00 MONTH 00, 2015

WWD.COM

Xxxxxxxx Xxxxx Winner Needs a Illustration by investors. importantly, and, dreamers designers, other their And ligh bright a beacon, a was success superstardom. fashion to path that of version — age last some Tommy,took fashion’s — all al et Calvin, Donna, Ralph, Giorgio, from biggies The ¶ empire. growing multibillion-dollar and a sustainable, capitals major fashion in flagships handbags, and fragrances for licenses lucrative and reviews accounts, editorial wholesale bigger with rave business a into that parlay and retailers key few a from nod favorable a get stick-to-itiveness of plenty and vision have empire fashion down. broken a building of economics The designers and investors. would the way point for other One trailblazing new success AUTUMN WHITEHURST AUTUMN ¶ No longer can a young designer with sie t get omril egt i fashion. in heights commercial great to aspired who everybody nearly helped it doing rich get to become and Giorgio Armani and looking to get into fashion how one was going to going was one how fashion into get to looking investors of number a of one any to explaining then and magazine a from love marketing of free bit little a supporters, retail few a finding of plot their path ahead. and names big other the of any or them to look Designers pushing vastly di no one who gives the impression of really killing really of impression the gives who one no and get to understand story behind. be the“next RalphLauren.” BY That Ralph Lauren or Giorgio Armani managed It was — on the business side, at least — a matter They could also sell others on that future. There are successes established in fashion, but Now, notsomuch. o pull to nevereasy was It EVAN CLARK t followed by hordes of of hordes by followed t ff erent aesthetics could ff , but it was an easy an was it but , chain or some other attribute. supply their or marketing, their of strength the on succeed that companies be eventually would the new way forward is going to be” and that there Rhone and others. ments in Cotopaxi, invest- Ventures,has whichM3 at partner Dubb, Tracy said companies,” fashion of types new the Oklahoma —faraway from thefashion capitals. 50 doors and a core base of strength in Texas and than more with online savvy Tex.-based is brand Austin, The billion. $1 around at firm the reportedly valued that Partners Berkshire firm equity private to stake minority a sold recently Scott, which Kendra is area accessories the in tender Bauble Bar, aren’t labels. designer like Warby Parker, Bonobos, Rent the Runway and company’s o public initial 2011 noting the rush to invest in fashion brands after the little bit di companies that have garnered the most attention, far enough to sketch out a clear roadmap. And the outdoor Cotopaxi — specialist but no one’s made it Ochs, Jonathan Simkhai, casual L.A. brand Rails or ideas, ideas, new technologies, new methods of selling.” convergencethe changenew and of speed the of because instant that and moment that [only] for work might be might template the whatever son, who worked as chief executive o haveJeworkedgeneration,”said a for sure a not bet. decent a least at than thing, sidelines, waiting, looking for something that is, if Derek Lam and, at the more recent end, Cushnie et the likes of Alexander Wang, or headway— making and trying apathy.are Plenty retail and media social Amazon, of age the in it have to say doesn’t matter to Millennials.” has investments in Jason Wu and ALC. “What they and cofounder and chairman of InterLuxe, which don’t matter,” said Gary Wassner, fashion financier strings. purse their convert followers into buyers. tellingtheirown customersstoriestoableto and like: look will a consensus about what the winners of the future resources, no matter how much they have.” it demands innovation,focus and wise allocations of very limited demands it creativity, demands It template. new no is there that maybe think I them,” Aronsson said. “What’s the without new template? live can’t you and with stores] live [department can’t you where point the to get you much so Not business. designer the any longer. and is now scouting for developing brands. “[Now] de la Renta, , and others “The “The truth is that they’re just all going to look a Dubb said investors are forced to “choose what around validation of ton a been hasn’t “There an outlier.But Scott is con- One though. hope, of Thereareglimmers “Back in the day, it was a template that might that template a was day,it the in “Back Fashion needs a winner to rally behind. the on largely is crowdnow,Formoneyed the “My analysis of it is, the new model is magazines š7dZj^[o¾bbX[gk_YajeWZWfjWdZj_]^jm_j^ šJ^[o¾bb^Wl[ieY_Wb#c[Z_WiWllo"X[WZ[fjWj šJ^[o¾bb^Wl[]eeZfheZkYj$ While the path is not clear, there is something of and slope slippery a on you’re know “You of lifeblood the be to used stores Department ff erent than did,” she said, ff ering. WWD.COM ffi cer of Oscar ff ryArons-

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13 14 JANUARY 2017, No. 1 are plenty of concepts rooted in the web, but that aging director at Lincoln International, said there picture. the of part just figures,ment is digital govern-to according sales, retail total of percent department stores that are now being threatened. a factor that extends financing to brands selling to of change,” kind said Wassner, this who envisioned is also never head of they Hildun, and change would it thought never they long, so for model what a brand is best at and what customers want. both decider,of as role their losing part large in looking at really targeted marketing.” We’re print. for longer any budget marketing a and you have to tell yourabout story. is We’rebrand not your creating what into deep dig to have ing concept,” Wassner said. “It can’t be fake. You Twitter). the president-elect, of case the (or,unfilteredin become and tagram Ins- to moved has consumer and brand between conversation once-mediated the since fashion in khai, are all good communicators. digital Sim- Jonathan Wangand Alexander stake), sonal per- a has he which (in Ochs et Cushnie as such from social medial into actual dollar purchases. dollar actual into medial social conversion from the have truly because…you really seeing winners left and right,” Gandhi said. “That’s don’t become buyers. “On the beauty side, we’re is,” Gandhi said. “We really do need omnichannel, work together. best can click-and-bricks how shown clearly or they still haven’t p haven’t still they is that social media followers stay followers and followers stay followers media social that is are profitable yet. companies those that clear it’snot but equation, lot of attention and money on the tech side of the a up drummed Runway, the Rent player rental fashion or Parker Warby disruptor eyewear ing in their current form, it’s been three to five years.” but max, 10 years around been only they’ve young I really do think that varies. Most concepts are so formula? right the What’smean? that what’s but AGENDA “What theonlinepresence“What you’re inyour fat company, has done,iteliminated any inyour fat company. If Someone will disrupt you.”Someone willdisrupt any for you ability to have Investment banker Janki Lalani Gandhi, man- Gandhi, Lalani Janki banker Investment 8.4 just up making still e-commerce with But business a on worked have that “Institutions also are stores — press fashion the just not It’s “You have to have a very strong digital market- And that’s perhaps the most important new skill growing, are that brands designer the said He “I don’t think it’s clear what that combination that what clear it’s think don’t “I Broadly speaking, the fashion-digital disconnect includ- hybrids, fashion-tech of wave first The you’re going to get killed.

WWD.COM Joseph Lamastra roven they are they roven , SandbridgeCapital lasting brands lasting e-commerce on its own and guide shops that offer patrons doing alittlebitof everything, withwholesaleinNordstrom, Businesses to Watch Berkshire Partners took a stake inthecompany, rents out serious style. Merchants are intrigued by the accessories brandaccessories has with anonlineoptical businesshasbeenfocusing on ownership, according to this budding enterprise that and Oklahoma and is BONOBOS model and Neiman Marcus just linked with Rent the KENDRA SCOTT that sources placed gaining momentum. built a base in Texas giving it a valuation brand that sought to remake the eyewear market

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playing coy, likely being cautious for good reason. launched astreamingshow style andmore. only videos, it’s sponsored fashion events in India, influencer Olivia Palermo to hawk fashion in online- clearly in the crosshairs. The company has tapped pri- o own its vate-label with out building it’s area (an now that delivered more than two billion items last year. vibrant marketplace, with its own fulfillmentproducts. serviceIn part, that’s because for search theto Amazon to webfirst turn shoppersgiant online has a brand. big of weapon the next the secret great opportunity, can’tand webbrand the their if wants giant that, worry still but and Amazon with business doing on topoftheirexpenses.” [chief financial o has do done, it has presenceeliminated any ability for you to have online the “What control,” said. expense strict La Lamastra be to going is key th the De Derek and Lam Rossignol among its investments. Sa Sandbridge Capital, which counts Thom Browne, of partner managing founding Lamastra, JJo Joseph said people,” pushed really has products, su sumer wwi with high fashion, but with fashion and other con- weirdway,mucha so in not Amazon think I an and is, changeover todaythis of part early the in clearlywe’re of snapshot the but years, 30 20, for on. is andotherwise, financial figure out how to truly leverage digital advertising Apparel and accessories [companies] still need to b di co an are —onAmazon. they where consumers meeting at good also but e operationally inevitably to or at least through Amazon. And the the luxury level yet, but what if it’s coming?” reached really hasn’t “It said. power,” Lamastra a competitor. to go instead will dollars sales directly,the it get but it’s the reality. We are really on top of our cfo’s disrupt you. It’s not the sexiest thing to talk about, your in fat company, you’reyou’re going to If get killed. company.Someone will your in fat any thousands ofdrugstores. the level, mass the at or, stores department for haven for their brands. That doesn’t even account work that provides sizable distribution and a safe net- retail thriving a into linked are doors 2,300 Sephora’s and stores 949 Ulta’s into break that hundred doors,”Gandhisaid. few a to get maybe you [Marcus], Neiman Saks, Anthropologie, doors, Nordstrom most through play sector. to in the hot beauty marketing.”and next big name might be not just socially slick and Many fashion companies are extremely wary of “The winners of the future, whatever they are… occurring been that’s evolution this “There’s In the end, the path to the future might lead might future the to path the end, the In still are brands hot but there, is desire The basics in mostly is business fashion Amazon’s of percent 55 Bloomreach that research found mzn ol b te ra tra o the or threat great the be could Amazon That’s thequestion thatalotofpeoplehave. much too have almost they scary, little a “It’s pressure, the and refuge no such enjoys Apparel di is case The selling you’re brand] fashion a [as if “Even to base wholesale vibrant more a also is There ff rn) Bt ihred aho is fashion higher-end But ering). ffi ff ffi cient with compellingproduct,with cient erent in beauty,vendorsin where erent cers] to make sure that they’re ■

Scott photograph by Ryan Kobane/BFA/REX/Shutterstock; Cushnie et Ochs by Joshua Scott; Bonobos store by Thomas Iannaccone Illustration by 13.9 percent drop, to $30.82. during thefirst week of 2017, a The declineinMacy’s stock $4.99 Centers. International Councilof Shopping feet inFrance, according to the feet intheU.K. andfour square compared withfive square space percapita intheU.S., The amountof shoppingcenter square feet 24 spring. this streamlining job to amassive will losetheir workers who Macy’s 158,000 of The portion 7% NUMBERS THE BY Lost Sales Go? Where Macy’s Will SAM ISLAND SAM W that are less profitable or have valuable real estate to become — enough revenue to make a venture capitalist cry for joy and stores.hit do they when experiences better for looking are than and ever options more to access have shoppers where world retail uber-competitive an in overdue not if necessary, as for marketelse scraping share. the against compete to o able better meaner, and leaner oa. ays ogd ae o $61 ilo i te at four last the in billion $26.1 of sales logged Macy’s today. valuations. fuel at least to three billion-dollar tech start-ups ff Lost Lost in the mix of the closings: About $575 million in sales It’s a move that nearly everyone, outside that 10,000, sees The truth is, outright sales don’t mean so much in retail in much so mean don’t sales outright is, truth The By By up won’t easy. be but pickingthatbusiness sales asitshuts stores, giving up$575 millionin The department store is -pricers, Amazon, the e-commerce hordes and everyone and hordes e-commerce the Amazon, -pricers, EVAN CLARK here willitallgo? hn 000 employees from itspayrolls. 10,000 than more cut will that lining spring in a broader stream- this doors 63 shuttering is Inc. Macy’s fast-forward, n n evolutionary an In The The idea is to trim stores of it? cast away. The question is: Can anyone else make something be a much healthier, somewhat smaller company.” $9.4just of marketbillion. a capitalization has and quarters Better to have a smaller, hot brand that’s got more potential to referring to the 2005 deal that brought May Co. and Federated May Federated and Co. brought that deal to 2005 the referring ing in the years ever since the May acquisition,” Johnson said, Amazon, Johnson said. grow than a empire that needs to be turned into…what next? Craig Johnson, president ofCustomer Growth Partners. said Burlington,” then Rossand then and importantly most T.J.it’sbeen [Maxx], years, Kohl’s 10 and last earlier,the to be di will today winners share market the And retailers. go other to and it softens the competitive nature of the market,” he said. market the in competition there’sless that argue could you have to drive consumers to want to spend. nudge in the stores. once they’re extra that shoppersgive to goods on prices cut to spending one.” meaningful a it Singer, Mortimer executive chief o tra drive to events local and relations public local marketing, local with hard really work to has be motivated to spend. have-to-have items. And that’s a big problem. People need to because fashion retailers are mostly selling want-to-have, not Diego. is San to Bangor, which Maine, country,from the across million, distributed $575 that grab and in swoop to going is Department StoresDepartment together and built the modern Macy’s. might be they get a small lift, potentially, getlift, they smallbe mighta wouldn’tI but call J.C. Taylorsvicinity,& the “The LordPenneys in and ciates. Still, more than half-a-billion dollars in business is being is business in dollars half-a-billion than more Still, “They probably should have been more aggressive in prun- E-commerce has also been a factor and e-commerce means TargetWal-Mart, from rotated have gainers biggest “The While Macy’s grapples with this, it’s not like any one player Some of the have-to-have purchases in that $575 million will anything, if closings], store [with away goes that “Once Singer said such promotions were “a huge driver.” Retailers tra drive to spending just isn’t Macy’s “Any store in the market, whether it’s a good store or not, Everyone who wants a piece goingis to have to fight for it “They still have a great brand name,” Johnson ff ■ erent than they would have been 15 years ago. ffi cer of Marvin Traub Asso- ffi c,” said consultant consultant said c,” ffi c, but e but c, WWD.COM AGENDA said. “It will will “It said. ff ectively

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