StyleMax in October and at Chicago’s Merchandise Mart in March. Lisa Shedlock, owner of Hoi Polloi, a specialty store in Ann Arbor, Mich., said she enjoyed the individualized approach that a smaller market allows. “It was wonderful,” Shedlock said. “I like the convenience and the more personal attention.” Susan McCullough, vice pres- ident for apparel for Merchandise Mart Properties, which runs the Apparel Center, said, “I think people did the business they planned on doing. It was in line with their expectations.” Steven Goodman, the Midwest regional manager for French Dressing, who operates a showroom in the Apparel Center, said, “From the people who were here, I did the business I expected to do.” Goodman said strong sellers included stretch twill trousers lenged by countries such as China, especially with the phaseout of apparel quotas for the 147 nations of the World Trade Organization on Jan. 1. The Turkish rtw industry is trying to nurture design talent in a bid to create brands and raise its production quality so it can compete at the designer level rather than simply provide low-cost workers and textiles. The urgency was emphasized further by Umut Oran, president of the Turkish Clothing Manufacturers’ Association, who said in a separate news conference that Canan clothing exports had dropped to $964 milCullu lion in May from $1.23 billion in January. Overall, exports had improved by 15.7 percent in volume terms in the first five months of this year compared with the same period last year, but the slow monthly decline in value terms should serve as a wake-up call to the industry before it is too late, Oran said. He offered some cheer, though, with the news that last year’s ITKIB young designer winner, Erkan Coruh, had been voted joint first at a young designer competition at the International Apparel Federation’s latest congress in Barcelona. Hoping, no doubt, to build on such successes, board member Yalcin Ayaydin said ITKIB is prepared to do everything possible to promote competition winners: “We send the first three to study for a master’s degree at the Domus Academy in Milan,” he said. “When they return to Turkey, we will find them jobs. If they want to put on a show abroad we will give them all the support we can….I am very excited about the first three. I believe they will all be well known internationally in 10 years’ time.” in cloud blue, cayenne, warm taupe and a coordinating taupeand-black stripe. Kindschuh liked some fall clutches and shoulder bags from Putu. The flannel-style bags came in a black houndstooth, light red plaid, brown tweed and a grayisholive style. The retailer also replenished her top-selling collection of Mondo flat-front trousers in black, brown and tweed, and raved about a black silk gathered skirt from ISDA & Co. “You could wear it with a jean jacket or a cashmere sweater for holiday,” Kindschuh said. Shedlock said she liked the unusual, artistic coats by Lee Andersen. “It’s art that you wear,” she said of the coats with a satiny hood. “They were so incredible, so dramatic. They’re great for my front window.” The Michigan boutique owner cited a low-cut black dress with bead straps by Linda Segal for holiday and tops with different necklines in brown, plums and other earth tones by Lynn Ritchie. She also placed orders for items from one of her top lines, Tribal Sportswear. “If I had to do one-stop shopping, that’s it,” Shedlock said. PORTRAIT BY DAVIDE MAESTRI; MODEL BY TALAYA CENTENO Good-Humor Man 18 WWD, FRIDAY, JUNE 25, 2004 California Sues The Body Shop Eyeing Canada Franchisees Retailers Over Lead Warnings By Marcy Medina LOS ANGELES — Thirteen major retailers have been sued by the state of California for allegedly breaking state law by not warning customers that some of the costume jewelry they sell contains lead. Named in Attorney General Bill Lockyer’s suit filed Wednesday were Macy’s, Target, Wal-Mart, Kmart, J.C. Penney, Mervyn’s, Nordstrom, Ross, Sears, Express, Claire’s, Toys ’R’ Us and Burlington Coat Factory. The suit, filed in the Alameda County Superior Court, alleges the retailers violated Proposition 65, which, since 1986, requires businesses with more than 10 employees to provide warnings when exposing people to lead and other substances known to cause cancer or reproductive harm. The state is seeking to prohibit stores from selling jewelry without such warnings and asks for civil penalties of up to $2,500 for each violation, which could be constituted as every day a store sold items without warnings or every time an item was sold. “We’re in discussion with the defendants to find a resolution that protects consumers and precludes the need for a drawn-out court fight,” said a spokesman for Lockyer. “Civil penalties are not our primary objective.” L.A. attorney Jeffrey Margulies, who represents Target, Mervyn’s, Macy’s, Penney’s and Toys ’R’ Us in the suit, said Proposition 65 suits occur often (he estimated Target has been named in about 24 such suits in the last five years) and rarely result in court battles. “It is not unusual in Prop 65 cases for retailers to be named as a way to get to manufacturers,” Margulies said. “Even though we are being sued, it’s not unusual to work cooperatively with the attorney general’s office.” Pamela Williams, vice president of the California Retailers Association, which is handling the issue for Mervyn’s and Macy’s West, said, “In California, people are used to these warnings. But the fact that the attorney general is involved brings more credibility to the suit.” Part of the complication, she added, “Is that we don’t know yet from the plaintiff what specific jewelry they are referring to. Once it is identified, then our stores would either no longer sell the item or provide a warning.” While most retailers declined to comment, a spokesman for Nordstrom, which has 45 doors in California, stated, “We haven’t been served yet, but we’re investigating the matter. We’re just trying to figure out now which vendors are involved, but if we find out that something poses a health hazard for our customers, we’ll take action.” A year ago, the Oakland, Calif.-based nonprofit group Center for Environmental Health began using home lead test kits to assess whether stores in 10 Bay Area malls sold jewelry containing lead, said CEH’s toxic researcher, Joanna Mattson, who became suspicious with the comeback of black “jelly” bracelets popular in the Eighties. “I knew that type of PVC plastic contained lead, which led us to look for those items in other stores, where we also found that some metal pieces contain lead,” she said. The CEH filed notices in December and March to the attorney general, which brought on the formal suit. In addition, CEH is filing private lawsuits with 11 other businesses. — With contributions from Michelle Dalton Tyree NEW YORK — The Body Shop International is poised to expand its global reach. The socially conscious skin care retailer said Thursday it was negotiating to buy its head franchisee in Canada. Additionally, the firm said it acquired a 75 percent stake in its Chinese franchises. The British parent firm is in talks to buy the 111-outlet Body Shop Canada from Margot Franssen, her husband Quig Tingley and her sister Betty-Ann Franssen, owners since 1980. Forty-two of the Canadian locations are corporately owned and 69 are owned by subfranchisees. Final negotiations are under way, and the company did not say how much it would pay. Talk of a purchase began circulating two years ago, when the Canadian owners were approached by a third party. No store closures are planned if the deal goes through. “We have tremendous confidence in The Body Shop and we believe that this transfer in ownership will be a positive step that will strengthen the company for our franchisees, shop staff, and customers from coast to coast,” Margot Franssen, president and partner of The Body Shop Canada, said in a statement. Also Thursday, The Body Shop acquired 75 percent of Mighty Ocean Company Ltd., a private company that operates 26 stores in Hong Kong and two in Macau. The deal will be settled with $133 million in cash and the issuance of about 1 million ordinary shares. “The Body Shop in Hong Kong is a strong business and buying a majority stake provides a sound base for our expansion into China. The Body Inside The Body Shop. Shop Canada is also a high-quality retail company and there are opportunities for further integrating best practice with The Body Shop Americas region,” said chief executive officer Peter Saunders in a statement. Worldwide, The Body Shop International has 2,019 stores in more than 50 countries. — Carrie Melago Retro, Vintage Star at FIG in Dallas Fall DFAs to Feature By Holly Haber DALLAS — Eye-catching items such as sequined ponchos and embroidered mesh pants drove business at the Fashion Industry Gallery’s recent market. Sales representatives were upbeat about business and reported gains at the four-day event that ended June 6, though the June market is one of the smallest of the year. Retro and vintage styles especially piqued the interest of buyers, including colorful cashmere sweaters embellished with a brooch or beadwork, novelty skirts and fur wraps. “The stores’ business seemed to be really trending up and they were in a positive mood,” said Greg Mider, who owns the Mider Group sales firm, noting he had doubled his bookings of Garfield and Marks and Womyn sportswear. “It was a refreshing and a fun market for us.” Buyers were enthusiastic about the feminine looks they found for fall and holiday. Traci Szilasi, owner of the upscale Maison Weiss store in Jackson, Miss., was stocking the second unit she plans to open in Oxford, Miss., on Aug. 4, which coincides with the store’s 30th anniversary. She picked up Tom K. Nguyen’s rabbit fur vest with a ribbon belt, brocade skirt and jersey camisole, and ponchos from Beth Bowley and Inca, along with reversible distressed leather jackets by June. “They key today is to have very different items that make the customer go ‘Wow,’” said Shelley Cox, owner of Cayman’s boutique in Norman, Okla. “Price is not so much an issue if it’s special enough.” Cox praised Rebecca Taylor’s collection for its color, Jon’s bouclé jackets, Poleci’s metallic trench and Chameleon’s sweaters with jewels and knitted mink wrap. She also found a new jewelry line in Rebecca Lankford’s layered 18-karat gold necklaces. Patty Hoffpauir, owner of The Garden Room in Austin, Tex., was hunting for chic lines sized up to 12 and 14. She found an indigo velvet skirt with a gold and brown metallic sheer top at Twelfth St. by Cynthia Vincent and jersey knit skirts and pants by Jane Jane. She also praised a printed metallic coat and blazer by Trina Turk “that looked straight out of a vintage shop.” The market featured a fall and holiday trend talk, slide show and cocktail party at the Neiman Marcus flagship presented by Ken Downing, the retailer’s vice president of public relations. His top items were: tweed and men’s wear fabrics, fur and fur trim, pencil skirts, skinny pants tucked into boots, big bags and the color green in apparel and accessories. Missoni Retrospective DALLAS — The Dallas Fashion Awards will have a colorful flair this fall when Missoni presents a retrospective show as the recipient of the annual ceremony’s Fashion Excellence Award. “The Missoni family members are true craftsmen whose designs are as thoughtful and beautiful today as when they first burst onto the fashion scene in 1953,” said Bill Winsor, president and chief executive officer of the Dallas Market Center Co., which will present the trophy Oct. 23 during spring fashion market week. “Their pieces are as much works of art as stylish garments.” At the gala, the DMC also will honor Tiffany & Co. design director John Loring with an award recognizing his career achievements and the publication of his book, “Tiffany in Fashion.” A new award, called Best of Scene, will be presented to Nygård International as an outstanding exhibitor in the DMC’s Scene booth show of contemporary and bridge collections. Scene bowed in March at the opening of the FashionCenterDallas within the DMC’s World Trade Center. Next year, the Best of Scene winner will be determined by a vote of retailers, as will be the winners in each of the 15 DFA merchandise categories. They will be announced at the event, which is in its 29th year. — H.H. Cutter & Buck Profits in Qtr., Year NEW YORK — Cutter & Buck Inc.’s campaign to concentrate on its core business has taken it out of the sand traps and onto the greens, returning the company to profitability in both the fourth quarter and full year. For the three months ended April 30, the Seattle-based golf apparel and sportswear manufacturer reported earnings of $5.6 million, or 49 cents a diluted a share, compared with a loss of $992,000, or 9 cents, in the year-ago quarter. Sales for the period increased 5.6 percent to $38.4 million from $36.3 million. For Fran Conley, chairwoman and chief executive officer, the strong results signal the completion of the company’s turnaround and the beginning of a new phase in its growth, one that will include the appointment of a new ceo. “With the results we have announced today, and with the resolution of most of the fallout from the 2002 restatement, I have accomplished more than what I set out to do,” said Conley, in a statement. “It’s time for a transition.” Conley assumed the top posts following the resignation of founder Harvey Jones in April 2002. In December 2002, as part of the company’s release of second-quarter earnings, Conley announced the company’s decision to abandon its retail stores business. “Our balance sheet is strong and liquid,” said Conley at the time. “However, the retail stores are a drag on performance. If we keep them, the drag will continue.” The strategy has paid off for both the company and its investors. Share prices have increased more than 260 percent over the past two years, going from a closing price of $2.89 a share on Oct. 7, 2002, to $10.41 on June 23, 2004. Over the past three months shares have hovered between $9 and $11 in Nasdaq trading. According to Conley, a national search firm has been retained to find her successor, a process that should take between four and six months. “Although we have many strong people inside the company, the board will be doing a nationwide search for my successor and I think it’s very probable that the successor will come from outside the company,” said Conley during a company conference call last week. Conley has been asked to continue in her role as chairwoman once a new ceo is in place. In the quarter, the company’s corporate sales division led all segments with a 12.4 percent increase to $14.9 million from $13.3 million in the year-ago quarter. According to management, the company has approximately 2,300 corporate customers, many of whom are beginning to spend more. The bleeding stopped for the year-end period as well, with earnings of $7.9 million, or 71 cents, compared with a loss of $12 million, or $1.13, in the previous year. Sales retreated 2.5 percent to $128.4 million from $131.7 million. — Ross Tucker WWD, FRIDAY, JUNE 25, 2004 CLOSE OUTS We Buy Men’s, Women’s & Children’s All Quantities WE HAVE INSTANT MONEY We are nice people to deal with P.S. Large Piece Good Deals Also HBA and General Merchandise. Call Rocky 800-762-5488 beauty IS FOR... Careers always look better here, especially around the bright lights of the makeup counter. Join us and experience a new career at a place that’s like no other store in the world! Cosmetics Department Manager We seek a seasoned Cosmetics Manager with a minimum of 2-3 years retail cosmetic and/or management experience. Successful candidate must have exceptional leadership, interpersonal, analytical and negotiating skills; the ability to motivate/lead a team of Counter Managers, Beauty Advisors and Make-up Artists; and a commitment to providing the highest standards of customer service in what is a highly visible management position. We offer attractive salaries and a generous benefits package. If you have a passion for make-up and natural finesse for color, we would love to meet you. Please fax resume to: Peter Kaye at (212) 705-2399 or apply on-line at bloomingdalesjobs.com. An EOE m/f/d/v. Production Asst./ Trim Buyer Knits For Space in Garment Center Helmsley-Spear, Inc. 212-880-0414 Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Great ’New’ Office Space Avail ADAMS & CO. 212-679-5500 Private label company seeks Production Assistant/Trim Buyer with min 5 yrs exp in knit trim purchases, inventory, and tracking. Excellent communica tion, organizational and computer skills a must. Fast pace environment! Fax resumes to: 212-997-7761 Attn: Laura Admin. Showroom Administrator PATTERNS, SAMPLES, PRODUCTIONS Handbag Co. seeks upbeat, organized, responsible team player for general office duties. Must have Word/Excel knowledge, and be able to maintain all aspects of the showroom. Fax resume: 212-239-0432 Admin Since 1967 All lines,Any styles. Fine Fast Service. Call Sherry 212-719-0622. W-I-N-S-T-O-N APPAREL STAFFING PATTERNS, SAMPLES, PRODUCTIONS DESIGN*SALES*MERCH ADMIN*TECH*PRODUCTION (212)557-5000 F: (212)986-8437 Samples and patterns full servcie shop to the trade. Fine fast work. 212-869-2699. Apparel Staffing See Career Openings @ www.apparelstaffing.com Fax Resume To (212) 302-1161 Apparel Trim Components Major global mfr. seeks an energetic & motivated Account Executive to work out of our NYC office calling on existing & prospective accounts - major apparel brands & retailers - to promote our global offer, services, and capabilities. Experience in denim, trim management, technical design and/or apparel construction a plus. Competitive benefits package. Salary commensurate with experience. Please Fax resume to: 212-561-6468 TRIM/COLOR COORDINATOR NEW YORK CITY Work closely w/designers on trim sourcing, development and establishing color standards for each season. Maintain accurate trim and color files, conduct market research and compile reports. Must be able to communicate trim qualities, colors and specifications to vendors. Qualified candidate must have 2+ years trim development exp, and be proficient in Excel, Word and PDM. Should also be able to work under pressure, meet deadlines and have strong communication skills. Please fax resume and salary history to: (212) 632-4322. No phone calls accepted. EOE PATTERNMAKER Great opportunity for highly motivated individual at a top fashion doll co. located in the Mid-Hudson Valley. The right candidate must be able to make patterns from designer sketches, sew own outfits for dolls, be hardworking and detail oriented. Make the move from the fashion industry to the doll industry. Contact Joe Petrollese at: 845-339-9537. EOE. M/F PATTERN & SAMPLE MAKERS Leading mfg. of women’s apparel located in the Philadelphia area is now hiring skilled Pattern Makers experienced w/ Lectra Modaris. Applicants must be detail oriented. We are also hiring experienced Sample Makers. Great benefits pkg. including medical and 401K. Send your confidential resume. Fax 215-396-9017 or Email to peggyg@notations.com PETROJEANS Bryant Pk Duplex 1100, 2000, 4500 FT. 20 Ft Ceilings - Great Windows/Views SoHo-Sublet Penthouse 2000 FT Prime Manhattan Jon 212-268-8043 Design Exciting Opportunity! Major West Coast Denim Co. seeks innovative DESIGNER for JUNIOR JEANS LINE. Candidate needs to contribute to the development of seasonal lines, concepts, and consumer relevant product opportunities. Support the development, evolution, and communication of a brand look. Domestic & overseas travel. Must be able to work in a fast-paced & fun environment. Please E-mail resumes to: HotTrend@hotmail.com Design Separation Artist The largest U.S. Gravure printer seeks an experienced digital color separation artist. Knowledge of PhotoShop, Illustrator, or AVA software a plus, but not mandatory. Background in textile industry helpful but not essential. Qualified individual should be creative, with an eye for design. This position requires working closely with the Engraving Manager to develop projects from initial scan of artwork to final full color separation. Candidates should be professional and self-motivated with strong communication skills. Excellent salary and benefits. Please fax resume Attn: Pamela Parnell 212-967-5099 or email: pamela@transprintusa.com Hot young contemporary/young men’s denim line seeking Sales Executives for all regions. Qualifications: 3-5 yrs. whole sale experience, contacts with dept. & specialty stores, denim industry experience.Please e-mail resume to: aishikawa@lawmanjeans.com SWEATER SALES Judith Ripka Companies Seeking the Best in Class!!! Unique opportunity to join a team of Sales Pros at a flagship Madison Ave., Short Hills, NJ, East Hills, LI, locations. 3+ years of luxury sales exp. req’d. with polished presentation/exceptional communication Major information technology skills and proven track record. Strong company seeks responsible person client following a must. Excellent benefits with extensive knowledge of all package & high income earning potential aspects of EDI transactions, IT, available. Cosmetic or fashion exp. is a Database, Window system, and +++++ Please send resumes: trouble shooting. Must have Attn: Theresa @ Fax: (212) 244-4560 experience in garment industry, Major Sleepwear Manufacturer looking Fax resume: 212-967-8018 for highly detail oriented individual with strong sense of color to handle approval tracking process from design concept to production stage. Minimum 3 yrs experience required. Proficient in Excel and E-mail. Walmart and Retail Link exp. a plus. Fax resume w/ sal req. to: 212-685-4341 Attn: Lauren Midtown Manhattan / Los Angeles Are you creative & goal oriented? Exciting new opportunities to work We are an international firm that with one of the fastest growing cosmetic designs & produces handbags companies in prestige cosmetics distri& GWP fashion accessories. bution. Benefit Cosmetics is based We currently seek a relationship in San Francisco, California. PRODUCTION builder with Sales Management PRODUCT MARKETING experience and a proven record of finding & developing new clients. This position works side-by-side with Visit and evaluate factories specializthe co-Creators, Creative team, and ing in knit woven fabrics & garments If you are a team player and believe Product Development. The ideal candi- in Korea, Indonesia, Vietnam, Hong in accountability, and thrive in an date must have relevant cosmetic expe- Kong and other countries as required. exciting work environment... rience including specific color market- Utilize contacts in same countries to we should talk. ing experience, the ability to actively find factories for best quality and Learn more about our business, and participate in the creative process, price. Negotiate price and delivery; apply for this strong opportunity by drive the execution process, and be a visit factories to oversee start-up of viewing our website careers section: proven team player. new production; set-up and oversee www.macher.com control standard with buyers; PACKAGING/SOURCING EXPERT quality inspect & approve final garments and This position requires an expert with a printing of fabrics. Travel (international) creative and innovative flair in product minimum 20% of year plus domestic packaging. Relevant cosmetics experi- trade shows. Excel, Microsoft Outlook Established textile design studio seeks ence with sourcing and interactions & Microsoft Word skills required. B.A. exp. sales rep to sell advanced CAD with suppliers required. Candidate & 5 yrs. exp. in garment production services to apparel & home markets. must be a demonstrated team player and quality control or 7 yrs exp. in Call 212-244-1426 with the ability to work as an integral same. 45+ hr. wk. Fax resume & letter part of the creative process. Position attn: HR, 212-575-5778. reports to the Product Development Manager and works closely with the co-Creators and Creative team. Mfr./Importer of Branded Jr. Knit Tops Please submit resume, & Sleepwear seeks exp’d. Sales Pro for along with salary requirements its NY Showroom. Must be energetic, and references via email to: willing to travel, and have existing concareers@benefitcosmetics.com tacts in Chain, Specialty & Major Dept. Stores. Minimum 2 years showroom sales exp. req’d. Fax or E-mail resumes to: Import and domestic ladies contempo- 212-719-9328 / ahills@jamatex.com rary sportswear: Wovens and Knits. Create/monitor calendars, negotiate pricing, purchase bulk fabric/trim, facilitate import shipping, manage prodFast growing Cosmetic Co. is seeking uct coordinator. Great opportunity for assistance with licensees & in-house a motivated team player. Candidate creative dept on the development of must be computer literate, organized, cosmetic lines for multiple brands. and have excellent communication Candidate will be working closely with skills. Minimum 5 yrs experience. licensors & creative teams on brands Please send resume & salary requirements: resumebox2004@yahoo.com development and instrumental in the approval process. This position requires a person who is very detail oriented, and has the ability to multitask while meeting a deadline. Computer Skills Required: Micro Soft Office. E-mail to: Ladies, Men & Chldn. Broad technical KGR04@optonline.net knowledge of yarn, fashion trend. Be expd. in computer design & graph ability. Able to work under direction and design to need of customer. Please fax resume: 215-739-5150 VF, the global leader in creating powerful brands of apparel, is seeking a Molding Technician for its Intimates Division. The successful candidate will possess 2 years experience in a mechanical background preferably in apparel, strong communication skills, proficient PC skills, attention to detail is essential. Qualified candidates should Sweater co. seeks experienced, e-mail resume & salary requirements to: energtic technical designer. Evaluate kathy_scotto@vfc.com 1st prototype through production, specing, fitting, grading and also comFor more information about our munication with factory overseas. company, please visit our website at Good spoken English is a must. www.vfc.com VF Intimates is an EOE Fax resume to: 212-302-6527 EDI Specialist 19 Product Coordinator SALES PROFESSIONAL Head of Men’s & Women’s Sweater Sales. Exp. Rqrd. Must have technical knowledge of yarns, computer literate & travel rqrd. Please fax resume: 215-739-5150 Tory By TRB is currently seeking Sales Professionals for Full-Time positions with its Flagship Store in Nolita. Ideal candidates will have a minimum 3 years of fashion retail experience, a strong clientele base, and will be customer service driven. Tory By TRB offers a competitive salary, graduated commission structure, and a full benefits package. For consideration, please Fax or E-mail resume to: (212) 334-3038 / inquiries@toryltd.com For more information about Tory By TRB, a luxury women’s apparel & accessories collection, please visit our website at: www.toryltd.com Director of Productions Sales Rep Showroom Sales PRODUCTION MANAGER Licensing Coordinator SWEATER DESIGNER Molding Technician Tech Designer Chinese Bilingual Major Swimwear Apparel Designer Independent Sales Reps Needed Midwest, Southeast & New England Established branded swimwear company is seeking independent sales reps to manage and grow existing territories. Current account base already exists. Should have 3-5 years of apparel or swimwear sales experience. Fax cover letter and resume to: 513-874-1878 Southeast + Midwest Positions 732-254-1409 New England Position WWD Health&Beauty SECTION II Cosmoprof Show Update ❋ Vegas Beauty ❋ New Products ❋ HBA Report PHOTO BY CORBIS REDISCOVERS AMERICA 2 WWD, FRIDAY, JUNE 25, 2004 SECTION Il W W D H E A LT H & B E A U T Y Cosmoprof’s Second Act Will Cosmoprof’s luxury brand identity carry over — and stick — to its second Las Vegas show? By Andrea Nagel ALL EYES ARE ON COSMOPROF NORTH AMERICA’S NEXT FORAY INTO THE United States this July 18-20. With last year’s show garnering mixed results — long lines and a somewhat confusing layout hampered some attendees’ experiences — this year’s effort in Las Vegas could decide the global beauty trade show’s future in the U.S. Cosmoprof, which relies largely on a global presence at each of the shows it produces, also has had an economic recession in Western Europe to confront, as well as the combination of the weak dollar and the strong euro, making exporting problematic for many would-be show goers. At this year’s Bologna, Italy, show, it was reported that discounting prices by as much as 30 percent had become a common way of doing business for local beauty retailers. Despite the challenges, however, Cosmoprof officials are out to make this year’s U.S. effort an unforgettable one. Acknowledging several of last year’s complaints, the show has moved from the cavernous Las Vegas Convention Center to the new, more compact Mandalay Bay Convention Center. A greater emphasis on education and the development of a summit focused specifically on wellness and the spa industry promise to make attending the show more than just walking a trade show floor. Preliminary exhibitor commitments show that the new efforts, along with positive results from last year’s show, have pushed exhibitor attendance up from 613 to more than 700, as of June 16, with 30 percent of exhibitors coming from outside the U.S. “This could be one of the elements that draws attendees,” said Laura Zaccagnini, general director of Sogecos, the organizer of Cosmoprof, explaining that foreign beauty exhibitors are of particular interest to U.S. drugstore and specialty store buyers who may not typically attend such a show. One need only look at the success U.S. drug store chain CVS has had with the addition of Finnish beauty brand Lumene to the mix to see how well received international beauty brands can be with U.S. consumers. And with several new countries attending Cosmoprof this year, buyers and distributors will have more companies from which to choose, beyond the original 25. Several new “country pavilions” — blocks of trade show floor space occupied by exhibitors from specific countries — including Argentina, Australia and Indonesia, join pavilions by France, Germany, Italy and Spain. Products from Belgium, China, Israel, Jordan, Korea and Mexico will also debut at Cosmoprof this year. And like last year, buyer delegations have been organized, with Cosmoprof paying a buyer’s airfare and hotel expenses in exchange for attendance at prearranged oneon-one business meetings with manufacturers appearing to meet the retailers’ needs. One of the highlights of this year’s show is its expanded scope of education, which now includes 29 classes on nails alone, and more than 30 classes available each day throughout the three-day event. The new locale and more classes aside, the Wellness Summit is probably Cosmoprof ’s best effort at catering to attendees this year. The three-day event costs $199 and includes a medi-spa panel, a session with Lydia Sarfati of famed spa Repêchage, an Esthetics Manufacturers’ & Distributors Alliance panel, a yoga and Pilates session and a speech by integrative health guru Dr. Andrew Weil. Summit registration also entitles attendees to access to all pavilions and a guided spa tour around Las Vegas. The Wellness Avenue education area offers classes by dermatologist Dr. Howard Murad, eyebrow shaping discussions with Anastasia Soare, a microdermabrasion discussion with Amby Longhofer of DermaNew and a trendspotting speech on consumer buying habits by Avance’s Dee DeLuca-Mattos. There will also be the third annual Beauty and Health Observatory, which this year is presenting a conference on “The Evolution of the Wellness Venues — The Trends of Wellness.” An international survey to help shape the conference was conducted by Future Concept Lab. Classes by The International Dermal Institute, founded in 1983 by Jane and Raymond Wurwand and headquartered in Torrance, Calif., will also be offered at Cosmoprof. The training facility aims to educate skin therapists with credible, thorough and advanced training in skin therapy. The IDI class curriculum includes basic skin care education, including European skin care techniques, aromatherapy, hydroxy acids and exfoliation techniques, acne treatments and sun damage and aging skin treatments. There’s also coverage of Chinese acupressure, treatment for rosacea, speed waxing and reflexology. While education may be a driving force in some business executives’ attendance, others are only considering attending Cosmoprof if they expect ample business opportunities. One bath and body manufacturer, who perused the show floor last year and asked not to be named, is taking a wait-and-see attitude on whether he will attend Cosmoprof due to last year’s lackluster performance. “I am not sure what the identity of the vehicle was [last year] or the U.S. branding of Cosmoprof is. I am awaiting the global people I know to dictate whether we will be there or not. The only reason we go to these conferences is for the global market and to meet with distributors to expand into available markets. For us that’s the deciding factor,” he said. Another maufacturer, Jeff Tannenbaum of Sorme Cosmetics, is giving the show a second chance, because he sees potential in the U.S. version. “Cosmoprof, quite HEALTH & BEAUTY AIDS EDITOR ANDREA NAGEL EDITOR, WWDBEAUTYBIZ JENNY B. FINE PRESTIGE MARKET BEAUTY EDITOR JULIE NAUGHTON BEAUTY NEWS EDITOR MATTHEW W. EVANS frankly, is a show that you never know how it will turn out. I have been in the business for 28 years, and we have reps that go to the Italy show. If 20 percent of the people you talk to at these shows do 10 percent of what they say they will, the show is a home run. Besides, this show used to be the old [Beauty and Barber Supply Institute trade show]. They are trying to make it into Cosmoprof. They are getting there.” Unipro executive Chiara Loprieno said that last year’s show was “absolutely productive” for the firms her Italian association represents, “as is demonstrated by the confirmation of their presence during this second edition.” Mary Albanese of Zotos International is excited about attending Cosmoprof this year, as last year’s show for the hair care company went well. She pointed out what may be keeping other hair care companies from feeling the same way, though. “This industry is known for having shows in the spring and fall. People are resistant to change. So it may take some time to build up that interest,” Albanese said. Of course, in addition to education and business-to-business opportunities, there’s the excitement of Cosmoprof ’s trade show floor. As it did last year, Cosmoprof will feature five pavilions for each of its different exhibitor categories. Pavilion A will feature international cosmetics and personal care companies. On display will be a gamut of finished products, from prestige department store fragrances to color cosmetics. Pavilion A will also feature health products, hair accessories and home decor items. In Pavilion B, packaging, contract manufacturing and private label exhibitors will be found. Design agencies and packaging machines round out this pavilion’s exhibitor list. In Pavilion C, wellness, professional skin care and spa products and equipment will be presented. Everything from suntanning lamps to electro-stimulation accessories and hydro-massage baths will be there, in addition to complimentary wellness education seminars. A spa demonstration stage will also be in Pavilion C, highlighting the newest product spa lines and spa treatments. Everything needed to stock the shelves of a salon will be featured in Pavilion D. Hair care, tools for hairdressers, professional clothing, scissors, razors and products for nail reconstruction will be offered there. Hairstylists will have an entire area, Pavilion E, dedicated to them. There they will be able to see and learn about the latest hair innovations at Looks Mainstage & Expo. Looks features international artists from the U.K., Spain, Japan and the U.S. in 90-minute hair and fashion presentations. Most of the growth on the trade show floor has occurred in packaging, contract manufacturing and private label areas, as well as in the wellness pavilion, Zaccagnini said. BEAUTY MARKET EDITOR KRISTIN FINN BEAUTY MANAGER RANDI SEGAL SECTION DESIGNER AMY LOMACCHIO BEAUTY ASSOCIATE BRYN KENNY ACCOUNT MANAGER TRACY HUPP PHOTOGRAPHER GEORGE CHINSEE PUBLISHER SARAH MURPHY ART DIRECTOR ANDREW FLYNN PHOTO RESEARCH COORDINATOR ERIC RUSS VICE PRESIDENT, EXECUTIVE EDITOR, BEAUTY PETE BORN “THE SALON BUSINESS IS JUST LIKE ANY OTHER. THE KEY TO SUCCESS IS KNOWING HOW TO ADD VOLUME.” © 2004 American Express Company. — Jonathan Antin, Owner, Jonathan Salon “On Bravo’s reality show Blow Out, the big question is whether I have what it takes to fill two high-end salons. If you ask me, filling them with clients was never in doubt. And now, neither is filling their every square inch with salon chairs, shampoo bowls and beauty lighting. In fact, with OPEN:The Small Business Network from American Express, I can get enough purchasing power to furnish an entire chain of high-end salons. And while my business won’t be going nationwide tomorrow, it pays to be prepared for whatever reality throws your way.” SM The OPEN Network gives you the tools to make big things happen. But only when you have an American Express® Business Card. To apply, call 1-800-NOW- OPEN or visit OPEN.AMERICANEXPRESS.COM 4 WWD, FRIDAY, JUNE 25, 2004 SECTION Il W W D H E A LT H & B E A U T Y Gambler’s Delight How does Sin City approach a day of beauty? By Jennifer Laing IT’S GOOD TO BE A HIGH ROLLER IN LAS VEGAS. NOT ONLY is airfare (on chartered G4s, no less), hotel suites and entertainment provided gratis, many spa and beauty services are also offered for free. One hotel VIP manager recently admitted to scheduling “everything but a facelift” for companions of important guests. Another source revealed one hotel winning the visit of a particularly soughtafter guest over another hotel by offering to fly in celebrity hairstylist José Eber and his team to make over the guest’s entourage . But if you’re more likely to hit the nickel slots than the craps table, spa and salon options abound for you, too. Here, a list of the town’s most exclusive beauty spots. CANYON RANCH SPACLUB AT THE VENETIAN The 36,000-square-foot Canyon Ranch SpaClub offers 120 spa services and 17 kinds of massage, including its most popular, the Canyon Ranch massage, a 50-minute Swedish technique for $145$155, depending on the day of the week. On its busiest days, Friday and Saturday, SpaClub routinely performs more than 700 services, most on guests of The Venetian. VIPs like Al and Tipper Gore, Ivana Trump and Martha Stewart are treated to a private lounge and changing rooms and use of a back staircase if necessary. To accommodate the hotel’s high-rolling guests, SpaClub has one of its 150 massage therapists on call in “the bull pen.” “A casino host may call over and say a guest just lost several million dollars and needs a massage,” said Maria Sawyer, director of sales and marketing at SpaClub. As thanks, one therapist was tipped $2,000 for an in-room massage and a reservationist was given a $250 gift certificate to the spa as a gratuity for booking a guest. THE ROCK SPA AND SALON AT THE HARD ROCK HOTEL According to spa manager Sherri Maher, the bi-level Rock Spa and Salon at the Hard Rock Hotel caters to an array of celebrities and beautiful people, as well as some serious gamblers, at its fairly simple, bi-level facility. “We get a lot of partiers,” said Maher. “Our spa is like a recovery center. People use the facilities to sweat out toxins ingested the night before so they’re in good shape to do it all over again that evening.” While guests of the Hard Rock Hotel — a roster that is said to include Gwen Stefani, David Spade and Howard Stern — enjoy the facilities, the Spa and Salon also hosts visitors from the overbooked spas of other hotels. The Rock Spa’s entire menu of services — from a De-Stress Eye Treatment for $20 to an 80-minute Hot Stone Massage for $170 — is available in the hotel’s VIP penthouse suite (which also houses a bowling alley and media room). According to an insider, Jennifer Lopez recently had her eyebrows waxed in the penthouse by a Rock Spa aesthetician. For an extra $25, many guests opt to have their massage, facial or pedicure performed poolside in one of the hotel’s 36 cabanas. To accommodate the hotel’s high rollers, the spa will often send one of its massage therapists directly to the casino floor to perform a service. “Players don’t want to leave the table,” said Maher. “We’ve had pit bosses call us up to massage guests while they’re playing so they’re comfortable for as long as possible.” ELEMIS SPA AT THE ALADDIN At the 32,000-square-foot Elemis Spa at the Aladdin, guests are offered a menu of treatments incorporating products from the British skin care brand Elemis, as well as the Parisian face care line, La Thérapie. Basic massages account for 30 percent of the services performed, but signature treatments, such as the Musclease Aroma Spa Ocean Float and the Aroma Stone Therapy are also popular. And while in-suite massages are offered 24 hours a day, according to Dennis Montellano, Elemis’ regional vice president, most VIPs prefer to come to the spa for their treatments during spa hours of 6 a.m. to 7 p.m. to take advantage of the saunas, steam rooms, hot tubs and gym. Most high rollers, however, forgo the spa completely. “Some ‘whales’ do frequent the spas and, depending on the amount of money they are spending in the casino, are treated to services for themselves, their friends or significant others,” said Montellano. “We don’t go after the high rollers. The hotel’s contention is they are here to gamble and we don’t want to do anything that will take them away from that. But if their gambling hasn’t been rewarding, we pamper them as a consolation.” THE FOUR SEASONS HOTEL The 12,000-square-foot Spa at Four Seasons Hotel boasts 16 treatment rooms and 25 face, body and massage treatments ranging from a 25-minute Sugar Scrub for $75 to an 80-minute Vie Age Concept Treatment facial for $235. Among the featured offerings are an 80-minute Four Seasons Signature Body Treatment for $215 and a 110-minute Javanese Lulur Ritual for $260. While most Las Vegas hotels charge a daily fee for use of their spa facilities, guests of the Four Seasons enjoy complimentary use of the Spa, including the relaxation room, hydrotone thermal capsule tub, chilled towels for use after exercise and a poolside spritzing service. Since the Four Seasons is a nongaming hotel, VIPs do not receive any specific special treatment, but in-room massages are available for an additional $35. SPA VITA DI LAGO AT THE RITZ-CARLTON, LAKE LAS VEGAS Located 17 miles from the Las Vegas Strip, the 30,000-square-foot Spa Vita di Lago at The Ritz-Carlton offers 24 treatment rooms, some with private outdoor terraces, and a menu of massages, facials, wraps, scrubs and hair, nail and makeup services. Among the unique programs offered through the spa is the $95 Stars and Cigars, a one-hour stargazing session with Meade Instruments GPS telescopes, cigars and a glass of cognac. There’s also the La Culla treatment, a two-hour facial, body scrub, wrap and massage performed on a table that lowers to bathe the body in steam. CRISTOPHE SALON AT MGM GRAND The Belgium-born celebrity hairstylist’s fifth location employs 24 stylists, 10 colorists and a handful of aestheticians to take care of nails and makeup. Cuts start at $110, highlights at $125, and blowdrys at $65. Among the special services Cristophe plans to offer is a makeover package that includes cut, color and makeup application, as well as “before” and “after” pictures of the client. While the salon opened just weeks ago, the savvy Cristophe plans to accommodate the casino’s high rollers any way he can. SKINKLINIC AT MANDALAY PLACE The first West Coast location of the New York-based medi-spa opened in December, offering seven treatment rooms and the same menu of services as the Manhattan flagship. As in New York, all the skin personnel are registered nurses, nurse practitioners and physician assistants overseen by a medical director. Among the most popular treatments are Botox injections that start at $400 and Restylane injections that start at $600. According to Skinklinic founder Kathy Dwyer, clients in Las Vegas do two to three times the number of treatments as those in New York. Fifty percent of clients are repeat customers. The spa has hosted everyone from visiting high rollers and their entourages to women on girls’ weekends and locals. While most clients foot the bill themselves, “We’ve had a couple of people where everything was set up by a concierge and they just had to come in,” said Susan Berezansky, general manager of Skinklinic. Since Skinklinic is a medical facility, tips are not accepted. THE ART OF SHAVING AT MANDALAY PLACE Located in the sky bridge connecting Mandalay Bay and Luxor resorts, the 1,378-square-foot Art of Shaving shop features a retail area up front and a barber spa in the rear. The eponymous line of aromatherapy-based shaving products range from $10 for a Styptic Pen to $65 for five vials of AfterShave Mask. Shaving Cream is $13 to $20. A range of razors and badger-hair shaving brushes is also available, priced at $50 for a Pure Badger Hair Brush to $2,300 for a Sterling Silver Shaving Set with a razor, silver-tip badger brush and classic stand, all in sterling. Of the 10 services offered, the most popular is a 45-minute Royal Shave for $45. A 20-25 minute Traditional Shave is available for $25. On weekends, when the spa is open until midnight, the four on-staff barbers can do a total of 40 shaves; there is often a waiting list of 30 to 50 people. And while the barbers do not make house or hotel calls, casino representatives have been known to escort VIPs over to the spa and pick up the tab. One hotel owner comes three times a week. Generous tips are common. “Put it this way,” said John Zilliken, vice president and general manager of Mandalay Place. “When I retire I’m going to learn to become a barber.” PHOTO BY MICHAEL MYERS, DIGITAL IMAGING BY STUDIO PURPLE WWD, FRIDAY, JUNE 25, 2004 5 Expand your craft and renew your energy with the three-day Wellness & Spa Experience at Cosmoprof North America. Spa professionals benefit from a “show within a show” at Cosmoprof North America. The Wellness & Spa Experience features: complimentary wellness, skincare and spa education on the Wellness Avenue; dedicated exhibit space for wellness, skincare and spa manufacturers in the Wellness & Spa Pavilion; new products, techniques and trends on the Spa Demonstration Stage; and the Wellness Summit, an in-depth, three-day seminar for the spa professional. Wellness Avenue Spa Demonstration Stage Customize a schedule of complimentary wellness and spa education in the Wellness Avenue. Classes include Internal Skincare with Dr. Howard Murad, Microdermabrasion with DermaNew, Client Loyalty with Lydia Sarfati, Hollywood Eyebrows with Anastasia Soare, Thalasso Facial Treatments with Biomaris USA, the Business of Private Label with Creative Beauty Innovations, Management and Marketing with SkinCareBiz, Skin Care Retailing with the International Dermal Institute and more! Witness step-by-step demonstrations of the latest products, techniques and trends on the Spa Demonstration Stage in the Wellness & Spa Pavilion. With a rotating program of fast-paced manufacturer education, you’ll receive a crash course in the most interesting innovations on the exhibit floor. Cosmoprof North America is the most comprehensive and international professional beauty industry show on the continent. Connect with the entire professional beauty industry for a long weekend in Las Vegas this July! WELLNESS SUMMIT The inaugural two-day Wellness Summit allows wellness professionals to invest further in their practice. Headlined by integrative health guru Dr. Andrew Weil, the summit features New York Times personal health columnist Jane Brody, spa nutrition experts the Clever Cleaver Brothers, a medi-spa panel hosted by Dee Mattos, an EMDA panel hosted by Paul Premo, invigorating yoga sessions and more. Dr. Andrew Weil Renowned author and integrative health guru Dr. Andrew Weil delivers the Wellness Summit keynote on Sunday afternoon. A Harvard educated M.D., Dr. Weil is the Director of the Program in Integrative Medicine at the University of Arizona and an active campaigner to expand medical education to include training in alternative therapies, mind/body interactions and other subjects not currently emphasized. In his bestselling book Eight Weeks to Optimum Health, Dr. Weil presents a step-by-step program designed to keep the body in peak working order. Spa and beauty professionals know that internal wellness affects how people look and feel. Dr. Weil’s presentation will provide valuable information on mind-body interaction for wellness. Medi-spa Panel Today’s luxury spa treatments are expected to deliver both aesthetic effects and medical benefits. Get insights from the leaders in the medi-spa industry during this panel, hosted by Dee DeLuca Mattos, Vice President of Avance. Panel members include Dr. Bruce Katz (Juva Skin & Laser) and Dr. Howard Murad (Murad, Inc.). Clever Cleaver Bros. The Clever Cleaver Brothers combine humor and good food for the ultimate wellness medicine! Classically trained chefs Lee N. Gerovitz and Steve Cassarino offer up simple, nutritional recipes for healthy eating in a live cooking show known for its light-hearted style. EMDA Panel Part of the American Beauty Association, the Esthetics Manufacturers and Distributors Alliance (EMDA) is a group of skin care and body care manufacturers and distributors dedicated to assuring that wellness professionals have the best access to information on products, ingredients and industry issues. Hosted by EMDA President Paul Premo. Jane Brody Spa Tours Jane Brody, women’s health expert and personal health columnist for The New York Times, closes the summit on Monday. An outspoken proponent of healthy eating and regular exercise, Brody’s accessible style arms her audience with critical information on living a healthy life. Las Vegas boasts some of the most outstanding spas in the world. On Tuesday, you have the opportunity to step behind the scenes at two of these prestigious locations—Canyon Ranch SpaClub at the Venetian and Spa Mandalay at Mandalay Bay. Led by TSA President Melissa Yamaguchi. Your Wellness Summit registration also entitles you to enter all pavilions on the Cosmoprof North America floor, including the Wellness & Spa pavilion, and provides access to all additional complimentary wellness and spa education in the Wellness Avenue. w w w. c o s m o p r o f n o r t h a m e r i c a . c o m Cosmetics & personal care Wellness & spa Professional hair, nail & tools Packaging, contract manufacturing & private labels Mainstage & expo Des tination Beauty LAS VEGAS - MANDALAY BAY - JULY 18-20, 2004 at Vegas’ 5-star Mandalay Bay resort hotel and convention center, the world’s only all-inclusive international venue for beauty trade manufacturers, importers, distributors and buyers. America’s biggest beauty trade showcase. • 19,000 sqm of expo floor. • 1,000 exhibitors from over 30 countries. • 20,000 trade visitors expected. Organized by: North American Beauty Events LLC Marketing and Promotion: SoGeCos spa - Italy - Tel. +39.02.796.420 - Fax +39.02.795.036 - sogecos@cosmoprof.it Sales Office North America: BBSI - U.S.A. - Tel. +1.480.281.0424 - Fax +1.480.905.0708 - info@cosmoprofnorthamerica.com Sales Office Europe, Africa, South America, Asia, Middle East: Fairsystem International Exhibition Services spa - Italy Tel. +39.051.415.6811 - Fax +39.051.631.0034 - fairsystem@fairsystem.it MEN at WORK Your universal beauty business destination in the USA: 8 WWD, FRIDAY, JUNE 25, 2004 SECTION Il W W D H E A LT H & B E A U T Y Stuff ▲ oscar+dehn’s thermal solesaver foot soothers ($40). Many of fall’s newest health and beauty items have a treatment theme, from cooling sore feet to defrizzing hair. Others simply aim to beautify. Here, some items set to launch at Cosmoprof North America’s July show in Las Vegas. By Andrea Nagel and Bryn Kenny repechage’s colour actif sable mascara ($22). ▲ davines’ momo moisturizing conditioner ($16) and shampoo ($14). ▲ de ruy perfumes’ fun spray surprise eau de parfum pocket spray in six fragrances ($3.95 each). ▲ jingles international’s jazz it up styling cream ($11.99) and mousse forte styling ($12.99).▲ ▲ posner’s new six-item hair care line with posner procomplex includes exotic hair butter ($4.99) and revitalizing ▲ growth treatment oil (6.99). barex italiana’s curly only redefine creme ($26). PHOTOS BY GEORGE CHINSEE ▲ dermanew’s satin screen firming daily moisture with spf 15 ($60). ▲ zotos international’s quantum browns daily color replenishing shampoo and conditioner ($5.99 each). WWD, FRIDAY, JUNE 25, 2004 EBay: The World’s Corner Beauty Store A mecca for hard-to-find items, as well as what’s on trend, eBay emerges as beauty’s virtual stomping ground. By Kristin Finn MAKING THE CUSTOMER HAPPY IS THE GOLDEN RULE OF RETAILING, AND eBay is certainly taking this task seriously. With more than $120 million in health and beauty sales for 2003, and approximately 300,000 of these items available each day, health and beauty is emerging as one of the fastest-growing categories on the Web site. And unlike many other retail channels, eBay’s health and beauty sales show no signs of hitting a plateau. According to Sam McDonagh, senior category manager for eBay health and beauty, sales have been growing at a consistent rate of 82 percent a year. This performance has recently elevated the category to be featured as a direct link on eBay’s home page, which also features some of the site’s top revenue-producing categories, such as motor vehicles, fashion and collectibles. “[Health and beauty] is one of our fastest-growing categories on the site,” McDonagh said. In 2003, eBay generated global net revenues of more than $2 billion in 28 international markets. Net revenues for the first quarter of 2004 exceeded $756.2 million, and gross merchandise sales, or the value of goods traded on eBay, totaled more than $8 billion. For this same period, there were nearly 105 EBay health and beauty sales have been growing at a consistent rate of 82 percent a year. million eBay users around the world — McDonagh refers to them as “the eBay community” — and many of them don’t mind clicking and surfing for their makeup. But just what are beauty aficionados looking for? “What we’re certainly seeing is that consumers are coming to eBay to buy the brands they know and love A list of the most at a great value,” said McDonagh. There are close to popular brands by 15 subcategories within health and beauty, with dozens of options under each one, offering everything category and the from antiperspirant to first aid to aromatherapy prodnumber of listings for ucts. EBay even segments off its most often-used each brand. search words, which in order from most popular include perfume, Clinique, Estée Lauder, hair and Bare Escentuals. But there are two types of products that HAIR CARE generally get most of the attention: the hard-to-find Tigi Bed Head, 275 items that are sold out in stores, and the great deals, such as liquidation items. SKIN CARE Sold-out items appeal to the loyal shopper who’s Avon, 1,552 weary of searching for a certain item in traditional retail stores. An example is one consumer’s quest for BATH & BODY Stila eye shadow in “Cha Cha” and Bobbi Brown CosBath & Body Works, 2,148 metics’ Shimmer Brick. Various retail outlets had sold Mary Kay, 807 out of the items, so the consumer looked on eBay, where she found them—for the same retail price. “The Avon, 798 breadth of the marketplace sometimes means that these things will show up on eBay when they’re not COSMETICS available in store,” said McDonagh. Ultimately, ShimMary Kay, 1,938 mer Brick was one of eBay’s bestsellers in 2003. MAC, 1,646 MAC is another often-searched keyword on eBay. “It Estée Lauder, 870 just keeps showing up. People are looking for products that they are familiar with. They’ve already bought it in FRAGRANCE the offline world and want to replenish what they already know and love, and they’re finding those things Estée Lauder, 1,585 on eBay,” McDonagh said. Avon, 1,305 New products range from prestige brands by ChrisBath & Body Works, 1,164 tian Dior, Borghese and Lancôme to mass brands such Victoria’s Secret, 1,130 as Revlon, Mary Kay and Maybelline. The most popular health and beauty subcategory on eBay is currentGivenchy, 828 ly body care, followed by fragrance. But tremendous Chanel, 791 growth is being seen in hair care, which has sales Christian Dior, 704 growing faster than the overall health and beauty catElizabeth Arden, 674 egory. Fueling this are straightening irons, gel and mousse, hair color and curlers. “And we’re just startClinique, 665 ing to see it with conditioners and shampoos. We’re Calvin Klein, 627 seeing that people know what they want, so instead of Escada, 609 going to the store, they’re buying them on eBay,” Ralph Lauren, 599 McDonagh said. In terms of the salon and spa business, self-tanning Burberry, 546 beds regularly sell on the site for more than $5,000. “That’s an example of the breadth of the marketplace,” McDonagh said. “We’re selling Aveda shampoos for $10 and tanning beds for over $5,000. In fact there are some commercial products that are selling in the $25,000 to $30,000 range.” He highlighted salon chairs and professional hair dryers as two items that also perform well on eBay. As for which brands sell best, sales on eBay follow the trends. Strivectin, for example, the stretch mark cream that appears to also diminish wrinkles and is SKETCH BY DIGITAL VISION/GETTY IMAGES POPULARITY CONTEST THE HIGHEST-PRICED ITEMS RECENTLY SOLD WITHIN THE HEALTH AND BEAUTY CATEGORY ON EBAY Mist On Tanning Booth $30,000 Used Tanning Bed $22,500 Aqua Massage $20,000 Aqua Massage Bed $18,000 Aqua Massage Machine $17,599 ProSun 620LI Tanning Bed $13,000 Aqua Massage $10,900 Power Wave XP Hydro Massage Bed $10,101 To grow the already bustling business, McDonagh said eBay plans to increase supply of targeted products in the categories it sees growing, such as makeup, skin care and hair care. He also said there is a focus on “improving the activity of existing buyers so that we pursue the ideal of optimal replenishment and make the eBay process easier for people wanting to transact. Optimizing the category structure is one way we can do that.” So now, when growth is spotted in a particular product line, the category would be expanded “so the buyer and seller can get to each other more easily, to improve the shopping experience. As those categories proliferate from a supply perspective and we see demand, we manage the marketplace to improve the category structure.” As far as the competition goes, McDonagh said he doesn’t believe eBay has specific competitors “because our market is differ- Sold-out items appeal to the loyal shopper who’s weary of searching for a certain item in traditional retail stores. now one of the industry’s hottest items, sells for $90. It usually retails for $135. On the fragrance front, there are about 170 listings for Estée Lauder’s Beyond Paradise fragrance. Best-selling seasonal items include sunless tanning products from Clarins and Fake Bake. And like other beauty channels, eBay is experiencing the impact that fashion has on beauty trends. “Straightening irons on eBay are just absolutely hot. If you’re looking for a deal, there’s certainly plenty to be had,” McDonagh said. ent. We see ourselves as a complementary channel, whether it be online or offline.” As a company, however, eBay is continually marketing its services to bring more people to their marketplace. One such way is with its print campaign, which recently began to include beauty. The company also participates in a number of onsite promotions, as well as public relations activities, to get out its overall message — which is not so much product-specific, but rather about being passionate for the eBay experience. 9 10 WWD, FRIDAY, JUNE 25, 2004 SECTION Il W W D H E A LT H & B E A U T Y HBA Report What will tomorrow bring in beauty? For one, spas are leaving natural remedies for bioenergetic ones. Nail polish is now safe enough to eat. The Aussies are coming and a small beauty company is expanding its reach with a new Manhattan-based studio and education center. By Andrea Nagel and Matthew W. Evans Not Your Mother’s Spa BIOENERGY AND AUSSIE PHOTOS BY CORBIS BIOENERGY APPEARS TO BE THE NEXT “IT” WORD IN SPAS, REPLACING “natural” and “organic” treatments from coast to coast. According to Erich Worster, former president of U.S. operations for Jurlique, and now founder and president of Anakiri BioEnergetic Skin Care, “as a different kind of health care begins to emerge, beauty products are being made by companies exclusive to the spa industry,” rather than by traditional beauty or medical firms, Worster said. Products by these companies use traditional plant and flower essences and combine them with antiaging advancements, such as alpha lipoic acid, and target them to be utilized with energy-field treatments, such as acupuncture, homeopathy, crystal and gemstone services, vibrational therapy and Reiki. It’s the classic case of modern technology catching up with ancient practices, Worster said. “Spas are again becoming healing places, like they were many years ago. It is beyond natural. They are now a unique place for health care, with the more subtle aspects of health care taken into account.” Nails You Can Suck On acquarella nail polish is free of harsh chemicals. AS THE HYPE ABOUT TOXIC NAIL POLISH GROWS, ACQUARELLA LLC IS IN THE right place at the right time. Acquarella, which claims to be the U.S.’s only water-based nail polish system, is free of many controversial chemicals found in conventional nail polishes, such as formaldehyde, toluene, dibutyl phthalate and acetone, which some studies link to birth defects in laboratory animals. According to Polly Deason, Acquarella’s director of marketing, “Acquarella’s nail system was developed to kickstart a major paradigm shift within the beauty industry, and apparently, the revolution has begun. Consumers are learning more every day of the harmful effects of conventional nail polish. Retailers are now contacting us because Acquarella is a genuine solution to the problem.” Acquarella offers 19 colors, as well as a nontoxic nail polish remover, hand moisturizer and a nail conditioner, which is to be used for four days prior to using Acquarella nail polish. The Tucson, Ariz.-based company sells its products on acquarellapolish.com and targetdirect.com. The company is also currently working with Drugstore.com and is penetrating nail salons and spas. The Acquarella starter kit, which includes nail polish remover, conditioner and one nail polish, retails for $42 plus shipping. Follow-up purchases of Acquarella nail polish cost $18 per bottle. Invasion Down Under WHILE THE IDEA OF A BRITISH INVASION MAY BE NOTHING new, an influx of Aussie beauty companies is becoming the norm in beauty. Most recently, Sydney-based makeup artist Napoleon Perdis is calling on U.S. retailers to carry his 450-item line of color cosmetics, which launched in the Antipodes in 1993. He is negotiating with two upscale U.S. retail chains, which are reportedly interested in launching the brand in 10 to 20 doors in September. The assortment, which features a military fatigue motif throughout, includes Lip Lacquer and Lip Patrol lip colors for $16 and $17.50, respectively; Eye Patrol eye hues for $16; Minimal Makeup foundations for $30; Light Diffusing Makeup for $30; treatment items like PreFoundation Skin Primer for $25, and brushes and an eyelash curler that range in price from $13 to $41. Perdis believes the line could generate retail sales of $4 million during its first year in the U.S Burd Cage lady burd exclusive cosmetics’ new manhattan showroom. FRESH ON THE HEELS OF ITS ACQUISITION OF BONITA COSMETICS, LADY Burd Exclusive Cosmetics is relocating its Manhattan showroom because sales have grown. The state-of-the-art studio now at The Bush Tower at 130 West 42nd Street will accommodate the company’s new Lady Burd Makeup Academy, which will open in the fall. Courses will range from group workshops for professional makeup artists to private consultations for teens and adults. Beauty workshops for beginners will teach color, contouring eyes, lips, and face, as well as foundation and concealing skills. Lady Burd’s cosmetic and skin care lines will be sold wholesale to students looking to develop professional private label cosmetic and skin care brands. In addition to Manhattan, Lady Burd has showrooms in Miami Beach; Boca Raton, Fla.; La Jolla, Calif., and soon will open one in Los Angeles. “e dolci profumi volano nella notte” F. Musante Cosmoprof North America 2004 Visit us at booth 10301A Italian Trade Commission Los Angeles 1801, Avenue of The Stars - Suite 700 - Los Angeles CA 90067 • T 001 323 8790950 - F 001 310 2038335 www.italtrade.com/usa • losangeles@losangeles.ice.it Unipro Associazione Italiana Industrie Cosmetiche Italian Association of Cosmetic Industries Via Accademia, 33 - 20131 Milan, Italy T +39 02 2817731 - F +39 02 28177390 www.unipro.org • unipro@unipro.org cur ativ e sk in th era pie s cosm etic h air c are Showroom Appointments Available. info@avanceskincare.com avanceskincare.com 800.777.skin info@ecrunewyork.com ecrunewyork.com 888.ecru.nyc