CAMILLA BELLE, ALI LARTER AND PLUS TURF’S UP OTHER STARLETS DRESSED UP FOR IRA THE POLO MATCH IN NEIMARK’S PACIFIC PALISADES. LESSONS PAGE 9 LEARNED. PAGE 12

SOURCING’S NEW LANDSCAPE Continual Change Becoming the Norm WWD By ARTHUR FRIEDMAN THE WORLD OF global manufacturing is spinning faster than ever. TUESDAY, OCTOBER 11, 2011 Q WOMEN’S WEAR DAILY Q $3.00 Dynamic changes — from transformations in China’s production landscape to instability in raw ma- terial prices — has caused many of the crystal clear norms to become unfocused. Executives have been forced to take fresh approaches and develop new ways of thinking toward where they make their apparel. When it comes to having a successful sourc- ing strategy in today’s volatile environment, Rick Helfenbein, president of Luen Thai USA, turns to none other than Albert Einstein for some sage ad- vice: “ Yo u have to learn the rules of the game. And then, you have to play better than anyone else.” Something’s The problem, said sourcing experts at the WWD Global Sourcing Forum, is that the rules are chang- ing rapidly and the playing field is in flux. So Helfenbein offered some other pertinent adag- es for his fellow manufacturing executives. He told them to “put your customer first,” don’t exit China Fishy too fast even though costs have risen significantly, that “the consumer doesn’t care where something is made” and that “the herd mentality is over” and “we Riccardo Tisci is one of several are now in the era of analytical sourcing.” designers who took to the deep sea “This supply chain game has a new challenge every day,” Helfenbein said. “The supply chain for spring. His collection is always in transition and the transition feels un- employed techno scubalike comfortable. Nobody likes to change. We all want to fabrics, varnishes that shimmered come to work every day and do our jobs the same way, but that’s not how it always works. That’s why like shells and sexy mermaid analytical or sensible sourcing is important.” silhouettes like this leather Helfenbein said the most important sourcing strat- egy today is not what country companies are sourcing and patent skirt suit punched in or how cheap they can get their production, but is a to resemble fish scales and clear focus on what their customer wants. trimmed with a wavy collar “The consumer doesn’t care where something is and peplum that swayed like SEE PAGE 6 seaweed. For more life aquatic, IN WWD TODAY see pages 4 and 5.

V Hermès in IndiaPAGE 8 RETAIL:The French luxury brand has opened its first street-level store in India, which it sees as an investment for the long term.

Black Friday WanesPAGE 2 FINANCIAL:An Accenture survey finds that fewer people than ever expect to kick off their holiday shopping on Black Friday.

CSR Becomes KeyPAGE 7 TEXTILES:A vibrant corporate social responsibility policy is no longer optional for companies as ever-more stringent labor and environmental policies take hold, according to speakers at the WWD Global Sourcing Forum. PHOTO BY GIOVANNI GIANNONI 2 WWD TUESDAY, OCTOBER 11, 2011 WWD.COM Black Friday’s Impact Wanes Vente-Privée USA Names Executive Team

NEW YORK — The American Express and Vente- the French flash sale pioneer Vente-Privée.com to As Holiday Promotions Abound Privée joint venture now has an executive team to build the new site into the leader in the U.S. on- join its chief executive officer, Mike Steib. line private sales market. He was formerly the di- By ARNOLD J. KARR The venture has named six senior-level execu- rector of video advertising for Google’s Americas tives, each with expertise in fashion, tech- Operations, and before that led Google’s Americas RETAILERS MIGHT BE GETTING a bit less bang for their Black nology or media to help spearhead the business teams for its emerging ad products. Friday buck this year and find themselves more dependent than ever U.S. operation. According to Steib, “We’ve done the unusual on the spending of the affluent for their holiday season increases. The executives are Laure de Metz, for a pre-revenue startup. Instead of hiring These were among the findings of the annual holiday shopping divisional ceo for Vente-Privée midlevel executives, [we are bringing in] se- survey of global consulting firm Accenture, which conducted an on- USA Brands, formerly vice presi- nior executives who can scale with this busi- line poll of 500 U.S. consumers last month. The study found a steep dent of licensing at ness. This leadership team is also the one increase in the percentage of shoppers planning to stay out of stores International; Robin Domeniconi, EXCLUSIVE we’ll have in 2015. That was intentional.” on Black Friday, the traditional start of the holiday selling season. head of marketing, formerly senior Steib explained that the current team Forty-four percent this year said they were very likely (19 per- vice president and chief brand of- is the one needed for the site’s launch, cent) or somewhat likely (25 percent) to shop on Black Friday, down ficer of Elle Group; Nicolas Genest, and that the venture will add to its roster as from 47 percent (21 percent and 26 percent, respectively) last year head of technology, formerly chief technol- the business builds. and 52 percent (22 percent and 30 percent, respectively) in 2009. ogy officer of Vente-Privée.com in ; Tim As for when the site would launch, Steib pre- Thirty-five percent said they were “not at all likely” to shop on Quinn, head of finance, formerly vice president dicted “this year,” although he was somewhat cau- Black Friday, up from 28 percent last year, and 16 percent said they of investments, integration and measurement at tious about whether that could be before the start were unlikely to shop then, down from 20 percent a year ago. American Express; John Saroff, head of digital of the holiday season. Still, 37 percent expect the best discounts to be available on factory and sales production, formerly head of TV Noting that he’s only been on the job for nine Black Friday or Cyber Monday, the busiest day for online shopping. ads, strategic partnerships at Google Inc., and Jill weeks, the ceo said he’s been “getting the organi- “The impact of Black Friday is certainly lessening because Szuchmacher, head of business development, for- zation up and running in a sprint, building out the there are discounts throughout the season and not everyone wants merly director of business development at Google. technology and meeting with brand partners. We’re to get up at 5 in the morning to go shopping,” said Chris Donnelly, Steib, who took on the ceo position in July, is moving at a really quick operational pace and we senior executive in Accenture’s retail practice. “The other thing responsible for leveraging the assets and long- want to make sure when we launch that it is good.” we’re seeing is that the lower-income shopper, and that’s unfor- standing relationships of American Express and — VICKI M. YOUNG tunately becoming a bigger percentage of the population, tends not to have as much money at the end of the month, especially if they’ve just had Thanksgiving. That Scherrer Brand Sold to JSB International combination is pushing more pur- chases into December.” PARIS — JSB International, a French family-owned Designer Parfums, part of Shaneel Enterprises This year Thanksgiving Day is group specializing in commercial real estate and in- Group, which specializes in creating and developing Nov. 24 and Black Friday Nov. 25, ternational wholesale distribution of luxury goods, has luxury fragrances, owns the brand’s fragrance license. with Cyber Monday falling on Nov. 28. 35% acquired Jean-Louis Scherrer from Dumesnil Group. Founded in 1962 by the couturier of the same Almost nine in 10 of those polled SHARE OF RESPONDENTS The new owner has no intention to reawaken the name, Scherrer’s fashion business came to a halt — 88 percent — said they would WHO SAID THEY WERE dormant couture house’s ready-to-wear and couture in the years following the departure of rtw design- spend less or the same on gifts as “NOT AT ALL LIKELY” TO lines. Instead, the aim is to develop the brand’s li- er Bouchra Jarrar in 2007, after just five months they did last year, with 22 percent SHOP ON BLACK FRIDAY. censes, which have a strong presence in Asia, Bruno in the role. indicating less and 66 percent in- Bensoussan, JSB’s chief executive officer, said. In the same year, the house’s longtime couturier, dicating the same. Asked why they Bensoussan declined to disclose figures for the Stéphane Rolland, left to create his signature cou- weren’t spending more, 43 percent cited less discretionary in- deal, which included the brand’s portfolio of six ture house, now officially a member of the Chambre come, 37 percent an increase in living expenses and 37 percent licenses, including eyewear, footwear and men’s Syndicale. Rolland during his nine-year tenure at said they wanted to keep the holidays “simple and not too extrav- clothing, for all territories except China. JSB, Scherrer cultivated a high-profile following, includ- agant.” Thirty percent said they had less savings and 15 percent which does not own any other fashion brands, ing former French First Lady Bernadette Chirac, cited less job security. plans to add a women’s wear license by year end. Suzanne Saperstein and Ivana Trump. Twelve percent said they would spend more than a year ago, “We are considering opening dedicated [Scherrer] Scherrer’s Avenue Montaigne flagship, its last with 41 percent of that group saying they had more discretionary stores in two to three years’ time in key international remaining store, was closed in 2009. income, up from 25 percent a year ago, and an equal percentage cities, such as Paris,” Bensoussan said. — KATYA FOREMAN noting that prices were up, ahead of last year’s 30 percent affir- mative response. Twenty-six percent of those intending to spend more checked off “I want to treat myself and my family after a Haddad Brothers Acquire Nat Nast Label tough year.” That response wasn’t offered in 2010, which could explain why the “none of the above” response declined to 2 per- NAT NAST, THE MEN’S WEAR brand known for “absolutely huge.” He pointed to the label’s “clean cent this year from 20 percent in 2010. its iconic bowling shirts, has been purchased by distribution” at the upscale end of the market as “There’s an underlying desire to treat yourself after such a brothers Michael and David Haddad, the owners key to his company’s interest in the brand. “It has difficult period,” Donnelly said. “People have struggled and of Fashion Options, for an undisclosed sum. been underplayed and underdistributed.” they’re looking for that little something special, a kind of holiday Barbara Nast Saletan, daughter of Nat Nast, Haddad said Fashion Options, which owns the treat. People have been cautious and thrifty — if the deal is right who founded the company in 1946, will remain Beverly Hills Polo Club brand and also holds the and the treat is right, you might get that extra purchase.” with the firm as president and will work with the license for Pony in men’s, women’s and boys, and He said that mentality has helped retail sales in recent new management team to “ensure continuity in Airwalk in young men’s and boys, expects to pro- months could lead consumers to pull back a bit in January, a far all aspects including design, production, sales, duce Nat Nast sportswear itself and seek licenses less critical month for retailers than November or December. marketing and customer satisfaction,” the com- for key categories including tailored clothing and Accenture found that 71 percent of those with earnings of pany said Monday. footwear. “But we want to digest what we have more than $100,000 expect to spend over $500 this holiday, more Lawrence DeParis, who had served as president first, understand the distribution and speak to the than twice the level of 32 percent for all respondents. and chief executive officer of Nat Nast for the past specialty retailers who carry the brand,” he said. Gift cards displaced apparel as the most popular gift item two-and-a-half years, and who orchestrated the Nat Nast, which has worked to expand its of- this year by a margin of 57 percent to 54 percent, versus a 57 to sale to the Haddad brothers, will exit the brand. ferings into additional product categories, is 56 edge for apparel last year. No other classification garnered In a telephone interview Monday, Michael carried in more than 400 stores in the U.S. and higher than the 36 percent registered by toys, but that was down Haddad characterized Nat Nast as “an iconic Caribbean including Nordstrom and Von Maur. from 41 percent a year ago and 44 percent in 2009. American brand” whose potential for growth is — JEAN E. PALMIERI

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Versace Ungaro Giorgio Armani

The Deep Chic Sea Be it serene prints of waves and starfish, fabrics as iridescent as mother-of-pearl, or silhouettes that mimic giant shells and jellyfish, many collections took a delightful plunge into the ocean for spring. WWD TUESDAY, OCTOBER 11, 2011 5 WWD.COM

Peter Pilotto Alexander McQueen MIRANDA MAESTRI AND MAURICIO GIANNONI, DOMINIQUE MAITRE, DAVIDE GIOVANNI PHOTOS BY 6 WWD tuesday, october 11, 2011

global sourcing forum

Building a New Manufacturing Model {Continued from page one} changes such as rapid verticalization sential for companies to set up a color made,” he said. “They care about what is within the manufacturing portion of our management process that incorporates made. Is it the right item? Is it the right supply chain, how we work together has tools facilitating product speed to mar- price? Is it marketable? Is it timely? If ’’ dramatically changed. You no longer can ket, production cost efficiencies and good you don’t focus on your customer, you’re win without partnerships.” quality control,” Laidlaw said. going to lose them.” He said it’s important to understand Tippett said there are four key compo- With the evolution of the retail land- and share information between sup- nents of an effective color management scape and following the economic tur- pliers and customers in areas such as process: A high-quality color standard, a moil of the last few years, there are margins, costs and efficiencies, as well spectrophotometer, digital color commu- key lessons to be learned, Helfenbein as the ability to secure credit and the nication and procedures that effectively said. Chief among those, he said, is that structure of payment terms. and accurately use all of these tools. “cheaper is not always better.” “Changing terms on a supplier in As for the talk today about getting “The second is that the value-oriented Bangladesh by 30 days substantially in- out of or reducing production in China, customer today demands good quality,” creases the factory’s interest expense,” Helfenbein said not so fast. he said. “The third is that today’s retailer McGrath said. “But it also causes many “Maybe you should look at China in- is driven by a different economic model unseen consequences, such as higher stead of exiting out,” he said. “China still — this not fulfilling a shipment, not deliv- prices or delivery delays due in part to does a lot of things better than anybody ering on time is out the window.” the lack of credit availability.” else. They do it faster and have great Peter McGrath, founder of McGrath Buying closer to need requires com- skills that are able to match the needs of International and former J.C. Penney Co. panies to be more flexible in the supply our customer.” Inc. product development and sourcing chain, he noted, so sourcing organiza- He said it’s important to note that in executive, said in today’s volatile envi- How we work together tions must be faster and more respon- costing a garment, the rule of thumb is ronment for raw material costs, sourcing sive to consumer demand. that two-thirds of the cost is the fabric and executives should “average your season’s has dramatically “We will have to create more product one-third is labor, “so higher labor costs buying strategies into three segments to that innovates, performs and delights,” don’t have to kill the garment — the prob- insure an averaging of volatile prices.” changed. You no McGrath said. “This lem in the last year was “In a world of rapid elasticity, busi- will require sourcing the fabric price went ness relationships with mutually agreed- longer can win without executives to more ef- up so much.” upon goals will take you much further fectively understand McGrath predicted than one that is based upon a transac- partnerships. the range of complexi- that yarn and fabric, tional nature,” McGrath said. “With in- ty around the products and to a lesser degree, formation technology helping us redefine — Peter McGrath, we source.” garment prices, will business relationships, and structural McGrath international Helfenbein also have greater price fluc- stressed that it’s all tuation that will mirror about speed to mar- market conditions in ket and having the seasons to come. right product. “Yarn spinners will “While you’re not stockpile yarn in- doing all these things, ventory as they did you still have to be prior to the recession,” lean in your opera- he said. “The ups and tion. You don’t have downs of cotton prices to pick a country, you will prevent that from have to pick a goal being a sound financial for your customer. decision for them.” ON-DEMAND VIDEO You have to evalu- He said one out- ’’ ate a level of qual- come of the roller- wwdglobal.fora.tv ity that you will not coaster cotton prices of stray from. If it comes 2011 is that polyester in the store and it is can provide stability in wrong, throw it out Rick Helfenbein a volatile market. of the store because “Look for a quicker your customer will get conversion to polyester the wrong impression. Check your lead staple the next time cotton prices start to time. You can go longer if it’s basic. spike up,” McGrath said. There are things that you can do to bal- Helfenbein agreed that controlling costs ance your sourcing strategy.” is key, but it’s not the only consideration. Brooks G. Tippett, vice president of “Nobody is going to lie to you, wage operations, and Ann Laidlaw, textile rates and costs in China keep going up,” color supply chain manager, at Pantone/ he said, citing Asian countries such as X-Rite, talked about the importance of Vietnam, Indonesia, Bangladesh and the having unified color controls through- Philippines as having picked up market out the global supply chain. share from China. However, he said the Marvin Traub Associates The Estée Lauder Luen Thai USA “To effectively compete in this glob- problem with those countries is: “The lon- Mortimer Singer Companies Inc. Rick Helfenbein al marketplace, it has become more es- ger we stretch the supply chain, whether Cedric Prouvé

Brooks G. Tippett Fernando and Ann Laidlaw Aníbal Capellán Peralta photos by george chinsee photos by

w11a006(7)b.indd 1 10/10/11 5:02 PM 10102011170329 WWD tuesday, october 11, 2011 7 WWD.COM

Expect Expanded Reach for CSR Policies CSR audits have been particularly bur- tive way, develop the standards that we are Building a New Manufacturing Model By ARNOLD J. KARR densome for many suppliers, including one all going to abide by. And let’s leave it to that went through 42 such evaluations in a each of the brands to identify their competi- it’s manufacturing in Mauritius, THE DAYS OF “optional” corporate social single year. To lighten the load on the manu- tive advantage to meet the standard.” or Bangladesh or India, it takes responsibility are numbered. facturer as well as on itself, He held out hope that a long time for those goods to That was the message driven home by “we actively work with other the Sustainable Apparel get to America,” adding that the several speakers who expect a ballooning like-minded brands and do Coalition is close to a same problem exists for those world population and limited resources to joint remediation when it’s breakthrough on such exploring manufacturing in cen- force governments, companies and indus- necessary,” she noted. global standards with an tral or western China instead of try trade groups to enact more stringent Suppliers are given a re- approach that places a the East Coast hub — it’s just too standards regarding everything from labor port card following their au- consensus among busi- costly and inefficient logistically. practices and work environments to land dits and facilities in need of nesses over tools that im- “On a fast boat, you can get and water use and material utilization. “substantial improvement” mediately communicate goods from Hong Kong to the Until recently, much in the broad area of or “immediate action” are sustainability information West Coast in 10 days,” he said. CSR has been motivated by companies’ coached on how to regain to the consumer. The U.S. “It’s why Central America is… consciences and those of their customers. compliance. However, those Environmental Protection seeing an uptick.” Ann Inc. is marking the 10th year of its unable to adapt to the stan- Agency was a charter mem- Fernando Aníbal Capellán CSR program and, according to Jeannette dards are cut out of Ann’s Jeannette ber of the group, founded Peralta, president and chief Ferran Astorga, vice president of CSR for supply chain. Ferran in March after a year of in- executive officer of Grupo M, a the New York-based firm, its efforts have “We have zero tolerance,” Astorga formal talks. textile corporation with facto- been imbued with the “client first” phi- the CSR executive said. “We Golden noted that popu- ries in the Dominican Republic losophy that is among the company’s core have to make hard deci- lation trends and growing and Haiti that employ 9,800 peo- values. Its mission “is to inspire and con- sions. We want to work with consumer awareness make ple, discussed the Codevi fac- nect with women so they can put their best suppliers committed to sus- ignoring the environmental tory town his company built on selves forward every day.…How would she tainable changes.” and social impact of appar- the border of the countries. feel if we disappointed her in any way?” Astorga believes that leg- el and footwear production “People told us we were That perspective led Ann Inc., which islative changes are com- impossible. The world’s crazy, but we found the right operates the Ann Taylor and Loft retail ing, such as the California population, 5.9 billion in location and we feel we’ve had nameplates, to institute a code of conduct Transparency in Supply 1998, is projected to hit 9.9 a big economic impact on the 10 years ago, third-party monitoring of Chains Act and certain fea- billion in 2050. community,” said Peralta. suppliers in 2002, supplier development tures regarding conflict min- Aroon Hirdaramani, di- Before operations began, the programs in 2004, a far-reaching green ini- erals in the Dodd-Frank bill rector of the Hirdaramani Haitian town of Ouanaminthe, tiative in 2007 and the “AT Connect” pro- signed by President Obama Group and industry rep- with a population of 100,000, gram in 2008. Last year, it brought about last year. resentative for Sir Lanka had about 85 percent unem- the launch of the ResponsiblyAnn.com Web “These will force retail- Apparel, detailed his na- ployment and high illiteracy. site, which brings greater transparency to ers and brands to become Aroon tion’s efforts to export “gar- Now, about 32,500 benefit indi- all the firm’s CSR efforts. increasingly transparent Hirdaramani ments without guilt, free of rectly, and Grupo M has built Ann gave 18,000 store associates train- about our supply chain prac- discrimination, sweatshop schools and health care facili- ing in smart energy practices as part of a tice and increase our public reporting,” practices and child labor,” pointing to a ties for workers and the people green initiative. Carbon emissions in its she said. “It they’re not on your radar now, code established in 2008 that “exceeds lead- in the community. distribution center were reduced by 11 per- I’m sure they will be shortly.” ing industry compliance codes.” As the small As Haiti has started to re- cent per square foot, more than 6.6 million Jay Golden, director of the Duke Center island nation off the coast of India evolves cover from the devastating polybags were eliminated and use of tissue for Sustainability & Commerce in Durham, into an export hub for South Asia, which earthquake in January 2010, paper was cut by 37 percent. N.C., said governments are taking different accounts for 17 percent of U.S. apparel im- apparel manufacturing has “Stores that participated saved enough approaches to instituting CSR initiatives, ports, he said, “We have found that invest- played a key role. Peralta energy to power 50 of our stores for a year,” with the U.S. moving slowly and countries in ing in ‘green’ has helped to make us lean.” noted that the Codevi facil- said Astorga, with much of the savings coming the euro zone “going Mach 2, with their hair Recent initiatives have led to a 50 percent ity, specializing in denim and from “little things,” such as asking a customer on fire.” While legislatures debate the is- reduction in energy consumption, a 70 per- twill, benefits from free trade if she’d prefer to take home her purchase in sues, Golden endorsed a different approach: cent cut in water usage and the elimination agreements with the U.S. her own bag, rather than one of the store’s. “Let’s, as a global industry, in a noncompeti- of waste to landfills. under the Haiti Economic Lift Program, or HELP act, and Stephen Central American Free Trade Lamar Agreements, as well as duty The Benefits of Engaging on Trade free pacts with Canada and the European Union. Singapore, Australia, Peru, and textile issues could be han- “Haiti has the lowest wages By EVAN CLARK Brunei, , Chile dled within the main negotiations. in the Western Hemisphere,” and Malaysia. If the deal goes “We don’t want a separate tex- he added. “We are two days by THE RULES OF the import game through, it might also provide tile negotiation,” Ying said “They boat to and we have a — from the duty free benefits of a platform for other nations to tend to separate us out, but we motivated workforce that gives free trade agreements to the ex- join. Fashion brands are most in- feel that we’re already integrat- us the ability to deliver the right pense management of free trade terested in Vietnam, increasingly ed in world trade, there are no clothes with the right price to zones — exist in complicated seen as an alternative to China more quotas and we shouldn’t our customers.” piles of paperwork and numer- for apparel production. have separate textile negotia- For Helfenbein, the new ous stipulations, but for those Helga Ying, senior director of tions within the TPP because it’s world of analytical sourcing companies willing to lobby for worldwide government affairs not happening in the Doha round goes beyond “chasing the low- their passage and tackle their in- and public policy at Levi Strauss [global trade talks], as well.” est-cost needle” to take into ac- tricacies, the effort could result & Co., said the White House was But free trade agreements count a wide range of factors, in significant savings. touting the deal as a “21st cen- aren’t the only tool importers can which is why he’s not writing off “If you don’t participate in tury” agreement, “but when it use to gain an advantage. China so quickly. the terms of trade now, than comes to market access, I think David Cohen, an attorney at Noting that China’s share you’ll just have to live with what- they are really discussing more Sandler, Travis & Rosenberg of U.S. imports has fallen just ever you end up with later on,” of an archaic yarn-forward rule who specializes in trade, pointed 0.7 percent to 38.3 percent in Helga said Stephen Lamar, executive of origin and we’re hoping to find to free trade zones as “the next the last year, he said, “China’s Ying vice president of the American a way to get more flexibility. With frontier” that allow companies to not falling off the cliff so Apparel & Footwear Association. more flexibility we can all, as an defer duties while holding goods fast. Yo u have to figure out if “People often come to me and apparel industry, become com- in the U.S. as long as their facility you’re going to work in China they sort of complain, ‘How come petitive and with competitive- has received special designation. and why you’re going to work trade policy does this or trade ness we can drive more value to So a brand could go through in China.” policy does that,’ and the answer our customers.” the process and have a distribu- It’s also important to contin- often is, ‘Because you didn’t do Vietnam produces little of its tion center in the U.S. declared ue to do business in China be- anything to affect it.” own cotton, so a yarn-forward a free trade zone. The company cause of its burgeoning consum- Still, Lamar conceded it is requirement for duty free treat- could then ship goods to that fa- er market and the opportunities hard to shape trade policy and ment would make TPP less ben- cility and store them, paying du- it will represent. that even when companies tr y, eficial for apparel producers. ties only when the goods are sent His overall advise: “Keep one they don’t always prevail. U.S. textile interests, however, to their customers. Goods ex- foot in China, stretch your basic One important trade front for prefer a yarn-forward treat- ported to another country would products to endure long lead importers today is the Trans- ment, in part because it would never pay U.S. tariffs. Deferring times (to maintain a cost-quality Pacific Partnership, which help their customers in Central duties helps boost cash flow, balance) and keep your fashion seeks to bring down trade barri- America stay competitive. while also streamlining Customs’ items closer to home.” ers between the U.S., Vietnam, Ying also argued that apparel requirements and fees.

w11a006(7)b.indd 2 10/10/11 5:02 PM 10102011170329 8 WWD TUESDAY, OCTOBER 11, 2011 WWD.COM real estate Hermès in Mumbai is the first street-level luxury store in India. SL Green Adds NYC Properties building at 762 Madison Avenue, a com- By EVAN CLARK mercial building at 44 West 55th Street, a 260-unit multifamily building at 400 THE NATION’S REAL ESTATE woes are East 57th Street, and a 125-unit multi- well documented, but prime retail space family building at 400 East 58th Street. along Manhattan’s Fifth Avenue contin- Stonehenge will manage the residential ues to draw interest. properties acquired in the deal. Witness the joint venture between SL Green has been on a bit of a shop- SL Green Realty Corp. and Stonehenge ping spree. The New York-centric real Hermès Opens in Mumbai Partners that agreed to buy eight retail estate investment trust has made a se- properties and 402 Midtown and Upper ries of investments in retail proper- Xia brand in China, its first experiment East Side residential rental units from ties, including the American Eagle and By MAYU SAINI with launching a separate brand for a the Frankel family for $416 million. Aéropostale flagships in , country, the company has made a bow to The deal, which is expected to close and 747 Madison Avenue. MUMBAI — Hermès last week held the India with the limited edition saris. in the first quarter, includes buildings Outside the often rarified world of formal launch for its first stand-alone store “Today, India is a big challenge for occupied by some A-list fashion names, New York, the U.S. retail real estate in India — and the first street-level store a company like Hermès because of its including Prada and Armani. scene is anemic along with the industry by any luxury brand in the entire country. strength in textiles, ready-to-wear, jewel- A key component of the transaction in general. Most brands open in five-star hotels ry — we are here to learn from this coun- for SL Green is 724 Fifth Avenue, where According to real estate information as well as the two luxury malls, Emporio tr y, which is extremely knowledgeable in Prada occupies 20,700 square feet of re- firm Reis Inc., the third-quarter vacancy in New Delhi and UB City in Bengaluru, these areas and we have to be extremely tail and office space over several floors. rate at neighborhood and community and have long complained that the retail modest,” said Thomas. “In China it was The building is located between 56th shopping centers in 80 metropolitan ambience in India is not ready for luxury. easier in a way — it was a totally differ- Street and 57th Street. markets held steady at 11 percent versus “This is the perfect way for Hermès ent environment, because it was starting “The property enjoys prime position the second quarter. to make its presence in India,” said anew. That’s why the luxury goods in- along the ‘Gold Coast’ of Fifth Avenue — “A mere 812,000 square feet of new Patrick Thomas, the company’s chief dustry is growing so fast in China and so a retail corridor known to achieve some neighborhood and community center executive officer. “It is symbolic of the slowly in India. Plus you have the tariffs of the highest retail rents in the world,” space came online this period, keeping relationship of the brand to India, to be here, we have to cater to that,” he said. said SL Green. the level of new deliveries near all-time Indian in India and to share some ac- Hermès has 22 stores in China but The venture will also pick up inter- low levels,” said Reis senior economist tivities with our customers.” only three in India. ests in 752 Madison Avenue, a four-story Ryan Severino. “Unlike [the] office and The 5,000-square-foot store, which Could the Shang Xia model be rep- retail building completely occupied by apartment [sectors], which are already had a soft opening in July in the midst licated in India? Perhaps in the long Armani under a sublease agreement that recovering, the lack of both demand and of the monsoon season in Mumbai, was run it could work very well, Thomas expires in 2025. supply for new space is emblematic of designed by RDAI, the Parisian archi- said. But after considering another mo- Other components of the deal include a property sector that is still suffering tectural agency. Its stone exterior is ment, he added, “But, you know, in life interests in the mixed-use properties more than two years after the technical embellished with arches and six win- one should never repeat what you have at 19-21 East 65th Street, a five-story end of the recession.” dows positioned atop the Greek me- done somewhere else. For example, we ander frieze patterns characteristic of never repeat public relations opera- Hermès. Spread over two floors, the tions that have worked in one country, store has a series of large connecting but rather always develop a new one.” rooms with the first devoted to accesso- But luxury itself can be defined in ries, a room at the back housing ready- many ways, and Thomas described the to-wear for men and women and an im- two main categories as ostentatious lux- posing stone staircase that leads to an ury and quality luxury. “There is a great art gallery on the second floor. segregation,” he said, “but people are To mark the launch, Hermès created 27 gearing up to get more of high-quality special edition saris made in special silks luxury. They are putting aside the os- and inspired by the firm’s scarf patterns. tentatious, fake luxury which is a name “It is the first time printing has been on a label of a disappointing product.” done over fabric measuring 5.5 meters He is certain that the quality of Hermès [18 feet] long by our ateliers of Lyon. The will pay off in the end, along with the style sari is a very sensual object, particu- it has developed globally. But while style larly in twill silk or mousseline change- is the focus, business is not completely ig- ante, when it reflects the light. It is very nored. “It is hard to talk about exact time feminine and elegant,” said Bertrand frames for India, but I believe that in the Michaud, regional managing director, for next five to 10 years this store [the newly India, Middle East and Southeast Asia. opened Mumbai unit] will make more The saris will also be sold with a than 5 to 10 million euros [$6.7 to $13.9 mil- meter of extra twill silk so that Indian lion at current exchange]. But the figure clients can have tops tailored to their is totally irrelevant. I want this own specifications, as is their custom, or store to be a real showcase for to order a custom-made choli (blouse) at Hermès, he said. the Hermès store. Michaud believes the With emerging markets becoming Indian market will not begin strong players for luxury, Thomas has to mature for at least an- been paying extra attention to China other 10 years and that the and now India, for both of which, investment now will be he said, corporate strategy has to worth the wait. “It is be tailor made. not that you put your “From a product point of view, toes in the Indian Hermès is Parisian — therefore market and then the product range you leave in confu- see here is exactly Special edition sion like some the same as in Paris, saris are being brands have. It or Shanghai or Tokyo. offered for must be a long- But corporate strategy? Of the launch. term commit- course we have to adapt. ment,” he said. First of all, you cannot talk Learning about Indian about Asia in one breath — markets has been a every country is so different. unique experience. “In Yo u have to adapt your dis- the first month when you tribution pattern and also the come to India, it is as if you Where Fashion Lives way to explain Hermès to the can write a book about it. When Desigual needed a showroom and a prime retail shop space, customer is different in every Two months later, you feel they called Crown. country. If you want to surprise you can write an article. Two and seduce a customer in the years later, one cannot write luxury business you have to do a word. It is as if you don’t When iconic brands need bespoke it one to one,” he said. know anything. But I haven’t real estate they call Crown The brand has kept in been about to give up, and the +1.212.292.5575. mind the cultural differences sense of achievement is that www.cacq.com www.crtl.com for its growth in a country. much more,” Michaud ob- While Hermès launched the Shang served wryly.

5406_Crown_Acquisitions_1-4pg_v3.indd 1 10/6/11 4:33 PM SHOPPING JOHN MALKOVICH: The actor has opened a temporary store, named OpificioJm, in WWD STYLE Milan. PAGE 11 MEMO PAD

SEARCHING AMONGST THE STARS: At Condé Nast, now you too can become a movie star! “I think there are a lot of movie and TV stars in this building, to be honest. They haven’t been properly mined,” said Dawn Ostroff, Condé Nast’s first president of entertainment, from 4 Times Square on Monday. “There’s talent in the people who are working in the building and in the articles that are being published in these magazines — and the brands them- selves. There really is so much opportu- nity. It’s really this mine that hasn’t been excavated before.” Ostroff, the former head of the CW and UPN, is in charge of doing that ex- cavating. Then again, Condé Nast has been out there plenty: Vogue had “The September Issue”; André Leon Talley had “America’s Next Top Model”; W had “”; Justin Timberlake starred as a GQ editor in “Friends with Benefits.” The thing is Condé Nast got plenty of exposure but no money. “Which is the big problem,” said Ostroff. “This is all content that Condé Nast should be able to build a library with in some way — even if it’s in part- nership with other companies. The amount of things that have already got- ten done is incredible to me. Yo u look at what has already been accomplished, and on one level, it’s really impressive. On the other hand, how much more is there to be done here?” And what sort of projects will she be looking at? “It could mean films, it could mean documentaries, it could mean television shows, it could mean digital series or digital content, it could be digital channels,” she said. “And it could be across all platforms: Cable channels, cable broadcast networks. It ranges across the board.” Ostroff ’s appointment is the third time in the last year that Condé Nast has hired an executive who didn’t come Belle’s View from a publishing background. The firm hired Joe Simon from Viacom to become chief technology officer last year, and Camilla Belle — in Ralph Lauren — and a host of others Advance Publications hired Andrew Siegel from Yahoo to be its chief M&A guy. in Los Angeles took in the action at the second annual Now Ostroff will have how to adapt to an entirely different culture — not to Veuve Clicquot Polo Classic at Will Rogers State Historic mention that it’s a new sort of job, too. Park on Sunday. For more, see page 10. “What Dawn Ostroff has done in her life is run a network,” said one Condé Nast insider. “She didn’t sell things to a network. It’s like the difference between being a writer for hire and an editor. She’s been an editor. She never had to go hat in hand to networks.” Ostroff played that down. “I’ve sat on all sides of the desk, so I feel equally comfortable whether we’re going to do our own channels in some {Continued on page 11} Dawn Ostroff JEMEL COUNTESS/GETTY IMAGES GIANNONI; OSTROFF BY GIOVANNI

PHOTO BY KATIE JONES PHOTO BY MALKOVICH 10 WWD TUESDAY, OCTOBER 11, 2011 Delfina Blaquier with Nacho The Stable Center Figueras in Ralph Lauren.

EVERY ACTRESS LOVES to play dress up, Jaime King in and several took the opportunity to turn out Jason Wu. in their Sunday finest for the second annual Veuve Clicquot Polo Classic at Will Rogers State Historic Park in Pacific Palisades. The invitation called for guests to come dressed in their “most daring Twenties and Thirties fashions” to match the throwback scene set at the vintage polo field, the last remaining one in Los Angeles, once favored by Rogers as well as Clark Gable, Walt Disney and Spencer Tracy. Co-hosts Nacho Figueras and wife Delfina Blaquier, Rachel Zoe and husband Rodger Berman and Veuve Clicquot U.S. president Vanessa Kay all did their best to comply, as did guests including Ali Larter, Jaime King, Zoe Saldana and Camilla Belle. Larter snagged a vintage Karl Lagerfeld romper from her mother-in- Lauren Conrad law’s closet while Blaquier wore a beaded in Paper Crown. Thirties dress from Decades originally made for a studio star. King and Saldana opted for vintage-inspired Jason Wu while Zoe wore her own design. “My son has already spit up on the dress once and you can’t even tell. Plus, I can always get another one,” Zoe said. Polo newbie Lauren Conrad, with sidekick Lo Bosworth, also took the opportunity to model her own line, Paper Crown. “My driver was like, ‘Shouldn’t you be wearing polka dots?’ and I was like, ‘No, that’s only in ‘Pretty Woman,’” Conrad said. eye Others like Adam Sandler, who showed up in a red T-shirt and shorts, and Sofia Vergara, who wore jeans, apparently didn’t get the memo. After Belle tossed out the first ball (“It’s like throwing a bowling ball,” she said afterwards), the crowd settled in to sip Champagne and watch the game. “I’m really excited to see polo up close because I grew up riding horses,” said Saldana. “I was that kid in the dust with chickens and goats and horses, even peacocks,” she said of her childhood in the Dominican Republic. Others took in the scene underneath the striped VIP tent, which included a performance by Thirties revival band Janet Ali Larter in Klein and Her Parlor Boys, flappers and tap

JONES KATIE vintage Karl dancers. Conrad laughed: “I mean, how often Lagerfeld. do you get to see a tap dancer on a Sunday?” — MARCY MEDINA PHOTOS BY

Michelle Williams Zac Posen and in . Marilyn’s Mirror Coco Rochas A COCKTAIL PARTY for the buzzed about new film “My Week With Marilyn” drew a crowd to the Hudson Hotel ahead of its New York Film Festival debut Sunday night. Harvey Weinstein, Zac Posen, Coco Rochas and Gina Gershon were among the cineastes, but all eyes at the Dior-sponsored fete were on Michelle Williams, whose portrayal of Marilyn Monroe in the film marks arguably the biggest role of her career. “Luckily, I never approached the role thinking about other people’s expectations; only now am I thinking about that,” Williams said. “We all know her from the iconography but what I was after was her soul.” Part of that was unearthing little known tidbits of Monroe’s persona. “The breathy quality that she had in her Paul Dano with voice was a device that she had to cover up a Eddie Redmayne stutter,” Williams explained. in Alexander Both creatures of the theater, Williams’ McQueen. costar Eddie Redmayne and director Simon Curtis chatted about the making of the high- profile film. “The project didn’t land in my lap. I tugged it into my lap,” Curtis said. “It’s been a long campaign to get to this night. It’s what you call a passion project.” Redmayne, who has played smaller parts in big-time Hollywood films, was equally as humble. When asked if he’s ready for stardom and all that it entails, the actor said: “You never really believe that any of that is going STEVE EICHNER to happen.…I love what I do provided I can keep working and continue to do both theater and film, then I’m very happy.” PHOTOS BY — ALEXANDRA STEIGRAD WWD tuesday, october 11, 2011 11 WWD.COM Fashion scoops MeMo pad

WALKING THE LINE: Ralph Rucci will loved being out at the entrance and {Continued from page 9} behind, down 9.7 percent to 233 pages. be front and center Oct. 19, when watching people come in. They looked way shape or form, or if we’re going Elle’s paging fell 8.5 percent to 556 and he is honored with a star on the so fabulous and ready to participate, to have to sell the content to other InStyle was down 5.2 percent to 656. Fashion Walk of Fame. Celebrating as well as dance. They were part of the distributors,” she said. “Although Lucky’s paging continued to slide, down his 30th anniversary in business, the whole excitement of the evening. That we’re going to sell shows and develop 4.5 percent to 294, and Harper’s Bazaar Philadelphia-born designer creates showed in the way they dressed.” projects, there are other facets to this, rounded out the pack, falling 4.1 percent collections under the Chado Ralph particularly in the digital world. Either to 387 pages. Rucci label. In 2002, he became the TAKING INITIATIVE: Cartier hosted a way, I’m equally comfortable.” Meanwhile, in the weekly division, first American designer in more than luncheon in Paris on Monday for the When asked if a Condé Nast editor one clear winner emerged: Bloomberg 60 years to be invited to show in Paris 18 finalists of the Cartier Women’s would have to get her approval to appear Businessweek, which reported a 39 by the French Chambre Syndicale de Initiative Awards, which celebrate their as, say, a judge on a reality TV show, she percent rise in paging to 340. The New la Haute Couture. The late designer fifth anniversary this year. said, “That I don’t know. Honestly, that Yorker’s ad pages increased 4 percent to Donald Brooks will be this year’s other Among those short-listed worldwide hasn’t come up yet. But I would hope that 252. Tina Brown’s Newsweek fell 10 percent Walk of Fame inductee at the Bryant were two companies with links to if you are going to be a judge you’d be to 181 pages, while Time’s ad pages Park Grill event. In his heyday, Brooks, fashion. Source4Style, founded by doing a show we were doing.” declined 4 percent to 288. — AMY WICKS along with Bill Blass and Geoffrey Benita Singh and Summer Rayne Oakes, Inevitably, thorny issues will arise. Beene, were known as “the three Bs is a U.S.-based online platform and Here’s one: What happens when a EBONY’S FASHION LEGACY: Johnson of fashion.” One of the first Americans community for sourcing sustainable, writer has a hit story in Vanity Fair and Publishing Co. will auction off over 700 to design clothes for theater and films, ecological fabrics. “We wanted to turn a movie company comes calling? Who designer gowns and accessories from Brooks earned a Tony nomination and the sourcing market on its head and has the rights? Will there be competition its Ebony Fashion Fair archives on Oct. three Oscar nominations, and won an create a 365-day-a-year trade show between the writers and Condé Nast? 22 at Leslie Hindman Auctioneers in Emmy for his creations for Lee Remick online,” said Oakes. The duo’s year- Ostroff said she would spend the Chicago. The vintage dresses are part in the 1982 television flick “The Letter.” old Web site, source4style.com, will next couple of months meeting with of a collection acquired over a 50-year be relaunched in November with editors and publishers to decide which span by the late Eunice Johnson, who GOING TO THE DOGS: Laurie Anderson will additional features, including a trend projects to pursue immediately. She founded the Ebony Fashion Fair in be doing double duty at next month’s report three times a year. said she will have a staff of people 1958 as a traveling fashion show that Pratt Legends awards. After being U.K.-based accessories brand Elvis working for her — initially about six to eventually raised $55 million for black honored at the dinner and awards & Kresse makes luxury handbags and 10 and it could grow from there. Her charities before it ended its run in 2007. ceremony, the 64-year-old performance accessories from recycled materials first day was Monday. — JOHN KOBLIN The dresses for sale include designs artist, composer and musician will keep such as fire hoses and coffee sacks, from , Yves Saint Laurent, the crowd entertained with a special with 50 percent of profits going to NUMBERS GAME: When second-quarter Claude Montana, Giorgio di Sant’Angelo, performance. (No word yet if her charity. The company works with ad page figures were released earlier Pauline Trigère and Bob Mackie, among singer-songwriter husband, Lou Reed, skilled leather craftspeople who have this year, magazine publishers breathed many others. will join her on stage.) The interior learned how to cut and stitch the tough a small sigh of relief. After five straight “It’s unbelievable what Eunice designer, furniture maker and artist nylon-reinforced rubber hoses. “It was quarters of industrywide improvement, Johnson was able to collect in her Juan Montoya, will also be honored at the like climbing Everest,” said director it seemed publishers were slowly getting lifetime,” said Desirée Rogers, chief event, as will another triple talent — Kresse Wesling. their groove back. executive officer of Johnson Publishing. the artist, filmmaker and photographer The six winners of the awards — Not so fast. “This auction will allow people to buy William Wegman. The latter is best known one for each region — will be revealed Third-quarter figures released a little piece of history — and many of for posing his Weimaraners in various Friday at the seventh edition of the Monday show that ad paging took a turn these dresses are back in fashion now.” costumes and poses. Women’s Forum Global Meeting in for the worse, falling almost 6 percent Last year, Johnson Publishing — Deauville, France. compared to the prior year, according to which owns Ebony and Jet, as well STUDIO 54’S DRESS Publishers Information Bureau. as Fashion Fair Cosmetics — sold CODE: Andy Cohen will DIVING IN: Giorgio Armani is Only a handful of fashion titles bucked its historic headquarters building in help two Studio 54 set to make a splash as the trend, with People StyleWatch up the Chicago Loop, which housed the regulars — doorman the official sponsor of the 48 percent to 331 pages. The dramatic Ebony Fashion Fair dress archives. The Marc Benecke and 15th annual Paris Photo increase can be tied to its July issue, auction will help clear out the inventory Steve Rubell’s festival in November. a first for the magazine. Marie Claire in advance of the company’s move to a assistant Myra The designer, who often posted a 10 percent boost, to 350 pages. new headquarters in the spring. Another Scheer — to unveil bases his collections Vogue and W also had some success, up 7,000 less significant items are available the marquee this and fragrances around almost 4 percent apiece, with 766 pages in a tag sale through Oct. 21, both online afternoon above the “Anna in the theme of water, is and 335 pages, respectively. and at Leslie Hindman Auctioneers. The famed nightclub in the delta putting together an For the rest of the pack, it seems company will retain about 3,400 pieces time for next week’s of the exhibition of the same those typically bigger-than-normal for their permanent archive. one-night-only Maggua,” theme, titled “Acqua.” September issues weren’t enough to A portion of proceeds from the sale opening. Benecke and 1981. salvage the quarter. Glamour, which will be donated to Johnson College Scheer aren’t the only reported that its September issue was Prep, a Chicago charter school named two behind-the-velvet- “Untitled” (Hateruma- the most profitable in its history, fell for Eunice and John H. Johnson, who rope folks being rounded up by jima, Okinawa) from almost 13 percent to 384 pages and founded Johnson Publishing. SiriusXM, which launched Studio the series “The pencil fellow Condé Nast title Allure wasn’t far — DAVID LIPKE 54 Radio this summer. of the sun.” Karin Bacon, who pulled together various parties, vignettes or what Ian Schrager liked to call “hits” — such as a dinner for midgets — has been busy lining up the talent for the Oct. 18 event. She has been poring over Robin Platzer’s old photographs of Halston, Mick For more career opportunities log on to WWDCareers.com. Jagger, Mikhail Baryshnikov and other fashionably turned-out revelers at the West 54th Street club. With ATTENTION CLASSIFIED tsu

A 30 dancers to dress, Bacon and her The show will present various artists

om ADVERTISERS

t costume designer have been digging up from institutions around the world, Spaces pieces designed by Halston and Norma including the International Centre Due to production considera-

homei . (Not to be missed in the crowd, of Photography in New York. Works s Kamali COMMERCIAL tions, the deadline for the clas-

by Island Company, a Florida-based high-

Rubell favored a shiny Kamali sleeping selected include ones by Shomei Tomatsu sified section of the Monday REAL ESTATE end resortwear company is seeking:

ed” bag coat that was purple on one side and Armin Haab. 10/17 issue will be Thursday, PRODUCTION MANAGER w/min 3-5 L and pink on the other, Bacon said.) 10/13 at 12 noon. yrs exp. Responsible for all aspects of

ntit product mgmt including but not limit- u Stephen Burroughs has lent a few keepers JOHN MALKOVICH, SHOPKEEPER: John ed to: design concepts, tech packs, cost Thursday will serve as deadline for negotiation, timelines, PO mgmt, sam- from the times as well. At least one Malkovich is bringing his eclectic touch both Friday and Monday issue. ple development, QC and daily corre- dancer will be sporting a pair of Studio to Milan. The actor has opened a Showrooms & Lofts spondence with factories.

Litteris; “ BWAY 7TH AVE SIDE STREETS TECH DESIGNER - 5+ years in high- 54 jeans that Scheer often wore (no one temporary store, named OpificioJm, Great ’New’ Office Space Avail Thank you for your consideration. end sportswear. Proficient in creating ro p was certain if they were ever actually in the city’s Golden Triangle luxury ADAMS & CO. 212-679-5500 complete tech packs/sketches in excel, Illustrator formats. Men’s, women’s sold in stores.) shopping area. knit and woven tops and bottoms.

chweiz/ Knowledge of patterns, markers, grade s “There were The Preppies, The In addition to his Technobohemian rules, specs and how to apply them. Glams, celebs...but we’re not actually collection, which Malkovich launched These jobs are IN-HOUSE in West Palm

tung Beach, FL. Send resumes and salary F doing look-alikes,” Bacon said of next in 2009 and which includes men’s reqs to [email protected]. week’s event. The one exception will apparel and accessories, OpificioJm be “Rollerina,” a male cross-dressing will carry a range of products, from b/Fotosti roller skater who has OK’d a copycat. pieces of furniture to ultralight wood hAA Given her former job title, it’s no frames and a selection of wines and surprise that Bacon has seen her share Italian food specialties.

AArmin of happenings. But in flipping through The Milan temporary shop, which

by all those Studio 54 photos, even she stays open until Dec. 31, is modeled has been taken aback by how fashion- after the OpificioJm concept store,

photo (800) 423-3314, or email [email protected] A minded club goers were. Bacon said, which Malkovich inaugurated in Prato

Ann “People dressed for these events. I in June 2010.

w11a011a;6.indd 2 10/10/11 7:32 PM 10102011193330 12 WWD tuesday, october 11, 2011 WWD.COM Q&A WWD: What was the essence of your designer strategy at bergdorf ’s? Ira I.N.: We grabbed the ball and promoted the very devil Neimark out of every up-and-coming designer so they became highly recognizable. the association helped elevate Ira Neimark them as well as bergdorf ’s. We overpromoted design- ers since we were the last guy on the block with them. By DaviD Moin barneys had them. saks had them. bloomingdale’s had them, and bendel’s had them. so we had these major “i Must have been a born opportunist,” ira neimark fashion shows by the fountain at the Plaza hotel or the confided over lunch at Patroon in Manhattan. ice skating rink at Rockefeller Center, for , Calvin With the usual twinkle in his eye, neimark was dis- Klein, others. We promoted designers to such a degree cussing ambition, and how his knack for networking they felt they were more important in many cases than early on and being lucky enough to be mentored by retailers. it’s still important to present designer mer- strong merchants contributed to his successful career, chandise in an environment that showcases the ele- taking him from a page boy at bonwit teller to execu- gance and talent. the stores that don’t lose “the magic” tive vice president and general merchandise manager of the fashion business. Designer merchandise has to be at G. Fox and b. altman, and ultimately chairman and presented individually. it’s not to be put on racks to be chief executive officer of bergdorf Goodman. browsed. this happens in certain stores. “i realized at 17 years old that networking was a vital part of success in business. i knew you could not be a WWD: Which designer was the toughest to land at success by isolating yourself, no matter how smart you bergdorf ’s? are. i realized that bill holmes could open doors for I.N.: Yves saint Laurent Rive Gauche. When i went to me. he took me under his wing,” neimark said, refer- my first French couture shows for bergdorf ’s, i was ring to the former president of bonwit teller. tremendously impressed with YsL’ s Russian costumes neimark persevered while several stores he worked couture show. the idea dawned on me, if i could bring for, like altman’s, bonwit’s and YsL’ s couture, also Givenchy’s G. Fox, years later disappeared and Dior’s, to bergdorf ’s for through consolidation. he made a gala French couture fashion his mark propelling bergdorf ’s show, that would be big fashion from a second-rate, dated fash- news. it was. once the fashion ion store, to one of the world’s press picked it up, we were on most luxurious emporiums, a our way. We used the couture as

feat chronicled in his second a selling point, to bring in ready- e book, “the Rise of Fashion and to-wear lines. however, the Rive n Lessons Learned at bergdorf Gauche people initially were Goodman” (Fairchild books), to not interested, since they sold be published oct. 18. the book to saks and bloomingdale’s. it is filled with name-dropping, de- took two more years before they cades of photos of parties and realized that because of our pro- thomas iannacco fashion shows, encounters with moting the YsL couture and all

celebrities, designers and social- the other important lines, they photo by ites, and captures retailing at its should also be at bergdorf ’s. but most romantic, but features less carrying YsL’ s couture helped. cialty of bergdorf ’s can not be duplicated, in my opin- of the daily rigor. neimark also ion. but that doesn’t mean it couldn’t work anyplace provides “lessons learned” from WWD: Who was the most success- else. it just wouldn’t have the magic of 58th street and his experiences, as he did in his ful designer at bergdorf ’s? Fifth avenue. that’s where the gold mine is. first book, “Crossing Fifth avenue I.N.: armani. the business ex- to bergdorf Goodman.” however, ploded. he had what every fash- WWD: how does bergdorf ’s sustain its success? the most important overall lesson ion-conscious woman wanted in I.N.: Yo u have to be able to present the greatest as- neimark conveys in the second the late seventies. sortment of fashion merchandise, have an organiza- book, a more detailed account of Neimark on the cover of Esquire Trade Talk, Nov. 1991. tion that can promote it and a sales force that treats bergdorf ’s evolution, is that re- WWD: Who were your favorite the customer in a manner she expects. a salesperson tailing, a profession generally perceived as more grinding designers to work with? with complete [product] knowledge and taste level is a than compelling, can be a wonderful opportunity. “Retail I.N.: i enjoyed working with [emanuel] ungaro. he was tremendous asset. too often, customers come to stores has everything — excitement, passion, merchandising, modest, easy to do business with. i also had a most en- and never get treated as if they’re entering someone’s advertising, finance, and it can be highly profitable for a joyable business relationship with Calvin Klein. he was home. not being shown merchandise in a professional company and yourself,” he writes. inspirational. We had virtually no Calvin Klein busi- manner is one reason retailers don’t reach their true here, neimark, who turned 90 this year, discusses ness when i arrived at bergdorf ’s. Within three or four sales potential. the good life he led stewarding bergdorf ’s from 1975 to years, our Calvin business equaled that of saks and 1992 and the pivotal designer strategy he devised. bloomingdale’s in Manhattan. We launched Michael WWD: is service the biggest shortfall at retail? Kors in the early eighties. Whenever i saw Michael, I.N.: Yes. the fall of service is part three in the book. WWD: in the book, you said leading bergdorf ’s was like then or 30 years later, he always said to me, “Without ira Financial people targeted selling as an area to reduce living “la dolce vita.” Was it really like that? neimark, i would not be where i am today.” how could expenses. stores and malls are open seven days a week, Ira Neimark: it was very glamorous. Yo u are involved with i not admire a guy like that? with salespeople spread throughout the period and ev- all these society people, but you have to rise to the oc- erything is like a supermarket. a salesperson is hard casion. i appreciated meeting people and recognizing WWD: bergdorf ’s opened a branch store in White Plains, to find. Many large stores spend over $50,000 for a full- talent, sharing their success with ours. Yo u go to europe n.Y., not long before you joined the company. Ye t you page ad in . My recommendation three or four times a year and i flew on the Concorde. i knew from the get-go the branch would fail. eventually is that they spend half the money on a half-page ad and enjoyed all the parties, particularly in europe. however, it was converted to neiman Marcus. Could a bergdorf ’s invest the rest on salespeople. they spend so much on every night after work, i left my briefcase at the door and branch work today? advertising but have such poor coverage on the floor spent as much time with my family as i could. I.N.: i wouldn’t recommend it. the uniqueness and spe- they can’t sell what the ad promotes.

Ferré Owner a No-Show Christian Roth in Deal for Asian Distribution MiLan — the owners of Paris Group, which controls the ChRistian Roth is partnering with Korean- Gianfranco Ferré brand, were a no-show Monday at a meeting based eyewear firm bCD Korea Co. Ltd. to pro- set in Rome by the minister of economic development to request duce and distribute Christian Roth sunglasses and information about the relaunch of the brand, according to an prescription frames throughout asia. industry source. effective this month, the five-year deal in- Paris Group owners abdulkader sankari and his son ahmed cludes the option to renew after 2016. sent their newly appointed lawyer in their stead, an “impo- Christian Roth, which is the first eyewear lite move that disappointed” the minister, said the source. a label to be inducted into the Council of Fashion second meeting is now scheduled to take place in four weeks, Designers of america, will introduce its 2012 col- when Paris Group is expected to provide answers to the min- lection to asian retailers at tokyo’s international “to design a collection with true asian fit for this ister’s questions. optical Fair this week. Late last month, the collec- region is an exciting challenge,” said eric Domège, according to sources, the state-appointed administrators tion was shown at Paris’ silmo trade show. partner at the 27-year-old luxury eyewear firm. who oversaw the sale of Ferré to Dubai-based Paris Group in “Christian Roth has never presented in asia February requested the meeting to question the management of Sunglasses by at its fullest potential. it is our goal to make the firm. Ferré emerged from almost two years of government- Christian Roth. Christian Roth a major player in the asian mar- backed bankruptcy protection, but sources in Milan say the new ket,” added Min suk Kang, bCD owner and chief owners have not invested in the company. it is understood Ferré executive officer. “We believe that the well- could even be put up for sale again, with a new group of inves- grounded and mature artistic sense of the brand tors eyeing the brand, including the Korean e-Land Group and combined with our imagination, expertise in the a pool of investors headed by former Ferré chief executive of- region and the asian taste for luxury will yield ficer enrico Mambelli. successful results.” — LUISA ZARGANI — ALEXANDRA STEIGRAD

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