GREEN THUMB BEAUTY: ONCE THE BASTION OF OLD-WORLD PERFUMERY, THE KEY TREND AT THE LATEST COSMOPROF WAS ORGANIC COSMETICS. STYLE, PAGE 2 WWD FRIDAY, MARCH 25, 2011 ■ WOMEN’S WEAR DAILY ■ $3.00 Come Clean Designers are bringing new meaning to “simple pleasures” this fall with classic accessories in structured shapes that feature little embellishment and lots of sleek chic. Here, from top, Thakoon’s leather shoe; Carolina Amato’s leather gloves; Donna Karan New York’s leather bag, and Alexander Wang’s calfskin bag. For more, see pages 4 and 5. PLUS: PARTYING DOWN WITH VANESSA TRAINA. PAGE 8 MARKET SHARE GAME Revlon Acquires Sinful Nail Brand By FAYE BROOKMAN NEW YORK — Revlon is digging its nails into the hotter-than-ever nail polish market with the acquisition of Mirage Cosmetics, owner of the Sinful Colors brand. Along with another major deal, the $429 million purchase of Drugstore.com by Walgreen Co. announced Thursday, the purchase signals beauty firms’ neverending desire to get bigger and grab more market share. The Walgreens move was interpreted by many as the chain’s next step in getting access to more prestigious beauty lines. “I think Drugstore. com fits really well with the higher-end Look Boutiques,” said industry consultant Allan Mottus. Added another industry observer, “It is a foot race between CVS and Walgreens to get a brand like Clinique.” News of the Revlon deal began percolating at Bologna’s recent Cosmoprof beauty trade fair, and on March 17 Revlon filed an 8K with the Securities and Exchange Commission confirming the speculation. With distribution in Walgreens, Rite Aid and Target, Sinful has become a bestselling value brand (items cost $2) and has surpassed Revlon’s nail business, according to sources. Revlon, buyers said, was seeking an avenue into value nail and decided to buy its way in with a brand that ended 2010 with an estimated $30 million in revenues. Beltsville, Md.-based Sinful was ranked as the fastest growing makeup brand in Kline & Co.’s Cosmetics & Toiletries USA 2010 report, with sales growing 91 percent for the year. The company is best known for its speed to market with the hottest nail polish shades, maintaining 14 promotions a year. Alan Ennis, chief executive officer of Revlon Inc., said Sinful will operate as a stand-alone business unit. SEE PAGE 6 IN WWD TODAY Talbots, Charming Shares Rise PAGE 2 FINANCIAL: The two retailers reported losses for the quarter but beat expectations, and their shares climbed sharply. A Glimpse at Madame Grès PAGE 8 EYE: An new exhibition in Paris looks at the work of the famed, reclusive and difficult couturier, who trained as a sculptor. Opening Ceremony’s New Deal PAGE 2 ▲ RETAIL: The hip New York boutique’s latest collaboration is with Lane Crawford in Hong Kong and Beijing. PHOTO BY GEORGE CHINSEE; STYLED BY SHOSHANNA FISCHHOFF 2 WWD FRIDAY, MARCH 25, 2011 WWD.COM Talbots, Charming Shares Rise Despite Losses Louis Vuitton in Dubai. Vuitton Getting Bigger In South Florida, Dubai By MIles sOCha and rItu uPaDhyay ParIs — louis Vuitton is doubling up — and then some — in south Florida. the French luxury brand plans to exit Bal harbour shops at the end of May and establish a new location roughly double the size at the aventura Mall, where Vuitton already operates a leased department at Bloomingdale’s. What’s more, Vuitton plans to add a unit in the burgeoning Miami Design District in the coming years, said Vuitton chief executive officer yves Carcelle. he said details on the global store at aventura are still being worked out and that Vuitton would open a temporary store there on June 5 to ensure a continuation of the business in a dynamic region for the brand. the size, location and concept for the design district boutique are also being fine-tuned. Vuitton decided to exit Bal harbour upon the expiration of its lease as the complex would not allow it to expand or open a second location in the area, according to Carcelle. the luxury goods firm revealed the plan to expand in south Florida as it opened a larger unit in Dubai and said it will continue to expand aggressively in the Middle east even as certain countries in the region are in political turmoil. Valérie Chapoulaud-Floquet, president and chief executive of louis Vuitton south europe and Middle east, speaking during the reopening of Vuitton’s Mall of the emirates boutique in Dubai, said clientele in the region have an appetite for luxury and most of the company’s current retail spaces are too small to meet the demands of customers. Chapoulaud-Floquet said the company’s short-term strategy is to “expand or relocate existing stores to give more space to meet the clients’ needs in terms of products and services.” the newly expanded Mall of the emirates store almost doubles the retail space with a much larger product offering, including a full selection of women’s ready-to-wear as well as a new section dedicated to men’s rtw. the expansion also includes the first-ever family room within a louis Vuitton store. Conceptualized to meet the unique needs of customers in the region, the room offers a space for families to relax while parents enjoy a leisurely shopping experience “Family is central to life in the Middle east, and we noticed that there were many families in the store,” explained ChapoulaudFloquet. “the idea was to create an environment where our customers and their families can shop in a more relaxed way.” Future plans for the Middle east include a possible expansion of the store opened last year in Beirut, lebanon. “the relaunch and expansion of this store is a great example of what we have to do throughout the region,” said Chapoulaud-Floquet. Chapoulaud-Floquet said Vuitton’s business in the region has been largely unaffected by the political unrest, since most of the countries in turmoil are not large markets for luxury goods. “Fortunately we have not been very exposed in the areas where there has been unrest,” she said. One store in Bahrain has been closed for a week during the current anti-government protests. she added that stable markets like Dubai are benefitting as people move from areas of unrest like egypt. —Burttansky,onthe pressurefacing designers.page6. Photo by Lexie MoreLand Harley Viera-Newton to $292.6 million from $315.9 million in 2009. analysts were expecting a loss of 17 cents on sales of $294.5 million. Quarterly comparable-store sales declined 7.3 percent and gross margin declined to 29.2 percent of sales from 35.3 percent in the year-ago quarter. “Weaker-than-anticipated customer response to our merchandise assortment and high levels of competitive promotional activities were key factors impacting our results,” sullivan said on the quarterly conference call, expressing confidence in the firm’s current strategy and ongoing initiatives. Plus-size specialist Charming shoppes, which promoted its acting ceo anthony romano to permanent ceo and president thursday, said it logged a net loss of $30.4 million, or 26 cents a diluted share, for the period ended Jan. 29, compared with a year-ago loss of $28 million, or 24 cents a share. excluding items, the company, which operates brands such as lane Bryant, Fashion Bug and Catherines, said its net loss totaled 8 cents a diluted share, better than the 19 cent loss anticipated, on average, by analysts. sales rose to $575.8 million, 6.8 percent above the $539 million logged in last year’s quarter and above the $553.1 million expected by analysts. Charming shopped currently operates 2,064 units. although the quarter proved “challenging,” the retailer said it saw signs of life with an improved holiday assortment that helped boost quarterly comps 9 percent. Gross margin descended to 43 percent of sales from 43.7 percent a year ago. the stock run-ups by the two retailers came as the s&P retail Index gained 7.57 points, or 1.5 percent, to finish the day at 510.93. — ALEXANDRA STEIGRAD Next Stop for Opening Ceremony: Lane Crawford In the nearly 10 years since Opening Ceremony opened on howard street in new york, its country-centric retail concept has fueled collaborations with sweden, Japan and France, among other global locales. But hong Kong is where it all began. It was a shopping-filled vacation there that inspired co-founders humberto leon and Carol lim to open that first store, which makes their latest project, a monthlong retail concept with hong Kong-based lane Crawford, a homecoming of sorts. For four weeks, Opening Ceremony will make a “conceptual retail extension” out of lane Crawford’s hong Kong IFC mall unit and Beijing store, starting on april 14 and 16, respectively, which will be subject to leon and lim’s eclectic sales floor stylings. “We wanted to touch on the different parts of the world that have played a big part in Opening Ceremony,” said leon, who noted that lane Crawford approached them a year-and-a-half ago about the project, which is Opening Ceremony’s biggest one yet with another retailer. “It was a partnership and collaboration from the very start,” noted Joanna Gunn, lane Crawford’s vice president, creative, marketing and communications. “lane Crawford worked with the Opening Ceremony team to make sure every detail was a statement. We wanted to bring the Dna and uniqueness of Opening Ceremony to our customers, but not in typical Opening Ceremony format.” Within the 82,000-square-foot hong Kong mall store, Opening Ceremony’s stamp will be evident throughout: In Crawford’s women’s atrium section, there will be a new york street scene and a Moroccan theme in homage to OC’s current French fixation. the accessories section will be set up like a Broadway stage, including an ode to the rockettes’ famous legs, and the women’s Designer lab will be temporarily transformed into a Chloë sevigny and rodarte for OC display. Opening Ceremony’s West Coast contingent will be represented in the men’s store, where a replica of the hollywood sign will be installed. as for the merchandise, men’s and women’s Opening Ceremony x lane Crawford capsule collections are planned, as well as special threeway collaboration pieces that include an alexander Wang striped t-shirt, dresses by Carven, Band of Outsiders ties and suno and Pamela love skull necklaces in three colors. similar plans are slated for lane Crawford’s Beijing store. asia is a growing market for Opening Ceremony. In addition to its new york and los angeles boutiques, the company opened an eight-floor department store in tokyo in 2009. While he currently doesn’t have plans to open an Opening Ceremony in China, leon said Looks from the Opening he can track increasing consumer interest there and in hong Kong from the retailer’s Web site, as well as in stores, where, he said, “We have a pretty good following of people who Ceremony x Lane come straight to us — it’s their first stop in new york.” — JESSICA IREDALE Crawford collection. toDay on WWD.CoM Daily Quote It’s like being required to hit a home run every time they step up to the plate. Better than exPeCteD was good enough for two women’s apparel retailers thursday. shares of the talbots Inc. and Charming shoppes Inc. soared 22.7 percent to $5.89 and 17.2 percent to $3.47, respectively, after the struggling missy specialty stores managed to surpass analysts’ modest fourth-quarter expectations. Both chains posted quarterly losses on steep holiday discounting, outlined strategies to turn around their stilted brands and disclosed plans to shutter stores — 240 for Charming shoppes and roughly 100 for talbots. “the market was dreaming up worst-case scenarios. there was a lot of negativity and low expectations going into the numbers,” Morgan stanley analyst Kimberly Greenberger said of thursday’s beefy stock gains. “For talbots, part of the problem is that the dated talbots image is difficult to disentangle from the dated talbots store image,” she said, explaining that the retailer, which has made “progress” updating its assortment, must continue to update the stores. recognizing the difficulty of modernizing an image steeped in traditional styling, trudy F. sullivan, president and chief executive officer of talbots, acknowledged that “merchandise styling in our catalogue… pushed too far forward for our core customer.” talbots said it would accelerate its previously announced plans to close between 90 and 100 stores in the next two years and renovate about 70 units this year. the retailer swung to a fourth-quarter net loss of $2.8 million, or 4 cents a diluted share, compared with a profit of $4.1 million, or 7 cents a share. the 568-door hingham, Mass.-based retailer said it registered an adjusted loss from continuing operations of 14 cents a share. sales in the quarter ended Jan. 29 fell 7.4 percent ■ EYESCOOP: See more pictures from the Vanessa Traina and Jamie Johnson dinners at WWD.com/eyescoop. ■ BEAUTY: See full coverage of Cosmoprof and the latest edition of Beauty Radar Screen at WWD.com/ beauty-industry-news. ■ BUSINESS: More financial news and daily stock movements at WWD.com/business-news. ■ ONLINE THIS WEEKEND: Story of the Week To e-mail reporTers and ediTors aT WWd, The address is firsTname.lasTname@fairchildpub.com, using The individual’s name. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2011 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 201, NO. 62. Friday, March 25, 2011. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, November and December, two additional issues in February, March, April and August and three additional issues in September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. 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WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Speakers include: beauty FORUM Judith Gross INTERNATIONAL FLAVORS AND FRAGRANCES INC. May 17, 2011 Asia Society & Museum New York City brand. Lynne Greene THE ESTÉE LAUDER COMPANIES INC. new. Linda Wells ALLURE Deborah Lippmann LIPPMANN ENTERPRISES Vasso Petrou THE PROCTER & GAMBLE COMPANY INC. Ingrid Jackel FOR INFORMATION: PHYSICIAN’S FORMULA HOLDINGS INC. Marne Friedman / 212.630.4379 marne_friedman@condenast.com Daniel Kaner wwd.com/beautyforum ORIBE HAIR CARE Josie Maran JOSIE MARAN COSMETICS Jo Horgan MECCA COSMETICA Claudia Lucas QVC INC. Laurice Rahme BOND No. 9 Alexander Bolen OSCAR DE LA RENTA Stephen Teitelbaum, MD Sponsored by: Soledad O’Brien CNN/U.S. 4 WWD FRIDAY, MARCH 25, 2011 Valextra’s calfskin bag. Alejandro Ingelmo’s leather boot. Michael Kors’ alligator clutch. Diane von Furstenberg’s silk moiré minaudière. PHOTO BY GEORGE CHINSEE Head of the Classy It’s time to act like a lady — or at least dress like one. Polished up with clean materials, classic shapes and a hint of vintage charm, fall’s newest accessories should do just the trick. — Shoshanna Fischhoff Jason Wu’s calfskin bag. WWD FRIDAY, MARCH 25, 2011 5 WWD.COM Yestadt Millinery’s fur felt, grosgrain and coque feather hat. Salvatore Ferragamo’s crocodile bag. Casadei’s silk shoe. 6 WWD FRIDAY, MARCH 25, 2011 Revlon, Walgreens Get Active {Continued from page one} keting for non-mainland operamagazine. Combined, Walgreens “After a strong 2010 for Revlon, we are tions, known for spotting promisand Drugstore.com will becarrying terrific momentum into 2011, ing items, saw the on-trend nail come a $67 billion company in and we have a keen focus on delivering color line and introduced Chon to sales. Walgreens will maintain on our strategic goal to profitably grow Walgreens’ beauty buyer and a reDrugstore.com’s corporate ofour business. This acquisition enables tail venture was launched. fice in Bellevue, Wash., after “That show helped kick off our us to add Sinful Colors to our portfolio of the transaction is completed. retail business,” recalled Chon in businesses,” Ennis said. Drugstore.com employs about Terms of the transaction have not an interview last year with WWD. 1,000 people at its offices, call been disclosed but further information Reached Thursday in Beltsville, center and distribution centers. “Our acquisition of Chon said he had been courtregarding the deal will be includDrugstore.com today signified by several companies ed in Revlon’s first-quarter 2011 cantly accelerates our online Form 10Q, planned for some over the past year as the strategy to leverage the best time in April. nail category became hot. community store network in Nail polish has certainly be“I got some calls. Let’s America by becoming the most come the crown jewel of beauty leave it at that,” said Chon. convenient choice for health brand portfolios. Just in the last The Revlon news and daily living needs whether year, OPI was acquired by Coty emerges as Walgreens is customers shop online or in Inc. for an estimated $1 billion purchasing the online our stores,” stated Walgreens and Essie snapped up by L’Oréal merchant of beauty, conpresident and ceo Greg Wasson. for an estimated $100 million. sumables and health He added the deal will give The rapid rise of Sinful care, in a transaction Walgreens access to its three Colors was attributed to more with a total enterprise million online customers and chains giving the brand footvalue of about $409 add about 60,000 products to its million, according to age in just the past few online offering. Drugstore.com’s Walgreens. The puryears. Mirage’s roots date Beauty.com, SkinStore.com and chase price was about back to 1991 when presiVisionDirect.com online sites $429 million, just dent Chris Chon began disA Sinful will dovetail with the Walgreens’ above its valued price. tributing to professional Colors item. strategy of pushing multichannel In 2010, Drugstore. stores. He soon decided com generated more than merchandise initiatives. to give a trade show called Under the terms of the deal, $456 million in sales, rankExclusively HBA a try. Steve ing it as the eighth-largest Drugstore.com stockholders will receive Lubin, Walgreens’ divie-tailer in the U.S., accord- $3.80 in cash for each share of stock. The sional vice president and general manager of mar- A Sinful Colors nail polish. ing to Internet Retailer price per share is a premium of about Drugstore.com was acquired by Walgreens. 102 percent over Drugstore.com’s 30-day average closing stock price, and a premium of about 113 percent over the closing price of Drugstore.com’s common stock on March 23, the last trading day prior to today’s announcement. Walgreens and CVS Caremark Corp. don’t disclose how much business they do online. However, Internet Retailer said Walgreens is the 68th-largest online retailer. The company runs about 7,700 stores around the country. — WITH CONTRIBUTIONS FROM ANDREA NAGEL Tansky Talks Luxury Shopping memo pad it’s all about product. Consumers want product right on target. “Essentially, we build relationships with customers. Relationships have to be built. We are not traffic stores. We are NEW YORK — Burt Tansky may be retired, but he hasn’t not Macy’s Herald Square.” Despite the pressures, “specialty stores, Neiman Marcus, changed his sharp point of view on luxury and what it takes to Saks, Bergdorf Goodman and Nordstrom will continue to prosgrow the business. It’s about catering to aspirational customers, providing per” due to selling “great product in handsome environments quality product every season without fail, and extending high with high levels of service. Department stores have failed at levels of service to build relationships with customers, the the service level. Service is important at every level.” Among Tansky’s litany of predictions: former Neiman Marcus Group chairman and chief executive ■ “Small” China cities (of eight million or so people) “will officer said Wednesday night at the first installment of the Luxury Education Foundation’s “Conversations on Luxury” at offer enormous opportunities for designers.” ■ A “terrific fallout” from all the texting, tweeting and twitColumbia University Business School here. “How you nurture an aspirational customer is the most im- tering in the social media/high-tech world. “Why would a milportant issue,” said Tansky, who retired last October and contin- lion people want to follow Ashton Kutcher?” ■ Tom Ford is building a fashion business by “taking it slow, ues as Neiman’s non-executive chairman, during the Q&A with step by step, doing it in a way that it will be profitable.” WWD’s executive editor and chief fashion critic Bridget Foley. ■ LVMH Moët Hennessy Louis Vuitton will lead “a more aggresNMG, he said, has been working hard to entice aspirational customers — those shopping prices a rung or two under designer and sive expansion” of Bulgari. ■ Flash sales are “a very potentially becoming designeasy genre to get into. There er customers as they age, acare a lot of Johnny-comecumulate wealth and gain latelies. There is plenty of inexposure to the cream of vestor money. You will see a lot the fashion crop. Clearances more of these, but you better lure the aspirational cushave your arms around all the tomer, but getting designers designer names.” to provide products at lower ■ “The challenge of the or opening prices is also design world is to figure out critical, helping to widen the how to produce goods and appeal and value. flow it more evenly.” “We have opening pricTansky also presented a es in virtually everything strong point of view on a variin the store. We have reety of other subjects, including: inforced opening prices. ■ Fashion shows: “They’ve This is not trading down,” — BURT TANSKY become a circus. People exTansky stressed. “The repect to see theatrics. The cession actually allowed us to work out issues with vendors and designers. They were very un- show itself overwhelms the product — that worries me.” ■ Knockoffs: “They don’t take the edge off luxury.” derstanding and open.” The recession “forced them into a stron■ His advice to the students: “Decide what industry you ger and stronger partnership mode.” Prerecession, “Aspirational customers pushed themselves over the top to buy some semblance want to be in and stay focused. You can never build a reputation by jumping from industry to industry.” of luxury.” And postrecession, “We are recovering” them. ■ Becoming a buyer: “It takes a lot of energy, a lot of hard “Over the last five or six years, the luxury customer is essentially the same — she’s rich, well-educated and traveled. She work. It’s a trying task.” ■ His favorite store, other than Neiman’s: “Costco. They are understands and appreciates fashion, and most of all, she is the Neiman Marcus of stuff. No one ever leaves without spending demanding of quality and service.” Tansky underscored the enormous pressure designers have less than $100. No one gets out of Neiman’s for less than $3,000.” ■ Women’s shoes: “My best mantra is no woman ever has to create and deliver quality product season after season. “It’s like being required to hit a home run every time they step up to enough shoes.” ■ The most difficult designer he ever dealt with: “The list is the plate. They must design quickly. It has to be right, season-in, season-out. There is no room for error.…At the end of the day, very long,” he grinned. By DAVID MOIN ’’ Over the last five or six years, the luxury customer is essentially the same — she’s rich, well-educated and traveled. She understands and appreciates fashion, and most of all, she is demanding of quality and service. ’’ ANOTHER DAILY DEPARTURE: Culture reporter Molly Young is leaving New Corp.’s The Daily, as the fourth reporter to abandon the iPad newspaper since it launched less than two months ago. “It was incredibly fun to work in a newsroom: lots of reporting, lots of running around,” Young, 24, wrote in an e-mail about her time at 1211 Avenue of the Americas. “It was the best time I ever had at a job, and also probably the best time I ever had in Midtown.” Her last day is today. Young will be writing for New York magazine features editor David Haskell, but she doesn’t have a contract. Haskell said he has promised her the opportunity to write three features in the coming year. Her first piece, about Freeman Gunter, an influential New Yorker in late-Sixties gay magazine publishing, has been filed and may appear in the magazine’s April 4 issue, tentatively named the Apartments issue. Young said she will also return to blog for Prospero, The Economist’s books, arts and culture blog. Young is the third departure from Daily culture editor and New Yorker pop music critic Sasha Frere-Jones’ desk alone. Three of Frere-Jones’ original four hires — Lauren Bans, Heather Havrilesky and Young— have left this month. The fourth departure from the Daily was political reporter Jon Ward, who left for the Huffington Post. Last week, Frere-Jones hired a replacement features writer from his former employer, The Village Voice: Web editor Zach Baron, 28, a precocious music critic who had his beginnings as an intern for the Voice’s legendary Robert Christgau. Frere-Jones did not return a request for comment. — ZEKE TURNER DYKSTRA TO ANN TAYLOR: Kristen Dykstra has joined the Ann Taylor Division of Ann Inc. as senior vice president of brand marketing. She will oversee areas such as marketing, advertising, public relations and social media for Ann Taylor and report to the division’s brand president Christine Beauchamp. Most recently, Dykstra was senior vice president and chief marketing officer at Kenneth Cole Productions Inc. Prior to that, she was senior vice president of global marketing and public relations at BCBG Max Azria Group. — MARC KARIMZADEH WWD FRIDAY, MARCH 25, 2011 7 WWD.COM Li & Fung Stays on Prowl as Net Rises Fashion scoops HONG KONG — Hong Kong-based sourcing giant Li & Fung said Thursday it remains in full acquisition mode as the company moves to reshape its business over the next three years. “We’ve made it very clear that there will be acquisitions every year. That is for sure,” said William Fung, group managing director of the Hong Kongbased sourcing giant. As the company reported a 27 percent increase in net profits last year, it also unveiled its new three-year plan to achieve a “core” operating profit of $1.5 billion by 2013. President Bruce Rockowitz said the company has transitioned from one “global network” to three: trading, onshore and logistics. Each network is expected to grow significantly over the next three years. Currently, Li & Fung’s business breakdown is about 60 percent trading and 40 percent onshore (which includes licensing and distribution), with newly added logistics accounting for about 1 percent. That is set to change, according to Rockowitz. “In 2013, trading and onshore are going to be equal, with about 47 percent each,” he said. “In the future, you’re going to have to think differently about Li & Fung.” Trading and onshore are each targeting a core operating profit of $700 million by 2013. The goal was unveiled as the company said net profit rose to 4.28 billion Hong Kong dollars, or $548 million, for the year ended Dec. 31. Sales advanced 19 percent to 124.1 billion Hong Kong dollars, or $15.91 billion. Operating profit increased 42 percent to 5.66 billion Hong Kong dollars, or $725 million. At a press conference here, Rockowitz described 2010 as “an eventful year” for the company, citing Li & Fung’s numerous acquisitions and deals over the past 12 months. These included a major sourcing deal with Wal-Mart Stores Inc. and the acquisition of Integrated Distribution Services, as well as significant licensing agreements with brands such as Sean John, Jennifer Lopez and Marc Anthony, Rachel Zoe and French Connection. Such acquisitions had an effect on Li & Fung’s overall sourcing as China increased its share to 57 percent, a rise of 3 percent over last year despite rapidly rising costs there. “China’s prices went up a lot, but most of the companies we acquired are one-country sourcing in China,” explained Rockowitz. “It takes one to two years to start to move them to a multicountry model,” he said, adding that Vietnam, Bangladesh and Indonesia were rapidly growing sourcing markets for Li & Fung. But spreading sourcing to more countries won’t counter the pricing issues seen across the industry, as Rockowitz acknowledged. “The biggest topic by far in our business, from every point of view, is higher prices. [Last year] was the year the deflationary trend for goods ended. We’re in a new era,” said Rockowitz. He added, however, that higher prices were not necessarily bad for Li & Fung’s business. “I see it as pretty positive. For 20 years, we have had to work so much harder to break even each year because prices were going down and we had to sell more pieces.…Mild inflation is pretty good for Li & Fung,” he said. Rockowitz said retailers are struggling more with cost increases than Li & Fung. “Retailers are testing the waters to see what customers can handle. Prices are [forcing them] to adjust their business models,” he said, adding, “Higher prices are here to stay and we don’t know all of the ramifications yet.” — ConstanCe Haisma-KwoK HUSBANDS, AISLE THREE: Macy’s is a great place to shop — but not necessarily to find a husband. But that’s exactly what Santina Bowers from Pasadena, Calif., did while on vacation visiting the Macy’s Flower Show in 2009. Gazing at the flowers, she caught the eye of New York Police Department officer Moise Naolo, who was patrolling his beat. “The next thing you know they tour the sites that night, exchange e-mails, and soon enough, he’s on a plane to California,” said Elina Kazan, Macy’s vice president of media relations and cause marketing. Ultimately, on another occasion together, Naolo proposed in front of the same window where they met, but this time they had been decorated by Macy’s visual team with the words, “Santina, Will You Marry Me?” On Sunday evening, the couple will be married inside Macy’s, in a romantic kickoff to the store’s annual flower show. They’ll tie the knot in the “Bouquet of the Day,” a giant arrangement on the main aisle, and cut the wedding cake and the toast the occasion by “The Tower of Flowers” arrangement. Macy’s is paying for the wedding; sparkling wine will be donated by Chandon; the cake was created by Martha Stewart Weddings, and the gown is by Demetrios Bridal — Macy’s Bridal Salon. The only other Macy’s wedding was in January 2000 in a window commemorating the new millennium. LOVING LOEWE: Loewe cut the ribbon on its latest London store this week, the first new generation flagship outside Spain. On Wednesday night, guests including Giles Deacon, Bianca Jagger, Daisy Lowe, Pixie Geldof, Andrea Dellal and Julia Restoin Roitfeld gathered with creative director Stuart Vevers for cocktails and tapas at the bijoux store on Mount Street designed by Peter Marino. The 1,300-square-foot store stocks the accessories collection only, and a trunk show of the ready-to-wear is taking place this week at the nearby Connaught hotel. WWD.COM/CLASSIFIEDS For more career opportunities log on to WWDCareers.com. Spaces COMMERCIAL REAL ESTATE Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Great ’New’ Office Space Avail ADAMS & CO. 212-679-5500 Seeking fashionable, self-motivated Account Exec w/ exp. in better contemporary. Needs strong speciality store relationships & knowledge of key independents. Handbag & RTW exp. preferred. Strong presentation & comp. skills required. Must be analytical, organized, mutli tasker.Travel required.Please email your resume to: resumes@foleyandcorinna.com CONTEMPORARY BRAND Showroom seeks in-house Sales Reps with solid accounts of better BTQ & chains. Strng customer service a must. F:212-658-9033;E: info@doralanda.com PATTERN/SAMPLES Garment center location. Professional /Reliable Quality. Men & women all style. Low Cost. Small production. 212-563-3331 PATTERNS, SAMPLES, PRODUCTIONS Full service shop to the trade. Fine fast work. 212-869-2699 ACCESSORY SALES EXEC Major Store Contacts, Looking for company seeking growth. Call: 609 519 1399 DAX GABLER, a contemporary designer brand, is looking for: Sales Director Account Executive Product Development Assistant Personal Assistant Send resumes to: hr@daxgabler.com & include salary expectations. Product Marketing Manager SDI, a division of Bio-Medical Research & a multi-national consumer product business, is recruiting for a Product Marketing Manager.Candidate to provide mktg support for core/new product launches. Goal to develop the business through web initiatives, traditional retail & home shopping expansion. Candidates should have experience in a consumer product marketing role ideally within the beauty category with retail responsibilities. Based out of NJ. Send Resume to: Jobapplications@bmr.ie SALES ORDER ADMINISTRATOR Women’s RTW Company seeks sales order admin. Candidate should possess a min. 3 - 4 year’s experience. Experienced in shipping arrangements, preparation of invoices, packing lists. Able to liaise with clients & warehouse - capable of doing follow up activities. Handle all order entry. Manage and process customers’ orders, issuing of PO’s. Coordinate, monitor and ensure fulfillment of customer’s deliveries. Handle general admin. duties. Possess initiative & be able to work independently with min. supervision. Computer knowledge and proficient in excel. Send resume & salary requirements: info@raoulny.com SENIOR PLANNER Fishman and Tobin, Inc. a manufacturer of Children’s Wear has an opening for a Sr Planner. The position is for Walmart /Sams Club Team located in Manhattan or Plymouth Meeting, PA. Basic Job Function: Responsible for program(s) to achieve company & customer objectives. Work with Walmart/Sams Buyers, Planners & Replenishment Mgrs on instock, turn, sell thru & profitability goals. Monitor sales/sell thru’s by fineline, color, size & store. Mgmt of production authorizations consistent with ladder planning & expected delivery flows/commitments. Create & submit Store Specific Orders (SSO’s) consistent with prog. expectations (roll outs, inventory builds, instock corrections, clean outs). Responsible for strategies to build & liquidate programs. Responsibilities: •Manage replenishment strategies •Create/develop/monitor ladder plans •Interact with store associates/ end customers; buying team/planner/ replenishment teams •Special projects (assortment creation /sets/meeting prep) •Work with other team members for cohesive customer management •Communicate with Customer Operations to track production & order flow. •Weekly reporting to buyers, planners and replenishment managers. Qualifications: •Walmart Retail Link exp preferred •Experience in retail planning prefered as is customer service, sales, retail and/or marketing •College degree/industry experience •Strong communic. & follow up skills •Ability to use critical thinking skills to resolve problems •Strong written and verbal skills •Good team player •Computer skills - knowledge of Microsoft Office Suite (Excel/Word) Please email resume & salary requirements to: hr@fishmantobin.com. 8 WWD FRIDAY, MARCH 25, 2011 Maje-or Player Jen Brill eye A Glimpse of Grès PHOTOS BY DOMINIQUE MAITRE PARIS — Offering a powerful flashback to the golden age of French couture, “Madame Grès, Couture at Work,” a retrospective devoted to the mythic French couture label, opens today at the Musée Bourdelle here. Running until July 24, the show is the first of a series of off-site exhibitions planned by Paris-based fashion museum Musée Galliera’s new director, Olivier Saillard, pending the completion of his museum’s renovation in 2012. The exhibit gathers around 80 creations, mainly from Musée Galliera’s vast private collection, spanning the 55-year long career of Germaine Krebs (aka Madame Grès). It includes pieces on loan from collectors including Azzedine Alaïa and U.S. Vogue’s Hamish Bowles. Fifty original photographs, style magazines and bold jewelry pieces are also presented, along with a series of sketches by Grès herself. Set in various rooms around the Musée Bourdelle, the show interweaves Grès’ sensually architectural creations, presented in glass cabinets and on wooden sculptor’s stools, among the site’s gargantuan freestanding classical works. Picture a pumpkin orange dress with tiered pleats glowing in the dimly lit wooden Atelier de Bourdelle surrounded by dusty sculptures, while elsewhere white draped dresses, with their antique-style sculptural drapery, resemble Greek statues. The choice of site, among the most beautiful sculpture museums in Paris, was no coincidence, as Grès herself trained as a sculptor. Working rarely with patterns, she constructed designs directly on the body. “For her working with fabric or stone is the same thing,” explained Saillard, who views the late designer as a pioneer of sophisticated minimalism. “This was minimalism before its time — Yohji Yamamoto before his time, the Belgians before their time.” According to Saillard, Madame Grès essentially reworked the same dress, pursuing her ideal of the seamless garment with economy of line and volume. The designer was also a great colorist, using a broad palette of hues, from sand to sun Tucker Gets Busy PHOTOS BY JOHN AQUINO Vanessa Traina in a Vanessa Traina for Maje jacket. Lazaro Hernandez with Victoria Traina in Proenza Schouler. By KATYA FOREMAN Looks from Tucker. TRAINA DINNER PHOTOS BY LEXIE MORELAND; OLSENS BY DAVID X PRUTTING/BFANYC.COM WHEN VANESSA TRAINA arrived at Le Caprice for a dinner celebrating her new capsule collection for French label Maje on Wednesday, she was putting the wares to good use. Wearing a cut-out heavy top that stood in opposition to the sleet storm outside, the socialite had draped a tuxedo jacket from the line over her shoulders. “I have another one that goes over when I go outside,” she said of the coat, laughing. Traina and her sister Victoria have been known to pal around with a certain set of buzzed-about young designers, and, sure enough, a few had shown up for support. Alexander Wang was there, as were Jack McCollough and Lazaro Hernandez of Proenza Schouler, and Joseph Altuzarra. Mary-Kate and Ashley Olsen didn’t make it to dinner, but they’d Mary-Kate and stopped by Barneys New York Ashley Olsen in for the presentation beforehand. The Row. Did having such friends intimidate Traina when she undertook design herself? “No,” she said. “I wasn’t really trying to do something high fashion. I was really trying to do something contemporary. I did what I wanted to do.” — MATTHEW LYNCH WWD.COM GABY BASORA IS BECOMING KNOWN FOR her vibrant signature prints in her Tucker collection, and for fall she delivered a great lineup full of just that. Inspired by photographer Sara Moon’s “element of unexpectedness,” Basora mixed bold patterns with sturdy fabrics, such as a silk tie blouse paired with high-waisted wool shorts. The biggest hit, though, was a scoop-back jumpsuit in a black-and-white Deco zigzag pattern. The designer was wearing the look herself, but in a more subdued solid black version, also available for fall. Looks by Madame Grès at the Musée Bourdelle. yellow, bluebell, raspberry and coral. Known as a designer’s designer, Grès’ heyday was in the Thirties, Forties and Fifties. But she also saw a comeback in the Seventies, with Yves Saint Laurent and Issey Miyake among advocates of her work. Marlene Dietrich, the Duchess of Windsor, Grace Kelly and Paloma Picasso were among the label’s fans. Contrary to the designs of male couturier greats such as Cristóbal Balenciaga and Pierre Balmain, who loaded pieces up with padding and underskirts, Grès’ creations were extremely light, supple and un- structured, according to Saillard. He said the designer liked her models to wear her dresses without underwear, as she wanted the clothes to be in direct contact with skin. Grès released a couple of scents, was a skilled tailor and dabbled in ready-towear. Yet her focus remained riveted on one thing: couture dresses, which she continued to design into her 80s. One element missing from the exhibition is information on Grès herself, and that’s how she liked it. She is remembered as a fiercely private, strong-willed workaholic who preferred to let her creations do the talking. Saillard learned that she drove around in a Jaguar with mink-lined seats, often sitting on a piece of jersey to protect the fur. “She was the Azzedine Alaïa of her time,” said Saillard, who views Alaïa as her spiritual son on several levels, including Grès’ steely temperament. The late designer named her bestselling fragrance after herself, baptizing it Cabochard, which translates as “stubborn.” Saillard said a heartbroken Grès is said to have sawn her marital bed in two upon being deserted by her husband, Serge Anatolievitch, known as Grès, after whom her company was named. Grès was an anagram of Anatolievitch’s first name, dropping the “e.” The firm was liquidated in 1987, before being acquired in 1988 by Japanese textiles importer Yagi Tsusho Ltd., which still owns the brand today. Grès died in obscurity in 1993 in a retirement home near Toulon, France, a few days before her 90th birthday. Her death was only made public a year after the event. The last dress she ever made, a Japanese-style floral gown that features in the Musée Bourdelle show, was commissioned by Hubert de Givenchy in 1989. WWDSTYLE DIFFERENT STANDARD The hip New York hotel drew a different kind of crowd for the launch of a new skin care line. PAGE 4 BEAUTY Italian Industry Putting Focus On Innovation BY KERRY OLSEN and PETE BORN Cosmoprof Goes Green The Cosmoprof fair in Bologna, Italy, is turning into a beauty show for nature lovers. In a year when traditional perfumery offerings seemed to fade, there was a leafy profusion of cosmetics with organic and natural ingredients. Even the hair product brands were talking up sustainability and turning their booths into gardens. There also were panel discussions on the meaning of being green. For Cosmoprof coverage, see page 2. PHOTO BY DAVIDE MAESTRI MILAN — Emerging from one of its worst spells in memory, Italy’s beauty industry is attempting to innovate its way back to prosperity. Some of Milan’s leading retailers, including La Rinascente, Mazzolari and Gruppo Coin, plan to open new floors, departments or concept stores devoted largely to niche perfumery. Meanwhile, Intercos, the industry’s premier color cosmetics supplier, is flirting with the prospect of going public in 2014. “I think that the perfumery channel of distribution is realizing finally there’s a different way to run business,” said Fabio Franchina, president of Unipro, the Italian association of cosmetics companies. Italy’s perfumery segment registered a 0.7 percent gain to 2.26 billion euros, or $3 billion at average exchange, in 2010 after a couple of years of losses. The domestic improvement primed the pump for Italy’s export machine, which soared 17 percent on-year to 2.39 billion euros, or $3.17 billion. Exports to Hong Kong, for instance, spiked 54 percent. “It’s the intelligent way to enter China,” said Franchina. “More than 200,000 people come from China to Hong Kong to shop daily.” On the eve of opening its 13,993-square-foot store — including a 3,767-square-foot perfumery — in Rome’s main train station, Paolo Valerio, Gruppo Coin perfume and cosmetics manager, discussed future openings. Slated for August on Milan’s Corso Vittoria Emanuele on the site of a former cinema is Excelsior. Valerio described it as a boutique, concept and department store hybrid. It should include a corner of “emerging” brands, such as Aesop, Kiehl’s and Organic Pharmacy, and a brow bar, which he called the first of its kind in Italy. There’s also to be an “olfactory” fragrance bar featuring a large selection of niche brands “to give character to the perfumery,” said Valerio. Such concepts are meant to continue fueling Coin’s strong growth. In 2010, its perfumery business registered a 15 percent gain, while the rise was 5 percent on comparablestore basis. Expanding on its high-end niche concept, Mazzolari is building a nearly 4,305-square-foot addition to its 17,222-square-foot store, devoted entirely to the category. Scheduled to open in September, it’s one floor under the main retail space and has a turn-of-the-century perfumery feel. Antique cabinets line walls and will stock “brands with history” such as Amouage, Cartier and Tom Ford, according to Augusto Mazzolari, founder of the perfumery chain. {Continued on page 3} 2 WWDSTYLE FRIDAY, MARCH 25, 2011 beauty Cosmoprof at a Turning P Italian beauty fair mirrors the industry’s shift to wellness and natural-based products. BY KERRY OLSEN AND PETE BORN Luciano Bertinelli, chief executive officer of Ferragamo Parfums and chairman of Italy’s Accademia del Profumo. Pernilla Ronnberg, managing director and founder of Estelle & Thild. FOR MORE STORIES AND PHOTOS FROM COSMOPROF SEE WWD.com Unique Products, a two-year-old Danish company with 16 units, is to start selling anti-aging skin care this August. The organic, fair trade and sustainable brand bases its product formulation on weight, culled from cast-off ingredients from cheese making, and traditional Scandinavian herbs, such as heather. Also from Scandinavia was Swedish organic skin-care brand Estelle & Thild. Distributed in 400 doors region-wide, it was founded in 2007. Recent launches include an anti-stretch mark oil last spring that became a bestseller. Les Fleurs de Bach was launching its first organic fragrances, called Eaux d’Elixir, which incorporate Bach flower essences. The trio is set for an introduction in mid-April. The brand is currently rolling out its debut anti-stress skin-care line. “It doesn’t address specific problems, but well-being using proven ingredients like aloe vera,” said Annick Masseglia-Thireau, commercial and marketing director at Les Fleurs de Bach. Also launching organic skin care was Cosmofarma, a 35-year Italian beauty maker. Its three-step antiaging product line includes packaging listing target age categories — 20- to 30-yearolds, for instance. For hair, Abaché was debuting Colour.Pro, a 19-unit collection of organic products to be used in conjunction with the hair coloring process. The idea is to protect scalps from chemical penetration. Items from it will be available in salons and also some pharmacies, such as No Stain No Pain Shield for scalp protection. Spotted within the selective perfumery section was The Berkeley Square brand from London, which was presenting its Royal Ballet body line, due out in June. There was also a new Black Cassis women’s fragrance line, also slated for a June introduction. Eurocosmesi, a division of the Coswell Group that’s celebrating its 50th birthday this year, was introducing — among other novelties — Transvital sun care with SPF 50-plus. It’s to be launched at the end of March worldwide. — WITH CONTRIBUTIONS FROM JENNIFER WEIL Andrea Santangelo, marketing executive for Aveda Italy. PHOTOS BY DAVIDE MAESTRI BOLOGNA, ITALY — Cosmoprof, once the bastion of old-world perfumery, has gone green. Organic products bloomed in abundance in the natural pavilion, otherwise designated as halls 25 and 26. Fabio Franchina, president of UniPro, the Italian association of cosmetics companies, highlighted the above-average growth in retail channels where natural and organic products are sold. Herbalist shops increased their sales 5.5 percent last year to 365 million euros, or $484.7 million at average exchange. Revenues from pharmacies continued their strong upward trajectory. In 2010, their sales rose 3.3 percent to 1.47 billion euros, or $1.95 billion. The four-day Cosmoprof trade show, which ended Monday in Bolgona, Italy, had undergone a marked change in complexion. The traditional heart of the fair, hall 36 that housed selective-market perfumery brands in former years, was moved to two smaller, parallel areas. The natural category dramatically rose in visibility. Meanwhile, the hair pavilions held their own and the Chinese contingent grew in number and prominence. Overall, the number of attendees to this Cosmoprof session climbed 21.1 percent to 177,287, while the foreign visitor count increased 8 percent to 36,076, according to Aureliana De Sanctis. The Accademia del Profumo went ahead with drawing a crowd to its perennial awards ceremony, an important event considering two-thirds of the prestige beauty market in Europe is driven by fragrance. However, a number of notable key players were absent from visiting the fair, just as major international and Italian houses were not among the ranks of exhibitors. De Sanctis described the trade show as a barometer for the sector. “The selective perfumery is having problems in terms of sell-out and is not able to renovate itself,” she said. Hinting at plans for Cosmoprof in 2012, De Sanctis said if leading perfume companies return to the trade show’s fold, it should be in the form of events that generate both consumer awareness and stimulate business-to-business interest, rather than just renting a booth as in years gone by. “I’d prefer to see more of what Chanel did this season at the fair,” she said, referring to an invitation-only event held by the brand at the trade show’s VIP area, called Cosmoprof Privè. “The future of the sector at the fair is creating an experience through parties, inviting celebrities from TV spots on-site and building a mood.” On the natural theme, De Sanctis said she hopes to add a green packaging area to next year’s Cosmopack session. During this edition, the trade show devoted an entire day of conferences to the subject of natural and organic product certification and discussions by individual brands about how to navigate the new green beauty landscape. Cosmos, the international nonprofit association, was touting its new certification program for natural and organic products. Amarjit Sahota, director of Organic Monitor, said the European natural and organic beauty market is estimated to be worth 1.7 billion euros, or $2.4 billion at current exchange, and that it doubled in size over five to six years. He said there’s ample room for gains, since the segment’s share is only about 3 percent of the total beauty market. Germany generates the most sales, with about half the revenue, followed by France, Italy and the U.K. This year, Sahota expects the European natural and organic business to grow 12 percent, despite hurdles such as the jumble of certification, shelf space saturation and the influx of major players and private label brands, such as Hennes & Mauritz, Boots Organic and Aldi. Ido Leffler, co-founder of Yes To, was unfazed by the privatelabel competition. “They’re the best thing to happen in this industry by creating awareness,” he said. Leffler also dismissed worries that the forest of product certification labels is confusing consumers and unnecessary. “They don’t care if you have a seal,” said Leffler. “They trust what is being told to them on YouTube.” He said Yes To had just entered Wal-Mart, and it’s now in 28,000 doors with more than 70 products. The brand also has partnered with Whole Foods to plant gardens in U.S. public schools. One theme that ran through the speeches was the problem of supplying quality raw material, with a number of companies trying to take a more vertical approach to achieve sustainability. Another speaker was Mirja Kloss, head of international marketing of cosmetics at Weleda, which is celebrating its 90th birthday this year. The brand had introduced in January its Skin Food cream and in May will come out with its Wild Rose deodorant. WWDSTYLE FRIDAY, MARCH 25, 2011 Point Italy Keys on Innovation {Continued from page 1} Antonella Mandelli, general manager of Mazzolari, in discussing the selection of niche brands, explained it’s not just about their having a limited distribution, but “they need to have class.” Mazzolari likened today’s perfumeries to fruit and vegetable sellers. “The idea is to do something different,” he said. Also hot on the trail of something different is La Rinascente, which is revamping its beauty area for later this year with the addition of organic and natural skin-care brands plus niche fragrances among products to meet the ever more sophisticated consumer. One such initiative is the introduction of Tom Ford’s 80-unit makeup collection — an extension of his lipstick line — which will be the department store’s exclusive for Italy most likely starting in October. Talking about the evolving retail experience, Celso Fadelli, founder and chief executive officer of Intertrade Europe Group, said, “People are changing the way they buy. Consumers consider shopping more of an experience than just using their credit card.” Fadelli has been introducing new retail concepts. He opened a 2,368-square-foot store in Modena in December. It takes a similar selling strategy as that of his Avery Fine Perfumery in London, which is fitted out like an apartment and downplays branding. “Niche is no more than 5 percent of normal perfumery. What is interesting is that the space is growing,” said Fadelli, adding “Last year was very good in terms of numbers; it was almost back to 2008 levels, which was the best year ever,” said Ferrari. For 2011, Intercos’ sales target is set at 280 million euros, or $395.6 million. Ferrari said international business can help spur growth. In Brazil, Intercos’ new production facility near São Paulo is expected to be operational in six months. China’s another key frontier. In its trend presentation, Intercos featured a budget-priced cosmetics line targeting that market. “We need to compete with the local brands,” said Ferrari. “We want to be a little bit Chinese.” He said the overall game has altered. “The recession changed the rules,” said Ferrari. “We need to keep innovation but have to focus on cost. We want to be fast and cost-effective. Speed is becoming more and more important.” A case in point: Intercos expanded its Ready to Go offer, a line of 80 makeup solutions for regional beauty needs. Following Intercos’ acquisition of Vitalab, a biotechnology concern, Ferrari plans to sell active ingredients to large corporations. “They’re not interested in [buying] creams,” he said. Ferrari hinted at a development of a serum involving plant stem cells. While other companies continue to churn out new products, Euroitalia is determined to capitalize on the rollout of its Vanitas by Versus women’s fragrance. Giovanni Sgariboldi, company president, said Euroitalia’s sales grew between 38 percent and 39 percent in 2010. INTERCOS RETURNS TO ROOTS Roberto Martone, president of ICR-ITF. Davines booth, Cosmoprof Fate of Flowers color cosmetics by Chinese company Yiwu Yaqi Cosmetics. MILAN — Intercos’ annual trend forecast as always was a threedimensional, multisensorial highlight melding art, color and cosmetics technology. Compared with 2010, this year’s view was drenched with vibrant hues. The theme of the show equated innovation with revolution. It was divided into three aspects: The “individualist,” who wants to express herself through color, as exemplified by exclusive technologies and intense pigments. Perfection and speed are key for the “connectionist.” Here, a patented technology called Intercos Shine offers 24-hour staying power thanks to a long-wearing polymer. Meantime, the “sensationalist” takes time to indulge. That segment of the presentation put a spotlight on high-tech treatments with feel-good textures, such as fresh-to-the-touch products like gels and silky finishes. The star of this year’s show was Prisma Shine, a new Intercos powder technology said to give pure, luminous color. The product leaves such a thin film on skin that — despite the intensity of the pigment — the sum effect is subtle. “It will blend in with your skin and illuminate it,” said Madina Ferrari, Intercos creative director. With Prisma Shine, compacts containing three-dimension powder are possible. Prisma Shine was given its trial run in the Madina Milano store and in a collection for Kiko, the popularpriced Italian makeup brand. “It’s bringing new consumers to the color sphere,” said Ferrari. Four trendsetting colors cherry-picked for 2012 were “divine blue,” “freestyle orange,” “diabolic red” and “ultra violet.” The hues reverberated with references to artists such as Donald Judd, Alberto Burri and Yayoi Kusama. — K.O. AND J.W. major names are trying to elbow their way into the segment. He ticked off numerous department stores devoting more space to niche fragrances, including Liberty, House of Fraser and Selfridges in the U.K.; France’s Printemps, and Japan’s Isetan and Takashimaya. When asked why so many small brands fail to flower, Fadelli said, “the missing part is investment.” He is adding Sweden’s Agonist to his beauty portfolio. Coming up on March 31 is the third edition of Esxence, a niche fragrance trade show Fadelli organizes with Silvio Levi, owner of Calè Srl, that is gaining traction fast. Last year, it drew in excess of 4,000 visitors from more than 30 countries. “We are expecting more this year,” said Fadelli. Also putting on its annual show was Intercos, which opened its trend forecast on March 15 at company headquarters in Agrate Brianza, Italy, outside of Milan. With a 40th anniversary coming up in 2012, Intercos turned to its roots by framing its presentation with vibrant colors. For the first time, Intercos showcased a new technology, called Prisma Shine, said to be a next-generation powder giving pure, luminous color. On Intercos’ radar is a possible public offering in Milan in 2014, according to Dario Ferrari, the company’s founder and president. “I’d like to keep control of the company,” he said. Meantime, Intercos aims to generate sales of about 345 million euros, or $487.4 million at current exchange. Last year, revenues gained 20 percent to 245.2 million euros, or $325.6 million at average exchange, driven by restocking and new products. Fabio Franchina, president of UniPro, the Italian association of cosmetics companies. “Growth last year didn’t come from new products but by new markets growing and improving,” he said. Sgariboldi is also launching the Moschino Forever men’s scent. But during an interview at company headquarters in Cavenago, Italy, he seemed contemplative on how to protect the new Versus fragrance from the market’s hurly burly. “We don’t want to burn the Vanitas launch. We need to give it time before launching new products,” said Sgariboldi. “We want to slow down despite great sales last year.” He underlined his company’s success comes from lines remaining on the market rather than flankers. Building on the momentum of D-Squared fragrance collections, Roberto Martone, president of ICR-ITF, said the brand will launch a men’s scent in September. Also this year, Martone is set to introduce a men’s and a women’s fragrance under his new Trussardi license. Martone said sales at ICR-ITF grew about 30 percent last year after registering a loss of approximately 12 percent in 2009. Gaining ground, as well, is 13-unit niche skin care brand Bakel, of Udine, Italy, which will introduce its first eye cream, Cool Eyes, at Esxence. Bakel came out with Oxyregene — its first cream — two months ago, and it’s now the company’s best seller. Bakel is carried in 200 doors worldwide and in 2010 generated 450,000 euros, or $597,550 at average exchange. “I think this year we will close at 1 million euros [or $1.4 million at current exchange],” said Raffaella Gregoris, Bakel’s cofounder. — WITH CONTRIBUTIONS FROM J.W. 3 xxxxxxxxx, March xxxxxxxx 25, 2011 xx, 2011 00 WWDSTYLE Friday, 4 beauty Eraclea: Not Standard Skin Care Elana Drell Szyfer’s Plans for Ahava By JULIE NAUgHTON WITH A NEW chief executive officer title under her belt, Elana Drell Szyfer is ready to write a new chapter for Ahava North America. Drell Szyfer, who was first named Ahava’s North American general manager a few months ago and has just added the ceo title, is determined to rev up the Israeli brand’s size in this market with a rebranding and repackaging effort and a slew of reformulated products sans parabens. All are rolling out now. Drell Szyfer noted that Yacov Ellis, Ahava’s global ceo, is prioritizing North America for growth in 2011 and beyond, as it is the brand’s largest market outside Israel. The brand is sold New Ahava packaging. in about 30 countries globally. In the U.S., retailers include Nordstrom, Lord & Taylor, Beauty 360, Fred Segal and Ulta. Drell Szyfer noted that she hopes to grow the business 20 percent this year. While she refused to discuss numbers, industry sources estimated that the current size of Ahava’s North American business is about $30 million at retail. “We’re refocusing on the DNA of the brand: Dead Sea minerals,” said Drell Szyfer, noting that she has reduced the size of the line and repackaged everything to appear more cohesive as a brand. “This is a brand that is rooted in being natural, but we really haven’t communicated that before — now we are. We’ve combined the brand’s top four product lines into one cohesive collection, and are using the tag line ‘My Skin Reborn’ on all marketing communications at point of sale. The packaging is now more nature-inspired, with natural colors and elements from the Dead Sea region, such as water, mud, salt and plants.” As well, a greater emphasis will be placed on facial skin care, said Drell Szyfer. “Our body business is extremely strong, but one of our strategic priorities is to increase the performance of our face products, and our upcoming launches will reflect this priority, as will our messaging,” Drell Szyfer noted. Facial skin care packaging is now designed to call out specific skin care concerns and benefits, and Ahava is emphasizing sampling and social media as means of communicating the brand’s updates. A revamped e-commerce site is launching now, as well. New formulations not only eschew parabens, but also SLS/SLES, petroleum, harsh synthetics and genetically modified organisms. Not every product has been reformulated, said Drell Szyfer; only the ones which offered “opportunities for enhanced performance.” By MOLLY PRIOR photo by GeorGe Chinsee NEW YORK — The words “hyaluronic Dr. Janet Denlinger, Dr. Endre Balazs, acid” don’t exactly roll off the tongue, Morgan Hare and André Balazs. nor it is the kind of subject one would expect to draw a crowd to The Standard hotel. But there, on Wednesday night, a group that included model maker Eileen Ford, author Judith Newman, hair stylist Yves Durif and even scientists hailing from Budapest gathered for the launch of skin care line Eraclea. Of course, it helped that the line was developed by Dr. Janet Denlinger, wife of Dr. Endre Balazs, father to The Standard’s owner André. Eraclea features a patented HylaSpongeSystem technology that combines three molecular weights of hyaluronans to penetrate different levels of the skin, explained Morgan Hare, president and co-owner of Hylaco LLC, the parent company of Eraclea. Hare has been a ingredients, including antioxidants, vitamins, marketing executive at BeautiControl, QVC, Avon, peptides and botanicals, Hare said. Eraclea is targeted at anyone who washes Revlon and other companies. Denlinger, Hare’s business partner and long- their face, as it is meant to hydrate skin. It will be time friend, has been researching the function sold through an independent sales force to plasand medical applications of hyaluronan for two tic surgeons, dermatologists, aestheticians and decades with her husband, Dr. Endre Balazs, an spas and through a company web site, www.eraaward-winning scientist working in this field for cleaskincare.com. Hare projects first-year sales more than 50 years. Hyaluronan is a key compo- at $500,000. The launch party in New York got them face nent of the skin and a lubricating agent in cartitime with some its movers and shakers, as well lage, synovial fluid and tissue. The couple introduced hyaluronic acid to as a party room at The Standard. Up from Dallas, where the company is based Estée Lauder in the early Eighties, which used and where Hare lives, Eraclea offers 10 products it to formulate Night Repair. “We came up to New York City with our little retailing from $35 to $95 that are all formulated bottle of hyaluronic acid. We had two appoint- with the HylaSpongeSystem. Hare packaged them practically, putting the ments, one at Revlon and one at Estee Lauder. Revlon passed on it and Estee Lauder said they night treatments in black containers to distinhad two slots open for later that year. We filled guish them easily and all of the serums in bottles one of them,” said Denlinger, adding that she with pumps. The premium products are 5 Night Perfecting had suggested they use a dropper for the finPeel and Pure Hydration Serum/Zinc. ished product. They ultimately did. Eraclea also offers 30 ml. formulas includNow, Denlinger has partnered with Hare for Eraclea, which uses a formula that is designed ing: Intensive Hydrating Day Cream, Restorative to hydrate more effectively than hyaluronic acid Hydrating Night Cream, Daily Bamboo Exfoliant. alone and to facilitate the delivery of antiaging — Holly Haber and andrea nagel Fragrance’s Latest Antidotes FRAgRANCE SALES inched up in 2010 after a double-digit decline the prior year, but a roaring comeback continues to elude the industry. And while overall fragrance sales gained 1 percent last year, units sold declined by 10 million, said Pamela Vaile, president of Pamela Vaile Associates, citing data from The NPD group. “The category continues to struggle,” said Vaile during a panel discussion she moderated on Wednesday called “Reset and Recharge,” hosted by The Fragrance Foundation. Vaile, together with four panelists, exchanged ideas for how to help usher in meaningful growth. The topic of declining fragrance sales in the prestige market — despite a soaring number of launches each year — has vexed beauty executives for years. “We have been talking about this for five years. It’s time for someone to have the guts to do something,” said Frederic Jacques, vice president of fine fragrances, North America, of Mane USA. “We’re basically converting it into a mass market, and now we have to deal with the consequences,” which he said were a lack of exclusivity and uniqueness. “It’s time to change the model.” The retail executives on the panel — namely, Laurie Black, executive vice president, general merchandise manager of cosmetics for Nordstrom Inc., and Allison Slater, vice president of retail marketing for Sephora — said they both recently took a hard look at the fragrance category and consumers’ expectations. “She told us that the number one reason she buys a fragrance is to replenish,” said Black. Fellow panelist Don Loftus, president and chief executive officer of P&g Prestige Products in the U.S., said that finding marks an opportunity to “rebuild the classics.” At present, he noted, space and visuals tend to go to the new launch of the week. Nordstrom’s survey also indicated that the second reason a shopper buys fragrance is that she received a free sample, liked it and came back to purchase a full-size bottle. The discovery prompted Nordstrom to restructure its selling process on the floor. Now, after a shopper smells a scented strip, she is handed a sample. “We don’t wait until the point of sale,” said Black. Sephora has successfully put its spin on sampling with its Sephora Favorites program, which groups together generously sized samples from various brands. The Deluxe Fragrance Sampler For Her, billed as a $100 value, includes 10 scent samples and sells for $50. It also includes a coupon to receive a full-size version. “It’s been very successful,” said Slater. “This allows [customers] to get the fragrance they want” during the holiday gift-giving season. She added that, several years ago, Sephora noticed that customers were not buying as many full-size fragrances. With that insight in mind, it worked with vendors to create smaller roller ball scents that retail for around $15 to $20. “They allow clients to think about fragrance as an accessory,” said Slater. As with most discussions on fragrance, talk turned to the role of celebrities. “Celebrity is important to build a brand. It does give an instant awareness and fan base,” said Vaile. Jacques agreed, adding, “There are some relevant and meaningful celebrity scents. It’s all a question of meaning and relevance to the market. Celebrity is not this issue if [the scent is] properly done.” Driving that point home, trend forecaster Judy galloway, managing partner of g-group Market Research, predicted during her presentation that the upcoming Lady gaga launch will be an “earthquake.” Grange Tapped By Temptu IN A BID to vastly grow its retail distribution business, Temptu has named Carey grange as president of the New York-based company. Temptu, the maker of airbrush makeup and tools, operates both Temptu Pro, the professional division dedicated to makeup artists — which is how the company began in 1981 — and Temptu Consumer, which was created in 2009 and expanded the firm’s reach to everyday consumers with distribution partnerships with Sephora and QVC. grange will report to Temptu chief executive officer Michael Benjamin. She will work with Benjamin and Samantha Mandor, chief operating officer, as well as Temptu owners to develop multichannel distribution strategies and marketing initiatives, and grow global sales. grange comes from Murad, where she most recently served as executive vice president, Direct to Consumer, overseeing TV, online, catalogue and print media. grange began her career at guthy-Renker, managing Proactiv Solution, Principal Secret and Victoria Jackson Cosmetics. — a.n.