2
WWD, FRIDAY, JULY 30, 2010
WWD.COM
WWDfriDay
Strong Sales Help Bulgari Cut Loss
By Luisa Zargani
MILAN — Growth in all product categories, except watches, as well as booming sales in the U.S. and
in all product categories, except watches,
2 Growth
as well as booming sales in the U.S. and China
helped Bulgari SpA trim losses in the first half to
7.7 million euros, or $10.2 million.
+ Here, a new department that launched
2 Now
Thursday at Sears stores nationwide, aims to
seduce that most fickle of audiences — juniors
and young men.
retailers seek to excite the elusive consumer
3 As
and pump up underproductive space, a surge of
store prototypes are being rolled out in an attempt
to transform America’s cookie-cutter landscape.
part of an aggressive strategy to grow the
4 As
company, beauty marketer Fusion Brands Inc.
has agreed to acquire five brands created by
Robin Coe-Hutshing, founder of Studio
BeautyMix at Fred Segal.
s
new fragrance, S by Shakira, will enter —
5 The
simultaneously — more than 15,000 midtier
department, drug and mass stores — a move
the singer described as “democratic.”
PHoTo By MAURICIo MIRANdA
Sears Unveils Juniors Department
Zana-Di skinny jeans with stone wash, $21.99.
“We will continue to add powerful brands to
the mix,” Henson said. “We’re really trying to
be a fast-fashion destination in the mall. We’ve
assembled a strong merchant team and we’re
working to get the best pieces, the best trends
and the best pricing, and pulling it all together.”
Sears is presenting three in-store concerts
and Fame trade shows with versatility on their
minds and an eye out for everyday looks.
Classified Advertisements.................................................................................................11
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DAILY “People are tired of
QUOTE the same old, same old.
They’re hungry for new things that are
not mass produced, and don’t want to
buy into cookie-cutter.
”
— Raymond Graj, founding partner,
Graj + Gustavsen, on store concepts. Page 3.
PHoTo By TIMoTHy HIATT PHoToGRAPHy GRAPHIC deSIGN
NOW + HERE, A NEW DEPARTMENT THAT
launched Thursday at Sears stores nationwide,
aims to seduce that most fickle of audiences —
juniors and young men.
“This is part of our overall apparel transformation,” said Melanie Henson, chief marketing
officer of Sears Holdings Corp.
The retailer has begun to
upgrade its apparel business
under John Goodman, executive vice president of apparel
and home, who joined Sears
about nine months ago.
The new Now + Here areas,
located at the mall entrances of
Sears units, marries two of the
demographic’s main pursuits —
fashion and music.
“We know teens are really
inspired by music when making
their fashion purchases,” Henson
said. “The synergy of music and
fashion drives the hottest trends
for young shoppers.”
Sears partnered with Live
Nation, the largest producer
of live concerts in the world, to
give Now + Here an authentic
music component. The retailer Jason Derülo performing at Now + Here at Sears in Schaumburg, Ill.
is tapping into fall’s hot trends
with brands such as Battle Gear, Girly Grunge, at Now + Here locations. Jason Derülo on
Biker Chic and Sweet Dreams. There’s also Thursday appeared at the Woodfield Mall Sears in
Sears exclusives Bongo and Rebecca Bon Bon, Schaumburg, Ill.; Travie McCoy is scheduled for
and Amplify for young men. Key items include Aug. 4 at the Northridge, Calif., unit, and B.o.B will
Te Amo’s military cadet jacket for $34.99 and perform on Aug. 19 at the Woodbridge, N.J., Sears.
and vendors are gearing up for this
11 Buyers
weekend’s opening of the Moda Manhattan
A look from Erin
Fetherston for
Juicy Couture.
TODAY ON
WWD
.com
PHoTo By GeoRGe CHINSee
By Sharon Edelson
Beauty
GENERAL
China helped Bulgari SpA trim losses in the first half to 7.7 million euros, or $10.2 million.
This compares with a net loss of 40.5 million euros, or $53.8 million, in the same period last year.
The Rome-based company said its performance in the period ended June 30 was “negatively affected” by costs derived from exchange-rate hedging and, in particular, “from the unexpected strong
rise” of the Swiss franc against the euro. Bulgari underscored that net profit in the second quarter
totaled 600,000 euros, or $762,000.
In the first half, sales rose 11.8 percent to 443.3 million euros, or $589.6 million. Dollar figures are
converted at average exchange rates for the periods to which they refer.
Chief executive officer Francesco Trapani said he was pleased with the period’s results, “as they
are in line with our forecasts and they confirm the validity of the strategies adopted and focused,
on one hand, on cost containment and, on the other, on investment in our creativity and in the
growth opportunities offered by
the market.”
Sales of jewelry, the group’s
core business, rose 14.8 percent,
accounting for 45.7 percent of
revenues. Perfumes advanced
16.1 percent, although deliveries of Bulgari’s new men’s fragrance, Man, will take place in
the second half of the year. The
scent was unveiled during men’s
fashion week here in June, with
the help of Golden Globe winner Clive Owen, who is the face
of the advertising campaign.
Perfumes are the second largest
category for the company, accounting for 23 percent of sales.
Sales of accessories rose 25.4
percent and accounted for 8.2
percent of total revenues. The
Bulgari accessories.
company noted “excellent sale
performance of handbags” in Bulgari’s directly owned stores — a 42 percent gain, which benefited
from the visibility provided by the advertising campaign featuring actress Julianne Moore.
On Sept. 26, Bulgari will hold a cocktail party to present a capsule collection of accessories by
Matthew Williamson at the Bulgari Hotel, during Milan Fashion Week. During Paris couture week
in July, the company presented a handbag designed by Isabella Rossellini.
Trapani was especially pleased with the performance of accessories, which, he said, was “rewarding our project for diversification and verticalization in this product category, which we carried
out years ago, and our strong commitment for its subsequent development in terms of distribution
and image.” Sales of watches decreased 1.2 percent, however, accounting for almost 20 percent of
total revenues. The company noted that, stripped of sales generated by the Roth and Genta brand
watches, which are no longer in stock, and a different timing of deliveries, this category grew 14
percent. Last year, watches exhibited at Basel were delivered in the second quarter, while this year
they are to be delivered in the third quarter.
Sales grew 1 percent in Europe, accounting for 34 percent of total revenues, and 2.7 percent in
Italy. Sales in the U.S. jumped 53.4 percent, accounting for 14 percent of revenues. Japan continued to show signs of weakness, inching up 1.2 percent. The rest of Asia, however, rose 26.2 percent,
boosted in particular by Greater China, where sales advanced 29.7 percent. Asia accounted for 44.8
percent of sales. The Middle East-other area showed a 5.1 percent decline.
• More looks from Erin
Fetherston for Juicy Couture
• More images from
Anna Wintour’s fund-raiser with
guest of honor President Obama
• Online this weekend:
Week in Review and
Story of the Week
• Beauty Roundup: July 30
WWD, FRIDAY, JULY 30, 2010 3
WWD.COM
Breaking the Mold: Retailers Push Prototypes
By David Moin
IS AN OUT-OF-TOUCH INDUSTRY STARTING TO GET IT?
As retailers seek to excite the elusive consumer and
pump up underproductive space, a surge of store prototypes are being rolled out in an attempt to transform
America’s cookie-cutter landscape.
All eyes will be on the West Coast next week, where
Bloomingdale’s and Nike unveil prototypes in Santa
Monica Place in California. In the case of Bloomingdale’s,
it’s a beachy version of the department store’s contemporary-driven SoHo unit in Manhattan, which the company
hopes to replicate elsewhere. At Nike, “there’s a new mission on retail stores now,” said a source. “They want to take
control of the environment where their products are sold.”
Jeanne Jackson, former Banana Republic president
and former chief executive officer of walmart.com and
Gap Inc. Direct, was a Nike Inc. board member but last
year shifted into the role of president of direct-to-consumer and has been leading the retail effort.
The two-story, 20,000-square-foot Nike store will provide
sports teams customized products in 115 styles, market-tailored product offerings, community resources and the introduction of Nike+ Run Club, and is Nike’s first multicategory
opening in the U.S. since the last one in 1999 in Denver, according to Nike media relations manager Jacie Prieto.
They aren’t the only brands tinkering with their retail
formula, however. At Brooks Brothers, a younger adult
offshoot is on the drawing boards. “We have something
in mind but didn’t start anything yet. We put it on hold.
There’s nothing before 2012,” said Claudio Del Vecchio,
chairman and ceo. In line with its younger state of mind,
Brooks Bros. on Wednesday opened its first freestanding
girls’ and boys’ shop called Fleece, in Westport, Conn. The
unit is a 1,500-square-foot “test” store, marking the company’s first go at girls’ merchandise, said Del Vecchio.
AnnTaylor Stores Corp. is cooking up an Ann Taylor
prototype in Atlanta to test new concepts while a Loft
prototype opened earlier this year in the Paramus
Park Mall in New Jersey. Elements of the new Loft
look will be rolled out in varying degrees to other
sites. J. McLaughlin, the preppie chain, is developing
a 5,500-square-foot format in Westport, five times larger
than its largest store. Earlier this year, J. Crew opened
is first bridal store on Madison Avenue that takes a
broad point of view to the business, covering the before
and after parties, rehearsal dinners and the honeymoon
night, as well as the actual wedding.
“People are tired of the same old, same old. They’re
hungry for new things that are not mass produced, and
don’t want to buy into cookie-cutter,” said Raymond
“
The days of being able to just
stamp things out isn’t good
enough anymore.
The redesigned Starbucks in SoHo.
TO THE POINT
FORMATS FOR THE FUTURE — WHO TO WATCH
STARBUCKS: Remaking stores with new designs
and decors to break the mold, adapt worldwide
and connect locally.
BLOOMINGDALE’S: Scaling down with specialized
stores emphasizing contemporary offerings, and
introducing fashion outlets in August.
LEVI STRAUSS & CO.: Launching a new chain for
emerging middle markets, said to be called Denizen.
BROOKS BROTHERS: Currently testing a new
kids’ concept and planning a young adult chain
possibly for 2012.
NIKE: Looking to regain traction at retail with a
prototype launching next week in Santa Monica.
The Nike prototype opens next week.
”
— Dawn Clark, Starbucks Corp.
Loft’s new look.
STARBUCKS PHOTO BY KYLE ERICKSEN; LOFT BY JOHN AQUINO
Graj, founding partner of Graj + Gustavsen, the creative firm that helps companies build and market brand
images and also develops store concepts. “You do have
established players looking to evolve. Progressive, more
well-funded people are really trying to figure it out.
Opening retail is not a cheap prospect, though the softness in real estate poses some opportunity.”
Among brands, Disney is reinventing its stores to revitalize the business; Levi Strauss & Co. has a trademark
called Denizen, which, while not yet confirmed, retail
sources said will be 1,000-square-foot stores targeting
18- to 28-year-old women and men in emerging middleclass markets such as India and China, and Kellwood
Co., which has several labels in its portfolio, is said to be
developing retail concepts. Kellwood currently operates
just Vince stores and Sag Harbor outlets.
“We have been approached in the past six months by
maybe a half-dozen major brands to do new prototype
work,” said Tom Bowen, a principal of Callison, the architecture and design firm. “Some of those we have landed,
some we haven’t. There is a surge among strong retailers
looking at ways to position themselves ahead of the competition through new prototypes. We also see much more
focus on making prototypes internationally adaptable.
Real estate costs through the boom years went very high, so
they’re paying [dearly] for underproductive space and have
to figure out how to make those stores more productive.”
Innovation is also seeping into the outlet sector, which
aside from the Internet has been drawing the best sales
gains as shoppers trade down and seek better values amid
the recession. Macy’s Inc. is considering opening Macy’s
outlets, while the Bloomingdale’s division is set to open
its first two fashion outlets, in Potomac Mills, Va., on Aug.
20 and Bergen Town Center in Paramus, N.J., on Aug. 27.
Store executives say the Bloomingdale’s outlets won’t be
the typical bare-bones rack operations that outlets tend to
The scale-downed Bloomingdale’s in Santa Monica.
be, but will have an ambience befitting the brand.
“A small percentage of the merchandise will come
from our stores, but the vast majority will be fresh for
the outlets and within the Bloomingdale’s matrix,”
Michael Gould, the retailer’s chairman and ceo, said in
an interview earlier this year.
Bloomingdale’s moves follows those at Off 5th, the
outlet division of Saks Inc., which elevated its look
two years ago with a prototype in Orlando that’s being
rolled out. Similarly, The Talbots Inc. in the past year
opened about two dozen “upscale” outlets, and intends
to raise the store count to about 100 units by yearend.
The prototype push comes after waves of store closings
over the past two years, weeding out unprofitable units and
rectifying years of overexpansion. With shored-up balance
sheets, in many cases, retailers can take some of the cash
they’ve stockpiled and experiment with new store designs
and formats. Merchants seem to be waking up to what consumers want — retail experiences that are different and
more exciting and sociable than shopping the Internet.
“The days of being able to just stamp things out isn’t
good enough anymore,” observed Dawn Clark, vice president of international store design for Starbucks Corp. “The
bar is now higher, especially for a more sophisticated, higher-value-oriented customer. They want to see variation.
They don’t want boring. The customer has changed. When
you are building multiple unit retail businesses, there’s
great cost leverage by standardizing things. That’s something you have to look at from a business perspective. But
things were overbuilt. Retailers became oversaturated.”
Starbucks, after seeing its business slump, is developing a concept called Olive Way, a bellwether store in
Seattle selling wine and beer expected to open in the
fall. Starbucks has also been testing its 15th Avenue
Coffee and Tea concept, which has no Starbucks branding, save a tiny handwritten note on the door indicating
the store was inspired by Starbucks. It also has different roasting methods and a European-style bakery.
“This was really an opportunity to create an environment that wasn’t affected by the already packaged
nature of the established brand language,” Clark said.
“It’s really an experimental store,” based on creating
the aura of a privately owned local coffee shop with
some of the standard elements of the Starbucks brand.
There’s also Roy Street, another Starbucks prototype
in Seattle, which attempts to capture the character of the
surrounding architecture and, last April, the Starbucks in
New York’s SoHo on Spring Street reopened with a more
sophisticated look featuring dark woods, big coffee-themed
graphics, baskets to display coffee and comfortable seating.
The Starbucks prototypes are shooting for greater productivity and community aesthetics, and establish new
formulas for further expansion, particularly overseas,
where much more growth is seen and where Starbucks
will be challenged to adapt to foreign cities what’s been
a standardized approach in the U.S. According to Clark,
Starbucks is developing different styles, palettes and environmental sustainable construction methods for greater
adaptability to different settings. “Everything had become
very systemized and very much the same,” Clark said.
“Starbucks built out so fast there was not a lot of time
to look more carefully at what was relevant to the local
community. It was really one size fits all, and it turned out
some communities didn’t relate to that concept.”
“Competition for customers is much stiffer and stores
have been losing out to the Internet,” said Callison’s Bowen.
“It’s crazy how the consumer dollar is being split across so
many places. The days of people just going out and spending $500 in a day on clothes just doesn’t happen that much
anymore. Retailers have to really appeal to the consumer
with a differentiated brand and store experience.”
4
WWD, FRIDAY, JULY 30, 2010
The Beauty Report
Fusion in Five-Brand Acquisition
Of Mémoire Liquide, Coe-Hutshing said, “We intend
to roll out to key retail environments worldwide, as a
AS PART OF AN AGGRESSIVE STRATEGY TO GROW vantage point for showcasing the [five-item] Reserve
the company, beauty marketer Fusion Brands Inc. has collection, which is the ready-to-wear version of the
agreed to acquire five brands created by Robin Coe- bespoke [business].”
Reserve Edition, a 2009 entry, comprises the
Hutshing, founder of Studio BeautyMix at Fred Segal
Vacances Liquide, Encens Liquide, Fleur Liquide,
in Santa Monica, Calif.
The deal calls for the Mémoire Liquide Bespoke Amour Liquide and Soliel Liquide fragrances, and is
Collection, Mémoire Liquide Reserve Edition and meant for selective distribution, including at retailers
Nudité Intense fragrance brands to become part of like Bloomingdale’s and Nordstrom.
The Mémoire Liquide Bespoke Collection, which
Fusion’s Luxury Fragrance Division and the Ultraflesh
color cosmetics and Soft Corp body care brands to be was launched in 2007, includes some 150 proprietary
fragrances and Coe-Hutshing called it “an offshoot of
part of the firm’s Beauty Division.
the bespoke [business] that was the basis of
Although neither of
the retail store for 25 years.” It is carried at
the parties would discuss
Studio at Fred Segal, Bloomingdale’s 59th
the value of the transStreet and Henri Bendel.
action, market sources
Mémoire Liquide scents are also carried
estimated the deal to be
at Mecca Cosmetica in Australia and Murale
worth between $25 milin Canada.
lion and $30 million.
There is a wider dis“We’re looking at comtribution strategy
pany expansion through
for Nudité, which
the acquisition of new
was launched at
brands,” said Caroline
Nordstrom in
Pieper-Vogt, president
April, the exand chief executive offiecutives said,
cer of Fusion Brands Inc.,
adding they
and “they were looking
are looking
for a new partner.”
at Europe for
As part of the union,
Coe-Hutshing and Nicole
distribution of
Robin
the fragrance
Ostoya, ceo of Studio
Coe-Hutshing
USA LLC, have formed
brands.
The idea, acGold Grenade LLC,
cording to Pieperthrough which
they will consult
Vogt, is to “grow the
brands in the U.S. and internaas part of a Fusion
tionally. We see lots of poten“think tank” with
tial in international for these
creative input on
brands. Now, they’re just getthe five brands.
ting their toes wet.”
“From a straThe deal “gives us the optegic standpoint,
portunity to balance our init makes sense
ternational distribution with
because
we
Mémoire Liquide in Central
just started the
Europe and [Fusion’s] Clean [fraLuxur y Fragrance
grances] in Asia, Sweden and the U.S.,”
Division,” said Pieper-Vogt, refersaid Roslyn Griner, Fusion’s senior vice
ring to the creation of the business unit
▲ The Soliel
president of marketing and product developduring the spring. “These are truly lux- Liquide scent.
ment.
ury fragrance brands,” she added, conUltraflesh is to launch at Sephora in October (see
tending they have an “artisanal” sensibility. “They fit
sidebar, this page) and Soft Corp is bound for an Aug.
squarely in our portfolio.”
“We’re a beauty [brand] incubation company,” said 2 HSN debut.
Coe-Hutshing’s Burn candle brand was recently acOstoya, discussing the decision to approach Fusion,
“but we have no real field staff; we didn’t have the peo- quired by Los Angeles-based home fragrance company
DL & Co. and Coe-Hutshing will no longer be involved
ple in place.”
“We felt we weren’t reaching as many people as we with Burn. The recent moves involving Coe-Hutshing’s
could,” added Coe-Hutshing. When asked about growth brands may raise questions about the future direction
plans for the brands, she responded, “We see every- of Studio BeautyMix, but Coe-Hutshing declined to discuss immediate plans for the retail concept.
thing expanding.”
Ultraflesh Mascara
Headed to Sephora
By Matthew W. Evans
Sisley to Launch Global Firming Serum
SISLEY IS ADDING GLOBAL FIRMING SERUM TO ITS LINEUP OF PROBlem-solving skin care items in September.
“This is the third Sisley serum we’ve launched in the past five years,
with each of the three focusing on a different skin concern,” said Christine
d’Ornano, international vice president of Sisley Paris. “In 2005, we introduced
Daily Line Reducer to deal with deep-set wrinkles. In 2007, we launched
Radiance Anti-Aging Concentrate to promote radiance and diminish age spots.
Our latest product provides smoother, firmer skin.”
We plan to do extensive sampling to our
“customers
with this new product.
”
— Yves LeBreton, Sisley USA
Historically, “firmness is the toughest nut to crack,” said Yves LeBreton,
executive vice president of Sisley USA, of the long development process that
went into the latest addition.
The firming serum has five key actions, said d’Ornano. “It acts on the architecture of the face with dill extract, stimulating the synthesis of LOXL enzymes and improves the elastin quality of the skin. It restores skin bounce with
tiger nut extract and padina pavonica, which provide plumping effects on the
cheeks. It fights against gravity with rye extract, which stimulates mechanoreceptor synthesis and makes the dermis more resistant to gravity. It instantly
lifts the skin’s surface with our new 3D Tensor complex, which forms a natural
Sisley’s
Global
Firming
Serum.
PERFUME PHOTO BY BRIAN HERBST
Ultraflesh Panthera
AMONG THE BRANDS ACQUIRED BY FUSION
Brands Inc. is Ultraflesh, which will make its debut
Oct. 1 in Sephora with a mascara dubbed Panthera,
a name apparently meant to conjure images of lashes
as black as the fur of a jungle cat. To complete the
image, the end of the mascara tube has been shaped
to resemble the head of a panther.
The mascara was conceived as “a holy grail
product” by Nicole Ostoya, chief executive officer of
Studio USA LLC, and Robin Coe-Hutshing, founder
of Studio BeautyMix at Fred Segal, and is meant to
be the precursor to the March 1 launch of the full
Ultraflesh collection as a freestanding brand. It will
consist of six to nine new products. An international
rollout is being contemplated for fall 2011.
Included in the full Ultraflesh group will be a
collection of six to eight shades of red lipstick,
curated by Betony Vernon, a Paris-based designer of
erotic jewelry.
She also helped design the packaging, which has
an applicator on each end to provide matte and glossy
versions of each shade.
There also will be a group of pencils, a compact
in the shape of a ninja throwing a star containing a
touch-up foundation, an Ultraflesh tinted moisturizing
foundation and a facial cleanser to remove makeup.
The Panthera mascara is priced at $26, which
Coe-Hutshing described as midmarket. The executives
would not discuss sales projections, but industry sources
estimate the mascara could generate about $1.5 million
the first year, despite its limited distribution.
Ostoya said the mascara was designed to provide
a buildable, soft and natural effect. It also is meant to
give high definition and enhance lengthening of lashes.
She added that a key ingredient is a Procapil
complex, which is designed to stimulate bloodflow
through the lashes and promote hair growth. The
complex includes Peptide Biotinyl-GHK, which is
meant to anchor the hair at the root, and Oleanolic
acid, extracted from olive leaves, to stimulate growth.
Hydrolized silk was added for its conditioning
properties, hydrolyzed keratin for its nourishing
and repairing as well as conditioning abilities and
Apigenin for its role in dilating the blood vessels and
increasing flow.
The Panthera applicator wand is dual purpose
with a brush on one side and a comb on the other.
According to Ostoya, the combination is meant to
help provide lash definition and lengthening while
preventing clumping or smudging.
— Pete Born
technological mesh over the skin. And it strengthens
the skin’s dermal support system with a group of additional antiaging ingredients, which include willow
leaf extract, einkorn wheat extract, alkekengi calyx
extract and peptidic soy extract.”
The serum will be available in about 137 specialty
store doors in the U.S., including Neiman Marcus,
Saks Fifth Avenue, Bloomingdale’s and Nordstrom.
“We employ all of our counter representatives and
train them extensively in our line,” said LeBreton.
“We plan to do extensive sampling to our customers
with this new product.”
A 30-ml bottle will sell for $498 in the U.S.
D’Ornano is unconcerned about price resistance.
“Customers will spend at this level if they see results,
and we believe they will with this serum,” she said.
“We don’t launch anything until we feel it is perfect
— we have had years with no launches because we
weren’t quite done tweaking the formula.”
And, points out LeBreton, “we rarely discontinue
anything. Also, we have products at several different
price points.”
National print advertising is not planned, although
the product will be promoted in retailer vehicles, said
LeBreton.
While d’Ornano and LeBreton declined to discuss
sales projections, industry sources estimated that the
new serum could do $74 million at retail globally. The
brand is carried in about 80 countries worldwide.
— Julie Naughton
WWD, FRIDAY, JULY 30, 2010
5
WWD.COM
Shakira to Shimmy Scent Scales at Retail
NEW YORK — Shakira’s hips might not lie, but can they help shake up sales for a new
fragrance she’s launching in conjunction with Puig in September?
S by Shakira, will enter — simultaneously — more than 15,000 midtier department, drug and mass stores — a move the singer described as “democratic.”
“My feeling is that personal care and beauty should not only be effortless but
accessible for everyone,” said Shakira, whose full name is Shakira Isabel Mebarak
Ripoll. She spoke via telephone to WWD after her performance at Premios
Juventud in Miami en route to Europe.
The launch mirrors the multidistribution channel strategy Puig has used for its highly successful Antonio Banderas
franchise. Industry sources expect S by Shakira to reach $35
million to $40 million in full first-year retail sales.
Shakira, who has sold more than 50 million albums
worldwide, is in the limelight, coming off splashy performances at the kickoff and closing ceremonies for the
World Cup, where she sang “Waka Waka,” which became
an international number-one hit. Her U.S. tour will start
in September, offering Puig ample sample and promotional opportunities with thousands of fans at each venue,
including Madison Square Garden here.
Shakira is Puig’s second celebrity fragrance franchise,
one that José Manuel Albesa, chief brand officer of Puig, believes will also develop into a multiproduct brand following
in the example of Banderas. “We have plans long term; first
we want to concentrate on this and do it right,” he said.
Like Banderas, Shakira — who was born in Colombia
but also has Lebanese roots — has a strong following with
Latin consumers, but also crossover appeal. Her likability is expected to transcend ethnic groups and ages, according to Puig. There are now seven scents under the
Banderas logo and, despite big launches from names such
as Tim McGraw, Banderas is the number-two celebrity
house in men’s for mass, drug and food sales, according to
industry tracking data provided by Puig.
Many celebrities are said to have a big imprint on the
final product, and Albesa said Shakira was “extremely
hands-on” and knew exactly what she wanted.
Shakira likened the process to composing a tune. “Like a
song, a perfume has different notes which together are the
harmony,” Shakira said. “I’m very picky. Some fragrances
are too strong,” she said, adding that layering notes is like adding instruments to compositions. “I’ve always dreamed about coming up with a fragrance I could enjoy and
share with others.” She selected Puig because she was familiar with the company and
felt they could “create a fragrance based on my taste.”
There’s no shortage of singers with fragrances these days, admitted Didier
Maine de Biran, general manager of Puig USA. “What makes this stand out is how
involved she was. The key difference is she has the knowledge of what she wants
and really wants to share it with her fans. She’s involved. She’s committed,” he
said. “And it is just a great fragrance that stands on its own.”
Shakira explained that from her youth she knew she liked notes such as chocolate with strawberries, a baby’s skin and the sweetness of honey. “It was her reaction when we mixed blotters in jasmine, sandalwood and vanilla that worked for
her,” recalled Vanita Sabnani, vice president of marketing for Puig USA. The end
scent is a concoction of bright jasmine, sandalwood and a base of a fusion of resins
such as benzoin, an amber accord and vanilla. “I hope people will feel they are
sharing my essence,” added Shakira.
To introduce S by Shakira, Puig took over a Manhattan
town house and segregated out the notes in three different rooms. As a final stop on the journey, the end scent
A print ad for
was presented.
S by Shakira.
The attention to making S by Shakira different
stretches beyond the juice. The bottle is unique, and
retailers said it was upscale for a mass launch,
thanks to high-quality cut glass. Shakira desired
a special “gift” to consumers, which is reflected in an S symbol that hangs as a charm from
the bottle’s closure. The outer box was designed to reflect light with gold accents that
buyers hope will attract consumers at point
of sale. “So many boxes look alike,” said one
top drugstore buyer. “We think this sticks out.”
While the box doesn’t have Shakira’s
image, a launch sleeve on S by Shakira does
have a photo to note her cooperation with the
scent. Puig has put in great effort to offer retailers
myriad displays that fit needs. “We have really taken retailers’ needs as far as in-store into consideration and
worked to give them displays that help them improve the
fragrance experience,” said Ambika Kumar, brand manager lifestyle and celebrities for Puig USA, during an earlier sampling of the scent. S by Shakira will retail for $35
per 1.7-oz. bottle; $28 per 1 oz., and $17 for a 0.5-oz. bottle.
Puig is gearing up for a true 360-degree ad and marketing campaign, engaging JumboTron displays, taxi ads
and full social-media outreach that will start at the end of
September, according to Sabnani. Print ads will launch in
the fourth quarter with the first placing in the September
issue of Vogue; TV spots are planned for the holidays.
Sabnani believes there is a huge gift opportunity. “When
you give a gift, you give something of yourself and that’s a big goal of Shakira’s. We
think this is reflected in this project,” Sabnani said. “And we have aggressive sampling, and if you get people to try this, they will buy it.”
Puig hopes S by Shakira can help keep the glimmer of hope growing in women’s
mass fragrances. Sales for the 52-week period ended June 12, actually notched up
1.8 percent in food, drug and mass stores including Wal-Mart, according to the The
Nielsen Co., from $675.3 million last year to $687.7 million this year. Buyers hope
launches such as S, as well as other prestige fragrances adding mass distribution
will fuel a sales resurgence.
critical
by
mass
Faye Brookman
Avon, Revlon Earnings Rise, Firms Loosening Advertising Purse Strings
largest business, jumped 16 percent to
$1.14 billion on a 7 percent rise in unit
sales. The difference between the increase
in revenues and the increase in unit sales
showed the company was gaining traction
with shoppers and able to increase prices.
The company’s playbook last year included a massive recruiting campaign to attract
new representatives as well as a focus on
value, including goods that cost less than $5.
That strategy has been carefully recalibrated depending on the state of the consumer in various markets, Andrea Jung,
chairman and ceo, told Wall Street on a
conference call Thursday.
“We want the productivity,” Jung said.
“We’re getting the pricing. A lot of it has to
do with new product introductions. We’ve
got big fragrances and
a lot of Anew [products]
coming into the second
half, which have a higher
net. So I think it’s a balance. Lotus Shield, big
— Alan Ennis, Revlon Inc. product in the third quarter — again, it’s a higher
Revlon is shifting away from retail promotions, which price point than some of the lower-priced
hair care product units that we did. So it’s
over time can erode a brand’s value in consumers’ eyes.
When asked by an analyst during the call about the about sort of product mix, as well as a shift
promotional environment at retail, Ennis said, “It’s in- in 2010, carefully and slowly, to balance.”
Earnings attributable to Avon more
tense and it continues to be intense.”
Direct seller Avon is also paying up to make sure its than doubled to $167.6 million, or 39 cents
a share, from $82.9 million, or 19 cents, a
products stay top-of-mind for consumers.
The firm’s second-quarter spending on advertising shot year earlier. Adjusted profits of 48 cents a
up $15 million from a year earlier to $97 million, driven share beat Wall Street estimates by 3 cents.
by additional outlays in Latin America, particularly Brazil. Revenues for the quarter ended June 30
That spending appeared to have paid some divi- rose 8.1 percent to $2.68 billion from $2.48
dends, as revenues in Latin America, the company’s billion. Revenues in the U.S. fell 6 percent
By Molly Prior and Evan Clark
THE BEAUTy INDUSTRy IS BANKING CoNSUMERS
will follow its lead and open their wallets.
on Thursday, both Revlon Inc. and Avon Products
Inc. said they are allocating more money for advertising as beauty brands across all channels tussle over
market share.
During the firm’s second-quarter earnings call
Thursday morning, Revlon president and chief executive officer Alan Ennis said, “We increased the absolute
dollar spending versus the second quarter of last year,
and we did that at a lower rate.” In the second quarter,
Revlon increased its advertising spending by $20.2 million globally and plans to increase spending in the third
quarter as well. Total expenditures weren’t disclosed.
Ennis told WWD, “you build equity more effectively
through advertising than promotional activity.” He added
You build equity more effectively through
“advertising
than promotional activity.
”
to $546.6 million on a 6 percent decline in unit sales.
At Revlon, net income for the quarter ended June 30
rose to $16.4 million, or 31 cents a diluted share, compared
to $200,000, or break-even on a share basis, in the prior-year
period. Sales for the quarter gained 1.8 perRevlon’s
cent to $327.7 million, up from $321.8 million.
Grow
During the quarter, the company inLuscious
troduced a number of products, including
mascara.
Revlon’s Grow Luscious mascara and Just
Bitten lip stain and Almay’s one Coat Dial
Up Mascara. Almay also signed actress Kate
Hudson, who will appear in an ad campaign
slated to launch in the second half. “Kate is
a great personification of what Almay really
is,” Chris Elshaw, executive vice president
and chief operating officer, told WWD. “We
have a lot of innovation in Almay, and we
will increase [brand] support.”
In the U.S., sales in the quarter declined
3.7 percent to $179.3 million, hampered by
lower sales of Revlon beauty tools, Mitchum
deodorant and Almay cosmetics in comparison to the 2009 launch of Pure Blends. In
Asia-Pacific, sales gained 7 percent to $48.7
million, boosted by favorable exchange rates.
In Europe, the Middle East and Africa, sales
increased 10.1 percent to $50.2 million, and
in Canada sales surged 20.2 percent to $20.8
million, with both regions’ results boosted by
favorable currency rates and sales of Revlon
cosmetics. Sales gained 5.5 percent to $28.7
million in Latin America.
Shares of Avon closed up 2.5 percent
at $30.27 Thursday while Revlon’s slid 3.6
percent to $12.91.
For more beauty business news,
see WWD.com/beauty-industry-news.
6
WWD, FRIDAY, JULY 30, 2010
The Beauty Report
Complimentary vs. Paid: Retailers Weigh Service Methods
By Molly Prior
OUTSOURCED PRIMPING IS THE NEW BOON FOR
the beauty industry.
A host of beauty brands and retailers are encouraging consumers to leave the pampering to the experts by
making services — think makeup applications, hairstyling and brow shaping — more accessible and affordable.
Now that women are comfortably ensconced in nail
salon chairs, a number of beauty firms are working to
expand consumers’ lists of regular beauty rituals. In the past year, in-and-out blow-drying
bars have popped up, and several drugstore
chains have added services, ranging from
brow shaping to facials. As part of this democratization of professional services,
more beauty boutiques are touting makeup applications for a fee.
In May, Sephora began offering the
Special Occasion Makeover, an appointment-only makeup application that requires
a minimum purchase of $50, according to a
Sephora cast member, or sales associate, which
can be used on any item in the store, online or for a
future purchase. (See sidebar to read about the in-store
makeover experience.)
Sephora’s move to add Special Occasion makeovers, pointed out several observers, calls to mind
MAC Cosmetics’ makeup application service for a flat
fee of $50. A MAC makeup artist at the Times Square
location in New York said the makeover generally
takes 35 to 45 minutes, and clients walk out with a free
mascara. And at this particular location, there’s no appointment necessary. “You can just walk in,” he said.
“We always have enough staff to help you.”
Sephora and MAC are destinations for women looking for the latest makeup tip or trend, and patrons
often anticipate a makeup application of some sort as
part of the shopping experience.
As beauty establishments continue to experiment
with appointment-only makeovers, it presents a bit
of a conundrum: How do they draw the line between
complimentary service and the service menu?
“It all comes down to the quality of the experience
you receive,” said Nicky Kinnaird, founder of the Space
NK chain. “Some people are looking for a quick-fix solution and others are looking for educative service.
With us, a makeover is almost always a makeup lesson.”
Kinnaird takes a purist approach to service. “We
take bookings all the time,” she said, free of charge.
“It’s about education. There is no pressure to buy. I
don’t want her to go home loaded with product and not
be sure of what to do with it,” said Kinnaird. “I want
the customer to be better informed when she leaves.”
Retailers that do charge for select services said the
key to integrating complimentary and pampering for a
price is a clear-cut service menu.
Bluemercury founder and chief executive officer
Marla Malcolm Beck said since the beauty apothecary’s inception 11 years ago, she has defined a paid
service as a prebooked appointment for a special
event. “That’s where we draw the line.”
She emphasized, though, that complimentary service is part of the shopping experience across the
chain. “That’s why one of the key phrases we use is,
‘Have a seat.’”
Beck said even when a patron ducks in before, let’s
say, cocktails, she’s likely to purchase something, particularly if she’s seated in the makeup artist’s chair. But,
there’s no obligation to buy. “You don’t want to put up a
barrier to that experience,” said Beck. “Our point of view
is we offer an extremely high level of expert service.”
Bluemercury’s service menu has always included
special event makeovers for $45. The price hasn’t
changed in 11 years.
At Barneys New York, resident beauty guru Jason
Ascher’s sales model is built around offering expert
advice during free prebooked makeup consultations.
Working out of a private alcove in the Madison Avenue
store, Ascher selects beauty items across all brands on
the floor — cosmetics, skin care and fragrance included — to help his clients refresh their looks or makeup
bags. A visit generally requires an appointment be
booked one to two weeks in advance.
“I always explain what I’m doing, how to achieve the
look and what brush to use. They almost always want to
be educated,” said Ascher. For regular clients, Ascher
will drop into their homes, if they live nearby, to apply
makeup for special events. His efforts pay off. His most
loyal clients visit him about four times a year, often to
buy new items for the season, and throughout the year
call to place replenishment orders over the phone.
A facial in
progress at CVS’
Beauty 360.
up
adding
beauty
“Probably 85 to 95 percent of my clients are here by
referral or have met with me before. They understand
what I’m here to do,” said Ascher. “The hope is the client
will understand the salesperson is there to produce.”
Beauty services are no longer exclusive to boutiques and luxury department stores, either. In the last
year, drugstore chains — CVS Pharmacy and Duane
Reade, in particular — have added services as part of
new high-end beauty concepts. For instance, Duane
Reade’s Look Boutique offers brow shaping by the
Ramy brow specialists for $35.
CVS’ upscale concept,
Beauty 360, offers three
Barneys
tiers of services on its menu,
New
namely facials priced beYork’s
tween $50 and $65; 15-minJason
ute complimentary services,
Ascher.
including the Hot Toddy
hand massage, and service
with a purchase, such as
Balance the Day, an express
face treatment with the purchase of any skin care item.
It also offers brow shaping
by a beauty adviser trained
by Billion Dollar Brows for
$20, and every purchase
of a set of Pop Beauty false
lashes comes with a free application lesson.
“The goal is to offer spa
services with licensed aestheticians that are more
accessible,” said Mary Lou
Gardner, divisional merchandising manager for
beauty at CVS. The services are geared toward the timestarved woman. “Women are looking for more convenient
services, but they have to be at a place they can trust.”
Since opening its first location in November 2008,
Beauty 360 has evolved its beauty services strategy from a
starting point of express and complimentary pampering.
Each of the 25 Beauty 360 stores, located adjacent to CVS
units, includes a spa room for more involved treatments.
“Our service is a consultation approach,” said
Gardner. “We want to differentiate ourselves and we
believe the best way to do that is service. That’s where
we really win.”
Beauty 360 also ties service to its rewards program,
called Beautiful You. Gardner said a recent promotion
rewarded a beauty customer with a 30-minute facial
for every $150 she spent. The CVS outfit is looking to
Inside a
add more services as well, and is considering blowBluemercury
drying and hairstyling stations. Gardner said, “There’s
boutique.
always an opportunity for more services.”
By Appointment Only
Inside a
Sephora store.
SEPHORA IS A DESTINATION FOR BEAUTY
aficionados. And in bustling cities like
Manhattan, it also is a pit stop for enterprising
women looking to touch up their makeup before
cocktail hour.
To get a sense of the service differential
between a complimentary makeup application
and Sephora’s newly touted Special Occasion
Makeover, WWD wasted no time in booking an
appointment. This reporter arrived at a Midtown
Sephora, located at 300 Madison Avenue, for
the Special Occasion Makeover and was told
to buy a $50 gift card at the register. The card
could be used on any item in the store, online or
for a future purchase.
A Sephora cast member asked me what look I wanted to achieve and when it was settled that a bright lip and natural
smoky eye would do, we meandered through the cosmetics displays, selecting product testers for the makeover. I picked
Yves Saint Laurent Pure Lipstick in a coral pink hue, Rose Grenadine, and a Nars Cosmetics eye shadow duo in the
shade Silk Road.
The associate chose Benefit Cosmetics BadGal Lash Mascara, a Sephora Collection eye shadow palette of neutrals, Kat
Von D High Voltage Eye Primer (a Sephora exclusive) and Skyn Iceland Icelandic Relief Eye Pen to combat puffy under-eye
circles. As the associate expertly applied the products, several shoppers interrupted the session to ask questions. As she
worked, she responded: “The women’s fragrances are on the far wall;” “No, we don’t have a brush cleaner, but we should.
That’s a good idea.” At one point, a patron reached over the associate to grab makeup remover and a tissue.
The associate finished by demonstrating Temptu Airbrush foundation, bronzer and blush, which sells there for $225.
What the service lacked in privacy, it made up for in efficiency. In less than an hour, I looked glowing — thanks to Temptu
— and cocktail-party ready and had spent the $50 gift card on the eye serum and lipstick, kicking in an extra $4.44 to
cover the two items. Nars’ Silk Road, alas, was out of stock. On the way out the door, I couldn’t help think, though, that a
friend had recently received a walk-in, complimentary makeover that looked equally stunning.
— M.P.
WWD, FRIDAY, JULY 30, 2010 7
WWD.COM
WWD.COM
Sex and Sports on Coty’s Latest Agenda
COTY BEAUTY IS AIMING TO STRENGTHEN TWO OF THE DRIVING
forces behind its global fragrance business: The Adidas personal
The Playboy and
care brand and the Playboy fragrance franchise.
Adidas scents.
And, as part of the strategy, the unit of the nearly $4 billion, New
York-based Coty Inc. is launching a trio of Playboy scents for women, in
June signed retired soccer star Zinédine Zidane as the face of the Adidas men’s
body care range and is continuing an overhaul of its Adidas business.
Playboy women’s scents were unveiled earlier this month, at about the same time as
Hugh Hefner told Playboy Enterprises Inc.’s board he wanted to take the firm private
with a roughly $185 million bid. Hefner’s news prompted FriendFinder Networks Inc.,
which owns Penthouse magazine, to make a $210 million counter offer for PEI.
As the plot for control of PEI plays out, the Playboy women’s eaux de
toilette will be launched in Europe in September and
roll out in January to the rest of the brand’s 75 markets,
including the U.S., Canada, Latin America, Asia,
Australia and the Middle East.
Despite Playboy’s overall standing as an
American brand, the fragrance business, which
was launched two years ago with the introduction of four men’s scents, is not as strong
in the U.S. as it is in its biggest markets of
Germany and Eastern Europe, according
to Coty executives.
“The old perspective on Playboy is
in the U.S., and has stood still, not [advanced] like the global business has,” said
Bernd Beetz, chief executive officer of
Coty Inc. “It’ll take a while before the U.S.
sees the potential of the brand.”
Jürgen Scharfenstein, senior vice president of marketing for lifestyle fragrances
at Coty Beauty, noted that, “We had at the
start some reluctance from American renotes of pomegranate, bellini cocktail and pink berries;
tailers about the brand — the link between
heart notes of tiger lily, passionflower and heliotrope,
Playboy historically and sex. We hoped this would fade
and bottom notes of amber, sandalwood and vanilla.
away and it’s going in the right direction.” Playboy scents
Each edt will come in 30-, 50- and 75-ml. sizes for
are carried at roughly 15,000 doors in the U.S.
• Coty Inc. to launch three Playboy scents
11.99 euros, or $15.68 at current exchange, 14.99 euros,
Nonetheless, “The positive impact on the [Playboy]
or $19.60, and 17.99 euros, or $23.53, respectively. A 150— for women — as control of Playboy
brand has been tremendous,” Alex Vaickus, president of
ml. body spray will be available for 3.99 euros, or $5.22.
Playboy Enterprises Inc., said of the fragrance business.
Enterprises Inc. is determined.
Prices are for Europe.
“The partnership with Coty is one of our strongest — if
Playboy New York, the men’s scent, was blended by
not the strongest — licenses.”
• Women’s Playboy fragrances to build on
International Flavors & Fragrances and fuses aldeScharfenstein noted Adidas’ home market, Germany,
existing, $80 million Playboy men’s scent
hydes, limes and vinyl accords at its top; green apple,
is the brand’s biggest. “The U.S. is large,” said
business.
elemi and black pepper at its heart, and vetiver, tonka
Scharfenstein, “but not as successful as European marbean and vanilla at its base. Currently launching in
kets — France, the U.K., Poland.”
• Playboy fragrance business bigger in
Europe and slated to reach the U.S. in January, the 50He said he believes the Playboy fragrance brand
Europe than in U.S.
ml. bottle will be priced at $16 in America.
could eventually rival in size the Adidas business, which
Advertising plans call for the fragrances to be backed
comprises some 250 core items.
• Firm signs Zinédine Zidane as the face of
by three TV spots and a campaign will also be aired for
The executives wouldn’t talk numbers, but industry
Playboy New York, commercials directed by Norman
sources estimate the Adidas business — for which more
its Adidas men’s body care range, which
Buckley. Additionally, print ads lensed by Terry Tsiolis
than 200 million units are produced a year, making it the
is being relaunched through the next six
will support the scents. The effort is to commence in
largest brand in the portfolio — generates total sales upmonths.
Europe in September.
ward of $400 million. Total revenues of Playboy fragrancOf the two-year Zidane campaign, which will kick off
es are estimated to have so far exceeded $80 million.
•
Sales
of
Adidas
business
are
upward
of
in September and encompass two TV spots, print and
“Historically, the Playboy brand — in terms of the
$400
million.
outdoor advertising for edts, shower gel and deodorant,
magazine and the digital business — has primarily
Beetz said, “I’m expecting this to have a major impact on
been a men’s brand,” said Vaickus, who added, “Within
our business. He’s a huge athlete.”
our consumer licensing business, the target is a young
Scharfenstein added, “Zinédine still has huge awaretrendy man and woman. We currently have well over 100
licenses in place [globally] and 70 percent of the products purchased are purchased ness and credibility, he’s still internationally very well recognized.”
In 2005, Coty signed a licensing agreement with Zidane to be the first global
by females. We think [the feminine scents] will do just as well for us as the men’s.”
“There is a big appeal that Playboy has to female consumers,” said Beetz. “[That] spokesman for Adidas beauty, as the face of Adidas Active Skincare for Men and
will be the platform for our launch in the female area. We’re going to put a lot of ef- Adidas’ antiperspirants for men.
“It’s a continuation of our collaboration with him,” Beetz said of the current deal
fort behind it and make it really big. There is tremendous potential.”
Vaickus went on to say that “The Girls Next Door” and spin-offs have yielded with Zidane.
“We are for many young boys [and] teenagers the first body spray they use here
success in attracting a younger female demographic. “Over the last five to 10 years,
the licensing business has been based on a new demographic,” he said, adding that, in Europe,” Scharfenstein said, noting, “A large part of our business comes from
after a relaunch of the Playboy licensing business several years ago, the firm en- adults. Zidane has the strength to resonate with both audiences.”
The launch of the Zidane campaign, whose TV spots were directed by Paul
tered women’s apparel; accessories like bags, shoes and jewelry, and lingerie.
The Playboy fragrances, he said, have “opened up a whole new consumer for us, Hunter and print ads photographed by Stefan Ruiz, will coincide with the relaunch
of Adidas edts, aftershaves, body sprays and shower gels, an initiative that includes
a broader audience.”
While associating women’s scents with a sexed-up men’s lifestyle brand may new packaging and reformulations.
“I think he’s going to strengthen the athlete character of the brand, which is our key
seem like a paradox, Scharfenstein said, “I don’t think it’s so much related to Hugh
positioning, because we develop all of our products with athletes,” Beetz said of Zidane.
Hefner. It’s about the brand in itself, its playfulness.
Scharfenstein noted that, “In the past six months and upcoming six months, we
“Consumers [are not] buying the fragrances because they read the magazine or
look at what’s happening in the mansion,” he contended, adding the women’s mar- [will have] relaunched 70 percent of our Adidas business. What you have for the
consumer is a comprehensive offer [with] one voice.”
keting campaign will be “far away” from the story of Hefner.
The firm will also launch a scent called Adidas Pure Game in August. The edt,
“The addition of fragrance is a natural extension to where we’ve already been,”
composed by Firmenich, has top notes of basil, pepper, grapefruit and mandarin; a
Vaickus remarked.
Along with the launch of the Playboy women’s scents, called Play It Lovely, Play heart of lavender, gaicawood and cypress, and base notes of tonka, incense, tamboti
It Sexy and Play It Spicy, Coty will introduce a men’s scent, an edt called Playboy and patchouli. The 100-ml. scent, which ranges in price from $15 to $18, will be accompanied by an aftershave ($10 to $15) and shower gel and deodorants ($3.50).
New York.
About 20 percent of the Adidas business is women’s and “it’s growing,” said
Play It Lovely, a fresh fruity floral, and Play It Spicy, a sparkling floriental, were comScharfenstein. The target is young women involved with sports and fitness.
posed by Givaudan, while Play It Sexy, a “sexy” oriental, was blended by Firmenich.
Noting that Adidas and Playboy are playing in not only the fragrance market but
Play It Lovely mixes top notes of citrus, blackberry and juicy pear with a heart of
cherry baby orchid, belle de nuit and tuberose, and a drydown of amber, patchouli also in the body spray and hair and body wash category, Scharfenstein said, “Two big
and tonka bean. Play It Sexy combines opening notes of pink grapefruit, mandarin international brand names have helped us secure a much stronger position in front
and pink pepper with middle notes of jasmine tea, osmanthus and licorice, and of the retailer. We’ll continue to push both brands together to make an offering that is
base notes of vanilla, patchouli, sandalwood and tonka bean. Play It Spicy has top very distinctive from the brands in our category, for instance Axe/Lynx [and] Nivea.”
TO THE POINT
PHOTO BY THOMAS IANNACCONE
By Matthew W. Evans
WWD, FRIDAY, JULY 30, 2010
Juicy’s Next Chapter
photo by george chinsee
When erin Fetherston
Erin Fetherston, in a Juicy Couture
took over as creative
jumpsuit, with other holiday looks.
consultant for Juicy Couture
in May, her first order of
business was on the social
circuit. “i attended the Met
Ball,” says Fetherston. “that
was my first official workday.
i attended on behalf of Juicy.”
Few would have known at
the time, but that glossy,
star-packed night would
have a major impact on the
direction of the Liz Claiborne
inc.-owned concern, now no
longer helmed by founders
Gela nash-taylor and Pamela
skaist-Levy. Fetherston
wore her first Juicy Couture
design, a thirties-style
champagne-colored velour
gown with draped dolman
sleeves. it’s now the
inspiration behind her debut
collection for the firm.
Launching for holiday,
the 11-style lineup — which
includes a version of that
gala gown — gives the brand
a glam new makeover,
working a dressy thirtiesmeets-seventies vibe.
(Fetherston’s inspiration
board includes photos of
Bianca Jagger, circa studio
54, and herself at the Met.)
there are bugle-beaded
blazers, sateen-trimmed
jackets, beribboned draped
skirts and bustier dresses.
even the more sportif designs
skew urbane; a jumpsuit is
cut from washed silk and features a wide waistband
and velvet drawstrings capped with rhinestones. is a
new era of Juicy Couture at hand?
not quite. Fetherston’s quick to note she’s not
abandoning the company’s laid-back roots. “i want
to be clear that this is a holiday capsule, so it’s more
dressed up for the season,” she explains at a press
preview thursday. “We’re not trying to take Juicy
away from being a casual brand. But my vision is
to take things out of the box of just sportswear or
leisurewear.” For a designer who’s known for cocktail
attire, however, it doesn’t hurt that the launch’s timing
offers an easy segue into what she says will be a more
relaxed spring lineup.
For starters, Fetherston stays true to the label’s
penchant for velour, treating the textile as velvet so
her garments come draped, smocked and tucked for a
louche, fluid effect. “You can treat it the right way so
it has a luxe look,” she says. “i don’t think that many
people want to wear the velour pant and velour hoodie
together.”
nevertheless, next year, in celebration of its 10th
anniversary, Fetherston will tackle the iconic Juicy
Couture tracksuit. While she won’t divulge details yet
— not even whether the company plans to mark the
occasion with a marketing blitz — she does note that
her approach will involve deconstructing the concept
The fall ad campaign, shot by Steven Meisel.
of a tracksuit. “it’s more mixing and matching and
new silhouettes,” she explains, adding that prices for
the label will remain the same. holiday ranges from $72 to $172, wholesale.
“this is a major opportunity to reinvent Juicy’s perspective on casualwear, to rev it up and make it
cool and fashion-forward,” she says.
the designer also whipped up a series of Art Deco-inspired jewelry — lavalieres and rhinestone
headbands — to go with holiday’s debut. “My role here is to connect all these product categories
and make sure the vision is cohesive,” says Fetherston, who will also consult on accessories, kids,
advertising and store interiors, too.
As for nash-taylor and skaist-Levy, Fetherston notes that she’s neither met nor spoken to the two.
Like the founders, however, Fetherston plans to be a very visible part of the brand. “Juicy’s looking to
me to be an ambassador,” she remarks.
“We’re just evolving,” says company president edgar hubar, who, like Fetherston, emphasizes that
holiday’s posh patina is not a long-term mandate. “We’re very happy with our core customer.”
Product categories, however, have been streamlined; the Los Angeles-based company recently
eliminated the men’s, yoga and maternity collections. “they were not relevant to the Juicy brand,” he
says. “We’re also cleaning up distribution. We’ve closed at least around 70 doors.”
Also new: the team behind the ad campaigns: photographer steven Meisel, stylist Lori Goldstein
and hair and makeup artists orlando Pita and Pat McGrath, who worked on the fall 2010 Juicy
Couture shots.
so how has Fetherston found working within a big enterprise like Liz Claiborne, which can pull
together, as hubar puts it, an “advertising A-team”? “if you think about it, the erin Fetherston
collection and Juicy aren’t so different,” she says. “My line’s totally free-spirited and fun-living, and
those are words i would use to describe Juicy Couture also. the product expression is just different.”
For more looks, see WWD.com/fashion-news.
— Venessa Lau
WWD.COM
FASHION SCOOPS
L&T’S NEW HOME: Lord & Taylor, which has dabbled in home goods over the
years but hasn’t carried any since the early Nineties, is getting back in the
business in a big way. Market sources say the 20,000-square-foot ninth
floor at L&T’s Fifth Avenue flagship, currently closed to the public, will
become the home store, fully stocked with Calvin Klein White Label and
Lauren by Ralph Lauren home merchandise, from bedding and furniture
to tabletop, bath product and gifts. The two brands form “the foundation
of the floor,” said a source, but other labels could be added to the mix.
“They hope to roll out home to other stores,” said the source. Lord & Taylor
has been renovating its flagship, and recently relocated plus sizes from the
ninth floor to the sixth with petites, while the seasonal swim and outerwear
businesses moved from six to seven, which also houses kids.
REEVE FOUNDATION BENEFIT AT BOOM BOOM: The Boom Boom Room
typically is not the first place New Yorkers go when feeling like giving back
to society. But on Aug. 10, the decadent nightclub will be chockablock
with do-gooders when it hosts a fund-raiser for the Christopher and Dana
Reeve Foundation, which benefits paralysis patients. Dior Beauty, the
evening’s sponsor, will auction off a private session with makeup artist
Ricky Wilson, who has worked with Leighton Meester, Sharon Stone and
Camilla Belle. A New York Fashion Week package will also be up for sale.
But don’t think the Boom Boom Room has gone “Kumbaya.” Hayden
Christensen is guest-hosting the event, which, based on the drool-fest that
was set off during his appearance there after the CFDA awards this year,
should attract a sizable contingent of the fashion flock.
GARRARD’S SILVERWARE: Aside from creating baubles, jeweler Stephen
Webster, creative director of Garrard, is continuing in the 275-year-old
jewelry house’s tradition of designing trophies, too. On Wednesday Webster
presented a new trophy, The Royal Thames Cup, to the Royal Thames
Yacht Club in London’s Knightsbridge. The cup, an ornate sterling silver
claret jug mounted on an ebonized wood base, is the 12th cup Garrard
has designed for the club — the jeweler’s relationship with the club began
when it created the Cumberland Cup for the club in 1776. The Royal
Thames Cup will be awarded to the winner of next week’s Round the Island
Race at Britain’s Cowes Week Regatta. The race is between two America’s
Cup contenders — Teamorigin, the British America’s Cup sailing team,
and the Golden Gate Yacht Club of San Francisco’s team, BMW Oracle
racing, which currently holds the America’s Cup. That cup is also a Garrard
design, dating from 1851.
Webster said he originally found the cup he redesigned as the Royal
Thames trophy in the house’s archives, and then set about restoring
it to mint condition. “I spent days in Garrard’s silver vaults looking for
something that would look magnificent,” said Webster. After the cup is
presented to the winners of the race, it will eventually be displayed at the
Royal Thames Yacht Club. The race is part of a series of friendly matches
called the 1851 Cup Regatta, organized by the British team against
contenders for the 2013 America’s Cup.
A NEW COSTUME: On the heels of Dolce & Gabbana’s Chelsea Football
Club partnership, Costume National said it will be the official formalwear
providers of F.C. Internazionale, one of Milan’s two teams. The players,
technical staff and managers will don the custom-made outfits for the
first time on Aug. 26 as they head to Monaco to face off against Atletico
Madrid in the UEFA Super Cup championship match the next day. “I am
happy and honored to dress Inter — I really enjoyed creating a wardrobe
for professional athletes, adding those sophisticated touches that are part
of my aesthetic,” said the brand’s creative director, Ennio Capasa.
The custom-made outfit consists of a black, two-button suit with blue
pinstripes, a short trenchcoat and a silk tie. To round out the look, there
will also be a full array of accessories — including shoes, belts, scarves,
hats and weekend bags — all in combinations of the official team colors,
black and royal blue.
WHEN WORLDS COLLIDE: Hussein Chalayan
will unveil an installation and film exploring
the overlap between clothing and art at
London’s Lisson Gallery in September. The
designer, who is no stranger to both worlds,
is currently working on the project, which
will draw inspiration from disciplines such
as anthropology, music, design and art.
“Hussein Chalayan is rightly celebrated not
just for his fashion but as one of London’s
leading innovators in visual culture,” said
Greg Hilty, the gallery’s curatorial director. The
exhibit will run from Sept. 8 through Oct. 2.
Hussein
Chalayan
photo by steVe eichner
8
CULTURAL EXCHANGE: The Japan Fashion
Week Organization and Tokyo-based jeweler
Infinity Creations are spearheading an
initiative to promote their country’s young
designers in India. Earlier this month, the designers behind three Tokyo-based
labels — Matohu, Somarta and Motonari Ono — traveled to the country on
a research trip. The five designers will be returning to India for the inaugural
edition of India International Jewellery Week, which runs Aug. 15 to 19
in Mumbai. Each brand will showcase its fashions in tandem with jewelry
designers exhibiting at the fair. “As of now, there’s no exposure of Japan in
India,” said Atul Parekh, president of Infinity Creations and an Indian national.
“You have all the major brands of the world there, but no Japanese.”
The subcommittee said it’s planning to expand the project over time,
having Japanese designers create new products especially for the Indian
market and do some of their production there. “We have to think in two
ways: making a collection that feels like us, while also designing things
that match the taste of Indian customers,” said Hiroyuki Horihata, codesigner of Matohu.
Fashion Front will not appear today. Bridget Foley is on assignment.
WWD, FRIDAY, JULY 30, 2010 9
WWD.COM
MEMO PAD
Diane von
Furstenberg
Vera Wang
photos by steve eichner
For more images, see WWD.com/eyescoop.
ANNA, BARACK AND FRIENDS: Call it the Sullivan
Street Summit.
Perhaps the New York fashion crowd has a real
fighting interest in the upcoming midterm elections.
Maybe a few more anthropologically minded guests
simply wanted to see what happens when the Head
of State makes a social call on Anna Wintour. It could
have just been a carry-over buzz from Chelsea Clinton’s
impending nuptials.
Whatever the draw, political season came early to
the West Village Wednesday night as a veritable all-star
team of American designers attended a fund-raiser
to benefit the Democratic National Committee at the
Vogue editor in chief’s town house, where President
Obama was the guest of honor.
So what did they all talk about? The event was
private and closed, even to the Presidential press pool,
and the 50 or so guests seemed to have sworn some
sort of blood oath not to discuss the evening, even
once it was over. Maybe they feared the wrath of their
hostess (no covers, no Costume Institute invitations, no
future mingling with the President).
“It was great,” said Tory Burch on the street
after dinner.
“It was fantastic,” offered Andrew Rosen.
“I love Obama,” said Harvey Weinstein as he made
his way up the street with Georgina Chapman.
Patrick Robinson seemed a bit more eager to talk at
first, but had second thoughts at the behest of wife,
and Vogue staffer, Virginia Smith.
“It was amazing,” a smiling Robinson settled
on as he turned to join Smith in their walk across
Houston Street.
What could be gleaned from whispers is that the
President Obama waves good night.
event was very intimate with about five to six tables.
Obama sat briefly at each table — which must have
made eating tough — and was charismatic and upbeat. The entire mood of the evening was
“rally round the party” which, given the pressures the Democrats are facing, could use a lot
of help.
And, financially, the evening was a hit. Each of the attendees gave up to $30,400 —
the maximum total donation this election season — for the chance to hold court with the
President. Though it’s unclear if every guest pledged the full amount for the dinner, those
doing the math at home will note that the upper range of Wintour-plus-Obama equals
somewhere near $1.5 million. The final tally will have to wait until the Federal Election
Commission updates the disclosure sheets. But it puts Wintour up there in the milliondollar fund-raising club, meaning that if she wants that ambassador’s job as an exit strategy
from Vogue, it just might be hers (although probably not London’s Court of St. James’,
which generally goes to really heavy hitters. Maybe Luxembourg?).
The Secret Service and New York Police Department started prepping the neighborhood
with metal barricades as early as 9 a.m. Wednesday, and by late afternoon, a crowd of
agents and officers had flooded the area. The security arrangements required partygoers
to traverse the block on foot and enter the house through a collapsible tent set up ahead
of the front door. André Leon Talley and Shelby Bryan (who had the strange honor of being
frisked on the way into his own home) were among the early arrivals, as was Vera Wang,
possibly taking a break from last-minute work on Clinton’s wedding dress. The full scrum,
which included Donna Karan, Calvin Klein, Burch, André Balazs and Diane von Furstenberg,
had made its way into the house by 6:20 p.m., a full hour ahead of the President. When
the motorcade did arrive, right on schedule at 7:20 p.m., the presidential limo pulled into
the awaiting tent, which Secret Service agents promptly drew closed. Onlookers hoping for
a closer glimpse of the most anticipated arrival of the evening were left waiting until the
next election cycle.
The fete didn’t go completely undocumented, though, as Wintour employed her
own photographer to capture the evening. And the dinner conversation must have been
stimulating, since the man of the hour partied late — relatively speaking — and stayed a
full half-hour longer than planned. He finally hit the road around 8:50 p.m., which was
when Air Force One had been scheduled to take off from Newark, at least according to the
official White House day planner.
The time his plane was due to take off was almost the only detail released about the
evening — which seems to be a trend with the Obamas lately. Quite a stir was created
earlier this week when it was revealed the First Lady would make an “official” visit to Spain.
On Thursday, Katie McCormick Lelyveld, press secretary to Michelle Obama, disclosed the
first family will pay for part of that trip next week with daughter Sasha out of its own pocket
because it is considered “private.” The only official part of the visit, funded by taxpayers’
dollars, is Obama’s audience with King Juan Carlos and Queen Sophia of Spain. How much
of the tab the government will pay for the Secret Service detail, particularly if Obama and
her entourage stays at the Villa Padierma, a five-star hotel near Marbella where rooms
are normally priced at 3,300 euros, or $4,285, as local media reports indicate, is still a
question mark. McCormick Lelyveld said the First Lady will be traveling with a “minimal
staff” and the office doesn’t discuss security issues.
Whatever, it’s some summer holiday spree
for the Obamas —Maine, then Spain, then the
Gulf Coast (to help pump up tourism) and finally
Martha’s Vineyard. Those books must be selling
really well. — Matthew Lynch and Kristi Ellis
Tory Burch
WHAT DO THEY HAVE AGAINST THE NATIONAL
ENQUIRER?: Take Avenue Capital off the short list
of bidders for Newsweek, at least for now. The
Washington Post Co. has turned down the private
equity shop’s offer, which was believed to be the
highest. Why pass up the big bucks? Sources said
the Washington Post turned its nose up at Avenue’s
involvement with American Media Inc. The interesting
part about the rejection: Newsweek’s owner knew
all along about Avenue’s connection to AMI, but it’s
believed there was some miscommunication during
talks between Avenue and the Washington Post.
Regardless, sources said the Washington Post has now
made it clear it doesn’t want the Newsweek brand to
be closely associated with the National Enquirer.
Not that Avenue is deterred. The sources said the
firm is considering reentering the bidding process
and this time around, would make a clear separation
between the newsweekly and AMI’s tabloid
magazine. Meanwhile, the sources said Fred Drasner
has been told that he’s still in the running, but as
the economics of his offer stand now, he’s in third
place. It’s believed Sidney Harman and OpenGate
Capital, owners of TV Guide, are also front-runners.
As WWD reported, the Washington Post has placed
the close-down cost for Newsweek at around $45
million, so it is seeking a bid to beat that figure. In
any scenario, the company will likely end up paying
the new owner millions to take the ailing magazine
off its hands given there seems to be no end to the
red ink ahead. Year to date, ad pages at Newsweek
are down almost 11 percent to 498, according to
Media Industry Newsletter.
A Newsweek spokeswoman declined to comment
on Avenue’s rejected bid. — Amy Wicks
10 WWD, FRIDAY, JULY 30, 2010
WWD.COM
For full daily stock changes and more
financial news, see WWD.com / business-news.
Financial
American Apparel, Stocks Take Hits
Stocks around the world painted a
muddled picture as investors searched for
a theme and worried over economic uncertainty that has gnawed away at portfolios.
Asian traders pushed the nikkei 225
down 0.6 percent to 9,696.02 in Tokyo as
the Hang Seng Index remained basically
flat at 21,093.82 in Hong Kong.
The DAX slipped 0.7 percent to
6,134.70 in Frankfurt as the cAc 40 receded 0.5 percent to 3,651.91 in Paris
and the FTSE 100 dropped 0.1 percent to
5,313.95 in london.
By Evan Clark
MAnY oF AMERIcAn APPAREl Inc.’S
investors took the lead of Deloitte &
Touche, the company’s accountant, and
split Thursday.
Shares of the purveyor of brightly
colored, domestically produced basics
dropped 14.4 percent, or 26 cents, to
$1.55 after American Apparel said late
Wednesday that Deloitte had resigned as
its auditor.
The accounting firm, which has already noted that American Apparel
did not maintain effective internal
control over its financial reporting
last year, is looking for additional
information to reevaluate the firm’s
2009 results.
American Apparel’s profits declined to $1.1 million last year from
$14.1 million in 2008, according to
the firm’s annual report in March.
“Deloitte advised the company
that certain information has come
to Deloitte’s attention, that if further
investigated may materially impact
the reliability of either its previously
American Apparel lost its auditor, Deloitte & Touche.
issued audit report or the underlying consolidated financial state• Golden Gate Boosts Zale Stake: Golden
ments for the year ended Dec. 31, 2009,”
said American Apparel in a filing with the Gate capital became Zale corp.’s largest
Securities and Exchange commission.
shareholder, upping its stake in the firm to
The firm replaced Deloitte with 34.5 percent of the shares outstanding from
Marcum, which had previously been its 19.9 percent. The private equity player
auditor.
surpassed Breeden capital Management,
of the 172 stocks tracked by WWD, which owned 28.3 percent of the jeweler’s
American Apparel turned in the worst stock as of the end of March. Golden Gate,
showing on what was a relative downer through a series of funds, loaned Zale $150
of a day on Wall Street.
million in May in return for warrants to
The S&P Retail Index slipped 0.7 per- purchase 6.4 million shares, exercisable
cent, or 2.74 points, to 400.91, as the Dow immediately, and then another 4.7 million
Jones Industrial Average fell 0.3 percent, shares following stockholder approval.
or 30.72 points, to 10,467.16.
Shareholders approved the deal July 23.
Boss Profits, Sales Rebound in 2nd Qtr.
By Melissa Drier
BERLIN — Hugo Boss AG snapped back in
the second quarter of 2010, posting increases in net income and sales for the period.
The German apparel group’s net income hit 6.3 million euros, or $8 million,
in the second quarter, compared with a
loss of 15.9 million euros, or $21.7 million,
for the quarter in 2009. All dollar figures
are converted from the euro at average
exchange rates for the respective periods.
Sales gained 7 percent to 324.8 million euros, or $414.5 million. Boss said
the group’s own retail business made a
“big contribution” to the positive sales
picture, with like-for-like sales up 13
percent in the quarter.
For the six months, however, group
sales were down 2 percent to 769 million euros, or $981.3 million, though net
income surged 31 percent to 62.6 million
euros, or $79.9 million.
Geographically, Boss said growing
sales in America and the Asia-Pacific
region helped offset declines in Europe
and other markets. For the half-year
period, sales in Europe (including the
Middle East and Africa) slipped 9 percent, though the decline narrowed to
3 percent in the second quarter. In the
Americas, first-half sales in the reporting
currency rose 14 percent to 169 million
euros or $215.7 million, with the AsiaPacific region boosting sales 17 percent
to 92 million euros, or $117.4 million. In
the Asia-Pacific region, Boss has entered
into a joint venture with the Rainbow
Group, effective July 1, that will expand
the brand’s retail network in the region
to 34 locations.
Boss remains optimistic for the year
as a whole, forecasting currency-adjusted sales growth of 3 to 5 percent and
earnings before interest, taxes, depreciation and amortization before special
items to increase by 10 to 12 percent in
the financial year.
DAILY
COMPANIES
By WWD Staff
FRAncE’S lABoR MInISTER, ERIc
Woerth, on Thursday became the latest figure to be questioned by police in
relation to investigations linked to the
Bettencourt affair. The politician addressed questions about alleged illegal
political donations and how his wife,
Florence Woerth, came to oversee part
of the finances of liliane Bettencourt,
l’oréal’s largest shareholder.
“With respect to political financing, [Woerth] energetically and vigorously denied receiving any political
financing that was not in line with the
law,” Jean-Yves leborgne, the minister’s lawyer, told members of the press
Thursday. “Any other allegations are
only lies and fantasies.”
Woerth also denied any wrongdoing with respect to the employment of
his wife, who formerly oversaw part of
Bettencourt’s fortune.
“In order to put an end to a number of
rumors which are pure fantasy, [Woerth]
explained that he at no point intervened so that his wife would be hired
[by Patrice de Maistre, Bettencourt’s financial adviser],” leborgne said. “He
explained that, in the framework of ordinary exchanges during a banal conversation, he might have brought up his wife’s
profession with Mr. de Maistre, given
that they had both undergone roughly
similar training.”
The sprawling drama started when
Bettencourt’s daughter, Françoise
Bettencourt Meyers, initiated legal
proceedings against photographer
François-Marie Banier in 2007.
Bettencourt Meyers alleges Banier’s
“exploitation of weakness” of her mother, who gave him assets valued at about
1 billion euros, or $1.3 billion. The trial
pitting Bettencourt Meyers against
Banier was put on hold in July when
the criminal court in nanterre, France,
ordered that supplementary information be gathered.
At that time, an inquiry for “infringement of privacy” had already been
opened after police received telephone
recordings of Bettencourt speaking with
her advisers. Bettencourt Meyers, who
was given the clandestine tapes made by
her mother’s former butler, turned the
recordings over to the police.
Bettencourt was questioned on
Monday and Bettencourt Meyers’ home
was searched on Wednesday.
l’oréal, which has remained largely
removed from the affair, became embroiled recently. A shareholder alleging
Banier benefited from a contract of convenience with the French beauty giant
lodged a complaint over alleged misuse
of corporate funds.
World Cup Helps Boost Puma Net 16.4%
By Emilie Marsh
PARIS — Puma AG, Europe’s second-larg-
est sporting goods company, reported a
16.4 percent rise in second-quarter earnings, boosted by sales in the Americas
and the recent soccer World cup in
South Africa.
net profit climbed to 44.8 million
euros, or $57.2 million, from 38.5 million
euros, or $52.4 million, a year ago, the
German company said Thursday.
Revenue in the three months ended
June 30 increased 2.5 percent to 615.4
million euros, or $785.3 million.
In the half, net profit climbed to 127.9
million euros, or $170.2 million, from 44
million euros, or $58.5 million, a year
earlier. last year’s earnings were impacted by one-off restructuring costs.
Dollar figures are converted from
euros at average exchange rates for the
periods to which they refer.
Puma — controlled by French conglomerate PPR, which reports first-half
earnings today — said it expects earnings before extraordinary items to improve over the year and revenue to grow
by a low- to midsingle-digit percentage.
Earnings before interest and taxes before special items is expected to improve
compared with last year.
“We are gearing up for solid growth
in the second half of the year based on
a strong outlook,” Puma chief executive officer Jochen Zeitz stated, adding
the company was “ready” to re-engage
its long-term expansion plans. The next
phase of the sporting-goods maker’s
strategic plan through 2015 “shall enable us to significantly tap into Puma’s
long-term sales potential of 4 billion
euros and beyond.”
In a press conference, he added:
“our goal is to be the most desirable
and sustainable sports lifestyle company in the world.”
By region, second-quarter sales
in the Americas gained 26.1 percent,
Zeitz said. That more than offset sales
declines of 5.7 percent in Asia-Pacific
and 7.2 percent in Europe, the Middle
East and Africa, Puma’s largest region
by revenue.
By category, accessories was the
star performer, with sales climbing
28.9 percent, boosted by the integration of cobra Golf, which Puma acquired in March. Apparel sales rose
2.3 percent, while footwear sales decreased 2.7 percent.
Rival Adidas AG said earlier this
month second-quarter profit jumped to
126 million euros or $160.8 million, from
9 million euros, or $12.3 million, during
the same period a year ago, led by sales
of soccer gear. Adidas is slated to report
full results on Wednesday.
5WORSTPeRFORMeRS
5BeSTPeRFORMeRS
Labor Minister Questioned in Bettencourt Case
P/E
VOLuME
38.85 37.26 SteveMadden(SHOO)
18.7
38.92 35.56 Skechers(SKX)
AMt
DAILY
COMPANIES
VOLuME
AMt
LASt%CHANgE
12.1
1137002
1.55 -14.36
LASt%CHANgE
HIgH
LOw
1046486
38.48
6.24
1.75
1.35 AmericanApparel(APP)
16.5
5938551
37.36
6.11
24.49 23.05 Carter(CRI)
11.3
6906719
23.96
-7.88
12.69 12.05 Crocs(CROX)
-
3790573
12.50
4.52
79.62 76.66 ColgatePalmolive(CL)
20.5 16387921
78.12
-6.84
13.90 13.12 KennethCole(KCP)
-
65656
13.77
4.48
14.43 13.27 FootLocker(FL)
32.1
13.52
-4.38
183.3
2259612
17.16
4.00
4.40
13.1
7068 4.2623
-4.00
HIgH
LOw
17.30 16.47 AnnTaylor(ANN)
P/E
4.19 TandyLeatherFactory(TLF)
5114843
* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs
and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros.
WWD, FRIDAY, JULY 30, 2010 11
WWD.COM
Buyers Ready for Fame, Moda
Survey Stresses Knowing a Shopper’s Personality
By Rosemary Feitelberg
understanding the personaLity of
your targeted shopper is the first step toward effective retail marketing.
“while demographics matter very little, there
are two critical personality dimensions that will
define shoppers in the new shopping reality,”
said wendy Liebmann, chief executive officer
of wsL strategic retail, a retail and marketing
strategy firm. “there are people who lived within
their means during the recession and will continue to do so, and those with the shopping gene
who live to shop and will do it a lot.”
in a recently released survey, 2010 how
america shops Megatrends study, the odyssey
Begins to the new retail world, wsL identifies
five shopper personalities:
• shop-a-Lot sue. she loves to shop, and although she has limited means — a household income of $60,000 — this is “not a deal breaker,” the
survey found. “sue knows she doesn’t have much
to spend, so she shops smart, which lets her buy
more.” she often opts for online options or chooses mass merchants such as wal-Mart or even dollar stores. “she’s given up her aspirations for bigname brands and is ok with less.”
• Miserable Mona, who also has a household
income of around $60,000. she is “so jaded by her
financial situation that she finds no pleasure in
shopping. Making ends meet is a constant struggle.” although she, too, shops at discount or dollar stores, she doesn’t use online tools to help her.
although both sue and Mona are discountstore shoppers, retailers are better served marketing to sue with coupons and sales promotions.
“as a bargain hunter, she will return again and
again to the places that reward her hunt,” the
survey found. Merchants should also strive to
make their stores as attractive as possible and
offer as much “aspirational merchandise” as possible to appeal to this shopper.
• i’ll pass patty, who is apathetic about shopping and views it as a necessity. she has an
above-average household income of $90,000 but
lives within her means. she often opts for online
Buyers and vendors are gearing up for this weekend’s opening of the Moda Manhattan and fame trade shows with
versatility on their minds.
the Jacob k. Javits Convention Center will house both events sunday
through tuesday. More than 400 juried collections will be featured on
Moda’s floor, which will be 25 percent larger than last summer’s show.
elizabeth grace, heike Jarick, amai unmei and karen elizabeth
Couture are new resources. retailers will be able to choose from an assortment of sportswear, outerwear, daytime and evening dresses, novelty
jackets, sweaters and shirts in better and bridge markets.
fame will also offer buyers more ground to cover with 600 junior and young contemporary labels including newcomers Christys
Crown hats, Color siete, kensie denim, roshi and rose pistol.
with sales running 10 percent ahead of last year at Celeste, a
specialty store in Boerne, tex., co-owner suzanne hardman said
she will be on the lookout for long-sleeve and three-quarter sleeve
tops and sweaters at Moda. Curio, Cut Loose, tressesics, three
dots and silver Jeans are among the show resources she planned to
check out. with the average shopper spending $60, the retailer aims
to keep all items at $100 or under. the fact that texas has weathered the recession better than most states has been a help, she said.
“we’ll be looking for everyday styles for fall and holiday. we
are located in a small town about 35 miles outside of san antonio.
people here don’t really dress up that much,” hardman said.
kevin ambrose, manager of gaucho, a two-store operation in
savannah, ga., also said this year’s first-half sales were up — in his case,
30 percent. Loyal customers are now shopping twice a month as opposed to once a month, as was the case last year at this time, he added.
the company, which has a high-end store and a more casual
one five blocks away, recently rebuilt its web site, gauchosav.com,
to make it more user-friendly. there also has been a concerted effort to stay in touch with shoppers via e-mail blasts, facebook and
phone calls, ambrose said. Besides tying up some loose ends for
fall at Moda, he and owner ross arnsdorff will be looking for separates for holiday and early spring. randy kemper, Blanque, planet,
Margaret M and an ren are vendors they plan to visit.
heading into fame, Michelle Mangiliman, owner of the Brooklyn
boutique dalaga nyC, said, “people are looking for more for their
money. they want something multifunctional rather than that crazy,
trendy dress. they want something that is still fun, but that they can
change the shape of. right now, sculptured, multifunctional dresses
and coats that can be worn different ways are really popular.”
Shoppers working with
tighter budgets are
giving more thought to
their purchases.
shopping to avoid having to go to stores. “to her,
smart shopping is no shopping,” the survey said.
“Low price is important, but not if it means having to shop around.”
• Bubble Barbie, who spent the recession living in
a bubble, ignoring everything and continuing to shop.
her household income averages $72,000, and she visits
stores often although her debt level is high. “Bubble
Barbie is the best reason to keep doing attractive
displays of new products that stop her in the aisle and
add more to her basket,” the survey said. “sales and
discounts are good, but not necessary for her to buy.”
• Chic Chic Charlotte, who has a high household income, around $101,000, and loves to shop.
But even she was impacted by the recession and
will buy less than she had in the past. “the more
affluent have developed a case of retail guilt. she
is not as spendthrift as she was in the nineties.
reassure her that you are offering her value.”
— Jean E. Palmieri
WWD.COM/CLASSIFIEDS
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SALES REP - LADIES
NYC ladies fashion company seeks a
liaison with a dynamic, energetic, and
experienced garment salesperson. The
ideal candidate should have established chain stores relationships and
potential to substantially increase
clientele & approach buyers. E-mail
resumes at: womensfashion@ymail.com
DESIGN ASSISTANT
Peruvian Connection seeks Sptswr
Design Assistant. Min. 2 yrs exp required. Position is responsible for assisting the designer in all aspects of
design process. Must know Excel,
(Illustrator / Photoshop, a plus). Int’l
experience a plus. Requires strong
organization, communication, teamwork & multi tasking skills. Excellent benefits package. Send resume
to
recruiter66086@gmail.com.
No
phone calls pls.
DESIGNER
Established Dress manufacturer seeking designer with 3-5 years experience
for evening/special occasion line.
Must have knowledge of construction
and costing for domestic and import
products, as well as the ability to research fabric and trim markets. Ability to develop product with commercial
appeal a must! Candidate must be organized, computer literate and can
work in a fast paced environment.
Email resumes to :
2010specoccdesigner@gmail.com
Import Manager
Notations, Inc., a major women’s apparel
mfg in the Philadelphia area seeks
import/compliance mgr to neg with
ocean and air freight companies, ensure
that all US import operations are in
compliance with US regulatory req.
that govern intl trade activities. Send
resume to: impresume@gmail.com
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SEPTEMBER
BONUS DISTRIBUTION:
NY FASHION WEEK,
HBA, TFWA CANNES
FALL TRENDS ISSUE
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INDIE BRA
FEMININITY RETURNS
Exploring The New Esthetic
ISSUE DATE: SEPTEMBER 10 | CLOSE: AUGUST 23
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