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
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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.
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DAX GABLER, a contemporary designer brand, is looking for:
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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
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Send Resume to:
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SALES ORDER
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Women’s RTW Company seeks sales
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Fishman and Tobin, Inc. a manufacturer of Children’s Wear has an opening for a Sr Planner. The position is for
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Basic Job Function:
Responsible for program(s) to achieve
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Monitor sales/sell thru’s by fineline,
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•Interact with store associates/ end
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•Weekly reporting to buyers, planners
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•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
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•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.
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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.