BEAUTY’S NEXT WAVE MIAMI — Top leaders of the beauty industry next generation of leadership. met at the Mandarin Oriental Hotel here Among the highlights: from May 12 to 14 for the fifth WWD Beauty ● Globalism begins at home with the need for CEO Summit to hammer out the most vexing manufacturers to serve overlooked segments questions facing the business. And the star- of the population. studded lineup of speakers lived up to the ● To regain relevance in all sectors, brands theme of the conference. In particular, must seek to reconnect emotionally with con- William Lauder, soon to be ceo of the Estée sumers. Lauder Cos., and François-Henri Pinault, For more, see comprehensive summit cov- SUMMIT PHOTOS BY JOHN CALABRESE SUMMIT PHOTOS BY chairman of Artémis Group, epitomized the erage, pages 8 to 23. François-Henri Pinault William Lauder WWDWomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • June 4, 2004 • $2.00 Beauty

Three’s Company NEW YORK — On the eve of Monday’s CFDA Awards, as well as Wednesday’s FiFi trophy bash, American designers are stepping out with their other fall collections: fragrances. Front and center is Donna Karan’s new DKNY scent, Be Delicious — an apple for the Big Apple. To the right, Oscar de la Renta’s newest bloom, Rosamor, aimed at a younger, more fetching woman. And to the left, Kenneth Cole is taking aim at the men’s market with Reaction Kenneth Cole, tied to his apparel collection of the same name. For more, see pages 6 and 7. PHOTO BY THOMAS IANNACCONE; STYLED BY BRYN KENNY THOMAS IANNACCONE; STYLED BY PHOTO BY 2 WWD, FRIDAY, JUNE 4, 2004 WWDFRIDAY Sokol Said Heading to Sean John Beauty By Lisa Lockwood women’s division. Earlier, she spent 20 years at GENERAL Calvin Klein, rising to president of Calvin Klein Marks & Spencer rejected an offer potentially worth up to 9 billion pounds, NEW YORK — Susan Sokol is expected to be Collection, a post she held for 11 years. or $16.56 billion, from U.K. retail and real estate tycoon Philip Green. named senior vice president of Sean John Sokol is expected to help Sean John create 2 Women’s, according to industry sources. and build a women’s business. In an interview Neiman Marcus promoted three top merchants, including Ann Stordahl to A Sean John spokesman declined comment last month, Sean “P. Diddy” Combs, president 2 executive vice president for women’s and its New York fashion office. Thursday, while Sokol could not be reached. and ceo of Sean John, said his long-anticipated SUZY: Bruce Willis and David Schwimmer: Back on the scene...A Wales of But sources close to the company said Sokol women’s line would soon become a reality, not- will be responsible for all aspects of the ing a capsule collection would debut at his new 4 a house for Douglas and Zeta-Jones...The Tony Awards brigade. women’s collection, which will be officially store set to open in late August at 41st Street Consumers cast aside worries over record gas prices and a looming launched for fall 2005 selling. and Fifth Avenue here. A full-blown women’s 5 interest rate increase by splurging at high-end stores in May. Most recently, Sokol had her own consulting apparel collection is planned for fall 2005, and firm, SLS Consulting, which represented Badgley Combs expects to show a women’s line during BEAUTY: Donna Karan Cosmetics plans to juice up its DKNY beauty Mischka, Judith Leiber and Michael Kors. Before the February 2005 fashion shows. 6 franchise in October with its new women’s scent called Be Delicious. that, she was president and chief executive offi- Sean John, which this year is expected to Oscar de la Renta espouses on Rosamor, his seventh fragrance, which was cer of Pegasus Apparel Group, prior to which she generate $450 million in retail sales, launched 7 unveiled at the Metropolitan Museum of Art here Wednesday night. was president of Donna Karan International’s its men’s sportswear collection in spring 1999. Coverage of the WWD Beauty CEO Summit appears on pages 8-23. Classified Advertisements...... 27 To e-mail reporters and editors at WWD, the address is [email protected], using the individual’s name. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. M&S Nixes Green’s $16.6B Bid VOLUME 187, NO. 116. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 By Samantha Conti no surprise to institutional share- with Davies, which expires next West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; holders, who said they were dis- year. Indeed, the Davies contract Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior LONDON — Marks & Spencer plc appointed by Green’s proposed is so important to Green that the Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- Thursday rejected an offer poten- offer. “Rose is seen as a man who statement said he would have in- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at tially worth up to 9 billion pounds, can deliver,” said David Cum- creased his cash-per-share offer additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. or $16.56 billion at current ex- ming, head of U.K. equities at to the high end of his proposed POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. change, from U.K. retail and real Standard Life Investments, price range if he found the con- FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR estate tycoon Philip Green. which has a 1.7 percent stake in tract “satisfactory.” DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new Green’s Revival Acquisitions M&S. “Shareholders will back If Rose has his way, that due subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Ltd. said it would offer between him unless a bid comes in signifi- diligence will never be neces- correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, 2.90 pounds and 3.10 pounds, or cantly higher than the one cur- sary. The new ceo reiterated in please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully $5.34 to $5.70, in cash for every rently on offer.” the interview that he did not screened companies that offer products and services that we believe would interest our readers. If you do not want to receive M&S share, plus a 25 percent eq- But analysts had mixed reac- join M&S to sell the business. “I these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. uity stake in a new company to tions, with some believing it was want to concentrate on the im- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED be listed on the London Stock fair and others expecting Green portant things, to go back to MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART Exchange. Six hours later, M&S to come back with a higher bid. Marks & Spencer’s heritage, and WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED said in a statement, “The board The market had been expecting offer quality, value, service and TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE considers that the proposal sig- Green to offer at least 4 pounds, innovation to our customers,” he ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. nificantly undervalues the group or $7.36, a share. said. “I think there is a lot of and its prospects, and therefore M&S shares fell 4.3 percent to residual goodwill on the part of rejects the proposal.” 3.5 pounds, or $6.44, after Green’s M&S customers, and we will A spokeswoman for Green announcement was released on only gain success by giving them In Brief had no comment, and did not say Thursday morning. The shares what they want. The customer if or when he would make anoth- recovered slightly during the day, will be the priority.” er offer. and closed down 2.7 percent at Asked about the fate of Vit- ● LEVI’S TO SHUT SPAIN PLANTS: Levi Strauss & Co. said Meanwhile, M&S’ newly ap- 3.56 pounds, or $6.55, on the torio Radice, head of M&S’ gen- Thursday it will shutter two factories in Spain — the San pointed chief executive, Stuart London Stock Exchange. eral merchandise and home divi- Francisco jeans giant’s last production facilities in Western Rose, talked to WWD on Thurs- On Thursday morning, Revival sions, and Kate Bostock, who was Europe. Levi’s said 453 people are employed in the sewing day about his vision for the store, laid out a series of conditions hired from Asda last month to be plants in the northeastern towns of Bonmati and Olvega. The said he had no preconceived linked to its offer: Green wanted director of women’s wear and is move is part of Levi’s ongoing cost-cutting campaign, in which it ideas about the future of the re- a formal recommendation from due to start work in September, is shifting its reliance on company-owned manufacturing plants tailer’s head of general merchan- the M&S board, and also wanted Rose said, “I have no precon- to outside contractors. Domenico Trizio, senior director of man- dise and home, Vittorio Radice, to see M&S sales figures for the ceived notions for those people, ufacturing operations for Levi Strauss in Europe, said, “We have and said he wasn’t expecting last six weeks and capital expen- and I don’t want to commit to looked long and hard for alternative solutions, but we simply more bidders to come forward. “I diture on such divisions as food, anything right now. I know I have can’t continue to bear manufacturing costs in Spain that are dou- can’t say for sure right now, but home and the Per Una fashion good troops on the ground, and ble those of our other plants in Eastern Europe.” A spokesman these are very big sums we’re line created by the fast-fashion it’s my job to make sure they’re in said Levi’s had no plans to close its plants in Poland, Hungary talking about, and not a lot of designer George Davies. the right formation. It’s also my and Turkey. Levi’s has undergone massive restructuring over the people can raise that kind of The statement said Revival job to put square pegs into last few years as it strives to reduce its $2.16 billion debt and money,” said Rose. wanted to see the details of M&S’ square holes and round pegs into streamline operations. Last September, the company closed its M&S’ swift rebuttal came as five-year contractual relationship round holes.” remaining plants in North America, while shaving some 300 jobs from its European division.

● SWEETER DEAL: Eyewear giant Luxottica has sweetened its bid to buy out Cole National’s shareholders, offering to pay in- terest on the original $22.50 per share price if Cole shareholders Neiman’s Promotes Exec Trio approve the merger on or before an annual meeting scheduled for July 20. Luxottica will pay interest accrued at the rate of 4 By David Moin was serving as Neiman’s senior Joselove was vice president, percent per annum from the date shareholders approve the bid. vice president and gmm for associate gmm for fashion acces- Cole’s board has reiterated its recommendation that sharehold- NEW YORK — Neiman Marcus men’s wear and cosmetics. sories, handbags and intimate ap- ers tender to the Italian company. Cole and Luxottica agreed to a Stores promoted three of its top Neiman’s and Bergdorf ’s are di- parel. He joined the company in merger in January. merchants Thursday, including visions of The Neiman Marcus 1981 and has held various mer- naming Ann Stordahl as execu- Group Inc., which on Wednesday chandising jobs. ● BLING.COM: Fine jeweler Jacob Arabo (Jacob the Jeweler) tive vice president for all women’s reported a 67.4 percent increase Patrick was dmm of men’s launched an online boutique Tuesday to sell his collection of categories and the luxury chain’s in income for the three months sportswear. He joined the com- fine jewelry and accessories. His signature diamond encrusted New York-based fashion office. ended May 1. pany in 1990 and has held mer- dog tags, watches, earrings and rings, which retail from $1,000 to Also, Jonathan Joselove has Stordahl, a 12-year veteran of chandise positions at both Nei- $250,000, are available at jacobthejeweler.com. “More and more, been promoted to senior vice the Dallas-based Neiman Mar- man Marcus Stores and Neiman people have been asking us if they can order Puffy’s pendants president, general merchandise cus, doesn’t change her respon- Marcus Direct, the direct mar- when he’s photographed around the world or the earrings David manager for handbags, shoes, sibilities, but is being rewarded keting division. Beckham is wearing in Vanity Fair this month,” Arabo told fashion accessories, cosmetics for building the women’s cate- Stordahl, Joselove and Patrick WWD. “[The Web site] really gives our customers another con- and fragrances, and Russ gories, including fine apparel report to Karen Katz, president venient outlet” in which to buy jewelry. Arabo is also set to open Patrick was named vice presi- and, more recently, contempo- and ceo of Neiman Marcus a shop on New York’s 57th Street in October. dent, associate gmm for the rary apparel. She joined Nei- Stores. “We are delighted to do men’s categories. man Marcus Stores in 1992 as all of this internally,” said Katz. ● DISNEY TALKING SALE: Children’s Place Retail Stores Inc. The promotions were spurred vice president, divisional mer- “We have a strong bench of peo- said in a statement it is engaged in discussions with the Walt by the company’s continued stel- chandise manager, and was pro- ple to fill these jobs, and that Disney Co. to acquire the media company’s retail operations in lar performance and last month’s moted in 1995 to senior vice helps in terms of the transition. the U.S. and Canada, operating them under a long-term license appointment of James Gold to president, gmm. Earlier, she It moves it quicker.” Katz noted agreement. Children’s Place said the parties have not entered president and chief executive of- held merchandise positions with that the men’s sportswear dmm into any formal agreement or letter of intent. ficer of Bergdorf Goodman. Gold other specialty retailers. slot has yet to be filled. Bye-bye ultra dry.

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©Ori www.origins.com 4 WWD, FRIDAY, JUNE 4, 2004 Willis and Schwimmer: Back on the Scene ● The House Zeta-Jones Built ● The Tony Brigade

Puccini like Justin? It’s too late to ask. ● Do you care that Ethan Hawke still can’t chase the blues away? He misses Uma Thurman so much he can’t even bear to look at her pictures in magazines — and there are a lot of them these days — because it causes him such heartache. But at least they are talking to one another again, mostly about their two little children, as they share custody. Uma is still atwitter over Andre Balazs and he over her. No heartache there. And if they ever need a room, well, Andre owns a hotel almost everywhere. ● I know you know Madonna had a hand in creating a new line of Kabbalah candles, but did you know that Madonna will burn those candles onstage during her shows Catherine Zeta-Jones at Madison Square Garden while singing two songs during what she calls her act’s Kabbalah Moment? AAudraudra Harry Slatkin, who makes McDonald the candles, is the vice chairman of this year’s FiFi Awards on June 9. He also has been nominated in two categories this year: best environmental fragrance and best bath and body fragrance. ● As the stars align at Radio City Music Hall for Suzy the 2004 Tony Awards on By Aileen Mehle Sunday, the question on everyone’s mind isn’t just Even Gwyneth Paltrow thinks there’s who will win, but just always room for improvement, so she’s what will everyone be spending more than $7,000 to have her wearing? Tonya Pinkins, eye® smile perfected. The pretty star will wear starring in “Caroline, or invisible braces 24 hours a day for the next Change,” will be seen by JenniferJennifer AnistonAniston year or so, just popping them out for special occasions. all in a Randi Rahm gown Such as….You fill in the blanks. with a jeweled corset top, ● loaded with high-end gadgets on every a flowing skirt and a Both Bruce Willis and David Schwimmer are back in the available surface and the spa includes a multicolored jacket. dating game again. What a bore. Anyhow, David and the gym, a sauna and a jacuzzi. Swoosie Kurtz has chosen model, Gina Lee, who had been together for the last five Catherine’s parents, Pat and Dai Jones, a classic Marc Bouwer months, broke up when Gina apparently said she just are moving into their own suite of rooms on dress to be worn with

couldn’t see them living together happily ever after and the ground floor and are thrilled they’ll be WIREIMAGE PHOTO BY dazzling Harry Winston bid him bye-bye. He’s unhappy about the split and is trying spending time with their grandchildren in jewels. Donna Murphy, of to woo her back, but she’s saying they can be friends but the nursery on the house’s top floor. The security at the “Wonderful Town,” will look wonderful in her custom- no more hanky and even less panky. As for Willis and his estate is elaborate enough to scare away the most daring made golden gown by Lela Rose. Her co-star, Jennifer 26-year-old “Baywatch” babe, Brooke Burns, who have lurking miscreant with its electric gates, fences, video Westfeldt, also will be wearing a Lela Rose black beaded been inseparable for the last nine months, they insist the cameras and bulletproof windows. Catherine is in Rome vintage Hollywood glam gown with Walter Steiger shoes. decision to call their romance a wrap is both mutual and now shooting a new ad campaign for Elizabeth Arden’s The first vice chairman of the American Theatre Wing, amicable. They blame the breakup on their hectic work Provocative Woman fragrance when she isn’t flitting around Sondra Gilman, will be cool and classic in a Chanel strapless schedules, as well worn an excuse as any. Europe shooting “Ocean’s Twelve.” dove gray silk dress with a jersey top. As for that Bruce headed directly home to Hailey, Idaho, to be with ● marvelous actress Audra McDonald, she will be wearing an his ex-wife, Demi Moore, and their three daughters. It’s Jennifer Aniston’s father, John Aniston, also an actor, never elegant Armani. Who says this three-time Tony winner and where he spent the Memorial Day weekend, performing with thought his daughter could make a bean following in his nominee this year for “A Raisin in the Sun” doesn’t want his band, The Accelerators, at a local nightspot. Oh, Demi’s footsteps. He wanted her to be a doctor so her income would her day in the sun? The Tony trophy girls all will wear boyfriend, Ashton Kutcher, is happily housed in Hailey, as be steady. He changed his mind, of course, when she signed Carmen Marc Valvo. And Hugh Jackman, the host of the well, and the three of them make quite an interesting sight that famous “Friends” contract for $1 million an episode. So evening, will be dressed to the nines in his bespoke Gucci together. As for Brooke, she took off for Hawaii, where her he did what any smart daddy would do: He threw out all of dinner jacket, while Isabel Keating, who plays Judy Garland new TV series, “North Shore,” is in production. So what is those med school prospectuses and now his little girl will in “The Boy From Oz,” will drape a stunning aquamarine she planning to do with the diamond ring Bruce bought her never have a stethoscope sticking out of her ears. dress by Roberto Cavalli over her size 2 figure. last winter in Paris when love was fairly new? As the breakup ● ● is so amicable, why not keep it as a friendship ring? Justin Timberlake wants to be a big movie star — but WB-11 anchors Jim Watkins and Kaity Tong will lead ● don’t they all? He’s taking advice from his girlfriend, the applause at the Metropolitan Club on June 11 when Catherine Zeta-Jones and Michael Douglas are finally Cameron Diaz,and his newfound friends, Kevin Spacey The Knights of York honor Christopher Weldon, the moving into the $4 million estate they’ve been building in and Morgan Freeman, with whom he just finished working executive director of the New York Child Learning Wales for the last two years. The house has a limestone on his first feature film, “Edison,” in Vancouver. So now Institute, for his work helping children. The Knights are exterior derived from quarries in England, a slate roof, Justin has his sights set on the lead in the film version of devoted to children’s causes, including the Make-A-Wish stone pillars and a balcony with a copper roof, which they the hit Broadway rock musical “Rent,” based on the Foundation, which grants wishes to sick children, brought from America and which affords them spectacular Puccini opera “La Bohème,” to be produced and directed including visits from their favorite celebrities, such as Mel views over a beautiful bay. The enormous kitchen is by Chris Columbus of “Harry Potter” movies fame. Would Gibson, Shania Twain, John Travolta and Jennifer Garner. WWD, FRIDAY, JUNE 4, 2004 5 MAY SAME-STORE SALES May ‘04 April ‘04 March ‘04 February ‘04 % Change % Change % Change % Change DEPARTMENT STORES May Comp Sales Flower Bon-Ton 2.6 (4.2) (1.7) 0.4 Dillard’s (5.0) 1.0 3.0 2.0 ers on the women’s side, and collared shirts, wovens and By Ross Tucker Federated 2.9 5.4 6.8 9.0 polos are a continuing force in men’s,” said Wachovia NEW YORK — Consumers cast aside worries over Securities analyst Joseph Teklits in his preview of May Gottschalks (7.6) (0.8) 11.2 2.3 record-high gas prices and a looming interest rate comp results. “Cold and rainy weather last year created Kohl’s 5.0 (4.6)(0.9) 6.6 increase by splurging at high-end department and spe- a comp opportunity this year, but the rains stopped by Marshall Field’s 1.7 0.6 9.9 6.5 cialty stores in May. midmonth last year and we are not seeing any slowing of May Co. (3.8) (8.1) 10.1 2.6 In turn, retailers delivered solid comparable-store the comp trend late in the month this year.” sales for the month. Goldman Sachs analyst Margaret Mager found mark- Mervyn’s (6.5) (6.6) 0.8 1.4 “The momentum continued this month,” said retail down activity had remained low throughout the month Neiman Marcus 8.5 14.0 25.7 24.4 consultant Walter Loeb, president of Loeb Associates, for specialty giant the Gap. Nordstrom 9.4 10.0 15.9 8.8 who credited the continued strong response to new “Multiple store checks indicate that the customer is J.C. Penney (dept. stores) 9.1 5.3 11.4 12.1 color-rich fashions as the driving force behind results. responding favorably to new color and fashion,” said Saks Dept. Store Group 3.1 10.6 1.9 8.0 “For the first time people are happy to buy.” Mager in her report. “As we have noted over the past Nowhere has this trend been more evident in recent several weeks, sale activity remains low in key summer Saks Fifth Ave. Enterprises 19.4 4.3 20.6 25.2 months than in the luxury channel. However, May comp selling categories [such as] shorts, skirts and shirts.” Sears Roebuck (U.S. stores) (3.7) (1.8) 0.1 1.1 results revealed that the spending power of consumers For Aeropostale, women’s knit tops, skirts, shorts, bags, Stage Stores 1.0 0.3 5.5 8.0 has legs across retail. flip-flops and underwear were among the strong sellers. Average: 2.4 1.7 8.0 7.9 The Goldman Sachs Retail Comparable-Store Sales According to the company’s prerecorded sales call, SPECIALTY CHAINS Index gained 5.5 percent in May, up from a 3.9 percent women’s apparel increased in the low-20 percent range increase in April. while men’s apparel increased in the mid-20 percent Abercrombie & Fitch 1.0 0.0 (1.0) 1.0 Of the 50 retailers tracked by WWD, 37 posted com- range. Accessories increased in the high-40 percent region. Aeropostale 27.0 19.3 14.2 26.4 parable-store sales gains while 13 experienced declines. Recent data from the Bureau of Economic Analysis, American Eagle (U.S. stores) 11.4 8.3 7.6 15.2 The specialty store segment maintained its lead for a an agency of the U.S. Department of Commerce, offered Ann Taylor 9.9 9.6 12.0 15.3 second month, with an average comp increase of 5.4 per- further evidence of a consumer with increasing buying Banana Republic 8.0 12.0 25.0 30.0 cent compared with an increase of 4.8 percent in April. power, this despite constant worry and discussion Mass merchants recorded an average comp increase of among retailers and industry experts concerning the Bebe 10.2 10.0 20.5 24.2 Buckle 8.3 8.6 14.2 10.8 Cache 4.0 8.0 12.0 18.0 Cato 4.0 (2.0) (1.0) (2.0) Charming Shoppes 5.0 4.0 4.0 8.0 Chico’s FAS 17.9 16.0 18.9 28.0 Christopher & Banks (6.0) (3.0) (7.0) (7.0) Claire’s 10.0 9.0 10.0 15.0 Deb Shops (2.3) 1.4 (5.2) 12.7 Dress Barn 4.0 6.0 9.0 5.0 Gap (U.S. stores) 11.0 3.0 5.0 6.0 Goody’s Family Clothing 1.3 1.8 0.3 14.4 Guess 14.6 17.5 13.8 14.8 Hot Topic (0.5) 0.7 3.9 7.6 Limited Brands 3.0 2.0 15.0 5.0 Mothers Work (3.0) (0.4) (6.3) 7.8 Old Navy 4.0 3.0 11.0 16.0 Pacific Sunwear 7.8 11.4 12.4 14.1 Talbots 8.1 0.3 1.1 5.8 Victoria’s Secret promoted pink in United Retail (1.0) (3.0) (4.0) 1.0 May, while Gap offered a colorful Walgreen 8.5 10.3 12.6 11.8 PHOTOS BY DAVID TURNER DAVID PHOTOS BY mix of summer tank tops. TURNER DAVID PHOTOS BY Wet Seal (7.8) (16.8) (21.1) (12.5) Wilsons (6.4) (3.5) (2.6) (0.8) 4.4 percent compared with 3.9 percent the previous effects of a hike in interest rates, expected by summer’s month. Luxury retailers carried the day in the depart- end, and the impact of record-high gas prices on con- Average: 5.4 4.8 6.2 10.4 ment store channel, which turned in a 2.4 percent aver- sumer pocketbooks. MASS MERCHANTS age comp increase compared with a 1.7 percent increase According to BEA data, personal income and con- Retail Ventures 1.9 (0.2) 4.1 10.5 in the previous month. sumer spending has steadily been on the rise. Disposable Ross Stores (1.0) 2.0 7.0 0.0 Leading luxury was Saks Fifth Avenue, which posted personal income, defined as aftertax income adjusted for ShopKo 3.2 4.3 5.2 2.0 a 19.4 comp increase. According to the company, the inflation, increased 0.4 percent in April. Since April 2003, strongest performers included women’s American and disposable personal income has advanced 4.3 percent. Stein Mart 11.1 6.7 18.4 7.6 European designer collections and what it refers to as It was a similar story for consumer spending, which Target (discount stores) 5.8 6.2 7.8 8.0 “gold range” apparel. increased 0.2 percent in April and has risen 4.6 percent TJX 5.0 5.0 9.0 10.0 At Nordstrom, comps were driven by double-digit since April 2003. Wal-Mart (discount stores) 4.7 3.6 5.6 6.0 increases in accessories, women’s and children’s shoes, Loeb believes momentum should be able to carry Average: 4.4 3.9 8.2 6.3 junior women’s apparel, men’s wear and intimate apparel. through the summer months and into fall. “We have to In the moderate segment, Kohl’s reported a 5 percent see how strong this demand really is. But I think the Tally: gain for the month. Apparel performed well for the com- back-to-school could be quite strong given that invento- Up 37 36 40 45 pany, led by seasonal goods such as shorts, T-shirts, ries are quite lean and momentum is strong.” Flat 0 1 0 1 tanks and capris. It was a sentiment echoed by SG Cowen analyst Lauren Down 13 13 10 4 For the specialty store segment, the prospect of Levitan in her preview of May comps. “With retailers Total 50 50 50 50 summer sun triggered sales of sandals, shorts, skirts entering the traditional June clearance activities with and swimsuits. likely leaner markdown inventory positions, we expect FIGURES REPRESENT PERCENT CHANGE OF YEAR-OVER-YEAR SAME-STORE SALES. “Flirty skirts and feminine tops continue to be driv- favorable margin trends to continue in the near term.” SOURCE: COMPANY REPORTS. PARENTHESES INDICATE DECLINES.

Campbell Soup Co., and former Securities & sales of $700 million this year, based in part on Exchange Commission chairman Arthur Levitt, better product quality — the biggest challenge now senior advisor at The Carlyle Group. of the turnaround. Drexler’s Turnaround Art Schwarzman, for one, agreed with Drexler Asked about changes in the brand’s customer, that management is the straw that stirs the Drexler noted more Baby Boomers have been NEW YORK — For legendary apparel merchant 1980; Gap, where he arrived in 1983, and now turnaround elixir. shopping the retailer in the 17 months since he Millard Drexler, there’s at least one constant in J. Crew, whose helm he took last January. To be sure, there are signs of strength devel- joined. Previously, he said, “It had been catering the ever-changing world of style: Turning “Ann Taylor was a company with bad goods oping at J. Crew: The fashion brand and Nike to a price-oriented customer and to teens.” J. Crew around a fading fashion label depends first and and managers who didn’t know how to run it; each won the largest share of women asked to rated third most popular among men and women foremost on the people running the business. Gap didn’t have the people to take it beyond name apparel brands they deem important, or 25 ages 35-44 on the Brand Keys’ Fashion Index, “J. Crew was a mess for six or seven years selling Levi’s, and J. Crew was in trouble percent of those polled in the first quarter, for the nabbing a 23 percent share of the cohort, which — and management didn’t run the business despite Emily Woods’ brilliant fashion vision,” third annual Brand Keys Fashion Index. Still, J. placed it in a tie with NFL licensed wear. Only well for 20 years,” declared Drexler, chairman he said, mentioning the company’s founder. Crew saw its losses in 2003 extend to $47 mil- Nike, Reebok and Calvin Klein had a higher share. and chief executive officer of the company, who Drexler spoke of J. Crew’s ongoing reinven- lion, from $41 million a year earlier, as sales slid “Everyone’s an expert in retail, restaurants, was loath to forecast his turnaround effort’s tion in a discussion themed “The Art of the 10 percent to $688 million from $766 million. movies,” Drexler acknowledged. “There are endpoint Thursday. Turnaround,” held by The Week magazine and Drexler was more guarded than in the past times when it’s hard for a company to grow. I “It always comes down to who’s running the The Conference Board. Joining him on the in an interview Thursday, claiming a need to be look at Disney and Viacom and I think, these store,” Drexler insisted, citing his efforts to right breakfast panel at The Four Seasons were circumspect as the company was expected to companies have had great runs, but what are three wayward apparel brands in the course of Stephen A. Schwarzman, ceo of The Blackstone report first-quarter results today. The J. Crew they going to do now?” three decades: Ann Taylor, which he joined in Group; Douglas R. Conant, president and ceo of chief did predict the brand would return to — Valerie Seckler 6 WWD, FRIDAY, JUNE 4, 2004 The Beauty Report DKNY to Launch a Big Apple NEW YORK — Donna Karan Cosmetics plans to add a little extra juice to its DKNY beauty franchise in October. Its newest fragrance, a women’s scent called Be Delicious, is intended to expand the DKNY beauty umbrella’s reach in the U.S. While the DKNY beauty name is strong overseas, its market share is minimal in the U.S., something the designer and her fragrance licensee, the Estée Lauder Cos., would like to rectify.

“Growing the DKNY franchise in the U.S. is a major priority for us right now — TURNER DAVID PHOTO BY and the business has amazing potential,” said Fabrice Weber, president of the Aramis and Designer Fragrances division of Lauder, which oversees Karan’s cosmet- ics business. Weber added that Lauder’s aim is to double the Donna Karan beauty business overall in the next three years by building on awareness of the DKNY um- brella domestically and the Donna Karan umbrella internationally. “With Be Delicious, we know that we have a great proposition in a crowded market,” he said. “We will cut through the clutter with this fragrance.” Although Weber wouldn’t talk numbers, industry sources estimated that Karan’s total beauty business is about $150 million at retail globally. That would mean a three-year target of $250 million to $300 million at retail. The last launch under the DKNY umbrella was an eponymous masterbrand, in 2000. While the duo still sells well overseas, it is in minimal business in the U.S. For her part, Karan believes the new scent will juice up the busi- ness. Like the first masterbrand — which paid homage to New York City through bottles reminiscent of skyscrapers and a New York- themed advertising campaign — Be Delicious also references New York, with a green-tinted bottle reminiscent of an apple, a silver spray- Veronique Gabai- through cap and a label that looks like an apple sticker. Outer packag- ing is of brown kraft paper. Pinsky, Fabrice Weber “We asked ourselves what DKNY symbolizes,” noted Karan, adding that and Carol Russo. the Donna Karan beauty umbrella is intended to be elegant and upscale, while its DKNY sister is designed to be more down-to-earth and urban. The Be Delicious lineup includes eaux de parfum in two sizes, 1.7 oz. “The apple signifies New York — with a season to it, a delicious juice — for $48 and 3.4 oz. for $62; an eau de parfum rollerball, $30 for .23 oz.; a and it pays respect to the city that has been so supportive of DKNY.” 5-oz. body lotion, $36; a 5-oz. shower gel, $30, and a 0.5-oz. lip gloss, $16. Paying Be Delicious an even higher compliment, the designer noted Two additional stockkeeping units will be exclusive to Karan’s stores: a that her late husband, the artist Stephan Weiss, “would have loved” the 3.4-oz. eau de parfum spray packaged in a wooden apple crate, $62, and scent and its bottle. The fragrance bottle design was inspired by an apple a wooden crate of six apple-shaped guest soaps, $35. sculpture made by Weiss that will be donated to New York City. An un- Donna Karan The collection will be launched in the brand’s U.S. network, currently veiling is scheduled for Thursday. Karan and Weiss started the Donna about 1,600 specialty and department store doors, as well as Karan’s stores. Karan Beauty Co. together in 1992, and Weiss designed the iconic bottle While none of the executives would comment on projected sales or ad- for Karan’s best-selling Cashmere Mist fragrance. In 1998, the duo licensed the cosmet- vertising spending, industry sources estimated that the scent would do $30 million to ics business to the Estée Lauder Cos. “I think my husband would have been very $50 million in the U.S. at retail in its first year on counter, with upward of $15 million proud” of the beauty business,” said Karan. “It’s realizing its potential, and that meant to be spent on advertising and promotional efforts. Globally, the fragrance could do $60 a lot to him.” million to $80 million at retail in its first year, sources estimated. Karan was particularly complimentary of Veronique Gabai-Pinsky, the beauty li- A comprehensive advertising campaign will include print and TV, noted Carol censee’s senior vice president and general manager. “She’s bringing energy and pas- Russo, senior vice president of sales and marketing for Aramis and Designer sion to the brand,” Karan said, adding that future plans for her cosmetics line “are Fragrances. Print advertising, which will break in October in fashion, beauty and very exciting.” lifestyle magazines, will run as single pages and double-page spreads. Three differ- For her part, Gabai-Pinsky wants to get the passion of New York across to the fra- ent visuals have been created, which will run simultaneously in different books. TV grance’s target market, 18- to 35-year-olds. “The element of New York was very im- is planned for the fourth quarter, with both 30- and 55-second spots. As well, sam- portant, but it’s not about the landscape, it’s about the emotion,” said Gabai-Pinsky. pling will be a major part of the campaign, with upwards of 50 million scented im- “It’s about freedom, sensuality and passion — we want to invite consumers to take a pressions targeted, including 10 million scented pieces — among them, vials on bite out of life.” cards, deluxe miniatures and apple lollipops. Be Delicious, developed by Karyn Khoury, senior vice president of corporate fra- The fragrance will also be touted at an upcoming citywide display of decorated grance worldwide, in cooperation with Symrise, has a proprietary apple top note fiberglass apples, similar to 2000’s Cow Parade, which placed painted fiberglass that was developed for the company; the top note also includes notes of dewy green cows around Manhattan. A Karan-designed apple will sit outside Lauder’s head- cucumber, sparkling grapefruit and magnolia. The heart is of tuberose, white quarters at the GM Building, with bounceback cards to Bloomingdales’ 59th Street muguet, rose and violet, while the drydown is of sandalwood, tender skin accord, flagship and Karan’s store at 60th and Madison. blond woods and white amber. — Julie Naughton

“The likelihood of hitting the target market is so much and Kenneth Cole boutiques, as well as travel retail doors and A New Reaction From Kenneth Cole more likely that way — if you wait too long, market trends may Canada this fall. The rest of the globe will get the scent about have changed by the time you’re able to get your product out six months later. NEW YORK — Designer Kenneth Cole hopes that the public will there,” noted Cole. While neither Cole nor Timiraos would comment on projected have a strong Reaction to his newest fragrance. The Reaction juice, by Symrise, plays on the strong market sales or advertising spending, industry sources estimated that The scent that will launch Cole’s next fragrance brand, trend for citrus-based men’s scents, but is what Cole calls Reaction would do upward of $25 million at retail in its first year on Reaction for Men, is due in September, and Cole and his beau- “citrus with a twist.” counter in the U.S., and that about $15 million ty team expect it to draw in a new consumer. “It’s light and fresh — which to me means would be spent on advertising and promotion. “The Reaction guy is the me that hasn’t grown up yet,” a citrus scent — but it isn’t predictable,” he Print advertising and sampling will be a joked Cole, who is chairman and chief executive officer of said. The top notes include lime, melon rind major part of the awareness campaign for the Kenneth Cole Productions. “He’s the scooter-riding, never-seri- and green apple; middle notes are of water- scent, said Timiraos. While a few teaser ads are ous guy who goes his own way.” melon and muguet, and the drydown includes expected for September magazines, the bulk of Carlos Timiraos, vice president of marketing for the Kenneth musk, sandalwood and patchouli. the scent’s print advertising will begin appear- Cole beauty license at Coty Beauty U.S. and Lancaster, Cole’s The packaging, a collaborative effort be- ing in October magazines that “target new pro- fragrance licensee, looks at it another way: “The Reaction guy tween Lancaster bottle designer Chad Levigne fessionals, like Cargo and Maxim,” said lives in Willamsburg, Brooklyn, while the Kenneth Cole and Cole, is of heavy glass with lime-green ac- Timiraos. While the advertising is still in devel- Collection guy has graduated to the Upper West Side,” he said. cents. “I wanted a bottle that not only felt opment, both Cole and Timiraos noted that in- The Reaction fragrance launch, which ties into Cole’s lower- good in the hand, but had the look of a clas- dividuality would be a big focus for the visuals. priced apparel line, is seen as a third dimension for the Cole sic,” said Cole. “With the thick glass bottom, More than 30 million scented impres- beauty franchise, along with the Collection and Black scents. curved bottle and a carton that resembles sions, disseminated through scented strips, Like the apparel line, Reaction is intended to be a little edgier brushed metal, I think we’ve succeeded.” blow-ins and vials on cards, are expected, and more urban. Eaux de toilette in two sizes — 1.7 oz. Timiraos added. No matter where he lives, this customer is definitely a little for $39.50 and 3.4 oz. for $49.50 — as well A women’s Reaction juice could be fol- younger than the customer for Cole’s previous two men’s scents as a 3.4 -oz. aftershave splash, $42, and a lowing, said Cole, although he wouldn’t con- — an eponymous fragrance tied to his signature fashion collec- 2.6-oz. deodorant stick, $14, make up the firm when. And the next step for the beauty tion, and one of last fall’s bestsellers, Kenneth Cole Black. collection. The pricing is a notch below Black Kenneth Cole brand, Cole teased, could include adding a “He’s 15 to 25 years old — or feels like he is,” said Cole. and Kenneth Cole Collection — a deliberate little color. Lancaster has done limited-edi- Reaction Kenneth Cole is the second Kenneth Cole men’s fra- move that is designed to mirror the pricing of the apparel, said tion color items for several of its prestige beauty brands, in- grance to be launched since Lancaster’s parent company, Coty, Timiraos, noting that a 3.4-oz. bottle of Kenneth Cole cluding both of the Jennifer Lopez lines, and produced a black purchased Kenneth Cole’s fragrance license from LVMH Moët Collection for Him retails for $55, while 3.4 oz. of Black for mascara for the launch of Cole’s Black for Her in April. “I Hennessy Louis Vuitton in May 2003. The speed to market is Him costs $58. would like to expand to the color business,” said Cole, “but we something about which Cole is enthusiastic, noting that in the past Reaction will be available in Cole’s U.S. fragrance distribu- will do color when color makes sense.” Or scents. his fragrances had been in development for up to 18 months. tion, currently about 2,000 department and specialty stores — J.N. WWD, FRIDAY, JUNE 4, 2004 7 Rosamor: Lucky Seven for de la Renta NEW YORK — Oscar de la Renta has a fore moving into its full U.S. distribution new love interest. of about 1,700 specialty and department “I wanted to create a fragrance that a stores in August. In September, the fra- woman didn’t need — but loves,” said grance will begin rolling out globally. the charming designer with a smile of The first wave will include Canada, Rosamor, his seventh fragrance, which Mexico, Europe and the Caribbean, was unveiled to the press at the while Asia-Pacific and South America Metropolitan Museum of Art here are slated to follow in 2005. Wednesday night. In an exclusive inter- While none of the executives would view with WWD after the event, the de- comment on projected first-year sales or signer elaborated on the inspirations for advertising spending, industry sources his newest creation. estimated that the scent would do about “This fragrance represents very 80 percent of the volume done by the strongly my vision of today’s woman,” classic Oscar, putting the target of the said de la Renta, who will be named to new scent at more than $10 million at re- the Fragrance Foundation’s Hall of Fame tail during the fall season in the U.S. next Wednesday at the organization’s an- alone. An estimated $3 million could be nual FiFi awards. “It has a much spent on advertising and promotion, ac- younger attitude [than my other scents]‚ cording to industry sources. and there is an element of happiness and Print advertising, which breaks in joy [inherent in the scent]. Today’s October fashion, beauty and lifestyle woman is proud of herself, and is going magazines reportedly including Vogue, In out into the workplace looking great. Style and Glamour, was shot by Thomas Fragrance is a part of that package.” LaGrange with art director Mathieu De la Renta also noted that Rosamor Trautmann. The visual is of a woman is the first of his fragrances to evoke a playfully balancing a Rosamor bottle on PHOTO BY STEVE EICHNER PHOTO BY Latin mood. While Rosamor, technically, James Ragsdale, Maggie Ciafardini and Oscar de la Renta at Rosamor’s launch party at the her bare shoulder, an image that the de- is not a word, it is intended to convey a Metropolitan Museum of Art. signer said he believes sums up “the musical, Latin-inspired feeling. And, as youthful energy” of his newest fragrance. the designer, noted, “If you turn it Intrusion, Volupté, So de la Renta and power of the formula is driven by the Ragsdale added, “This customer is around a bit, you get amor rosa — to be now Rosamor currently make up the col- Italian mandarin and tonka bean combo. optimistic, generous — she helps others in love [in Spanish].” lection. Rosamor is expected to quickly The collection includes eaux de toilette to live life to its fullest.” He hesitated James Ragsdale, vice president of rank number two to the brand’s signa- in two sizes: 1.6 oz. for $48 and 3.3 oz. for about assigning an age target to the classic brands for YSL Beauté, the de- ture Oscar scent, noted Ragsdale. $68. A 6.6-oz. bath and shower gel is $30, scent or its advertising, but when signer’s fragrance licensee, added, “The The Rosamor scent, which Ragsdale while a 6.6-oz. body lotion is $35. pressed noted that he believes its key fragrance proves that a scent doesn’t have describes as a “blossoming, woody flo- Rosamor’s soft pink bottle was in- market will be women 30-plus. to be stern and colorless to be luxurious. ral,” was developed by International spired by the Art Deco period, noted Sampling will be a key part of getting [Rosamor] was inspired by one of Oscar’s Flavors and Fragrances, and has top Ragsdale, while its curved fuchsia cap Rosamor’s message out, with upward of overall philosophies — live, love, laugh.” notes of Italian mandarin and pink lily has more modern influences, he said. 20 million scented impressions expected While de la Renta has launched of the valley; a heart of ylang-ylang, gar- The scent has a two-week exclusive in in the first year. They will be disseminat- seven scents since entering the beauty denia, Indian tuberose and rose, and a July at about six key doors for Saks Fifth ed through a variety of vehicles, includ- business in 1977, five are still on the drydown of mysore sandalwood, vanilla Avenue — including New York City, Los ing scented strips, noted Ragsdale. market. The eponymous Oscar, and tonka bean. Ragsdale said the Angeles and several Texas doors — be- — Julie Naughton Combs, Lauder Ice the Wedding Cake a decade ago. He said he’d like his scent to be “a clean smell, like the way you smell when you get out of the shower.” Currently, Combs wears a combination of a few different scents that he’s “perfected over the years.” And no amount of cajoling would get him to fess up the mixture’s recipe. Having made his mark in — some would say conquered — urban music, fashion, indie films and currently Broadway, what could Combs’ next target possibly be? “The power of the vote” he replied with no hesitation. “This might come across as corny, but this is the PHOTO BY JAMIE MCCARTHY/WIREIMAGE PHOTO BY PHOTO BY JAMIE MCCARTHY/WIREIMAGE PHOTO BY most exciting election in history. And who’s going to have the final say? The youth of America, the hip-hop generation of America and the minorities of America.” While he’s not ready to reveal just how he intends to be a lightning rod for young voters, Combs plans to travel across the country this summer to spread his message. — Matthew W. Evans, with contributions from Jane Larkworthy

Leonard Lauder presents a photo momento to Sean “P. Diddy” Combs,Combs, showingshowing hishis victoryvictory whoopwhoop with William Lauder at the license-signing May 20. CLEAR THE WAY NEW YORK — “There’s a lack of smell-good in the men’s arena.” That was the verdict from Sean “P. Diddy” Combs as he celebrated his nuptials with the Estée Lauder Cos. at a luncheon Thursday af- ternoon. As first reported in these columns May 21, Combs tied the knot on a fragrance deal with the CREED FRAGRANCES’ beauty company two weeks ago. “This is a marriage I’ve been waiting for all my life,” Combs told a crowd of 100-plus at LIQUIDATION SALE Manhattan’s Lever House. “In the world of fashion,” Combs remarked, “you’ve made it when you close a fragrance deal. To close a deal of this magnitude with a dynasty like Estée Lauder is beyond a dream come true.” John Demsey, president of MAC Cosmetics, co-hosted the luncheon, along with a Lauder contin- gent — Leonard, William, Aerin and Jane. Lauder’s MAC subsidiary is handling the initial develop- 50% OFF mental stages for a men’s fragrance from Combs, which is slated for a fall 2005 introduction. (CHEAPER THAN THE INTERNET) “This reminds me of a wedding,” Leonard Lauder said of the banquet-like surroundings, “and, in truth, this is a marriage of two great companies and creative forces. Let me introduce you to beauty’s new couple,” he continued, introducing soon-to-be Estée Lauder chief executive officer William 212-228-1732 Lauder and Combs. 9 Bond Street (at Lafayette) Combs called the agreement “historical,” contending that a partnership between an industry stal- 680 Madison Avenue (at 61st) wart such as Lauder and an up-and-coming, five-year-old firm like Combs’ could not have happened 897 Madison Avenue (at 73rd) 8 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT thewwd n beautyext ceo summ w Miami — From globalism to connecting with the consumer, top executives debated the most pressing issues gathering in Mandarin Oriental Hotel here from May 12 to 14. It was WWD’s fifth Beauty CEO Summit

Nicholas Perricone Richard Goldstein, Bernard Lemont, Nicolas Mirzayantz and Robin Burns and Thierry Trotobas. Jean-Paul Agon

Heidi Manheimer Williamilliam Lauder,Lauder, JackJack and Vera Strubi WiWiswallswall and Susan Kronick.

FFrrançois-ançois- Henri Pinault, Eric Thoreux, Daniel Rachmanis and Fabrice Weber.

Leslie Roger Schmid Blodgett and Kathy Cullin

Jeff Leatham Glen Senk John Demsey and Werner Hofmann

Pamela Baxter Bruce Teitelbaum

Rene Joe Campinell, Andrea Plessner Robinson and Edgar Huber. Leslie Faust

Dario Ferrari and Patrick Lynn Emmolo, Bousquet- Michele Daniel Kaner, Betsy Olum Toshio Negami Chavanne Scannavini and Sonia Kashuk. and Bernd Beetz. WWD, FRIDAY, JUNE 4, 2004 9

rising to the challenge

WILLIAM LAUDER ISSUED FOUR CHALLENGES TO THE beauty industry at WWD’s CEO Summit, held at the mit Mandarin Oriental Hotel here from May 12 to 14: to deal with regulatory issues, including labeling; to diversify distribution; to halt launch madness, and to nurture the industry’s entrepreneurial spirit. “This is a phenomenal industry and one that thrives on innovation, creativity, challenge and change,” said Lauder, who is currently chief operating officer of The Estée Lauder Cos. and will become chief executive officer on July 1. “The future is full of opportunities for success and let’s do all of our best to take advantage of it. wave “The days of mixing product in the bathtub and delivering goods on bicycles are over,” added Lauder of the facing the industry during a three-day $87 billion beauty industry, noting that last year alone 9,451 new beauty products were launched globally in more and attracted 250 industry leaders. than 15 different distribution channels. “The stakes are William Lauder high, the opportunities are great — but only if we can tackle the major challenges on the horizon.” Lauder’s first concern: regulatory issues. “The regulatory guns are aimed at us,” he said. Susan Arnold “The FDA is cracking down, and so are many other regulatory bodies around the world.” He Jo Horgan and cited new regulations adopted by Europe, called the Seventh Amendment, which require Joe Horowitz greater public access to information, and added, “The list of new regulations, ingredient bans, tariffs and nontariff barriers is long and growing.” As well, consumer groups, such as safecosmetics.org, are taking aim at the industry. “We must face the facts of greater concern over an activism against the ingredients in our products. Whether from Asia, Europe or California, cosmetics have become a soft target in the minds of legislatures.” Part of the reason for this is that the industry does not employ “nearly the number of people that larger industries do and therefore we wield less clout.” Lauder believes the solution is to “engage more closely with legislatures around the Dan Wieden and world,” and to “spend more time in Washington, Brussels and other major capital cities Marc Pritchard selling policymakers on the importance of our industry and the significant benefits we offer.” Secondly, the industry needs to be smarter about distribution, he said. “People often ask Demi Thoman, Susan me which of our distribution channels I prefer,” he said. “The answer is all of the above. Our McEwen and Herb Kelhofer. goal should be to select the right distribution for the right product for the right consumer. Therefore, we must have a vested interest in supporting an array of consumer outlets.” While he emphasized that he’s a fan of department stores, Lauder also pointed out the importance of developing other channels “to reach new consumers and broaden our total business pie. “We should bring our brands to where our consumer is shopping,” he said. “We sell an aspiration, we sell an image and we sell a desire. That has to be matched with an aspirational shopping environment for the consumer...which must be reinforced in every

Shashi Batra Creativity, combined with risk-taking, has and Dan “ Brestle always been the cornerstone of our business. — William Lauder” element of what the consumer sees in our brand. And we can’t just chase huge volumes, we also have to say what is right for the equity of our brand and how can we continue to enhance that brand equity for the consumer.” As an example, Lauder cited the acquisition of Darphin, a French skin care brand that offers Lauder entrée into independent European pharmacies, a new channel for the company. Another area of opportunity, he said, is travel retail. “And it’s growing even more because now everyone is told if you don’t arrive at the airport two hours beforehand you will not get on your plane,” he said. “Once you pass security, you look at your watch, and you say, ‘I’ve Neil Maggie Christian Courtin got an hour and a half, what the hell am I going to do?’ ” Fiske Ciafardini and Paolo de Cesare Next, Lauder tackled the flood of fragrances introduced each year. “The number of launches in the fragrance category is up from 14 in 1980 to 1982 to 269 between 2000 and 2002. Yet, for the last few years, the total fragrance category is flat at best. We’re overinvesting in launches without giving them a chance to connect with the target consumer.” Citing NPD Beauty, Lauder added that of 125 prestige fragrance launches last year, only one — Estée Lauder’s Beyond Paradise — made it into the top 10. “Yet our investment is all on the side of new launches,” he said. “Flooding the market with product is a form of mutually assured destruction that shortens the life span of good products, impedes our ability to maintain support for the ones we’ve already launched and decreases the already limited time they have to establish market share or even be able to survive.” Flankers, he said, are particularly in need of renovation. While he supports the overall Maria Renz concept, Lauder believes the industry has become too dependent upon them. “Launch Thia Breen, orders are greater than reorders replenishment and we’ve all become addicted to the pipe,” he said. “The retailers have become addicted to the spend that comes along with it to Scott Beattie promote it....At the same time, there’s a question about how much reinvention we need to and Terry continually say to the consumer [to] generate excitement for her to come into the store.” Darland. The answer to launch mania, Lauder believes, is for brands to do their homework up front, making sure that every new launch “fills a meaningful niche with a quality fragrance that offers both excitement and staying power.” Lauder’s final concern dealt with nurturing the entrepreneurial spirit of the industry. “Creativity, combined with risk-taking, has always been the cornerstone of our business,” he said. As an example, he cited his company’s recently formed BeautyBank division. Although he wouldn’t share many details of the division’s first project — a relationship with Kohl’s that will result in major product launches this September — he called the division “an in- house think tank, building new brands for new channels.” He also noted that the new brands will be exclusive to Kohl’s in North America, but will have a wider global distribution. “These are our brands….that will be sold in their stores in a beauty department that we manage,” he said. “We will market these brands overseas when we find the most promising opportunities.” Those overseas markets include India, Russia, China and Eastern Europe, he said, adding that the company plans to introduce “at least one” of these brands overseas within the next two years. Lauder added that the project has been a source of inspiration internally. “[It] has created tremendous excitement across our company,” he said. “Building brands from scratch is something that we haven’t done since Origins was launched 14 years ago, and, frankly, it feels great.” Philip Shearer and — Julie Naughton Timra Carlson Jane Hertzmark-Hudis PHOTOS BY JOHN CALABRESE PHOTOS BY 10 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT conversing with pinault

ALTHOUGH FRANÇOIS-HENRI PINAULT MADE HEADLINES EARLIER THIS position from the company’s founder and his father, François Pinault. Artemis, year when he bade goodbye to Gucci’s dynamic duo — Tom Ford and Domenico De which has a global turnover of $29.3 billion, or 24 billion euros, is the controlling Sole — the chairman of the Artemis Group is still a relative unknown in the beauty shareholder of Pinault-Printemps-Redoute, through which it owns the Gucci industry. That’s set to change, though, after an in-depth, onstage interview with Group, YSL Beauté and the Le Printemps department store chain, among others. WWD’s Pete Born at the Beauty CEO Summit. Here, the highlights of their conversation. The 41-year-old Pinault was named chairman of Artemis last year, assuming the — Jenny B. Fine

PB: Can luxury be learned as a business, or does it have to be lived first? Chantal Roos FHP: If you are able to listen very carefully to the and François- professionals on your team and understand the real Henri Pinault. specifics of the business, then you should be able to have your own vision and you’re part of the business. For me, it’s a matter of state of mind rather than the number of years in the business. PB: Do you think the multiple fashion brand model works or should they be licensed? FHP: I believe in the multibrand strategy. In 1999 when we acquired the Gucci brand, the first thing we did was define the multibrand strategy of the group because that was the main reason for the acquisition. We made a selection of product categories according to their profitability, their growth potential and their life cycle. Then we acquired brands in limited num- bers with no overlapping between them and we built the portfolio of the group. It is very well-balanced. PB: There’s been a lot of talk in the fashion press about the star system. Do you think it’s overrated, and what do you think about the criticism that’s been lev- eled at Gucci about not finding a new star? FHP: Everybody forgets that in 1994, Domenico De Sole and Dawn Mello had the same issue to solve. They chose a young, unknown and very talented guy named Tom Ford. In selecting the new designers for Gucci and YSL, we didn’t set out to look for a star. We set out to look for talent, and I’m convinced that Alessandra Facchinetti, Alfreda Giannini and John Ray for Gucci and Stefano Pilati for YSL have every- thing it takes to become tomorrow’s stars. The star sys- tem is not dead. It’s just regenerating itself. PB: Why did you not keep Mr. De Sole and Mr. Ford on? Were their demands too extravagant? FHP: I won’t comment on the details, but it’s very important to be aware that since 1999, with Serge Weinberg [chief executive officer of PPR], we fully JOHN CALABRESE PHOTO BY supported the Gucci board, the strategy proposed and developed by Domenico De Sole and Tom Ford, so the such a large selling floor an attempt to assert yourself care, we are a little weak. It’s not impossible that in the only reason why they took this decision last October is in the face of the perfumeries? future we will be acquiring a treatment company to en- really only related to the terms of these contracts. FHP: I really believe in high-end department stores large our activities. We have, for the time being, a lot of [that are] specialized in fashion, accessories and beau- priorities to address first, so it’s not for tomorrow. ty....The French market is dominated by the perfumery PB: Yo u’ve been in discussions with Wella lately about There won’t be big chains. Except for a few of them, most are very over- the status of the Gucci license. I know you can’t talk “ loaded by larger number of products and it’s getting about the details, but would you like to get the license acquisitions in the next three more difficult for brands to express themselves and back or would you like to license it to someone else? protect their brand equity. At Le Printemps, it’s not FHP: If it’s possible, yes — but no. We are in the mid- to four years. We have the only having those big brands that are dominating the dle of discussions with Wella about the renewal of the market, but giving them a much more appropriate en- license and the terms of this license. I will make no potential to almost double the vironment to express themselves. We are also propos- comment on that. But I want to stress one thing about ing to the customer niche and exclusive brands. We this license issue because everybody was talking about size of the Gucci Group. have 40 exclusive brands right now and we give them that after Weinberg’s declaration about licensing. ” the means for new expression. You know, when we call it Tom Ford and Domenico — François-Henri Pinault PB: Department stores have traditionally been De Sole without licensing it’s not true. Gucci has li- strong in the U.S. Have you thought about opening a censed for many years — eyewear, fragrance. But the PB: Regarding the buyout, do you think you over- department store here? real model that Domenico implemented was a very paid for the Gucci group? FHP: In the Eighties, Le Printemps had a store in strict control over product development, communica- FHP: Well, you could say $9 billion, but I would pre- Denver, and it’s since been closed. I don’t believe in tion and distribution. That’s the key point. When Serge fer 7.2 billion euros. It’s a very fair price for the Gucci creating a multinational chain of department stores. I talks about licensing it was in a very limited number of Group, when you consider the real growth potential of don’t think it’s viable. The best department stores are cases and very selected products only for emerging the brands inside the group. It’s also very consistent mainly single-country department stores very linked brands, [as a way of leveraging] those brands and with the industry valuation multiple right now, so yes, to the national identity, the culture of the country. keeping development costs under control. But it’s not I would do it over again. PB: In Europe, have you thought about acquiring or new. It’s always the case in the Gucci Group. So I did PB: Where do you think the growth is going to come funding a perfumery chain? not change the strategy. from? FHP: In 1996 or 1997 we competed for the acquisi- Q: Do you think YSL has too many fragrance FHP: For the next three to four years, the potential tion of Sephora, but we were not prepared at that time brands? Do you want to divest any of them? growth inside the Gucci Group will be delivering dou- to pay such an unreasonable price. Now, those busi- FHP: No. Under the YSL Beauté umbrella, we ble-digit growth. There won’t be big acquisitions in the nesses are much bigger and closer to maturity in terms have the YSL brand, which represents a little bit over next three to four years. We have the potential to al- of size and still very, very expensive. So, no acquisition. 60 percent of the turnover. We have what we call the most double the size of the Gucci Group within the PB: On the manufacturing side, you own several classic brands, like Boucheron and Oscar de la Renta. next three to five years. fragrance brands through YSL Beauté, yet right now Then we have the emerging brands [such as Stella PB: After that, would you be open to more acquisi- the hottest category is skin care. Have you given any McCartney and Alexander McQueen]. It will take pa- tions? thought to acquiring a treatment or color cosmetics tience and nurturing to bring those brands to commer- FHP: Yes. It’s a free-cash-flow type of industry, so brand? cial success. They are part of the new generation of we will have the means to make future acquisitions. FHP: With the YSL brand, we have a very strong creators we have in the group and are part of the over- PB: Le Printemps opened what’s been called the makeup brand that has been increasing its market all brand strategy, so stopping the fragrance wouldn’t biggest beauty floor in Europe. Was the creation of share worldwide for three years. When it comes to skin mean anything in that strategy. WWD, FRIDAY, JUNE 4, 2004 11 retailing for the new america

SUSAN KRONICK, VICE CHAIRMAN OF FEDERATED She continued: “There is an untapped potential in vented themselves, Kronick identified three common Department Stores Inc., opened the fifth WWD Beauty what you might call the multiethnic, multihyphen mar- denominators: a willingness to confront massive inter- CEO Summit on May 12 with a speech that set the tone ket, which is really the market of the future.” These nal resistance to change; clarity about the customer of the meeting’s theme: “The Next Wave.” consumers identify themselves by three, four and even lifestyle they are appealing to and knowledge that “rele- Speaking to a record crowd of 250 industry execu- five ethnic heritages. vance demands change. Products need to evolve with tives gathered in the Mandarin Oriental Hotel here for In terms of age demographics, she quoted the chief speed, and speed clearly is not easy when you’re big. But the two-and-a-half-day conference hosted by WWD and economist at Deloitte Research, who recently described it is encouraged in these companies and it is revered.” its parent company, Fairchild Publications, Kronick the new generation of young shoppers as more cultural- Kronick cited some mature brands and products detailed how the ethnic composition and tastes of the ly conservative than their parents and liking depart- that have reinvented themselves. One is Coach, which consumer are changing radically. She called for fresh ment stores more. For consumers aged 18 to 24, depart- went from being a maker of traditional, durable, thick- thinking before tackling the touchy issue of maturity, ment stores are their retail environment of choice. hided handbags with classic standard hardware to a both on the part of retailers and their vendors. But first she delivered the good news: “Our business is strong now because after a very long and very drea- There is an untapped ry winter, color, shape, passion for fashion, flowers, tex- “ ture, femininity, sexiness — it’s all come alive this sea- potential in what you might call son and that attracts all women.” A 31-year veteran of Federated, Kronick has been the multiethnic, multihyphen instrumental in the group’s efforts to reinvent the mod- ern department store. “For me, our most significant chal- market, which is really the lenge is how to reignite our mutually mature businesses,” she said at the beginning of her address. The answer, she market of the future. continued, revolves around addressing three key needs: —” Susan Kronick, “To understand and embrace our ever-changing cus- tomer base; to provide a better shopping experience Federated Department Stores Inc. built around genuinely exciting assortment distinction company that realized that “traditional did not have to and to allow unbridled imagination to break the maturi- mean dowdy and old. ty cycle in our business.” “Another example is Burberry, where Rosemary As for the changing face of the consumer, Kronick Bravo translated Burberry’s staid legacy plaids into new said 30 percent of customers in the U.S. belong to an products like Burberry bikinis and cropped trench- ethnic minority, and by 2050 the Asian and Hispanic Rita Mangan, Susan Kronick and Maggie Ciafardini. coats,” Kronick added. “And although color and styling populations will have tripled. Also in 2050, Anglos will were updated they never dropped their plaid roots. Rain represent only 50 percent of the U.S. population, and Another growing opportunity is the men’s market hats started showing up on celebrities and rap stars and that rate will drop to 40 percent by the century’s end. and, of course, seniors. “For this customer lipstick is not at one point Burberry was included in so many hip-hop That future has already arrived in Miami, where 57 the one must-have,” Kronick said. “It is eyebrow pencil, songs that it ranked eighth on American Bandstand’s list percent of the population is Hispanic, 20 percent African- foundation and concealer. of most mentioned brands in song lyrics.” American and 20 percent Anglo. The resulting opportuni- “Then there is the bull’s-eye of our core customer Kronick noted the scariest resuscitation of all is ties and challenges are clear to Kronick, who had expe- base, the young adult market, the 25- to 54-year-old, and Donald Trump. rienced the new America as head of Federated’s local this market has tremendous buying power,” she added. “Kindly said, here is a leftover icon of Eighties’ greed Burdines division. “You all know that Asian and Hispanic “And this is where we have the most work to do to who has teamed up with the hottest young producer of women spend more money on cosmetics than their coun- reignite their shopping interest in our stores, particu- the hottest new format in TV and has become one of the terparts,” she said. “And that for all women lipstick is the larly in the beauty department.” According to NPD most-watched individuals by young career aspirants on item that they say they won’t go without. But for African- Beauty, 69 percent of beauty shoppers buy products college campuses. Amazingly enough, another old brand American women it is even more of a must-have, with a while shopping for other goods. in a new format that excites a new customer base.” purchase rate at twice the rate of their counterparts.” Intrigued by companies that have successfully rein- — Pete Born

want to be global, you can’t be half global,” he rethinking globalism said. “You have to go for it completely. What we do when we make an acquisition, it’s either a JEAN-PAUL AGON, PRESIDENT AND CHIEF groups — African-American, Hispanic, Asian- brand that can become potentially global, or a executive officer of L’Oréal USA, sees American in this country. But what have we brand that we can merge with the global brand.” globalism as “the most fantastic adventure for really done for them? Then the brand must be distributed in our industry for the next 20 years.” “We believe that in order to convince each of the earth’s 193 countries where it can But it is a journey that will begin in our people to use products, you have to invent possibly be sold, and the approach has to be backyard, he cautioned during his keynote the right product for them,” he continued. tailored to every market. “Even if you play address here, and it will be very different from “It’s more a question of understanding their global, you have to really invest and develop the kind the industry is used to taking. the intelligence of the people in the local Agon began by describing “domestic markets,” Agon said, explaining the same globalism, a kind of a paradox.” He noted: When we make an recipe can’t be applied everywhere. “When we think about globalism, we think “ “For certain categories of products, like usually about these Coca-Cola trucks in China or acquisition, it’s either foundations, the needs and the type of the skin these McDonald’s restaurants in Russia. But, in are very different from one continent to the fact, I think it starts at home.” a brand that can other,” he continued. “Also, you need to have Indeed, by any measure, the beauty people who can tell you how to adjust your industry is found wanting, since entire become potentially marketing mix to the sensitivity of these categories of consumers have been countries. It’s going to be more and more underserved or completely overlooked. He global, or a brand that important to respect the cultural sensitivity of described the men’s market as “an every country.” unexplored planet.” They use shampoo, body we can merge with the Finally, Agon threw his weight behind the wash and fragrance, but not skin care, body L’Oréal mission of providing distinct visions of care, hair color or makeup, “probably global brand. beauty for different cultures. “We want to be because we have not been able yet to invent ” Jean-Paul Agon able to offer to the consumers of the world a the right products or the right compelling — Jean-Paul Agon, L’Oréal USA choice between different visions of beauty,” arguments to convince them.” he said. Another frontier is age-related. “We always needs and inventing the right technology.” Agon added the beauty industry has barely “My strongest conviction is that in order address the same target,” Agon stated, “the 15- These groups comprise two-thirds of the scratched the surface of what he calls true to do this adventure, in order to exploit these to 65-year-olds, to be generous. But what about U.S. population and their shopping habits are geographic globalism. “The potential that we huge opportunities, in order to address this the children? What about the senior people? It’s multifaceted, he said. have in front of us for the next 10 years is new complexity, I think there [is] one final true that the senior people in Europe [and] in “The same consumer — the same lady — absolutely enormous,” he said, pointing out dimension that is very critical and that is the Japan in the next years will represent two times will buy the shampoo in the mass store, hair that “the existing big markets — North diversity of the teams. It’s only by bringing or three times the population of the young color in the drug store, maybe a fragrance and America, Japan, Europe — represent 75 together people from all origins, from targets. So it’s very important. a makeup product in the department store percent of the world cosmetics markets, but different backgrounds, by creating the “These people, you know, 60, 70, 80 and maybe a styling product at the hair salon less than 15 percent of the population. United Nations of Beauty internally that you years-plus, they need specific products,” and skin care at the dispensing Meanwhile, the emerging markets of China, can really address these new challenges and Agon continued. “It’s not only creating nice dermatologist,” continued Agon. “The Russia, India, Brazil and Eastern Europe are be successful. and fancy products. It is responding to their consumer has become global even before us.” very big with an absolutely enormous growth “So it’s the final, and I would say the very specific needs.” So he said at L’Oréal it has become important potential and their populations have a ultimate, dimension of globalism,” he said. He added that the third broad category is to cover all channels with specific brands. “It fantastic appetite for our products.” “It’s what I call being global from within.” ethnic consumers: “We all talk about ethnic gives us a true global expertise,” he said. Agon then passed on three ideas. “If you — P.B. PHOTOS BY JOHN CALABRESE PHOTOS BY 12 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT navigating blurring borders

THERE IS A BLURRING OF THE BEAUTY MARKET- being used in advertisements. place as never before. Susan E. Arnold The demarcations of age are also blurring, con- So dizzying is the rate of change that to keep pace tends Arnold. “What does the old adage, ‘Act your age’ with the game, marketers will have to keep their “eyes mean, in a time when grandmothers sport navel rings wide open” and relentlessly look in all directions. and grandfathers insist on their own shelf of groom- That is the assertion of Susan E. Arnold, vice ing products in the bathroom?” chairman of the global beauty care unit at Procter & She said these shifts all lead back to the principle, Gamble, who spoke at the WWD Beauty CEO Summit “Beauty is about being who you are. It’s that simple. And last month at the Mandarin Oriental Hotel here. yet, it also reveals the blur of inner and outer beauty.” Once, a sharp division between mass and prestige Arnold said that the beauty industry can take cues characterized the beauty market, with prices and prod- from the food industry on meeting diversified tastes of uct messages tailored accordingly. But with demograph- consumers. The standard three square meals a day of ic shifts, changes in shopping patterns and consumers meat, potatoes and vegetables just doesn’t exist any demanding more in product performance, even more more, said Arnold. “Where people eat, when they eat and pressure has been placed on marketers and retailers. what they eat are blurring every day.” Food outlets have What matters most to be successful is understand- ing the beauty consumer and patterning programs accordingly, suggested Arnold. We must take care not to “It will require new ways to understand consumers, “ new business models, new distribution and manufac- flatten the spirit and innovation turing models, new marketing techniques, new oper- ating processes, new organization structures.” that made our acquisitions This call for a near total revamp of the industry is a result of many factors, according to Arnold. For one, as valuable in the first place. distribution channels multiply, “the distinctions ” between them dissolve.” — Susan E. Arnold, Procter & Gamble For one, it blurs the high end and low end. “Usually we acknowledge this blur with the strange ence is searching for a beauty benefit,” she commented. responded with diverse menus and ethnic offerings. term ‘masstige,’” said Arnold. “To me ‘masstige’ isn’t Arnold said because of the convergence of so many “Beauty, too, is impacted by this blurring of distance the answer. What we need is to find new ways to factors, “once unthinkable partnerships have become and standards, and the resulting proliferation of choic- delight and reach consumers.” everyday events.” There is more pressure for creative es,” said Arnold. It is just as common for a woman in Arnold pointed to Commes des Garçon’s guerrilla collaboration, she added. Texas to have an Eastern-inspired hot stone massage, as tactics to grab the attention of consumers. The compa- Demographics are dictating new approaches by a Japanese teenager to adopt an urban American style. ny opens stores and operates them only for a limited marketers. “Along with the rest of the world, the faces of But Arnold cautions the industry must be discern- period of time. “The intention,” according to Arnold, America are blurring.” Citing U.S. Census data, Arnold ing in its contribution to industry blur. While it is cru- “is to stimulate excitement and a sense of discovery.” said there were 63 race categories listed and more than cial to nurture creativity, there “is a risk in any indus- There is also a melding of the doctor’s office and 17 million people “claimed more than one of them.” try being restructured by consolidation,” said Arnold. beauty. “As the level of science increases in our prod- Traditionally, marketers would target niche seg- “We must take care not to flatten the spirit and ucts, the borders with cosmetic medical procedures are ments. But recently, said Arnold, “there have been innovation that made our acquisitions valuable in the being pushed out,” noted Arnold. The food industry is other, more creative, responses.” For instance, differ- first place.” also on the threshold of the beauty market. “A lot of sci- ent models with ethnically ambiguous features are — Laura Klepacki

around the specific desires of an audience.” As a call for leadership well, usage of more personal and customized media is up, particularly Internet usage, which is up in the double digits, he said. “Traditional BEAUTY’S NEXT WAVE OF LEADERSHIP NEEDS TO of a profound respect for consumers and the patterns are breaking down,” he said, noting evolve in key ways to meet the demands of real lives they want to live. Our consumers that “all these are developments are sympto- today’s marketplace, said Bernd Beetz, chief are very much the same. If you are truly matic for an industry trying to find its footing.” executive of Coty Inc. clever you always listen to every word and Further, Beetz believes in creating and These include living and managing true cul- every gesture they have to translate it into managing organizations that “live the brand. tural diversity and creating organizations new products that maximize pleasure and “Consumers aren’t stupid — they can tell emphasizing “living media.” convenience in their lives. And we must the difference between a brand that captures “Leadership styles must evolve to keep pace become attentive listeners. We must offer the essence of a lifestyle and one that’s just with changing times,” said Beetz. “The prob- what they want but in a surprising way.” a pale imitation,” he said. “Collabrative lead- lem is that we often don’t notice when times Beetz gave as an example his firm’s sign- ership requires us to pay homage to the have changed. When that happens, we find our- ing of actress-singer Jennifer Lopez in a authentic, to plunge [headlong] into the life selves leading in a way that’s no longer appro- scent deal two years ago. Although it came at of our consumers…[to] imagine how you can priate for the times.” And that, he noted, is like- a time when celebrity fragrances were out of make that life better or more beautiful. ly at the root cause of some of the problems cur- fashion, her first product was so well- “People today are driven by values,” he received it generated a reported $100 mil- Bernd Beetz explained. “And the traditional sources of lion during its first year. Since then, Beetz values and identity, such as the family and Leadership styles has expanded the Lopez franchise and inked religion, have eroded. Many people, particu- “ a deal with singer Celine Dion. it and not fight it.” larly the young, have begun defining them- must evolve to keep Beetz maintains that to live and manage It is critical to create what he calls “living selves by lifestyles.” true cultural diversity in a global economy, media” organizations. “At Coty, we believe in Beetz noted lifestyles are unpredictable pace with changing culture actually matters more. “The global- brands,” he said. “We believe that brands inter- these days, driven by everything from ethics ization of business means that our products act with and enhance people’s daily lives, and and the environment to social movements. times. are reaching more people and more cultures we are committed to helping consumers realize “In the Nineties, the industry was dominat- ” than ever before, but it doesn’t mean one size and capitalize on the lifestyles that they aspire ed by big, iconic brands that defined luxury and — Bernd Beetz, Coty Inc. fits all,” he said. “As I’ve noted, globalization to. The goal is to develop almost an osmotic style — and consumers identified closely with has told us how daunting it is to market relationship with consumers — one in which those brands,” said Beetz. “At the new decade, rently faced by the beauty industry. across different societies and cultures. But a the value transfer is ongoing and complete.” the market is much different. Consumers partic- Beetz previously oversaw several European collaborative style of leadership demands this Because, Beetz said, traditional media no ularly at 15-to-20 years old aren’t as willing to businesses, including health and beauty care, kind of cultural sensitivity. And for no other longer delivers the kind of audiences it once identify with big brands. For more and more con- for Procter & Gamble’s European market then reason than regional brands still matter.” did, it is necessary to speak to consumers in sumers, notably the younger ones, a brand has headed Parfums Christian Dior before joining Part of the complexity is that brand per- a different way. “Of course we do a certain to be part of something bigger.” Coty. He is now responsible, not only for the ceptions may vary from region to region. Take amount of traditional advertising, but Beetz said in the U.S., for instance, con- Coty mass brand and its Celine Dion, Healing the company’s Davidoff Cool Water scent, for increasingly we are using nontraditional sumers aged under 40 are particularly bullish Garden and Rimmel mass brands, but also instance. In most of Europe, it’s perceived as techniques to reach and relate to our target on Coty’s Kenneth Cole label in part because oversees a wide range of prestige businesses a classic luxury brand; in the U.S., it has audience.” When the company launched of its strong link with humanitarian efforts. — including Marc Jacobs, Kenneth Cole, been embraced by urban youths, and in Glow by JLo, scented strips were packaged in Beetz counseled it is important to Jennifer Lopez, Joop and Davidoff. Japan, it is considered ultraprestigious. her CDs and sampled at clubs. remember that “we are as much in the beau- “[Recent market conditions] clearly call “That’s an example of how today’s mar- Beetz added, “Today’s American con- ty business as we are in the fashion business for a new style of leadership in the beauty kets often define themselves, not the other sumers have more than 165 broadcast and or the field of entertainment.” Therefore, he industry — a style of leadership I call collab- way around,” he said. “We need to be very cable networks to choose from, up from just 14 said taking risks is critical to the success of orative leadership,” said Beetz. “It grows out attentive and understand it, guide it, nourish in 1995. Many of these networks [were built] beauty businesses going forward. PHOTOS BY JOHN CALABRESE PHOTOS BY NEW JUICY TUBES POP ULTRA SHINY COOLING LIP GLOSS

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WWD BEAUTY CEO SUMMIT making a connection

THE SOUL OF BEAUTY IS IN EMOTIONAL and Rio and even the Hamptons. “Nike can be con- branding. tradictory but always very genuine.” That was the premise supported by a panel of Added Wieden, “Nike tries to be something that is marketing and advertising experts, led by Marc S. bigger than just a merchant. They are an activist for Pritchard, president, global cosmetics and retail hair rights of athletes.” One older spot he showed at the colorants at Procter & Gamble, at the WWD Beauty conference featured several girls, each giving a rea- CEO Summit here. son why they should be allowed to play sports. Pritchard said that despite an overwhelming Meanwhile, John Demsey, president, MAC amount of attention paid to selling beauty products, Cosmetics, has raised the emotional quotient of that the category still only represents 5 percent of con- brand by maintaining close relationships with each sumer spending. “And we have all been fighting for store associate. that 5 percent,” he added. “MAC is a brand about fun and self-discovery. A “We need to get back to the brand founded by makeup pro- souls of our brands and expand It feels to me like a fessionals for makeup profes- beauty,” declared Pritchard, sionals. It was more than a Marc S. Pritchard kicking off a discussion that ex- gloss,“ that the brand brand. It was an idea for all plored how brands can recon- ages and sexes. The brand has stars five gay men who do not “make over,” but rather nect with their target audience depth is not that deep. no traditional concept of beau- “make better” one straight man, while eavesdrop- and create a bond that goes be- ” ty and can articulate [every- ping at an art gallery. At the event, he overheard a yond merely satisfying a cus- — Dan Wieden, on beauty advertising one’s] story.” woman berating her husband on his appearance, and tomer with a product that per- Staff is something MAC watched as three men arose from the crowd and sur- forms as expected. heavily invests in, and the staff diversity “reflects the rounded and protected him from her. Pritchard pointed to Starbucks, which imbues its world around us.” The brand is known for color, and Wieden suggested that there was opportunity in customers with feelings of warmth and coziness, and it creates 14 shade statements a year. “MAC may be the beauty industry to break through what he sees as Harley Davidson, which symbolizes the open road the world’s longest-running color story,” quipped its veneer. Generally characterizing the marketplace, and freedom. Demsey. he said, “It feels to me like a gloss, that the brand Panelist Dan Wieden, chief executive officer and MAC has also closely aligned itself with AIDS depth is not that deep. There is more to mine.” To get chief creative officer of advertising agency Wieden & charities. In 10 years it has raised $33 million for the beyond the shallowness, brands could explore “what Kennedy, has worked on the Nike account for 22 cause. Many brands have tried to copy the color and is the transformational quality about. What else is years. He said he knew coming up with a campaign style essence of MAC, but, Demsey said, “You can’t being delivered because of that?” would be challenging when Nike owner Phil Knight knock off a soul.” Pritchard summarized the panel with a list of emo- started off by saying, “Hello. I don’t believe in adver- Demsey added that at MAC the makeup artist is tional bonding techniques to help marketers connect tising.” With that dubious kickoff, Nike ads went on the hero. “I believe that I work for the people at with consumers. The suggestions included: Focus on to reflect that Nike is “jocks producing products for the counter.” one person and establish a relationship with that con- fellow jocks.” And with spots that “ignored all rules Bringing in another perspective was David sumer. Be truthful and establish trust. Be daring of advertising,” said Wieden. Collins, co-founder and principal of Scout enough to reveal yourself so you can connect with So the ads turned into emotional appeals and in- Productions, responsible for the “Queer Eye for the something meaningful. Build the brand inside and spirational scenes. Ads have been known to “make Straight Guy” reality show. Explaining how Scout out. Know the brand’s DNA, yet constantly change to you laugh and cry. Some have even caused boycotts. picks its projects, Collins said, “We were always mo- keep it fresh. Be authentic and have a true voice. But they say something inspirational,” said Wieden. tivated to have some substance behind us.” But in the end, he said, have some fun — it’s makeup! Nike talks to kids from the inner city to Manchester He caught his inspiration for the show, which — Laura Klepacki

a brand in an entirely new way.” The initiative is set to begin in October. But it’s not just the multibillion dollar beauty behemoths that have undertak- innovation iq en the search for innovation, which can be as basic as simplifying a skin care regimen, according to Malin, who pointed to the start-up skin and hair care CALL IT BEAUTY’S NEW ALCHEMY. brand that bears his name. In an era of compressed time frames, when consumers with shortened atten- “The idea was to create a line of skin and hair care products that was for all tion spans are inundated with more options than ever before, a beauty industry skin, all hair types, for either a man or a woman — or, effectively, how a modern dependent on newness must concoct true innovation in order to foster relevant couple would shop for and use products together,” he said of Malin + Goetz. and lasting concepts. “We’ve created this very edited assortment of products and we’ve broken every- So contended Robin Coe-Hutshing, owner of The Studio at Fred Segal, who thing down into performance systems to a central product for face, for body and led a panel called “The Alchemy of Modern Innovation” during WWD’s Beauty for hair. I think this is very innovative because treatment has been so over- CEO Summit here. whelming and you often end up spending thousands of dollars on products that “Alchemy at its core implies the power of transformation,” she said, “taking aren’t necessarily right for you.” base materials and crafting something of value out of them. We For Terker, it’s not about upstart brands but “venerable must expand our definition of innovation beyond the tradition- brands” that had “never realized their potential.” Since the al context of new products and new brands to include brand end of 2001, Cradle Holdings has acquired Erno Laszlo, reinvention, repositioning, the resurrecting of heritage brands Penhaligon’s and L’Artisan Parfumeur. When it comes to in- and the identification of new venues for customer connection.” jecting innovation into brands that have been around, “you’re The panel, whose members discussed the strides they have not only creating a message, you’re counteracting perhaps taken toward innovation, featured Neil Fiske, chief executive of people’s perceptions,” said Terker. “So, in the case of a Limited Brands’ Bath & Body Works division; Jane Terker, presi- Laszlo, everybody’s reaction is, ‘Oh, my mother used to use dent and chief operating officer of Cradle Holdings Inc.; Jo that.’ So we’ve really had to attack it on a lot of different lev- Horgan, owner and managing director of Mecca Cosmetica Ltd.; els.” She noted that two-thirds of the brand’s stockkeeping Matthew Malin, ceo of Malin + Goetz Inc., and Jane Hertzmark units were discontinued and distribution was cut by more Hudis, senior vice president and general manager of the Estée than 50 percent. Lauder Cos.’ Beauty Bank division. For Horgan, one challenge is being innovative with an as- Fiske discussed Bath & Body Works’ current metamorpho- sortment of 24 brands within the four walls of her Mecca sis from a chain of smaller, vertically oriented concepts, to one Cosmetica concept. “We don’t have expanding walls so we that includes larger “flagship” stores, which feature third-party have to be incredibly careful about what we bring in,” she said brands. “It’s really taking the old, sweet farm stand-in-the- of the Australian chain. “I think the key to innovation for us is heartland personality [of BBW] and trying to create a brand much more about the way we connect with our customer.” that truly is a modern apothecary of beauty and well-being.” Robin Coe-Hutshing She gave the example of an event schedule for one of Mecca He contended that the “specialty retail concept in general” Cosmetica’s new locations. The company “chose our favorite 25 has historically had an eight- to 10-year lifespan before needing “major rejuvena- destinations — from Pilates studios to dry cleaners to juice bars; just a mix of things tion and change.” BBW is now 12 years old. “The basic elements of the [BBW] that really has nothing to do with beauty. And we then created a three-month calen- brand composition had to change profoundly. And we were seeing very clearly that dar in the store and we brought [in] these different people to participate in each our very best customers were trading up and were leaving the brand.” Over time, event. So [customers] felt like, ‘Oh, Mecca’s opening a new store, we feel part of that third-party brands could represent 30 to 50 percent of BBW sales, said Fiske. and we feel part of a greater connection than just a stack of beauty products.’ ” Innovative endeavors on the retail floor are also coming from Beauty Bank, “Radical, breakthrough innovation,” contended BBW’s Fiske, “comes from the Lauder division that is creating an exclusive cosmetics department for the outside the category, not from within. Whether it’s Lexus entering the luxury car $10 billion Kohl’s retail chain, where beauty makes up a “very tiny” percentage market, Starbucks entering the coffee market [or Limited] the lingerie business, of the total business, according to Hertzmark Hudis. The department will offer creating this neat little brand called Victoria’s Secret. There is something I be- multiple brands and Beauty Bank will be the category manager. lieve very profound about the notion that outsiders are the ones that bring the “So what is innovative about this?” asked Hertzmark Hudis. “Number one, real innovations to our categories. We see it with the success of the doctor/derm we’re creating a brand-new brand. Number two, we’re going to an entirely new brands out there with beauty, and frankly, we see it across many, many markets.” distribution channel. And number three, we’re working in a group and creating

— Matthew W. Evans JOHN CALABRESE PHOTOS BY © 2004 International Flavors & Fragrances Inc. Nature unveiled. 16 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT looking for retail’sfuture

CREATIVITY IS OFTEN BORN OUT OF NECESSITY. THAT WAS certainly the case for the panelists participating in the session called “The Next Wave of Beauty Retailing” led by MAC Cosmetics president John Demsey. Makeup artist Sonia Kashuk got her idea for her line at Target while promoting a makeup book she had written. “While on tour in Sam’s Club, Wal-Mart and other stores, I found that as a woman I was overwhelmed. I thought there was a need for a tightly edited color line with quality tools at a price point all women could afford,” Kashuk said. She pitched the idea to Target because she knew the retailer was a good match and executives there left her on her own to develop it. “They didn’t see it until it was shipping,” she noted. As she seeks ways to improve the line, she looks for avenues to communicate her own knowledge to women. “Now I have to find out how I can clone 1,600 Sonias and personally greet all my customers,” she said. One solution she is working on is a Web site for the Sonia Kashuk collection. Anthropologie is a retailer that was created to fill a market void for unique products encompassing everything from clothing to home decor. Glen Senk, president of the growing chain, attributes its success to intimately knowing the consumer. “We have a sophisticated customer who travels and drives a BMW. Certain things turn her on or off,” he said. Senk said Anthropologie executives spend hours in John Demsey, Maria Renz, Neil Fiske, Leslie Blodgett, Betsy Olum, Glen Senk and Sonia Kashuk. stores and in focus groups to understand shoppers. “You can learn a lot about your customers hanging out in dressing rooms,” he joked. The right employees relations versus traditional ads,” Olum explained. are crucial at Anthropologie. “We have an intense hiring process and sometimes Leslie Blodgett, chief executive officer of M.D. Formulations and Bare Escentuals, interview people six to eight times,” he said. went beyond guerilla marketing to get her brand off the ground. “Ten years ago we had no Employees are given latitude in stores to find unique ways to serve shoppers. “And money to advertise. I got so stressed I was watching late night TV. I got very friendly with a I don’t even mind a mistake because it means you are taking risks…just don’t make the host on QVC because there aren’t many people to talk to at three in the morning and same one twice.” The passion for consumers is paying off at Anthropologie, which in 10 started buying silver, jewelry, pots and pans,” said Blodgett. She quickly realized that her years has grown from sales of $800,000 to $350 million. Senk hopes beauty will play a cosmetics line would work on TV. It took her nine months to get on air, but when she did, bigger role at the stores. “We do a good job with fashion, we don’t do a good job with her products sold well. “When letters started coming in, I answered each letter personally. beauty. What we sell is mostly soap,” he said, as he encouraged suppliers to seek They would tell 10 friends and the next day I’d have more letters,” she recalled. Anthropologie out. Blodgett retains tight attachments to her consumers and personally answers Sephora was off to a good start when the concept was imported from Paris to the U.S. customer e-mails. She even names products after Bare Escentuals shoppers. The “We started off with good genes and with a unique retail concept that doesn’t pressure products are now sold in specialty stores, salons, Bare Escentuals stores, infomercials clients and lets them shop on their own terms,” said Betsy Olum, senior vice president of and QVC. When a store recently opened in Manhattan, hundreds of already established marketing for Sephora. Sephora has emerged as a breeding ground for small fans lined up to shop. independent brands. The fact that shoppers can always find something new at Sephora Customers are changing and Bath & Body Works is evolving with its clientele, has helped make it a destination for beauty needs. according to Neil Fiske, the chain’s ceo. The $12 billion spa industry is providing fertile Truth be told, however, Sephora was not an overnight smash in the U.S. Olum ground for the retailer and more spa-type services are being experimented with in admitted that the retailer has tinkered with many concepts, including distribution, stores. Another opportunity Fiske sees is in helping remedy insomnia as part of Bath & store growth and employee training. “Retail is detail,” said Olum, adding that Sephora Body Works efforts to provide products for well-being. “If she can’t sleep well at night, had to work out kinks in getting its products to its stores. At one point, 50 stores had that’s a large task for us,” he said. “Part of our premise is to work on the inner beauty opened in 18 months and the infrastructure couldn’t support such lightning growth. and then match that with products for outer beauty.” He said there are few retailers “We slowed down and worked on supply aspects to get it right,” she said. who truly deal in well-being and beauty. Partnerships with suppliers also took on greater importance. “Partnerships, not In just nine years, Amazon has conquered many categories and it now has its sights patronage, is the very heart of our business. We value our small, emerging set on beauty. In May, Amazon launched its beauty store online. Maria Renz, director, suppliers,” she said. category management, health and personal care and beauty for amazon.com, said The new look of Sephora is brighter stores with tighter assortments, Olum said. “And beauty was a natural extension. “We had many best-selling books linked to beauty such we decided to lose the black glove,” she said, a reference to the lone glove associates as ‘The Perricone Prescription,’ ” she said. Her vision is for the beauty site to serve wore. “We found that just putting cast members on stage doesn’t do it. We decided to give Amazon’s 40 million active customers with one place to buy prestige, mass and more attention to education of sales assistants and developed a comprehensive training specialty beauty products. “We want to engage in conversations and get feedback on program,” she said. what they want to purchase,” explained Renz. In health and beauty care, she said Key to Sephora’s growth is integrating all of its retail avenues, including online and Olay’s Regenerist is the best-selling item — more proof of the potential for cosmetics. catalogues. “We also use guerilla marketing tactics such as great editorials and public — Faye Brookman

dermatologist in Germany. grow th seen in aging population Stolzenberg expects a further breakdown of taboos regarding people’s taking “drastic actions” to improve one’s appearance, as well. HARALD STOLZENBERG, CHIEF EXECUTIVE OFFICER AND PRESIDENT been replaced by the obsession with looking young, he said. So “Does that mean that cosmetic surgery is our competitor? No of La Prairie, Juvena and Marlies Möller Worldwide, doesn’t like the it’s not atypical for Asian women to start applying antiaging one in the room, I think, would believe that,” he said, arguing term “antiaging.” products in their early 20s — a point when affluent Russian instead that even the firmest skin continues to age and needs “I sometimes substitute it with ‘pro-youth,’” he told the women often begin Botox injections. the beauty industry’s help in retaining a audience at the 2004 WWD Beauty CEO Summit here. Generally, Stolzenberg believes the beauty youthful appearance. But whatever appellation it goes by, Stolzenberg — who industry has “underplayed prevention in favor Stolzenberg said another key emerging heads the subsidiary owned by Beiersdorf AG — is bullish about of instant gratification.” category will be men’s antiaging products, the category. His company’s studies have shown that although, he added, the industry is still He finds it has enormous potential for size and spending. By skin aging begins at about age 20. “This waiting for its heyday. 2025, about 25 percent of all European women will be older than means the industry has an educational Stolzenberg believes there will be a 65, he said. In a few decades, one-half of the German and Italian obligation to convince women to start early on further proliferation of day spas. “I wouldn’t populations will be older than 50 and will command more than prevention and not wait until there is need for be surprised to see the emergence of 60 percent of their countries’ wealth. repair,” he explained. ‘rejuvenation boutiques’ specializing in a Further, women are living longer — every second girl born Looking ahead, Stolzenberg believes beauty whole range of pro-youth products,” he said. today in Western Europe will reach 100 or beyond, for instance — companies will ramp up their research-and- Overall, Stolzenberg said, crucial to the and therefore will have the possibility of becoming truly long-term development spending to the point at which it success of the beauty industry — and antiage treatment customers, according to Stolzenberg. comprises 10 percent of their sales, rather than Harold particularly its antiaging category — are “Our challenge is to come up with both the products and the the 1 to 2 percent of two decades ago. Stolzenberg exclusivity, credibility and authenticity. messages to appeal to an extremely broad segment of the He also believes there will be an uptick in the On the last point, Stolzenberg explained: population,” he said. “And one [bit of] advice to marketing number of cosmeceutical brands, particularly from doctors. Yet “The cosmetic industry has to think seriously about the downward managers: Forget doing target groups by age groups.” Stolzenberg forecasts: “I think their slice of the skin care pie will cascading effect, which can turn valued brands into cheap That is because their boundaries are blurring. These days, while remain limited.” commodities. Women know the difference between a deliverable people grow older, their mind-sets become younger, he said. Regardless, his company will enter the segment “with a promise and exaggerated claims. And there are cultural differences on a country-by-country completely new line soon.” While he wouldn’t divulge many “We cannot afford a single wrinkle,” he concluded. basis, too. Take Asia, where the veneration of older people has specifics, he did say it will be a product collection created with a — Jennifer Weil PHOTOS BY JOHN CALABRESE PHOTOS BY

18 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT specialty retailing’s bright future

SPECIALTY RETAIL CONTINUES TO BE A channels — in your stores, on your Web sites and bright spot on the beauty retail scene, and Robin in your catalogues.” She pointed out that Burns, president and chief executive officer of “product assortment and pricing are key Intimate Beauty Corp., Victoria’s Secret Beauty elements of your brand and your brand equity,” and Aura Science, offered her take on its benefits, and that “this holds true for both your private challenges and future. label brands and any third-party brand or “There are a lot of changes taking place across products that you bring into your store.” our industry, but I continue to believe that Another key challenge is centered on the store specialty retail supplies a very unique op- itself. “It must be highly visible with a lot of foot portunity,” said Burns. traffic, in a great location and the physical She noted that specialty retail continues to be environment must support the brand’s position,” the fastest-growing channel of distribution in the said Burns. “Otherwise, it’s a disconnect for her.” beauty industry in the U.S., going from sales of $2.3 Burns believes that “specialty retail is really billion in 1997 to $3.6 billion in 2003, which going to shake this industry up in a very big way. represents a compounded annual rate of 8 You’ll see a lot more players getting into specialty percent, versus 5 percent for the beauty market retail.” Some may be existing manufacturers, overall. “Today, specialty retail represents while others could be completely new brands. approximately 11 percent of the beauty market, “But only a few will gain a real foothold, in my but bear in mind up until about 15 years ago, it opinion,” said Burns. “Similar to how prestige wasn’t even a part of the beauty landscape.” She manufacturers gobbled up makeup artist brands also pointed out that 32 percent of bath and body in the Nineties, I think some of the smaller players products and 20 percent of fragrances are in the channel will be consumed.” purchased in the specialty channel. Burns predicted there will be significant “From the competitive perspective, the changes to the dynamics of the industry overall. Robin Burns specialty retail landscape has changed dramatic- “You will begin to see many strategic alliances ally in the last 10 or even the last five years,” said very unique in specialty retail.” She suggested Burns, and followed this by highlighting players such as Bath & Body Works, Victoria’s that “mass and prestige manufacturers who want to access another channel of Secret Beauty, Ulta, Origins, Sephora, MAC, Pure Beauty and a “number of beauty distribution may develop unique products for specialty retailers. It’s not hard to brands who are approaching specialty retail in a more cautious way,” such as Kiehl’s, imagine companies like Procter & Gamble or L’Oréal partnering with specialty Face Stockholm and Fresh. retailers in order to further leverage the investments they’ve made on technology, Next, Burns presented what she believes to be “some fundamental advantages for whether it be product or package technology.” both the consumer and retailer in the specialty retail format.” For the customer, Burns also said that “vertically integrated retailers will continue to seek unique specialty retailers can create an emotional connection and deliver a consistent and third-party brands to sell in their stores to supplement the overall product assortment.” superior experience, she said. “Not only do you have to deliver the experience, but She continued that, as specialty retailers begin to look outside for innovation, “they’ll you’ve got to deliver it consistently over time so that she believes in you.” It’s also give small, independent brands the stage on which to shine. We’ll be an attractive important “to offer the customer a very focused assortment and consistent value across channel of distribution for those innovators.” a wide range of price points.” The format enables the retailer to “focus on the customer Anticipated technological advances in traffic counters and assortment planning and have tremendous flexibility,” as well as provide “very attractive margins relative to tools, said Burns, “will help specialty retailers at managing their business faster and other retailers and manufacturers.” more efficiently.” One challenge of vertical retailing, noted Burns, is the need to develop a Optimistic for the future, Burns summed up: “I believe that specialty retailers are database to capture the consumer’s information, “which is imperative to build a poised for even more significant growth than we’ve ever seen in the past, and we truly very intimate relationship with your consumers.” Another is to clearly define the continue to be a significant player in the next wave of beauty.” brand’s positioning. “All of the elements have to be aligned and consistent across all —Kristin Finn

Kip Tindell, Melissa Reiff a world inside a box and David Collins.

EVEN A TRASH CAN, WHEN SOLD PROPERLY, CAN MAKE customer dance continues when they open their newly consumers smile. organized closets “And then they invite their friends over to That’s according to Kip Tindell, chief executive officer, show closets and they do the dance and come to the store president and co-founder of The Container Store. Tindell for their closets,” he said. “We want customers to do that shared his chain’s philosophy on successfully selling unique dance and marvel at their organized closets.” products with “astonishing” service. The Container Store has achieved elevated customer By marketing 10,000 stockkeeping units of trash cans, service by hiring only quality people, said Tindell. Employees bobby pin organizers, closet installations and other storage are paid 50 percent above typical retail rates and receive merchandise in a high-service environment, The Container 241 hours of training. “The retail industry average is eight Store is approaching sales of $400 million a year. Tindell hours,” he added. “We’re wild-eyed fanatics when it comes said the chain restricts its growth plans to 20 to 25 percent to training.” per year. “When you try to grow faster than that you get that The net result has been lower than 10 percent turnover RPM needle up into the red and you get away from all those and the chain being named in Fortune Magazine’s Top 100 things that got you there in the first place,” he said, Places to work for the fifth year in a row. Communication is referring to how important attention to detail is at The critical to establishing a good work culture and Tindell said Container Store. The total store experience is part of that. he shares information on everything from sales projections PHOTOS JOHN CALABRESE BY “When a trash can employee helps you find exactly the right trash solution, you become proud of your trash can,” Tindell told the audience that chuckled frequently with You have to provide more than a great product and we’ve Tindell’s deadpan delivery. “And then you show it off to your “ sister-in-law and neighbor. Sometimes you even smile at it. challenged ourselves to have that perfect retail experience. That’s what we call doing the customer dance.” ” The Container Store strives to provide products that — Kip Tindell, The Container Store transcend value. People will feel better about paying more if that product pleases them and has lasting power. The to real estate development plans. Merchandise that is different from the competition as challenge is to sell products that are different from those of Existing employees are encouraged to find other quality well as the exemplary service are two reasons consumers the countless mass market competitors, he added. “For us people to join The Container Store. “We find our best employees continue to return to The Container Store. He singled out there is no reason to exist unless we don’t sell the same are our customers,” he added. Tindell said excellent service is a the success of the recently opened Manhattan store. “I can’t product as the mass merchants. There’s more competition profit strategy because it results in fewer lost customers, think of a better market for our store — people with little for that wallet share,” he said. “You have to provide more insulation from price sensitivity and happy shoppers. time and little space,” he said. than a great product and we’ve challenged ourselves to have The Container Store leaves no nuances overlooked. “We There is a synergy between the beauty industry and his that perfect retail experience.” don’t pop popcorn in the back because of the smell. We chain and many of the principles that have worked in his The product selection and the high level of customer even make sure we have the right soap in the bathrooms. business translate into beauty, said Tindell. “The Container service help make consumers “dance” with delight at The Everything matters — the big things and the little things,” Store has grown in part by helping consumers organize their Container Store. According to Tindell, who co-founded the he said. Free planning for pantries, closets and homes is beauty products. I like to say we are a little part of the chain with an initial $35,000 investment in 1978, standard procedure at the chain. “We’re giving consumers beauty industry, which is more glamorous than a part of the consumers develop an emotional tie to the retailer that more time back by helping them get their lives organized,” housewares industry,” Tindell quipped. exists even when they get the merchandise home. The he noted. — Faye Brookman EXPLORE ONE OF AKIND

CREATIVE STUDIOS 40 WEST 57 STREETNEW YORK 46 AVENUE KLEBERPARIS 20 WWD, FRIDAY, JUNE 4, 2004

WWD BEAUTY CEO SUMMIT bringing consumer thinking to beaut y

AFTER 22 YEARS AT COCA-COLA, REVLON’S by adding a pop-up mirror to a compact. “Think of it campaign is also designed to tap into the emotional president and chief executive officer knows a thing as a one-handed compact,” he said, adding it is per- benefits that beauty offers,” he said. “We’re trying to or two about brand building. He’s translating that fect for touch-ups on the go. get people inside the brand. What expertise into cultivating an even more powerful Stahl used icons outside of the women have told us in our re- platform for Revlon. beauty industry to illustrate the search is that this is a category that According to Jack Stahl, who joined Revlon two pillars of branding. To build a helps them feel better. It is an emo- years ago, there are building blocks to create the great beauty brand, messages tional category.” framework for cultivating a brand, especially a must be right for each user group. Stahl believes all its marketing beauty logo. One of the most important pillars is Coca-Cola, for example, is about efforts must encompass what he comprehending the shopper. quenching thirst and its logo has calls the 360-degree approach. “There are different ways of looking at the con- tiny bubbles on the label to con- This strategy mandates that all sumer that don’t necessarily deal with age,” said vey that message. The simple blue Revlon activities, from the beauty Stahl. He identified five types of women ranging from Tiffany box is equated with quali- wall to advertising, need to be syn- very minimal purchasers to heavy users. Obviously, ty, as is the Mercedes-Benz logo. ergistic. “By doing so, you get 10 Revlon sees great growth potential in the heavier- There is also purchase imagery times the impact for every market- user groups. These segments are also determined by and how consumers perceive the ing dollar,” he added. In a ques- what state women are at in their lives. Just after the environment of a brand. His ex- tion-and-answer session, Stahl birth of a baby, for example, usage falls off. With ample here is Starbucks, which said Revlon would further inte- aging, many women start rediscovering beauty aids. creates a positive social environ- grate its message in stepped up Building more opportunities for use is another ment for patrons. Another instance sampling and categories where pillar of brand building. Borrowing from the soft is Victoria’s Secret. “You are en- Revlon has been weak. drink industry, Stahl encouraged the beauty busi- gulfed in color when you enter the Seeing Revlon as a great fran- ness to look for usage opportunities based on daily store,” Stahl said. Jack Stahl chise that has been ignored, Stahl habits. At Coke, for example, a bottle was developed A brand must tap into emotion- and his team promise to reinvigo- that fits into cup holders of cars for consumption al benefits. Revlon’s own ColorStay long-lasting lip rate the brand while also helping ignite the mass mar- while commuting. Revlon has made what Stahl color was an example. It served an emotional need ket beauty business. called a “baby step” in aiding beauty opportunities women had about lip color. “Our new advertising — Faye Brookman cvs blazes beaut y path feeling good,lookinggood

KEEPING COMPETITIVE AMONG THE SEA OF build its beauty foundation. THE PATH TO REAL BEAUTY IS They are motivated. They have the chain drugstores in the U.S. has been a hard Last year’s successful introduction of through good health, according to financial means and they expect to feat for several of mass retail’s leading names. Lumene, a 30-year-old prestigious European dermatologist Nicholas Perricone. get what they want.” Eckerd Drug Stores, for example, is to be brand that’s sold in more than 30 countries, When asked recently for his defi- Perricone sees an entirely differ- divided up and purchased by CVS and Brooks has done so well in the bath and body nition of beauty, Perricone explain- ent future in skin care, where infor- drugstore chains, after years of rumors of an category in all of CVS’ 4,000 stores that now ed, “I’ve never seen beautiful, radi- mation is the key to earning con- IPO and a spin-off from parent J.C. Penney Co. the chain is rolling out skin care and color ant skin on a patient who isn’t sumer trust and respect. “We are One of Eckerd’s pending new owners, cosmetics to more than 2,200 CVS doors. healthy.” talking about information making a CVS, stands to acquire Lumene, Mahoney explain- Speaking at the WWD Beauty CEO difference in people’s lives. We as 1,260 Eckerd units, placing ed, fills gaps in specialty, Summit last month at the Mandarin beauty experts really have to address the Woonsocket, R.I.-based high-quality products in Oriental Hotel here, the author and that beauty comes from the inside retailer in the number one CVS’ assortment. creator of a signature skin care and out. I think the consumer knows this position in both store count, “We embrace the nutritionals line, stressed that a good and I think we all know this.” 5,400, and sales, $33 concept of limited diet and sufficient sleep are require- Perricone said that, along with billion, for drugstores. distribution within our chain ments for good health, which will shelves of his skin care products at While beauty usually by targeting rollout to meet lead to increased radiance and bet- retailers such as Nordstrom and only generates between 5 specific demographics and ter skin tone. Saks, there are packages of vita- to 10 percent of a consumer demand. And, as Perricone has long promoted an mins. “Those packages of vitamins drugstore’s annual sales, we add brands, it is anti-inflammatory diet, for he asso- represented 24 percent of my com- the category is a extremely important that we ciates tissue inflammation with pany’s revenue last year, up from 14 competitive one in terms supply a level of aging. “A good diet and a good percent the year before.” of drawing new customers differentiation from the night’s sleep can do more for you He said what could crush the and building loyalty other brands we carry,” than any skin care product that has economy in this country is the among the regulars. Cheryl Mahoney said. been invented thus far,” he stress- health care burden. According to Cheryl Mahoney Another initiative under ed. “We need to understand this “The future really is preventive Mahoney, CVS’ vice way is CVS’ Healthy Skin and we need to give good informa- medicine. The future is health and president of beauty, a lack of differentiation Care Centers, which feature specialty skin tion to consumers.” beauty and they are going to merge,” among major drugstore chains has led to care brands. Two key European brands, Perricone launched his own predicts Perricone. consumers visiting the most convenient Vichy and Avène, in addition to Lumene, are skin care brand employing scien- He said the research and devel- store on the corner, rather than one that part of this. Trained advisers are available for tific patents he received through opment at large skin care corpora- truly stands out. skin care consultations within the centers, his research at Yale. It wasn’t his tions “rivals and exceeds most “We know that the market is overcrowded and they also offer skin care analysis and intent to become a manufacturer major universities.” Perricone chal- with me-too brands. We know that she [the product samples. It is being rolled out to of skin care products, but he said lenged that beauty care companies consumer] is bored with her choices and she is approximately 100 stores. he had gone to all the major skin tend to suppress the knowledge that voting with her wallet. Department stores and CVS is also tapping Boots, the U.K.’s care companies and “absolutely they have. Knowledge exists, he food, drug and mass retailers are losing leading beauty retailer, for its best beauty nobody was interested.” suggests, that could be used to edu- significant dollars to alternative outlets,” brands. In addition to distribution in cate consumers on reducing health Mahoney said. “Seventy cents out of every “Boots has a premium positioning, specialty and department stores, risks and age-related diseases. “If cosmetics dollar and 80 cents out of every skin added value, and it provides a synergistic Perricone is opening his first we take this information and give it care dollar is spent outside department stores,” bridge between health care, wellness and store on Manhattan’s Madison Ave- to the consumer, we are going to Mahoney continued. “Specialty and direct beauty with a ‘Look Good, Feel Good’ brand nue this year, which will be a teach them how to take care of marketing [outlets] are gaining share at the positioning,” said Mahoney of the store- “center of information. It will be themselves.” expense of department stores and drugstores.” within-a-store displays, which feature well-lit like a library.” However, these actions are not So what is CVS doing in its beauty areas. There are currently 12 presentations In the old business model, claims purely “altruistic,” added Perri- department to close the gap on the in the Connecticut area, which offer Perricone, researchers and marketers cone. “Certainly, we want to see peo- competition, as well as to drive interest in its products from more than eight Boots would get together and “dream” up ple stay healthy, we want to be a part stores? subbrands across skin, cosmetics, hair and products. Then marketing would go of that. But it provides a whole new In part, CVS’ strategy has been to em- bath and body. The newest presentations and create a need in the consumer for revenue base.” phasize skin care within the beauty feature 16 to 24 feet of open-sell fixtures that product. “Now we have Baby The future “is all about infor- assortment, with a particular focus on with glass shelving and a table to encourage Boomers who say, ‘This is what I need mation,” said Perricone. “We are bringing in new products, while also browsing. Trained beauty advisers, testers, and you have to make a product to ful- going to change the way we do maintaining tried-and-true brands. An easy- samples, brochures and shelf signage have fill my needs.’” business in this country and we to-shop, pleasant environment, with been included to educate consumers about That generation, according to are going to change the health of carefully selected proprietary and limited the Boots brand and products. Perricone, is filled with “informa- this country.” distribution brands is how CVS intends to — Andrea Nagel tion junkies. They are educated. — Laura Klepacki PHOTOS BY JOHN CALABRESE PHOTOS BY We salute our sponsor partners. Thank You!

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WWD BEAUTY CEO SUMMIT aroadmap for entering china

WHAT’S MOST IMPORTANT FOR developed,” said Wei, although he also multinationals’ successful entry into cautioned it means companies must China? take pains to develop their brand image In-depth analyses and understand- consistently in each major city. ing of the country’s emerging middle Wei warned, as well, that competition class, retail consolidation and burgeon- is rapidly heating up in China, where ing regulatory hurdles — among other there is an influx of beauty products from key issues, said James Wei, vice presi- the U.S., Japan, Europe and Korea, dent of new markets and strategic plan- among other locales. And, due to the ning for the Asia-Pacific region at Avon sheer mass of products jockeying for posi- Cosmetics Ltd., speaking at the 2004 tion on store shelves, Chinese consumers WWD Beauty CEO Summit here. have become savvier than ever before. He explained China has recently be- Furthermore, it’s difficult to gauge come alluring to businesses, due to its how a beauty brand is doing in China, rapid growth over the past two decades, where there is a dire lack of centralized strong consumer confidence and an in- statistics. “Everyone is winning and Caroline Mak creasingly beauty-conscious culture, everyone is number one,” Wei said which Wei likened to that of Eastern wryly. “China is so big that one person Europe in the Eighties. can be number one in Beijing, someone prescription Upon entering China, Wei said it is James Wei else can be number one in Shanghai important for beauty executives to and so on.” Just because you win in one for grow th focus on their brands’ positioning, Wei said the Chinese are now, more area, he said, doesn’t mean you’ll win which can vary radically from that in than ever, ready to spend on beauty the entire country. the West. For instance, brands such as products. He cited studies showing that But perhaps the most important — in china Maybelline or Revlon — considered educated women in urban Chinese and overlooked — hurdle on entering “masstige” in Europe or the U.S., where markets are willing to spend up to 50 China concerns money, said Wei. IN CHINA, WOMEN HOLD THE BELIEF THAT they are often sold in open-sell store percent of their wages on cosmetics “In this early phase, everybody’s so beauty comes from within and without, formats — boast their own counters goods. But, since these pay scales vary happy,” he explained. “The number one making the country “a unique market with sales consultants in China. wildly in China, that figure can be high question isn’t where growth is coming opportunity for the world,” said Caroline “There, the thought is, ‘Get your or low and the beauty industry must from — most say that will come from ge- Mak, chief executive officer of a health and image high, but make your product af- cater to both ends of the price-point ographic expansion. The number one beauty retail giant, Mannings Greater China. fordable,’” explained Wei. spectrum, he said. question is: ‘Can I collect my money?’ She explained that, while outer beauty can In part, this can be achieved through “In Shanghai, they are going for pre- And that’s a very important considera- result from regular exercise, plus makeup sourcing and producing domestically. “If mium products, whereas in the rural tion. A lot of companies go [into China], and skin care usage, an integral part of you’re aiming for the top-end of the areas, a 50-cent Lux beauty bar might be they’re happy, and two years later real- inner beauty comes from herbal ingredients, market, you can import; if you’re look- [the consumer’s] dream,” explained Wei. ize that they can’t collect a penny.” like ginseng root, some of which have been ing for middle of the road or lower end, But it’s not just pay scales that differ. That’s because retailers in China utilized in China for the past 1,000 years. you have to get your costs lower, and In China, weather, which can greatly don’t always live up to their promises. Consequently, there’s a wide range of that’s the only way you can win in China impact beauty preferences, and general Ye t, despite such concerns, Wei said product categories to be developed in the — getting localized raw materials,” he tastes can vary from region to region, it’s possible for multinationals to suc- country. And, on top of that, to be seduced said. “And the few who will make com- particularly since cities and towns can ceed in China, particularly if they keep by the beauty industry is a vast population, mitments with local R&D centers will be so far from one another, making a long-term market perspective and which includes a burgeoning youth win in China, because they will benefit them difficult to access. focus on building their brands to gain demographic. The segment of women aged from smart local scientists and their in- “That [lack of] information flow will precious consumer trust. 20 to 29, for instance, is expected to grow sights into particular markets.” discourage national brands from being — Julie Naughton by 10 million people to 108 million within the next six years, said Mak. She explained that women in China today strive for beauty that is “individualistic” and with “distinctive building beaut y in brazil characteristics.” The makeup category, which has a long history in the country, has “great potential” in O BOTICARIO KNOWS WHAT IT TAKES TO MAKE IT IN BRAZIL. TWENTY-SEVEN YEARS modern China, she said, adding that, in after its debut as a small pharmacy there, it is now among the country’s major beauty forces. Artur treatment, skin whiteners are a hot segment, The company has 2,300 sales points, including wholly owned stores, franchises and department Grynbaum particularly in the facial mask format. And store corners, throughout eight countries. Together, they ring up sales of some $500 million. skin spot removers are gaining sales Artur Grynbaum, O Boticário’s chief executive officer, spoke with WWD’s vice president, momentum. Pete Born, about the best way to crack Brazil’s $3.5 billion beauty market. Mak advises that beauty industry — Brid Costello executives approach China as they do Europe because of its various climates and PB: What advice would you give a manufacturer or retailer looking PB: A lot of cultures, which impact beauty habits in to enter the Brazilian market? Brazilian companies different ways on a region-to-region basis. AG: The important thing is to go with someone who knows this have been interested She cautioned that products’ price points market. If you have a local manufacturer, it will help you with cost of in expanding around need to remain low in China in order to be goods and logistics. the world. What ad- affordable — that a lipstick, for instance, PB: Are there any major opportunities for international brands in vantages and chal- shouldn’t cost more than $5 or $6. Brazil? lenges do you face? Mak believes the retail scene in the AG: In the past, the concept of beauty in Brazil was about sun- AG: One problem country will change rapidly in the near light and brown skin. Today, the Brazilian people are learning to take that we have is that future, in part because of rising labor costs care of themselves. our country isn’t tradi- and a more knowledgeable and, therefore, PB: Are there any obstacles or challenges — regulatory, social or tionally an exporter of challenging consumer. cultural — facing multinationals in Brazil? beauty products. “They will demand more freedom to

AG: I think the main challenge has to do with distribution, since in [On the plus side], JOHN CALABRESE PHOTOS BY choose,” she said, adding: “We need to Brazil we don’t have national department stores like other countries do. there’s now a promotion of Brazilian beauty in the world, thanks to develop a new way of selling to the masses.” We have only regional department stores, and there are not so many of new, exotic ingredients we have in the Amazon and other parts of the Mak suggested a possible solution is to them. You have to create your own chain and take time to build it. country, and [to] the Brazilian models. We have ambassadors like increase the professional information available PB: O Boticário has developed Brazil’s number one customer loy- Giselle Bündchen, for example. about in-store beauty, thereby making products alty program. Please discuss it. PB: I understand you go to market three different ways. Could you and displays virtually self-communicating. AG: We began this program in 1999. Our objective was to better explain the strategy? This, she said, will be particularly key when know our customers and to offer them the right products. With this AG: In Brazil, we work only with our franchise [partners], and we today’s one-to-one selling methods are no program, we tried to increase our average [basket] and create new have our own shops, too. In going to a different market, we need to longer financially viable. forms of relationships with consumers. And, of course, there are ad- study it and be flexible and strategic. “Just imagine if you could use different vantages to loyal customers. PB: You’re in eight countries now. Do you have any plans to ex- ways to educate consumers to increase their The results have been great with this program. Today, we have 2.5 pand into North America or Europe? consumption,” she said. “I leave it to your million customers involved. We increased our average [basket] with AG: Yes, now we are in Mexico. We opened the operation 18 imagination how many lipsticks and facial these customers by 35 percent, and almost 6 percent of these people months ago and are interested in being in the U.S. market in maybe masks we can sell in China.” buy once every three months in our shops. one or two years. — Jennifer Weil WWD, FRIDAY, JUNE 4, 2004 23 qvc plugs into beaut y

FOR 18 YEARS, QVC HAS PROVIDED A STAGE FOR NEW And it appears QVC customers are loyal. Only 7 percent of beauty brands looking to get into the hands of consumers. QVC sales last year came from one-time customers of the chan- Now, the on-air retailer also is being seen as a life preserver nel. In fact, the average QVC customer placed 14 orders last for older brands. Just ask Prescriptives, which took to the year, with the average customer being a suburban, Baby airwaves last year and subsequently saw sales soar by 30 Boomer woman. “She’s of above-average affluence and views percent at traditional retail outlets. shopping as a pleasure sport. She shops in better department Darlene Daggett may have everything to do with this. stores and specialty stores, and she’s three times more likely Daggett, president of U.S. Commerce at QVC, has played an than the average American to shop via the Web,” Daggett said. instrumental role in convincing companies such as Estée But Daggett added that viewers are not watching QVC in- Lauder, the parent of Prescriptives, to appear on TV, a medi- stead of shopping retail — they’re doing both. For example, um once considered low-end. An employee of QVC for 15 according to syndicated research, 216,000 QVC viewers have years, Daggett has developed new business initiatives and made at least one purchase at Bloomingdale’s within the has forged alliances that continue to define, differentiate past 90 days. and brand QVC as an e-commerce leader. Daggett admits that not every brand appearing on QVC is Today, QVC reaches 85 million American homes and ships a success, but those that do succeed find that their retail more than 100 million units a year. Last year, QVC generated sales increase, too. For example, Daggett said 1 percent of some $4.9 billion net sales worldwide, Daggett said, with 30 Prescriptives customers were new to QVC, though a whop- percent of business coming from its international markets in ping 76 percent had never purchased the brand. Daggett the U.K., Germany and Japan. QVC is about twice the size of also estimated that, for every order taken on QVC, there are HSN, the next-largest televised retailer, and about eight times 100 customers in traditional retail armed with that informa- the size of the number three player, Shop NBC. Since 1997, tion — due to QVC — looking for that product. And surpris- QVC’s beauty business has grown more than 200 percent, with ingly, price gets secondary consideration to value. the beauty category mix heavily skewed to color and fra- “This is not to say that an eight-minute exposure on QVC can grance items. Approximately 67 percent of beauty sales come change the fate of a brand at retail, but we are quite confident from national brands, with the balance coming from QVC’s that, over time, QVC helps create demand for brands that is ulti- proprietary brands. mately captured by other channels of distribution. The brand And QVC’s revenue stream doesn’t end on TV. QVC’s wins, the retailers win and, best of all, the customers win,” Internet business is in excess of $500 million and now repre- Darlene Daggett Daggett said. sents about 13 percent of domestic sales, making QVC the — Andrea Nagel fourth-largest general merchant on the Internet. Last year, QVC’s Internet beauty business was nearly 80 percent of what its total beauty business was just six years ago, Daggett said. stars,flankers under discussion And, just as QVC is part of the rapidly changing world of interactive retailing, so, too, is it part of the rapidly changing landscape of American television: Though CELEBRITY ENDORSEMENTS HAVE BECOME CRITICAL TO THE BEAUTY QVC does not sell airtime to advertisers, it has emerged as one of the largest televi- business, but the opportunity can be short-lived and the star has to be on the sion networks by revenue, larger than ABC or FOX. right generational wavelength with the target consumer. Daggett explained that one of the pluses of QVC’s retail model is that its audi- That was one set of conclusions reached by some of the executives who par- ence is always growing. “Television is no longer a leisure-time activity. The average ticipated in the Thought Leadership lunch hosted by Firmenich on May 13 at the household watches TV eight hours a day. It’s an increasingly integral part of the Mandarin Oriental Hotel here during the 2004 WWD Beauty CEO Summit. modern American lifestyle. We look at it as a mall in which our traffic goes up each On the subject of fragrance flankers, which have flooded the market in the and every day,” Daggett said. last few seasons, executives tended to agree that they could benefit a brand, if And, for those who think QVC isn’t up to the times in tracking consumer data, done right. “These products can be good if they represent an expansion of the think again. QVC merchant planners and broadcast producers have the ability to emotional feel of the brand,” said one executive. “A successful flanker that aug- track customer response in real time — down to increments of six seconds. “We ments the total brand can last forever,” said another, adding that the structure know the customer profile of every product that we sell, as well as the individual has to be strong enough to support an addition. Otherwise, it may collapse. buying patterns of every one of our seven million customers,” Daggett said. When it comes to innovation, some attendees thought that it does not boil QVC, she added, probably has the most sophisticated and immediate testing ability down to a choice between providing performance in a new product or making an to determine how well a product sells. “Instead of laboring over whether or not [the emotional connection. Product performance is a requirement. Beyond that, the product] requires or should have the amount of floor space or catalogue space that brand has to have a message. most retailers have to deal with, we can put it on [the air] and within four minutes, we And this is just a sampling of the thoughts expressed on a series of topics. can tell exactly what’s been sold by color and size and get customer feedback, as well.”

Heidi Manheimer, shifting gears Eric Horowitz and Tomoko Yamagishi. WITH HER EXPERIENCE AS BOTH A DEPARTMENT AND SPECIALTY STORE retailer, as well as being an early pioneer of Internet selling, Heidi Manheimer, president of U.S. operations for Shiseido Cosmetics (America) Ltd., has one of the most diverse résumés in beauty. She brought that experience to bear in her address at the WWD Beauty CEO Summit, tackling the topic of how to successfully market skin care. Manheimer, who described her role as “brand evangelist” when she joined Shiseido four years ago, laid out the three marketing lessons she implement- ed to boost Shiseido’s business in its 750 department and specialty store doors. The first is that global companies must translate their brands to the markets they serve, on both a macro and micro level. As an example, Manheimer pointed to whitening products, which even out skin tones and are one of Shiseido’s strongest categories in the Asian market. “Smooth, even complexions are equally as desir- able in America,” Manheimer said, “but not thought of as whitening the skin.” To that end, Shiseido now markets its whitening products as “brightening” products in the U.S., “a term American women understand and relate to,” Manheimer contin- ued. “It’s the same product, just the messaging that is different.” Manheimer also emphasized the importance of making sure retailers clearly understand your brand, what it stands for and how it’s different from the competi- tion. That way, brand marketers can more effectively partner with retailers to cre- ate programs that meet both parties’ objectives. Shiseido, for example, markets its translates as the Japanese spirit of hospitality. $225 Future Solution skin care cream very differently in department stores and Still, Manheimer acknowledged that the ultimate goal of longevity often runs specialty stores. “In a department store, it’s an aspirational purchase...so a small counter to the short-term goal of return on investment, particularly when it comes Tiffany-style ad or phone calls to designer customers work best in this context,” to launching new brands. “It’s difficult to avoid going for the cosmetics industry Manheimer explained. “In a specialty store, the cream is sold as a necessity.” equivalent of the Hollywood opening weekend,” she said. And though perfectly As a former retailer, Manheimer is no stranger to the importance of extraordi- translating your brand to both retailers and customers is a “constant challenge,” nary customer service, and she stressed the point in her speech. “Good service is it’s not impossible. “You’ll know you’ve truly succeeded in your goal if your brand personal. It’s taking what you know about your customer and then training your is not just relevant to the 30 out of 100 women who are your customers,” consultants to meet her needs,” she said. “Explaining how the products work is Manheimer concluded, “but if the 70 women who are not your customers — yet — one piece of it. But more importantly, service is all about showing your customer understand exactly what your brand is all about.” why your brand is good for her.” Shiseido calls its approach omotenoshi, which — Jenny B. Fine PHOTOS BY JOHN CALABRESE PHOTOS BY 24 WWD, FRIDAY, JUNE 4, 2004 PYTs, BPs and Everyone in Between

By Anamaria Wilson

EAST HAMPTON, N.Y. — They come by sea plane, jit- ney and vintage Mercedes coupe. They pack for tony garden parties, casual barbecues, suppers at Nick & Toni’s and late nights at Resort. Afternoon itineraries include such WASPy pursuits as sailing, golfing, ten- nis — and shopping. They are, of course, the chic city folk who migrate every summer weekend to their Hampton hideaways — whether mansions of Seinfeldian proportions or cedar-shingle bungalows. Since the town beaches were a bit too nippy for full-on sun bathing this past Memorial Day weekend, the real action was found in town, where the old-time blue bloods — and those re- hearsing for the part — shopped for cashmere ca- bleknits alongside the summer share interlopers hunting for skimpy club clothes. Yet finding a designer caftan worthy of hosting a dinner for 10 would have been virtually impossible more than a decade ago. Up until the late Eighties, the town of East Hampton was a sleepy retail hamlet, the offerings of which consisted of mom-and-pop shops — a hardware store, a pharmacist, a local gro- cery. Over the last 10 years, though, it has morphed into a bustling shopping strip consisting of every- thing from Scoop to Tiffany — with a temporary Target store a few towns away. Greenfield. “They are just buying, period.” In fact, And the Hamptons is no longer a one-season won- she added that, in women’s, Scoop beat last year’s der, retail-wise. With growing numbers of year-round Memorial Day weekend numbers by 20 percent. dwellers — as well as the perennial hordes of sum- At the Calypso boutiques, the beach-buying frenzy mer renters — flocking to the Hamptons, more and continued with women shimmying into gauze, cotton more companies are hustling to set up shop. The lat- and linen skirts, kurtas and Hudson jeans, and buy- est designer to land is Catherine Malandrino, who ing up chandelier earrings and flip-flops. According opened a 1,000-square-foot store in a quaint house at to Celle, the store increased its business by 40 per- 27 Newtown Lane last Friday. cent over last year. “I wanted to bring a little bit of Saint-Tropez to the Trish Grady, otherwise known as the shoe designer Hamptons,” said the French Malandrino, who usually Miss Trish of Capri, also is selling her wares on the spends a portion of her summer vacationing in the Island. She’s carved out a niche for herself in the back South of France. “This is my summer interpretation of of the LoCo shop on Main Street and was tending to beach chic, but with a nonchalance.” customers late Saturday afternoon To that end, the designer has out- who were trying to decide between fitted her boutique with exclusive high-heeled sandals or flat thongs. pieces like hand-crocheted bathing AU COURANT She even helped out Malandrino, who suits, straw fedoras, macramé needed a stiletto to finish off a laven- leather bags and beach towels. ● Teetering cork wedges der dress of her own creation for her Malandrino foresees her shoppers ● Oversized sunglasses perched store’s kick-off fete later that night. stepping up their weekend fashion atop graphic head scarves And there are more shops to quotient by trading in their T-shirts ● Flirty ruffled minis come. The Barefoot Contessa closed and razored minis for head scarves, ● Artfully slung ponchos and is being transformed into a 3,000- pareos and shawls. ● Costume jewelry laid on thick square-foot Theory store, which is The shop, which pops from the ● Birkenstocks and all of their slated to open later this month. The street, thanks to the bright lighting derivatives Banana Republic store on Main and signature chartreuse backdrop, is ● Cashmere cable knits Street also closed, but instead of accented with white hardwood floors, (naturally) and comfy wraps being replaced by another retailer, it mirrors and chrome. In an effort to ● Colors of the preppie banner: will become a bank. Target has conjure the French Riviera of the watermelon pink and apple opened a temporary store in Sixties, Malandrino has added framed green, together or solo Bridgehampton, and Nina Griscom pictures of Brigitte Bardot, Catherine and Antony Todd have jointly set up Deneuve and Romy Schneider, along with a constant shop in Southampton. Retail rents in East Hampton loop of vintage French music à la Serge Gainsbourg, generally range from about $65 to $110 a square foot, Jane Birkin and Jeanne Moreau. according to real estate brokers. Before the store even opened its doors, clusters of Since the migration of city types isn’t just a three- onlookers peered in while Malandrino’s shop girls, month stint any longer, retailers don’t have to rely clad all in white, put the finishing touches on the solely on the business they do in summer months. boutique. Once opened, a steady stream of shoppers “We have steady business all year round,” said filed in and snapped up pieces in white, orange, Greenfield. “Some customers have homes in the city

fuchsia and yellow. and out here, we also have a significant day-tripper ▲ Catherine Malandrino While Malandrino and fellow French native clientele, as well as a huge L.A. following….I’d say we Christiane Celle, who owns the three Calypso stores do about 70 percent of our [annual] business between The Malandrino store on Long Island, bring an element of French chic to Memorial Day and Labor Day, but it’s still not just a inside and out. town, other retailers are happily steeped in an all- summer store for us.” American style. “We have found that, in the Hamptons in gener- Across the street at Henry Lehr, shoppers rifled al, it has become more of a year-round community through colorful stacks of Splendid Ts, Rogan jeans, — certainly after 9/11 many people flocked there,” Mason’s cargo pants and cashmere ponchos. said Richard Hodos, president of Madison HGCD, a Meanwhile, Scoop owner Stefani Greenfield, who real estate consultancy and brokerage firm based bought a building at 51 Newtown Lane, welcomed in Manhattan. “Since then there’s been an impetus crowds of shoppers into her new, 3,300-square-foot to further enhance the lifestyle, if you will, of living men’s store, which also opened last weekend and is in the Hamptons all year. There’s more of that in next door to her 1,200-square-foot Scoop Beach 2004 than there ever was for city dwellers who are women’s shop, opened in the late Nineties. out here. Greenfield said Scoop stores generally have sales of “As the seasons have lengthened — with the film about $1,500 a square foot. festival [held in October] and with all the activities Pretty Young Things and stylish women with ba- that occur in the springtime, it has really become bies or tiny dogs in tow traipsed through the stores more of a nine- or 10-month season than just a three- sussing out the goods. According to Greenfield, shop- month one,” continued Hodos. “January and pers stocked up on Scoop private label pieces; beach February are pretty bleak out here and most retail- scarves; Ron Herman Ts in summer brights; white ers rely on strong sales for seven or eight months. We jeans by Joe’s Jeans; Seven, and Paper, Denim & have sales from Coach, Cole Haan and others to Cloth, Havaiana floral flip-flops, Juicy Couture smock prove it. But with that said, it is not the same three- terry tube dresses, C&C Ts and Scoop tanks. month market that it used to be. You used to have to “They are buying for day and evening,” said make your numbers literally in 12 weeks.” WWD, FRIDAY, JUNE 4, 2004 25

Trish Grady

They Are Wearing®

Toni Lehr PHOTOS BY GEORGE CHINSEE PHOTOS BY

it, the high-definition coverage will be really, really cool. CABANA NIGHTS: Amy Sacco will be taking on a new property “In short,” said Elizabeth Dewey, head of programming for Ultra for the summer: the rooftop of New York’s Maritime Hotel. Fashion Scoops HD, “it will be like Sarah Jessica Parker is in your living room.” She’s christened the space The Cabanas. “We just came up with the name today,” Sacco said Wednesday night at Zac and IDOL WORSHIP: The Council of Fashion Designers of America MOZART’S REQUIEM: Speaking of the CFDA, Stan Herman’s 15- Alexandra Posen’s Spring Fling for Teachers Count at Lot 61. will kick off its awards ceremony Monday night with a year-old black standard poodle, Mozart, who accompanied him “It’s got a very Bungalow 8 feel — very Beverly Hills hotel-ish, performance by “American Idol” winner Fantasia Barrino. No to work every day, was put to sleep Wednesday night, having but with a tropical vibe.” The area is an indoor-outdoor space word yet on what Barrino will be wearing, or even what song suffered from dementia and the increasing loss of his back legs. made up of two rooftop cabanas above La Botega, connected she’ll sing, but the awards producers were especially happy to “He was no longer the noble dog that I knew. He could via walkway. Pull out the Villebrequins and sarongs: parties, nab the hot property after Julianne Moore, who was supposed to hardly stand,” said Herman, spotted walking to work Thursday including an event for Juicy Couture’s men’s line, begin there present the Women’s Wear Designer award, had to back out of by himself. Every morning, Herman would walk Mozart up Fifth next week. the event for personal reasons. Avenue, and the dog would stop at a tree across the street from Barrino’s performance will also have legs, as the awards are again Lord & Taylor to relieve himself. The tree had a plaque MY BAG: Paris accessories firm Longchamp confirmed expected to be the subject of an hour-long television treatment, albeit commemorating Dorothy Shaver, the late L&T president. “They Thursday it’s collaborating with Tracey Emin, the controversial on a network with a far lower profile than Fox. Ultra HD, one of 35 even shined it up for him,” said Herman. British artist best known for her 1998 installation “My Bed.” high-definition channels available to satellite subscribers of Voom, Not only a fixture in Bryant Park, the tents, and Herman’s The two have hooked up to help commemorate the 10th will broadcast a Judy Licht-narrated special on June 18, which will showroom, Mozart even made an appearance on QVC. “I saw anniversary of Longchamp’s best-selling “Pliage” foldable later be carried on the cable channel Metro Stories (home to “Full that Joan Rivers brought her dog, and when I told them I had a nylon tote. The Emin-designed bag will be sold exclusively at Frontal Fashion” in Manhattan, anyway). Although Ultra HD is carried poodle, they expected a toy poodle. When he bounded on the Colette, Paris’ hip style emporium, in July and August, before nationally, its producers weren’t exactly sure how many subscribers stage, they almost had a heart attack,” said Herman, whose a worldwide rollout in September. A party to fete the line is the channel draws, but promised that, for those with the ability to see beloved dog, at his peak, weighed 70 pounds. slated during Paris couture week next month. 26 WWD, FRIDAY, JUNE 4, 2004

women, with such panelists as MAC Cosmetics president John Demsey, Mizani general manager Clarisa MEMO PAD Wilson and Iman. The supermodel- Paula Abdul to Launch Jewelry Line turned-beauty entrepreneur caused a MADE IN THE SUEDE: Essence stir with a riff on the evils of celebrity- By Emily Holt Communications lifted the lid a tad driven marketing. “Nowadays, we on its new fashion magazine, have this monster, the celebrity, that NEW YORK — Multitasker Paula Suede, at an event at the W Union has gotten a little out of hand,” she Abdul is developing her own Square Thursday. The title will said. — Jeff Bercovici jewelry line for Sam’s Club, the debut in October, publishing two giant warehouse retailer owned issues this year and nine in 2005, ROCKIN’ IN THE USSR: Lenin would by Wal-Mart. with an initial rate base of spin in his airtight sarcophagus. While “American Idol” judge 250,000. Stylistically, it’s aiming Wenner Media has licensed a Simon Cowell was busy berating for a bolder look than existing Moscow-based publisher to produce contestants on stage, fellow judge fashion magazines, a Russian-language Abdul was behind the scenes re- drawing on influences edition of Rolling building their self-esteem via including Japanese Stone — a magazine jewelry. Since the show began manga (comic book) that was banned airing in the U.S. two years ago, and graffiti art. “It’ll during the Soviet era. Abdul has created a collection of be so flippable, you SPN Publishing will bracelets for the 32 semi-finalists won’t be able to turn publish two issues this and a special piece for the win- the pages fast summer, with the title ner. Now she’s partnered with enough,” promised going monthly in Chad Haggar of Smolensk Dia- Essence group September (first cover mond USA to manufacture her Paula Abdul An Innergy charm. publisher Michelle at left). Circulation is line, Innergy Paula Abdul. Ebanks. projected to reach Necklaces with 0.25-carat dia- nasty judges on the British ver- Sam’s Club’s Web site. Suede’s editor in 100,000 by the end mond charm pendants and gold sion, “Pop Idol,” and knew she’d As part of a bigger branding chief, Suzanne Boyd, of 2004, within a engraved tags will hit Sam’s “clearly have to be the judge with effort, Abdul said she also has a has been busy filling distribution area that Clubs in August. A gold lightning the big heart mopping up the line of “cheerleading and dance- out her staff. Boyd, who previously includes the Ukraine and the Baltic bolt charm comes with a tag in- tears, so to speak.” Thus was born inspired” children’s wear in the edited the Toronto-based fashion states. Editor in chief Sergey scribed, “Be electrifying. Create her inspirational jewelry, serving works for Wal-Mart. title Flare, recently hired longtime Efremenko heads a team that will a spark out of life.” Another style as both support and a memento. The Arkansas-based Sam’s colleague Ying Chu to be Suede’s produce original articles as well as mimics the charm necklace “The contestants wouldn’t ever Club, which includes over 530 beauty director. Fellow Flare veteran translate material from the parent Abdul gave to this past season’s take off their bracelets. They’d stores nationwide and has a sales Ian Hylton was hired to be editor at edition. “The heart of Rolling Stone winner, Fantasia Barrino: one get affirmation and think, ‘I can volume of more than $34 billion, large; Hylton most recently worked is music, which is a universal charm engraved with the word stand up to Simon, I can stand up sees jewelry as an opportunity as a brand consultant for Club language, but they’re going to be “flawless,” with a solitary dia- no matter what.’” for expansion, a spokeswoman Monaco. Richard Christiansen, cognizant of what’s going on in their mond, and a gold nugget and di- Innergy will include replicas said. Last year it launched the Suede’s creative director, last borders,” said Rolling Stone amond charm with the inscrip- of the stainless steel, rubber and Regal Elegance brand collection, served as creative director of publisher Steve DeLuca. He added tion “No stone unturned to find 18-karat gold bracelets Abdul which started as a line of fine Assouline, and has also done there’s relatively little domestic the diamond in the rough.” gave to the semifinalists. bridal jewelry and moved into projects for Chanel, MAC Cosmetics competition to worry about. “The “These are messages that Bracelets, which will be trendier items. “We are always and Oscar de la Renta. magazines that are there have carry over to anyone, to carry on available in July, will retail from looking for opportunities to pro- The event itself featured a panel wanted to be the ‘Rolling Stone of and go for it,” Abdul told WWD in $65 to $75, and necklaces will re- vide ‘wow’ within our clubs,” the discussion on marketing beauty Russia’ without actually being the a telephone interview. Before the tail from $287 to $1,500. All spokeswoman said, adding jewel- products to African-American Rolling Stone of Russia.” — J.B. show started, she watched the items can be preordered on ry is just the category to do that.

FIT’s Cosmetics and Fragrance Marketing Acquisition-Hungry Kellwood and Management Master’s Degree Program Sees Earnings Increase 20% 2004 Beauty Retail Seminar By Amy Zimmerman brand, it would be the biggest deal in the firm’s history. Most ST. LOUIS — Kellwood Co., recently, Kellwood acquired which continues to look for Phat Fashions for $140 million in growth in acquisitions, posted a cash, plus unquantified incen- Counter Culture: Where is Beauty 20.2 percent rise in first-quarter tives. Financial sources have es- earnings Thursday. timated that Dockers could sell For the three months ended for $650 million to $1 billion. May 1, earnings tallied $25 mil- Upbin dismissed criticism Retailing Headed? lion, or 90 cents a diluted share, from some analysts that Kellwood versus $20.8 million, or 78 cents, a should slow its growth and focus year ago. Sales for the quarter on cultivating current initiatives. rose 2 percent to $686.1 million “Our business model allows Friday, October 8, 8:00am–12:30pm from $672.3 million. The Feb. 3 ac- for growth,” he said. “All of our quisition of Phat Fashions initiatives, including new acquisi- Katie Murphy Amphitheatre pumped up sales by $9 million. tions, are spread among our divi- “As always, we are looking at sions, so no strain is put on any opportunities to grow and are single division.” KEYNOTE SPEAKERS: confident we will make another At the meeting, shareholders acquisition in the next nine to 12 elected four directors, each serv- Thia Breen, Federated Merchandising Group months,” Hal J. Upbin, chairman ing until 2006. They were Martin Robin Burns, Intimate Beauty Corporation and chief executive, said at the Bloom, chairman, MBI Associates; annual meeting here on Thursday. Martin J. Granoff, chairman, Can- While acquisitions will focus non County Knitting Mills Inc.; PANELISTS INCLUDE: on growth areas such as acces- Robert C. Skinner Jr., president sories, children’s and junior ap- and chief operating officer of Wendy Liebmann, WSL Strategic Retail parel, the firm might make a run Kellwood, and Upbin. Pamela Baxter, LVMH Perfume and Cosmetics, North America for Levi Strauss & Co.’s Dockers The board declined a share- business, which recently went on holder proposal to hire an inde- Peter Born, Women’s Wear Daily the block. Kellwood has the li- pendent firm to monitor work- Lyn Kirby, Ulta Salon Cosmetics and Fragrance, Inc. cense for Dockers’ tops. ing conditions overseas, refer- “It would be out of character ring to corporate policies al- for us to make such a large ac- ready in place to ensure con- quisition, but we need to take a tractor compliance. serious look at this opportunity,” “We led the charge on this Registration: $75 said Upbin. “We do have the years ago when we implemented For information: 212.217.5714 | www.fitnyc.edu/cfmm wherewithal to make this hap- our program,” said Upbin. “We pen, but it would take restruc- have a group of internal people, turing our balance sheet.” as well as independent auditors VF Corp. and sourcing firm who are responsible for inspect- www.fitnyc.edu Li & Fung also are seen as po- ing the working conditions of all of tential buyers for Dockers. our contractors.” Seventh Ave. at 27 St., New York City STATE UNIVERSITY OF NEW YORK Should Kellwood acquire the —With contributions from men’s and women’s casual Evan Clark, New York WWD, FRIDAY, JUNE 4, 2004 27

Cosmeceutical Sales Coordinator Emerging cosmecutical line is seeking ahighly resourceful & creative individual who can recruit & develop Retail Sales Bryant Pk Duplex 1100, 2000, 4500 FT. Staff to achieve what they never dreamed 20 Ft Ceilings - Great Windows/Views possible in order to dramatically increase SoHo-Sublet Penthouse 2000 FT sales. Prestige cosmetics experience & Prime Manhattan Jon 212-268-8043 proven track record in building skin- care brands is a MUST! Responsible for sales development of each door as we STORE MANAGERS grow. Must personally be a "Selling Machine" with track record of sales We seek two talented retailers to manage two key store locations: acuity! Must be able to successfully interact with retail Management. Some 488 7th Ave (36th Street) FIFTH AVENUE - NYC FLAGSHIP BOUTIQUE travel required. Great potential to grow within a company. San Francisco Bay LIVE/WORK You must have at least 5 years store manager experience in an upscale area based position. No relocation. Please Spacious Loft-Like Showroom retail store. Apparel experience preferred. Volume responsibility of $ 6 M+ reply with cover letter and resume to: 2 baths, 2 entries ...... $2,950 in a high traffic location. Strong leadership skills and an ability to be on the [email protected] 1BR Showroom Apts...... From $1550 Wood floors, Hi Ceils. Immed Occup floor leading by example are key. An ability to multi-task is critical to Los Angeles based urban athletic 212-629-8694 M-F 10a-6pm No Fee success. Strong people skills and ability to recruit, train and develop staff and streetwear company seeks: SALES REPRESENTATIVE is a must. An eye for visual presentation and maintaining operational High-powered sales representative needed 7th Ave. - Opportunity!!! guidelines is essential. to sell multiple lines and implement Great space available for rent in one of strategic marketing plans. Must have the most prestigious bldgs. on 7th Ave. THE WESTCHESTER- WHITE PLAINS, NY excellent relationship with department Approx. 300-400 s.f. Doorman; Kitchen; stores and high volume chains. Window view; Bright light. Must see...! You must have 3 years store manager experience in an upscale retail Please fax resume to: (213) 384-5100 Call: 212-268-8316 store. Apparel experience preferred. Strong leadership skills and an ability to be on the floor leading by example are key. An ability to multi-task is Missy & Plus Sizes Showrooms & Lofts critical to success. Strong people skills and ability to recruit, train and Est’d. Missy Sportswear & Dress Co. seeks BWAY 7TH AVE SIDE STREETS Sales Pro. Solid relationships with Dept. Great ’New’ Office Space Avail develop staff is a must. An eye for visual presentation and maintaining Stores, Specialty Chains, and Catalogs ADAMS & CO. 212-679-5500 operational guidelines is essential. req’d. Must be a team player, have knowl- edge of the competition & marketplace, Excellent benefits, 401k, bonus plan, clothing allowance. and most of all; be able to manage a business. Please Fax or E-mail resumes: Please contact Ben Rosenfeld at: 323-725-3304 / [email protected] E-mail: [email protected] / Fax 212-658-9624 SALES REP Est’d. contemporary Missy Co. in L.A. 230 West 39th Street seeks exp’d. Sales Rep for N.Y. office. SHOWROOM/OFFICE/SAMPLEROOM Est’d. relationships w/Dept./Chain/Mass Sub-lease/4,200 sq. ft. Looking for an exciting, challenging experience? Market Stores req’d. Will consider Multi- Entire floor or partial/2 Private Bathrooms Line Rep. Fax resume: 213-745-7242 Windows; Redwood Floor / 212-869-6999 Assistant Buyer SALES REPS WANTED High-end luxury retailer seeks seasoned Assistant Buyer to 1) Jr’s/Young Contemporary Sales assist in the merchandising responsibilities of the Women’s 2) Sports Apparel (microfiber) Sales and Men’s products maintaining and running reports on a *min 2 yrs exp w/ active accounts daily basis, initiating transfers, helping facilitate daily deliveries Ind. or in-house; Call Phil 213-393-1808 from warehouse to boutiques, and helping maintain boutique merchandise presentation. Candidates must have at least 3 SHOWROOM SALES years experience as an Assistant Buyer in Women’s products/ Women’s Contemporary Sportswear & Dresses company seeks exp’d sales Men’s products from a multi store background. It is important associate w/ 3-5 years showroom exp. that the candidate have strong analytical skills and a good selling to Majors and Specialty stores PATTERNS, SAMPLES, fashion sense. in West Coast and Midwest Territories. Applicants must be computer literate, PRODUCTIONS Candidates should be fluent in Excel and Microsoft Word. organized, have strong communication All lines,Any styles. Fine Fast Service. Knowledge of higher level Excel a plus. This is a highly skills, enjoy customer service, able to Call Sherry 212-719-0622. travel & develop new accounts. Show- visible and promotable opportunity for those interested in room is based in Los Angeles. Fax PATTERNS, SAMPLES, enhancing their career in the luxury marketplace. resume & salary req. to: (323) 964-9841 PRODUCTIONS Please fax resume, cover letter and salary requirements Samples and patterns full servcie shop to the trade. Fine fast work. to: Human Resources: 212-974-3467 212-869-2699. Sales Assistant Est’d. Jewelry Co. seeks motivated person to handle & communicate with major BOUTIQUE SALES accounts & assist in showroom. Must be Busy W. Village shops need manage- detail oriented & computer literate. Love ment / sales pros. Min. 3 yrs. retail exp. of Fashion a PLUS! E-mail resume to: Fax Alida: 212-675-6360 KIDS OUTERWEAR [email protected] DESIGNER Immediate full time position in NYC. TECH/CAD DESIGNER The candidate should have a minimum Men’s & Boy’s Jeanswear Co. looking ACCOUNTANT of 3 years experience within the 4-14 for highly motivated individual with Well established apparel co. seeks hard- age group. Experience in outerwear a positive attitude, to create detailed pro- working, multi-tasking, senior-level must. Candidate must be highly motivat- duction packages & color cads for pre- accountant. Analysis skills and office ed, well organized and willing to work sentations. Proficiency in Adobe illus- operation ability required. Tax knldge ina fast paced, creative environment. trator a must. PhotoShop skills a plus. &bilingual Chinese A+. Checkable Please fax resume to: (212) 725-5524 Only detail oriented and organized peo- refs. Must be familiar w/computerized ple need apply. acctg. programs. Competitive salary + Fax resume to 212-760-8821 benefits package. Fax resume/salary hist/req. to 212-354-0999 or e-mail [email protected] Product Develop. Assoc. For Mens/Boys & Girls swimwear High Profile Denim Co. and wovens importer. Execution of HOT CURRENT NAME BRAND! Admin Since 1967 product packages & communication Seeking Sales Reps for Atlanta, Chicago, skills with overseas factories essential. Dallas, New England, Midwest, Florida. W-I-N-S-T-O-N 3 yrs experience. Please Fax resumes to: 212-741-0489 APPAREL STAFFING Fax resume to 212-695-1050 DESIGN*SALES*MERCH ADMIN*TECH*PRODUCTION SALES REP (212)557-5000 F: (212)986-8437 A growing New York based sportswear co. seeks a NY sales rep. w/ dept. and chain store contacts. All territories. PRODUCT Tel: (212) 268-5200 Fax: (212) 268-4842 Apparel Staffing DEVELOPMENT See Career Openings @ www.apparelstaffing.com MANAGER Activewear & Kids Fax Resume To (212) 302-1161 BlissWorld, LLC, is seeking an experi- enced Manager, Product Development Est’d. Mfr. seeks dynamic, asser- to take the Bliss and Remede product tive, and professional Seller with line from conception to fruit ion. Must great follow-thru skills and 3-5 Graphic Designer/ have experience working with labs to develop product formulations. Must be years exp. for our Children’s Divi- CAD Artist very detailed and able to manage dead- sion 4-6x/7 - 16. Candidates must Leading Childrenswear MFR seeks lines and budgets. Prior experience in talented graphic designer. Must be a product development role required have major chain accounts & spe- able to work well with people and have from a beauty/cosmetics company. If cialty store relationships. Please SENIOR EXECUTIVE afull understanding of basic computer these qualities fit your profile, then we Well-connected in USA Majors & Acces- programs as well as Photoshop and have opportunities to discuss with you. Call or Fax resume to Andy at: ories Industry. Built #1 most recognized, Illustrator. Minimum 3 years experi- Only those who love "feel good" prod- Tel: 310-965-7700 x 0 premier handbag/leather goods brand and ence. Excellent salary & benefits. ucts need apply!!! For immediate increased sales volume from zero to $ half Please fax resume to Lauren at: consideration, please email your re- Fax: 310-965-7750 billion. Refs: CEO’s, Pres., GM’s of Majors. 212-967-7494. sume to: [email protected] NO RTW/Dresses. 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