FENDI’S NEW DATE THE BRAND HAS JOINED PRODUCERS ARE THE PARIS COUTURE MADE BECOMING BRANDS, CALENDAR FOR A SHOW FASHION’S COINCIDING WITH IN MONUMENTAL ROLE REMEMBERING LAGERFELD’S AND MORE. 50TH ANNIVERSARY SECTION II SEGERSTROM OF DESIGNING FURS FOR ITALY A LOOK BACK AT THE LEGACY OF SOUTH THE HOUSE. PAGE 2 COAST PLAZA FOUNDER HENRY SEGERSTROM. PAGES 16 TO 22

LAMPERT’S LATEST MOVE? XXXXXX Sears Hints at Exit Xxx Xxx Xxx Of Brick-and-Mortar Xxx Xxx Xxx Xxx By OVIDIS A NATQUE NET By VICKI M. YOUNG MENDA VOLUPTA turepudit, quias nestis accus as COULD EDWARD S. LAMPERT be thinking of taking resti beriasi doluptatem. Nem aut aperunto est ut Sears Holdings Corp. out of brick and mortar? perrori taquidem aut qui blatem ad eium fugiantur Lampert, Sears’ chairman and chief executive of- modi cus vel iusam fugiamus, omnim volendus, sinus FRIDAY, FEBRUARY 27, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY fi cer, didn’t rule out that possibility Thursday in a eaquas dolorep tatatent qui que sandelendis quis aut pre-recorded earnings call on fourth-quarter results, voluptur? WWD which once again were deep in the red even as the Nam essint aut ea duntinv elendiciam num exp- company trumpeted an “improved” performance. labo ribusae niam quidebi ssimet autat. Lampert has been preaching about a multiyear trans- Antiur, nobit faceptat. formation of the perennially beleaguered business to Idis molupti nonsequis doloren impelecae nusci an “asset-lite, member-centric integrated retailer” im solente molorep eribus des corpora tibus, odis et that has become more of an e-tailer, with a far smaller dunt dolorpo reiciatem dolo int adigend uciendus COLLECTIONS brick-and-mortar footprint. aperita consequam utatur, quiani conectiam ut as That asset-lite move could shrink Sears Holdings’ intionsequas et quaeriat qui aut unt omniendi blabo. physical presence even more come May or June when Tem voluptat quam cum et fugia il mo etus aut eicae MILAN the company is expected to shift 200 to 300 stores into lam, offi ctoribus adistionsed que non re cone con FALL 2015 a real estate investment trust that incorporates a sale/ cumquasped et quis del mo dellupt ataerum faccae leaseback structure. The REIT move is expected to repudae ne voluptat la cusapit periscilit quis eiur, aut generate more than $2 billion in proceeds for Sears, et atur asitisimi, autem quo quia nis quid qui ut auta yet another example of Lampert’s increasingly intri- dolesequi corum qui debitatur, quiam nis mos volu- cate fi nancial maneuvering to prop up Sears’ contin- pis sequam faccus si im el il isimoditis volorporem ually deteriorating liquidity. But Sears would likely imporro conse con ratquiasse vellum re et et optate have to pay fair market rates to lease those stores con consequuntio doluptiam eata digenis aut offi c to Lucky inctur sam re re dolupta tessin con pe corio dolorum from the REIT. Further, Sears has already begun leasing out some aditias et el et mi, ius dolori bla eosam utem even- of its store space, effectively turning the retailer into dae offi cae nobistr umquos milliqui apiendam rere- a landlord. Whether in the REIT or outside of that hen dendandi doluptur maiorrovid eum es quid eturi structure, the expectation is that the company will tem re, incipsa nisquiam quatenimet quiditatem im- continue to explore more of those opportunities. porrovid ut quia di simporest et la dolorro blant eos Charms “We anticipate that the REIT would enable us to dolupti atistia cus, aborpore landio to blautet as aut continue and to accelerate many of the activities that offi cipsam earciaes excearum, qui te offi cilicit est aut For Miuccia Prada, this season was all about we have been pursuing over the past several years. id mil min ea pore mil iumque pro vit offi cab il en- giving women what they like — soft bows, pretty Specifi cally, we have been working to partner with dantotatum verovid mod et rat.Soloremquiam et pro que pelique plibus et, similiqui ius essi re arum et colors and a soupçon of sparkle — and it worked other retailers and mall owners to enable us to reduce the operating footprint of our stores to smaller but od mo earum aliquat latur, offi c tem faciend itatend like a charm. Here, she worked a baby-doll tunic still signifi cant spaces, while leasing part of the store esequatur molene landit endam solor sene vitaqua ti- to retailers who will bring increased foot traffi c and asitaquunt faccuptur sum qui od untorum facitiis do- over matching pants in tone-on-tone pink with lessita dolupta temporepe platect enistiam con conse- crystal embroideries reminiscent of midcentury SEE PAGE 14 ditae. Itatum et aut ant enim acillor am eos esectas et brooches. For more, see pages 6 to 8. explam repudae. Nequam, omniminum faceruptatas Magazine Firms Wrestle Over Native Ad Rules Xxxxxx Xxxxxx By ALEXANDRA STEIGRAD By OVIDIS A NATQUE NET

THE AMERICAN SOCIETY of Magazine Editors is in MENDA VOLUPTA turepudit, quias nestis accus as the process of changing its guidelines, as large, main- resti beriasi doluptatem. Nem aut aperunto est ut stream publishers continue to break down the lines perrori taquidem aut qui blatem ad eium fugiantur between editorial and advertising, WWD has learned. modi cus vel iusam fugiamus, omnim volendus, sinus ASME, which runs the National Magazine Awards, eaquas dolorep tatatent qui que sandelendis quis aut is faced with the dilemma of whether to look the other voluptur? way, or create a new set of rules that reaffi rm the long- Nam essint aut ea duntinv elendiciam num exp- held journalistic principle that editors should be pro- labo ribusae niam quidebi ssimet autat. hibited from working on advertising content. Antiur, nobit faceptat. According to insiders, in light of the fact that sev- Idis molupti nonsequis doloren impelecae nusci eral publishers have already bent that rule, the orga- im solente molorep eribus des corpora tibus, odis et nization is drafting what is being referred to as “pre- dunt dolorpo reiciatem dolo int adigend uciendus scriptive” guidelines for native advertising, which aperita consequam utatur, quiani conectiam ut as will be voted on next week by a board that includes intionsequas et quaeriat qui aut unt omniendi blabo. publishing executives. Tem voluptat quam cum et fugia il mo etus aut eicae In recent months, Hearst noted that its digital edi- lam, offi ctoribus adistionsed que non re cone con tors work on native advertising content, and Time Inc. cumquasped et quis del mo dellupt ataerum faccae acknowledged that select editorial staff work along- repudae ne voluptat la cusapit periscilit quis eiur, aut side the advertising side. Last month, Condé Nast et atur asitisimi, autem quo quia nis quid qui ut auta said its newly minted content division, 23 Stories, will dolesequi corum qui debitatur, quiam nis mos volu- employ editors to work on advertising copy — a viola- pis sequam faccus si im el il isimoditis volorporem tion of ASME’s current rule as written on its Web site: imporro conse con ratquiasse vellum re et et optate “Editors are reminded that the participation of edito- con consequuntio doluptiam eata digenis aut offi c rial staff in the creation of advertising is a confl ict of to inctur sam re re dolupta tessin con pe corio do- interest and should be avoided. Editorial contributors lorum aditias et el et mi, ius dolori bla eosam utem should not participate in the creation of advertising if evendae offi cae nobistr umquos milliqui apiendam their work would appear to be an endorsement by the rerehen dendandi doluptur maiorrovid eum es quid magazine of the advertised product.” eturi tem re, incipsa nisquiam quatenimet quiditatem Sid Holt, ASME chief executive officer, con- imporrovid ut quia di simporest et la dolorro blan PHOTO BY DAVIDE MAESTRI fi rmed that his organization is updating the current SEE PAGE 15 SEE PAGE XX 2 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM

Fendi Bringing Fur to Couture DIGITAL BRIEFING BOX among other top nationalities. bers or give a breakdown of the FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE. By WWD STAFF He said prices for the couture business, though it is understood w furs have yet to be set, as the col- leather goods, as is the case MILAN — Seizing on its legacy in lection is still in progress. for most big European luxury fur, Fendi plans to join the cou- But Fendi’s prices already brands, represents Fendi’s big- ture calendar and stage a “haute stretch from about 500 euros, or gest category. fourrure” show in Paris on July 8. $568, for its popular Bag Bugs He characterized fur as a “sig- The event coincides with Karl fur charms, all the way to 500,000 nificant business,” noting “all Lagerfeld’s 50th anniversary de- euros, or $567,585, for coats in categories are growing for us, signing furs and ready-to-wear for rare and prestigious furs such as and fur with it.” the Roman house, putting him in sable, white sable or lynx. Fendi procures all its furs in- the unique position of staging two “People are willing to invest ternally, attending auctions in couture shows in the French capi- in a Fendi fur because they know Finland, Russia, Ukraine and tal. The German designer is also it is produced by the best hands Canada. “Nobody has this inte- the couturier at Chanel. in the market,” he said. grated chain,” Beccari asserted. Christopher “For me, fur is Fendi and Fendi boasts about 40 full-time Fendi and Beccari credit Raeburn Fendi is fur,” said Lagerfeld, employees in its fur atelier with Lagerfeld for transforming the noting he channels the “Italian a combined work experience of image of fur from a bourgeois version” of his creativity into his more than 600 years. Some rare status symbol to a fashion item, Closer Than the Front Row: work for the brand, owned by artisans continue to work beyond employing a host of dazzling tech- Our video series takes you inside French luxury group LVMH Moët their retirement years, and there niques from shaving, knitting and designers’ studios as they prepare for Hennessy Louis Vuitton. are also some father-son and fa- implanting hairs on organza and the fall collections. Watch the videos. “It reinforces the tradition, ther-daughter tandems. plastic to fusing its plush hairs magnifi es our savoir faire, and All of Fendi’s products are with 24-karat gold molecules. it gives us a chance to experi- produced in Italy, and Beccari A fl ip through Lagerfeld’s daz- ment, as couture is a platform is keen to perpetuate its savoir zling output, compiled by Fendi for experimentation,” Pietro faire, which involves a lengthy ahead of the show in July, spans Beccari, Fendi chairman and apprenticeship. zip-front jockey jackets for the chief executive offi cer, said in “To learn to cut a fur, we’re whole family, fringed fur pon- an interview here on Thursday. talking about close to 10 years be- chos, infl atable fur puffers and a “Haute fourrure will set a dif- fore you can approach precious birdlike cape. ferentiation between Fendi fur skins,” he On WWD.com and the rest.” said, likening He noted Fendi already sells the rare ex- Closer Than the Front Row: Our video Classic made-to-order and custom-made pertise to dia- series takes you inside designers' studios fur furs, and has recently expanded mond cutting. Marques’ Almeida as they prepare for the fall collections. looks its atelier to meet demand, and Beccari from prepare for the launch into high- declined to Christopher Raeburn Fendi. fashion furs, which will not be discuss num- available in boutiques. ON PINTEREST Marques Almeida Beccari said the col- lection would travel to other cities for order On Pinterest taking, as other couture Most Pinned: Follow our Backstage houses do, with Fendi’s Board to see our best pins behind the stops including London, scenes from Milan Fashion Week. Monaco, Tokyo, Seoul, New York and Hong Kong. The executive noted that Hong Kongese rank as Fendi’s number-one fur clientele, with Japanese, Koreans, Russians, A Karl Lagerfeld Backstage at Americans and Brits sketch from 2000-01. Alberta Ferretti.

Most Pinned: and Emilio Pucci’s artistic direc- Backstage at Gucci. Sales Up, Net Down at Cavalli tor since 2008, as possibly return- Follow our and the company said it is “con- ing to the Florence-based brand. Backstage Board By LUISA ZARGANI fi dent they will close within the In 2014, the performance of the to see our best timing expected.” The deal was Cavalli group was dented by a 4 pins from behind MILAN — As talks continue to be fi nalized in the fi rst quar- percent decrease in its wholesale the scenes at about selling a significant stake ter of this year. “Clessidra fi rst channel, especially in Russia. Milan Fashion of its business, The Roberto had access to Cavalli’s data room Retail sales represented 68 Week. Cavalli group closed 2014 with on Jan. 10, so it’s not been very percent of total and were up 1.2 a decrease in profitability and long,” said chief executive offi cer percent. In directly operated gains in revenues, blaming socio- Daniele Corvasce before the Just stores, revenues climbed 6 per- economic gyrations, declines in Cavalli show, adding that the deal cent, lifted by new stores in cit- the wholesale channel and finan- should be completed at the end of ies such as Vienna, Saint-Tropez, Backstage Backstage cial troubles hitting a licensee. March or April. “It’s only normal Hong Kong and the new fl agship at Fausto Puglisi. at Max Mara. Ahead of its Just Cavalli show on for a company to close its fi nancial on via Monte Napoleone in Milan. DABROWSKI; DELPHINE FERRETTIACHARD KUBA BY PHOTOS BY GUCCI, PUGLISI AND MAX MARA Thursday, the Italian fashion group year fi rst.” When told that market New franchised stores in- posted unaudited earnings before sources say Clessidra is in the pro- cluded the units in Macau and interest, taxes, depreciation and cess of fi nancing the funds to ac- Bangkok. At the end of 2014, FOLLOW US ON SOCIAL MEDIA amortization of 14.8 million euros, quire the company, Corvasce said monobrand stores for the group @ WWD.com/social or $19.6 million, down 33.9 percent he could not respond for Clessidra numbered 190, compared with compared with the previous year. but conceded that “banks have 179 at the end of 2013. Of these, TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. Without taking into consid- been calling to participate and 91 are Roberto Cavalli (41 of WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. eration extraordinary items this obviously pleases us.” these directly operated); 54 Just COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 209, NO. 42. FRIDAY, FEBRUARY 27, 2015. WWD (ISSN 0149-5380) is published daily (except Saturdays, connected to the devaluation of According to market sources, Cavalli; 28 Cavalli Class and 17 Sundays and holidays, with one additional issue in January, June, August, September, October, November and December, credits from licensees and non- signs point to a positive outcome Roberto Cavalli Junior. The com- and two additional issues in April and three additional issues in February) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Floor, Los Angeles, CA 90025. recurring costs, EBITDA would of the negotiations, as “some pany continues to invest in its Periodicals postage paid at Los Angeles, CA, and at additional mailing offi ces. Canada Post: return undeliverable Canadian have risen 8.9 percent to 24.4 mil- paperwork” has already been retail network. A directly oper- addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. 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Group, were engaged in nego- Revenues from licenses rose address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you Dollar fi gures were convert- tiations with Cavalli, but those 11.6 percent. Despite the growth are ever dissatisfi ed with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues ed from the euro at average ex- deals never materialized. of some licenses, problems of contained in a subscription term and/or the way the product is delivered. Address all editorial, business and production change rates for the periods to Sources said Clessidra could credit recovery negatively im- correspondence to WWD, 475 Fifth Ave., 15th Floor, New York, NY 10017. For permissions requests, please call 212-630-5656, or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. which they refer. buy up to 90 percent of the fash- pacted the group’s early results. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. The company also addressed ion house. Upon completion of a Dressing SpA, a former Cavalli To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED the ongoing talks to sell a major- deal, Francesco Trapani would Class licensee, is going out of MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND ity stake to Italian private equity become president of the Cavalli business. The issues at Dressing TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED fi rm Clessidra SGR SpA. company. Market sources point to accounted for 10 million euros, TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Discussions “are proceeding” Peter Dundas, a veteran of Cavalli or $11.3 million, Corvasce said. ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Congratulations on the National Magazine Award. Best in the Business for Print, Digital, and Events.

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LVMH, Parsons Extend Partnership Versace’s Ferraris Talks IPO group that enable us to make a positive in Aoyama covering 3,240 square feet. By ROSEMARY FEITELBERG and enduring impact on society.” By LUISA ZARGANI Versace has brought the production The fi rst part of the program consists of its home textiles in-house begin- AIMING TO BUILD on its LVMH of eight weeks of classroom instruction at MILAN — Twelve months after the ning Jan. 1. Fundamentals ’’ in Luxury Retail program, Parsons with professors from the school, sale of a 20 percent stake in Versace While the company will release its LVMH Moët Hennessy Louis Vuitton, the LVMH executives and CPC Workforce to Blackstone Group in a deal that 2014 sales fi gures some time this spring, Chinese-American Planning Council and staffers. Following that, participants valued the company at 1 billion Ferraris touted a strong performance Parsons The New School for Design are spend two weeks interning in a LVMH- euros, or $1.13 billion at current ex- of accessories, which accounted for al- extending their initiative through 2015. owned retail store. Thus far, participants change, chief executive offi cer Gian most 40 percent of sales, and a balanced Launched last year, the partnership in the program have gone on to work at Giacomo Ferraris is on track to see geographic market and said that, “if a was established to address the needs Louis Vuitton, Dior, Thomas Pink, Fendi, a public listing “as soon as it is pos- brand is international, luxury custom- of luxury retailers to better serve their Bulgari, Sephora and DKNY stores, sible,” perhaps in the next two or ers will travel,” helping to offset re- Mandarin-speaking clientele. In addition, among others. three years. gional issues, such as in Russia, for ex- it was set up to train bilingual English As was the case last year, the program This does not mean the Italian ample, which mainly has “an effect on and Mandarin speakers, including those will continue to receive funding from The luxury group is in any rush to wholesale.” The Chinese shop who are unemployed and underemployed Robin Hood Foundation. Recruiting is enter the stock market, un- less in China, too; because of as well as those who have recently im- underway for the fi rst session, which will derscored Ferraris, who is high duties lifting prices, they start March 30. The program is open to nonetheless busy setting the are buying more in Japan, in bilingual English and Mandarin speakers wheels in motion the U.S., Canada who are legally able to work in the U.S. to that end. and Australia. The program is providing Candidates need a high school diploma As the ex- Last year, the or the equivalent of one. They should be ecutive remains Asia Pacific re- participants with an underemployed or unemployed and pas- upbeat about gion accounted sionate about fashion and retail. the partnership for 40 percent exceptional range of skills CPC chief executive offi cer David Chen with Blackstone, of total sales; said, “The program is providing partici- which “perfect- Europe for 40 and knowledge. pants with an exceptional range of skills ly marries” the percent, and the and knowledge that has and will continue company’s busi- U.S. for 17 per- — DAVID CHEN, CPC to serve them well in fi nding employment ness plan, while cent. Ferraris and embarking on exciting career paths.” “respecting it,” A bag from Versace. said he had seen migrated to the U.S. With an end goal of The CPC generally helps 1,000 people Ferraris outlined a higher growth helping participants land luxury retail fi nd work each year through its direct place- his priorities: To rate at retail in the jobs, the program has seen 41 individu- ment and training programs. Typically, strengthen the fi- U.S. and Canada in als complete the program and more than people who use the CPC’s direct place- nancial and organizational structure, the past three years. “Europe and the 70 percent of the graduates have found ment program earn between $10 and $12 an with a monthly closure, for example, U.S. are new markets for us, they are jobs primarily with LVMH, according to hour, according to Simon Chiew, the group’s aimed at “transparent communica- not saturated, we only had 10 stores a company spokeswoman. Those place- director of work force and development. tion;” adapt systems and structures, in the U.S.,” said Ferraris, pointing to ments have resulted in tripling the av- Those who use the CPC’s non-LVMH train- with an assessment of employees and recent store openings in Toronto and erage increase in hourly wages, not in- ing program average between $13.50 and managers, and projects that will in- Hawaii. Units will open in Miami and cluding commissions or bonuses. Given $16.50 an hour, he said. Those fi gures do not crease margins and brand equity. To Vancouver in 2015. that, the CPC described the initiative as refl ect what LVMH pays graduates of the wit: Versace is investing in its e-store, Prospects are also favorable in the most successful training’’ program in program who are hired on a full-time basis. which is done in-house and reaches Australia, where Versace is “taking back terms of its fi rst-year placement rate and One of the upsides of the LVMH nine countries in three languages in the territory,” as its own subsidiary. wage growth in the group’s 40-year his- Fundamentals in Luxury Retail program Europe and the U.S. The company is A weaker euro is helping exports, tory of providing workforce development for the CPC has been increased requests fi ne-tuning the system, as Ferraris but Ferraris noted that he is operating programs in New York City. from other fashion businesses seeking bi- said it’s still non-mobile friendly and under a medium-to-long term strat- Chantal Gaemperle, group executive lingual employees. non-omnichannel. egy. Prices have not been increased vice president, human resources and Joel Towers, executive dean of Growth will also come via busi- but some time in March, the company synergies at LVMH, which conceived Parsons, said, “Our core mission for this ness development in Japan, which is will end its shipments to stores, said the concept for the program, said, “The program and partnership has been to a market Versace just re-entered and Ferraris, and, starting in May, the goals of this program refl ect a greater bring design education to those who may where it plans to open two stores, company “will evaluate” pricing. “We focus within LVMH of establishing cre- not have had access to it with the goal of one of which will be dedicated to its have the advantage of having more ative, innovative initiatives across our positive, social change.” home collection, and one Versus store lines,” said the executive. Appeals Court Reinstates Macy’s Case Against Penney’s and that by its conduct, it had wrongful- By EVAN CLARK J.C. Penney reported a fourth-quarter loss. ly induced MSLO to breach its contract with Macy’s.” J.C. PENNEY CO. Inc. came up 0-for-2 For a time, Martha Stewart design- on Thursday. ers were working on goods for both A New York State appeals court rein- Macy’s and J.C. Penney. The appeals stated much of Macy’s Inc.’s case against court found that, “In using MSLO’s the retailer, reopening claims that J.C. designers to develop its designs and Penney interfered with Macy’s contract products at the same time those design- with Martha Stewart and engaged in un- ers were developing designs and prod- fair competition. ucts for Macy’s, and by using Macy’s And investors gave J.C. Penney’s confi dential competitive information fourth-quarter results the thumbs-down, obtained by MSLO…[J.C. Penney] mis- pushing the stock 10.1 percent lower to appropriated Macy’s labor, skill, expen- $8.20 in after-hours trading. ditures, [and] good will.” J.C. Penney’s net losses for the quar- That constituted a viable claim for un- ter tallied $59 million, or 19 cents a di- fair competition, the court said. luted share, and compared with earnings The legal fi ght is largely rehashing of $35 million, or 11 cents a year ago. battles fought in the past. Johnson’s suc- Factoring out special items, J.C. cessor (and predecessor), ceo Myron Penney said it broke even for the quar- “Mike” Ullman III, axed the Martha ter. That’s well below the EPS of 11 cents Stewart deal when he retook the helm of that analysts had penciled in. the company and unwound almost all of Sales for the three months ended Jan. Johnson’s initiatives. 31 rose 2.9 percent to $3.89 billion from Ullman is getting ready to hand the $3.78 billion as comparable-store sales cision does not meaningfully change housewares, but it recognized the im- torch to president Marvin Ellison, who grew 4.4 percent. Sales through jcpen- our position…We’re also considering propriety of [J.C. Penney’s] efforts to will move into the corner offi ce at J.C. ney.com rose 12.5 percent to $428 million. options for appeal.” obtain Macy’s confi dential information Penney in August. The company is still working itself out The legal news wasn’t all bad for J.C. and recognized that J.C. Penney had en- For the full year, the retailer saw its of the hole it dug when former chief exec- Penney. The appellate court agreed with gaged in unfair competition…We now losses narrow to $771 million, or $2.53 utive offi cer Ron Johnson tried to dramat- the lower court’s decision that Macy’s look forward to completing the damages a diluted share, from $1.39 billion, or ically rework the chain, eliminating price was not due punitive damages. phase of this case and to a forthcoming $5.57, in 2013. Sales rose 3.4 percent to promotions and many national brands Macy’s in a statement trumpeted what award of damages.” $12.26 billion. and negotiating a controversial deal with it called “a resounding victory.” The appeals court agreed with the This year, J.C. Penney is looking for Martha Stewart Living Omnimedia Inc. “Not only did the Appellate Division lower court’s fi nding that J.C. Penney’s comparable-store sales to rise 3 to 5 per- A spokeswoman for J.C. Penney affi rm the trial court’s decision, after a “‘relentless efforts’ to pursue MSLO cent, while expanding gross margins by said, “While we are disappointed that long trial, that [J.C. Penney] had unlaw- and Ms. Stewart were ‘over the top’ and 50 to 100 basis points and cutting selling, the appellate court reversed the trial fully interfered with Macy’s exclusive had ‘exceeded the minimum level of general and administrative expenses by court’s dismissal of two claims, the de- contractual rights for Martha Stewart ethical behavior in the marketplace,’ $50 million to $100 million.

6 WWD FRIDAY, FEBRUARY 27, 2015 Prada Prada Milan Collections Prada: A breather between blockbusters? While Fendi: “I had no time to go to the flea it’s tempting to look for intellectual subscript market,” Karl Lagerfeld declared in every move Miuccia Prada makes, perhaps backstage at Fendi, again expressing his seeking out the deeper context isn’t always anti-retro stance. What interests him necessary. After spring’s majestic outing in and Sylvia Venturini Fendi now: pure which Prada celebrated her respect for fabric geometry, experimental volumes and craft, shown against the provocative backdrop a little fun. The notion of voluptuous of a beautifully bleak purple desert, for fall she geometry was flagged by the invitation took a respite from deep fashion thoughts even and set, both featuring designs inspired though, ironically, “Thinking” was one of the by the Swiss artist Sophie Taeuber-Arp. titles she gave the show. But while they referenced her circular So what was she thinking? “I was thinking work, much of what was on the runway what women like: colors, bows, decorations,” was angular — coats, dresses, even pants Prada said backstage. made from pieced-together panels. Everyone in the audience must have been This collection was a delightful thinking what a stark 180 from spring, but such fusion of faux-utilitarian pragmatism seismic shifts are part of her brilliance. Simple and flamboyance. There was a bit of enough — almost. With Prada, simplicity is the Alpine worker to the pinafores and relative. Here, her vision of prettiness fused chaps-like leather additions attached retro shapes with technical foam jersey for a at the hips to skirts. Bibs and aprons in twinge of past-future dissonance. Thus, she had paneled constructions were fastened her show space arranged as a series of salons by giant buttons. Continuing with the in pink, Prada green and in combination, add-a-flower motif started two seasons with the vague atmosphere of an old-time back with orchid corsages, here, birds of couture salon, only each room had a section of paradise popped out of fabulous color- industrial metal flooring and overhead, a mesh blocked fur and shearling bags.

Prada

Prada

ceiling revealing the building’s unglamorous The fabric splicing intrigued — the infrastructure. simplicity of the two-tone white coat that Prada opened with neat Sixties shapes she’s opened the show to graphically collaged worked before, but now in techy foam, mixing coats and a witty felt gilet over corduroy girly and acid colors to quirky effect (“Soft Pop” pants wrapped in tubes of shearling from was another of her titles for the collection). the knees down. The diversity continued Trim jackets had schoolboy spunk over cropped through to silhouettes; looks came long bell-bottoms, and shared the runway with lady and lean, long and swingy, short and coats and beautiful high-waisted dresses in cuts crisp, and big, bigger, biggest, with the derived from midcentury couture. Again, she mega-statement coming on the big side. veered from the obvious, perverting the look Lagerfeld and Fendi did outrageous into baby-doll tunic-over-pants ensembles. takes on the puffer, including out-to-there As for Prada’s decorative streak, she short jackets over slim skirts and some started off by letting the color mixes do the strapless dresses that may have limited work (acid green with shades of blue and a market resonance but looked adorable. shot of pink; orange, blue, pink, gray), with The volume continued with the furs in handbags, shoes and gloves included in proportions so pumped up, it looked as the vibrant, carefully wrought free-for-all. if the design duo may have been thinking But with an outsize herringbone tweed, she of the hot (but very cold) U.S. market introduced the add-ons: fur strips and vertical when creating the collection. There were For more images, see bows running down the sides of coats and ladylike coats, anoraks and big-as-a-bear jackets; big, plastic flower pins and crystal overcoats, all delivered with a youthful WWD.com/ embroideries. The most eccentric looks had a insouciance. Case in point: an enormous runway. little of this (wide fur epaulets), a little of that two-tone topper over a coordinating mini (colorblocking, crystals) and oodles of charm. T-shirt dress, both in shearling. If that And as the thinking woman knows, sometimes, won’t have a girl looking toward next that’s plenty. winter before this one’s over, what will? — BRIDGET FOLEY — B.F. WWD FRIDAY, FEBRUARY 27, 2015 7 WWD.COM Milan CollectionsFall 2015 Fendi Fendi Fendi: “I had no time to go to the flea market,” Karl Lagerfeld declared backstage at Fendi, again expressing his anti-retro stance. What interests him and Sylvia Venturini Fendi now: pure geometry, experimental volumes and a little fun. The notion of voluptuous geometry was flagged by the invitation and set, both featuring designs inspired by the Swiss artist Sophie Taeuber-Arp. But while they referenced her circular work, much of what was on the runway was angular — coats, dresses, even pants made from pieced-together panels. This collection was a delightful fusion of faux-utilitarian pragmatism and flamboyance. There was a bit of the Alpine worker to the pinafores and chaps-like leather additions attached at the hips to skirts. Bibs and aprons in paneled constructions were fastened by giant buttons. Continuing with the add-a-flower motif started two seasons back with orchid corsages, here, birds of paradise popped out of fabulous color- blocked fur and shearling bags.

Fendi

Fendi

The fabric splicing intrigued — the simplicity of the two-tone white coat that opened the show to graphically collaged coats and a witty felt gilet over corduroy pants wrapped in tubes of shearling from the knees down. The diversity continued through to silhouettes; looks came long and lean, long and swingy, short and crisp, and big, bigger, biggest, with the mega-statement coming on the big side. Lagerfeld and Fendi did outrageous takes on the puffer, including out-to-there short jackets over slim skirts and some strapless dresses that may have limited market resonance but looked adorable. The volume continued with the furs in proportions so pumped up, it looked as if the design duo may have been thinking of the hot (but very cold) U.S. market when creating the collection. There were ladylike coats, anoraks and big-as-a-bear overcoats, all delivered with a youthful insouciance. Case in point: an enormous two-tone topper over a coordinating mini T-shirt dress, both in shearling. If that won’t have a girl looking toward next winter before this one’s over, what will?

— B.F. maestri davide photosby 8 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM

Max Mara Moschino Les Copains Costume National FOR MORE IMAGES, SEE WWD.com/ runway.

Just Cavalli

COLLECTIONS GIANNONI GIOVANNI PHOTOS BY Max Mara: As muses go, Marilyn novelty, there were colorful necklaces; a bag no sign of wearing chains, embroidered on the Monroe is as obvious as they leopard prints and shiny quilted shaped like a out its welcome in edges of ruffl es, spilling from come, but she got the job done silk styles with fur linings. giant padlock; MILAN the Italian fashion asymmetrical chiffon tops or for Max Mara. Her famous 1962 Retro lady bombers, sweatshirts riffs on gaudy FALL 2015 capital. These outlining the shawl collar of a beach shoot with George Barris, and pencil skirts fl eshed out designer denim, refl ected that era’s smoking suit. in which she coquettishly the merchandise for those who which actually glossy and chic side, The slim, masculine tailoring covered up in a Norwegian want something to wear under looked remarkably with Bianca Jagger and was terrifi c, with similar styles sweater, camel blanket and sea- the coats. — JESSICA IREDALE current all things Ursula Andress cited in the paraded by both sexes. Slinky green towel, fueled the color considered — the punch lines show notes. Not so the noisy Polish model Zuzanna Bijoch scheme and lineup of retro Moschino: Jeremy Scott’s fall raged on, culminating in a psychedelic fl orals worn head moved like Jagger in her skinny bombshells in deluxe knits and target: early Nineties hip-hop fi nale of classic pageant gowns to toe. pinstripes. — M.S. coats. It wouldn’t be fall at Max and all its stylistic collateral. tagged the old-fashioned way — MILES SOCHA Mara without them. It’s a joke a minute with this with colorful graffi ti, which Just Cavalli: For a contemporary Gigi Hadid, the throwback guy, and Scott let the references primed them for tagging on Costume National: “I’m a little tired line of flamboyant Italian babe with meat on her bones rip. There was egregious Instagram. Scott’s Moschino of Pop and vintage,” Costume heritage, Just Cavalli’s fall of the moment, opened and quilted leather and nylon in spectacle is still fun. As they National’s Ennio Capasa collection made sense. There closed the show in a pair Lego Man colors — bonus say, enjoy it while it lasts. — J.I. lamented backstage. was a retro-futurism to of mannish, mannish camel points for the backward red We hear you, Ennio. So designer Roberto Cavalli’s coats clutched around her overall shorts that cued a Les Copains: Embarking on an instead of yielding to sundry Sixties/Seventies-inspired like she had a chill, covering throwback to Kris Kross’ bad expansion in the U.S., Les cultural inspirations outside base silhouettes of neat A-line everything but her plumped- little fad of wearing one’s Copains should find plenty of of fashion, Capasa hit the reset miniskirts and shirtdresses, up cleavage. It was one of clothes backward. (Anyone takers for its long, showy-meets- button and turned to one main some of which zipped up and the show’s several hokey who was even mildly amused cozy cardigans — in shaggy reference — himself. Harking molded around the bodice in a approximations of Monroe’s by this collection should go to textures for day, sparkling and back to his Goth-tinged designs way that brought to mind Louis seaside cuddle session and Genius for the annotated lyrics slipping off the shoulders for in the Nineties, his mostly black Vuitton. So did the cropped silly Fifties/Sixties affectations to “Jump.”) night. The knitwear stood out collection hardly fl oored you pants in jarring graphic prints, that could be overlooked since To commemorate one of in Stefania Bandiera’s fall with newness, but clever details many done in the most unpretty the sweaters and amplifi ed the cheesiest moments in collection. She plied a dressy, caught your attention: the way throwback palette of mustard outerwear classics were so marketing history, when Looney borderline-fussy femininity, full seams on a crisp biker jacket yellow, brown and maroon. deftly done. Tunes tried to regain relevance of trapeze shapes and gussied- and lean leather pants were The look may have been An oversize take on the by giving its characters hip- up with chandelier earrings pierced with metal studs, or the made trendy by another traditional camel cable knit hop makeovers, Scott went and big rhinestones in a bid way satin lapels, side stripes or designer, but Cavalli topped was pretty perfect. Anyone in even cheesier, sending out fi ve to match her runway venue: a cuffs jazzed up slim black coats. it with his own signature the market for a big coat to models side by side in shirts gilded tapestry gallery at the These details also appeared fl are: fl ashy, furry coats that sink into next season will have — no pants — that bore the 18th-century Palazzo Clerici. on parkas, under which came long-haired and nubby great options: a nubby tailored images of thugged-out Bugs The full or fl ared pants and handkerchief skirts in shiny in neutrals and brights. They overcoat; a turquoise fur; a Bunny, Porky Pig and the gang snugly shaped tops had a whiff silk lapped seductively. Eye- brought the collection home to pale-pink brushed alpaca. For in Moschino bling. Chain-lock of the Seventies, which shows catching, too, were small silver the house of Cavalli. — J.I.

10 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM beauty European Indies Heat Up Maki Named Sisley U.S. Pres. have a risk of being more main- Paris; Lugano, Switzerland, site in the U.S. and was instru- By JENNIFER WEIL stream and less fl exible, so their and Doha, Qatar — and is By JULIE NAUGHTON mental in opening the country’s owners are often keen to comple- gearing up to broaden its fi rst two freestanding boutiques, PARIS — Indie fragrance ment them with smaller, more scented jewelry range, among JIM MAKI HAS been promoted to in Las Vegas and New York City. brands from Europe are in the agile and quirkier brands,” noted other launches. president of Sisley Cosmetics USA. “It is a true pleasure work- spotlight these days as merg- Eva Quiroga, an analyst at UBS. ■ Atelier Cologne, which Maki had served as executive ing at this family-owned brand, ers and acquisition activity Multinationals and was introduced in 2007 by vice president since joining the where the d’Ornano family de- heats up in the beauty arena. private equity firms Christophe Cervasel and Sylvie company in 2012. He will main- mands the very best from their “Fragrances are a hot sector already own the lion’s Ganter. The artisanal fragrance tain his current duties with the team and their incredible prod- for M&A right now, and large share of the more ma- brand just closed a new round company and continue to report ucts,” Maki said. “I feel fortunate beauty firms are rediscover- ture niche fragrance of funding worth 5 million to Arnaud Naintré, president of to be part of Sisley’s story here ing it after being interested labels — LVMH euros, or $5.7 million at cur- Sisley Americas. and to have the opportunity to more in skin, color and rent exchange, to help bolster “Jim brought an inimitable grow such a beautiful brand.” nail in recent years,” said its business. It currently has energy and enthusiasm to Sisley Prior to joining Sisley, Maki Karen Walker, senior man- four boutiques. three years ago, and we are very spent eight years with LVMH aging director of Michel ■ Maison Francis Kurkdjian, pleased with the results under his Perfumes & Cosmetics, heading Dyens & Co., the Paris- and the fragrance house started by leadership,” Naintré said. “This sales for Guerlain and Acqua di New York-based invest- Francis Kurkdjian in 2009. It promotion is well deserved and Parma. He was also the vice pres- ment banking fi rm special- takes a holistic approach we look forward to his continued ident of sales at YSL Beauté for izing in luxury and beauty. to beauty, with a line rang- success with the brand.” three years. Maki worked in fi eld The recent spate of A scent from ing from eaux de toilette to During Maki’s tenure with the sales at Boucheron, Issey Miyake deals is reminiscent of Atelier Cologne scented bubbles to textile brand, retail sales have grown and Jean Paul Gaultier and began the heady M&A scene in and Maison cleaning products. The label double digits for three consecu- his career in beauty in the buying the Nineties, with Puig Francis Kurkdjian has two stand-alone stores. tive years. Maki oversaw the department of Dayton Hudson/ (right). Other niche French fra- launch of Sisley’s e-commerce Marshall Field’s. grance brands on the rise include Memo, founded

The Kilian store in Paris. by Clara and John Molloy in 2007, and Juliette Has Camuto’s Legacy: New Scents a Gun, begun in 2006 by Romano Ricci. VINCE CAMUTO is gone, but his woods, and was created with In the U.S., sales of artisanal legacy lives on. Mane’s Claude Dir eaux de toi- fragrances in the prestige scent In March, his fragrance licens- lette in two sizes — 1.7 oz. for $57

category almost tripled between ee, Parlux, will launch the last and 3.4 oz. for $70 will be offered, 2010 and 2014 to $182 million, two fragrances Camuto worked as will a 2.5 oz. deodorant, $17. according to Karen Grant, senior on, Bella and Solare. Both scents will be sold in global beauty industry analyst “Just as beauty and feminin- about 3,000 department and for The NPD Group. She added ity are ageless, Bella empowers specialty store doors, including that while total prestige fra- women to embrace their indi- Macy’s and Dillards. ’’ grance revenues rose 2 percent viduality and inherent beauty,” Camuto always saw his life- to $3.2 billion in the country last said Camuto in an interview style consumer as “smart, so- year, artisanal fragrance sales shortly before his death on Jan. phisticated, appreciates design, advanced 24 percent. 21. The fragrance is due out in quality and value. He or she has Meanwhile, retailers are the beginning of March. During a busy schedule and appreciates carving out more space for the interview, Camuto also noted craft, tailoring, design and color.” niche labels, as some of the that Bella, a women’s scent, was snapping up Penhaligon’s and Moët Hennessy Louis Vuitton scent brands embark on their inspired by freshly picked garden Solare L’Artisan Parfumeur from Fox has Acqua di Parma; Manzanita own store expansion. flowers. An avid gardener, for men. Paine & Co. LLC in January, Capital is the parent of Diptyque “M&A activity in the beauty Camuto also took inspira- and the Estée Lauder Cos. Inc. and Byredo, while Serge Lutens space will remain high as in- tion from his garden for purchasing Editions de Parfums is part of Shiseido’s brand port- novation and consolidation his earlier women’s scents Frédéric Malle and Le Labo folio, for example — but there are permanent features,” Fiori (Italian for from their respective founders are a number of privately held said Michel Dyens, chairman fl owers) and Amore. in late 2014, as reported. brands currently ripe for the and chief executive offi cer of Fragrances were Bella for “The reason for this sudden one of the late de- women. interest…is that these brands are signer’s 30 lifestyle usually positioned in the ‘luxury’ Fragrances are a hot sector categories, which or ‘superluxury’ segment of the include sportswear, market, which currently offers for M&A right now, and large dresses, handbags, solid growth rates,” said Ariel jewelry, swimwear, fra- Ohana, cofounder of investment beauty firms are discovering it grance and men’s wear. fi rm Ohana & Co., of Paris, New Bella was concocted York and Los Angeles. by International Flavors Investment executives and after being interested more in skin, & Fragrances perfumer others expect more transactions. Yves Cassar and has top “Vince was fully “The big beauty compa- color and nail in recent years. notes of Italian bergamot, peach engaged in his fragranc- nies want to move from ce- nectar, pear and lemon ice; a heart es,” said Don Loftus, president of lebrity or fashion brands, ex- — KAREN WALKER, MICHEL DYENS & CO. of strawberry fl ower, nectarine blos- Parlux, after the designer’s death. cept for the most prestigious soms and jasmine water, and a base “He loved working on them. He designer brands, and prefer picking, although none has a vis- Michel Dyens & Co. “Smaller, of solar musk, white amber, sandal- always insisted on a significant to own their own brands with ible for-sale sign. Among those high-growth-potential emerg- wood, blonde woods and caramel- investment in both the juices and heritage or new modern con- based in France are: ing brands built on social media ized wood. A 0.2-oz. rollerball will the bottles — the heaviest glass, cepts,” said Walker. ■ Creed, which celebrates its and new concepts will drive sell for $22, while a 3.4-oz. eau de the top-quality notes, even at a $75 “Acquirers feel that some her- 255th anniversary this year. strategic acquisitions, as well. parfum will sell for $78. price point. Just as was true of Nine itage brands can be revived, as Olivier Creed marks the sixth Private equity acquisitions will Launching in mid-March, Solare West and his other businesses, his it is diffi cult to build a history,” generation running the business, continue to be strong and will refl ects a radiance and strength, instincts about fragrances were al- she continued. “Acquirers are which has created scents for help prepare some brands for drawing inspiration from Vince’s ways on.” And that strong commit- also interested in new modern the likes of King George III, the the next wave of consolidation.” “rich Italian heritage and its cel- ment paid off, said Loftus, noting concepts led by entrepreneurs, Duke and Duchess of Windsor, UBS’s Quiroga noted large ebration of vitality and creativity.” that the total Camuto women’s fra- which pave the way for long- Grace Kelly and Queen Victoria. companies such as L’Oréal Of the men’s scent, Camuto grance business for December 2014 term sales growth and which can Creed’s children, Erwin and and Estée Lauder currently noted, “Solare presents another was up 85 percent over 2013’s sales, be accelerated by synergies the Olivia, are also involved in the have a lot of cash and are al- option for the Camuto man to buoyed by two launches, Femme large beauty groups bring, espe- family-owned company. ways looking for ’’growth. express his individuality and and Amore. Men’s gained 30 per- cially in distribution and retail.” ■ By Kilian, which was “Some of the niche brands polished style. With the men’s cent with one launch, Homme. All four fragrance brands launched in 2007 by Kilian have been growing very quick- fragrance collection, I wanted to While all involved declined recently purchased have their Hennessy. The label keeps ex- ly, and I think they’re con- introduce a scent that would both to discuss sales fi gures, indus- own freestanding store net- panding its reach — both on stricted by their size and how inspire and provide an acces- try sources estimated that Bella works and a clear story to tell. the product and retail fronts. much they can expand glob- sory to the modern man’s sense could do $7 million to $8 mil- Penhaligon’s, for instance, is The brand, with a philosophy ally,” she continued, adding: of style.” Solare’s signature notes lion at retail in its fi rst year on steeped in history, having been (and tag line) of “Perfume as “There’s obviously a fi ne line include juicy mandarin, pimento counter, while Solare could do $6 founded in 1870 in London. an Art,” opened late last year between being niche and then leaves and cardamom, anchored million to $7 million in the same “Bigger brands obviously three freestanding stores — in becoming mainstream.” by sensual musk and cashmere time frame. — J.N. MARCH 2015 TH ND 19 -22 COSMOPACK TH RD 20 -23 COSMOPROF BOLOGNA (ITALY) FAIR DISTRICT www.cosmoprof.com

Organiser - SoGeCos s.p.a. - Milan - Italy - ph. +39.02.796.420 fax +39.02.795.036 - [email protected] - company of in cooperation with 12 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM

Karen Behnke, Gwyneth Paltrow beauty and Lisa Gersh.

Paltrow’s Newest Investment aspect of my life to further en- director of makeup for Juice By JAYME CYK rich my own brand.” Beauty and a shareholder in Meanwhile, Paltrow felt as the sustainable company. Oh, GWYNETH PALTROW’’ has if she was missing something and Juice Beauty has invested thrown in the towel on the en- in her everyday life. And if in Goop. dorsement racket in favor of she’s missing something, then “It was really important being an owner. her site, Goop, is too. to me to not just hire a face The actress, who thrives “In my own life, I don’t or do an endorsement type on sustainability and eco- have a [beauty] product that of deal,” said Behnke, who chic living, has fronted an is as luxurious and high per- added that the company is array of beauty brands for forming as it is clean,” admit- aiming to become a multi- companies such as Estée ted Paltrow. “I’m very aware million-dollar beauty brand Lauder, Hugo Boss, Max of the toxicity in our prod- over the next five years. “It Factor and Restorsea. But ucts that we use all the time. was more important for me now, she’s looking to stand I still use a lot of them be- to align goals and values and behind just one brand, spe- cause they work, whether it’s find a true business partner.” cifically Juice Beauty. shampoo or mascara.” Set to launch late this year, the makeup range, which con- sists of 75 stockkeeping units for eye, lip, cheek and face I’m really focused on building Goop and is priced from $24 to $49, is said to include high pigment payoff and performance, while and using that celebrity aspect to containing certifi ed organic in- gredients. Paltrow, who was in- further enrich my own brand. volved in the packaging design, colors and formulation, hopes — GWYNETH PALTROW that makeup artists will use the collection. The company is still determining retailers. To that end, Juice Beauty will work with Paltrow to cre- “I wanted to move away Cut to Paltrow meeting ate six new skin-care prod- from the celebrity endorse- Karen Behnke, founder of ucts, which will be sold on PHOTO BY JAMES LEE WALL JAMES LEE WALL PHOTO BY ment aspect,” noted Paltrow, Juice Beauty, an organic skin- Goop.com and will launch in who recently invested in Blo care line sold in 1,200 retail early 2016. Lisa Gersh, chief tion could do up to $15 million are a few things [I’m looking Blow Dry Bar. “I’m very appre- doors including Ulta, Rancho executive officer of Goop, will in its fi rst year on shelves. to do], one of which I can’t say ciative of all the endorsements La Puerta, Whole Foods and also be heavily involved in As if Paltrow doesn’t have yet,” she said. “It’s always a I’ve gotten in the past and Pharmaca, through a mutual these products. enough on her plate, she is balance for me. I have little there’s always been integrity friend. The women’s visions While fi nancial fi gures will still very much in the thick of kids at home, but I’m close to there, but I’m really focused on aligned and a fi ve-year plus be dependent on its retail acting. During her interview, committing to something re- building [the lifestyle Web site] renewal agreement was born. partners, industry sources es- she was under deadline to ally interesting, which is the Goop and using that celebrity Paltrow is now’’ the creative timate that the makeup collec- commit to a new fi lm. “There best I can say.” Palladio Beauty Group Gains New Life Mark Hill Enters Ulta U.S. salons and stores such as brand, we are poised to embrace AFTER A SUCCESSFUL launch in Walgreens in By FAYE BROOKMAN Ulta are looking for fresh lines to the growth”, he said. 2013, Mark Hill Salon Professional hair care is de- wrest shoppers from traditional To stay current, Palladio has 90 buting at Ulta. THE EMERGENCE OF Kiko, NYX beauty channels. “In general, I new stockkeeping units, includ- “This is an important step forward as we continue and Essence created a buzz about think that coming out of [the eco- ing a focus on eye such as new to expand the reach of the Mark Hill brand in the value-brand cosmetics. That’s nomic] crisis, shoppers and retail- matte eye shadows in 10 combos U.S.,” said Gordon Farquhar, managing director, awakened Palladio Beauty Group, ers have understood the value of retailing for $7 and new Line Out Boots Retail USA. a brand that’s been around longer value brands,” Winarick said. Loud Intense Shimmer Liquid Mark Hill is a celebrity British stylist who contin- than any of the others. There’s even more opportunity Liners in six colors, also $7, and ues to work and refi ne his products in his salon. “My Palladio, which has quietly ex- internationally, Winarick said, be- Lash Obsessed Mascara priced at line was developed at the salon and not in a board- panded in the salon and specialty cause value is a new and growing $10 with a brush featuring a hair- room to bring effective, easy to use hair-care prod- market, has a new president who be- concept abroad. “With the value brush technology to lengthen and ucts with real results,” Hill said. lieves it is time to capitalize on the color segment exploding globally, volumize lashes. Seeing a boom With the expansion, Boots proves that even brand’s domestic distribution and we have recently restructured in contouring, Palladio is simpli- though the company merged with Walgreens in huge international potential. Tom and bolstered our international fying the trend with The Defi ner December to form Walgreens Boots Alliance, its Winarick, who assumed the role of sales team to engage the oppor- Contour + Highlight Crayon ($8), products will exist outside of the drugstore chain. president six months ago, has al- tunity,” he said. The strategy in- a dual-ended shaping and defi ning Boots No7 remains at Target and is a centerpiece ready modernized and tweaked the volves a strong focus on Europe, crayon in a universal shade that of the skin-care department. A major presentation branding, expanded the makeup where the company just hired a contours any face shape. of Boots No7 is now in more than 180 Walgreens line, introduced new imagery and general manager, as well as Asia, Launches during the second stores. Boots No7 Men’s, Mark Hill and Indeed boosted distribution, especially into where there’s dedicated cover- half of the year will be dedi- skin care are merchandised in all of Walgreens’ international markets. age, plus more emphasis on cated to lip innovations, 8,300-plus doors. Winarick is a longtime industry existing distribution in Latin Winarick said. “We’re selective about where we go. We started veteran, best known for expanding America and the Middle Along with a sleeker ver- with Walgreens and, because of a relationship we distribution of the Prestige beauty East. International mer- sion of the logo, part of the have with Ulta, it was the next sensible place to go,” brand, while also helping other chants are also keen on U.S. relaunch includes tweaking Farquhar said. “Right now we are focused on making companies grow internationally manufacturer’s goods and the tag line from touting the sure this is a success and take it from there.” as a consultant. Palladio is 97 percent pro- original “herbal and vitamin The 20 stockkeeping units are priced from $9.99 Palladio executives would not duced on North American enriched” to the more mod- for the Miracoilicious Nourishing Shampoo to comment, but industry sources said soil, Winarick said. ern “botanical and vitamin Mark Hill Big Night Out Only Takes a Minute! 60 Palladio is building off an already Philip Solomon, the infused” description. Second Detox Gloss Treatment for $11.99. They’ll solid $40 million to $45 million base chief executive offi cer of There’s also a push to be merchandised in the hair-care department in in retail sales. Palladio, agreed the com- add more education on the Ulta’s more than 750 stores. Industry sources peg “It’s been a whirlwind. There’s pany is geared up for packaging and the point Mark Hill hair care producing sales in excess of so much potential for this brand,” its next step. “We are of purchase materials now $5 million. Winarick said of Palladio. extremely excited feature instructional and The Mark Hill line will face intensifi ed competi- Palladio is known in the profes- at the prospect of The before-and-after looks. tion in the Ulta environment versus the hair-care sional beauty world for its color achieving signifi cant mascara Although the line is known assortment at Walgreens. Farquhar welcomes that cosmetics with skin-care benefi ts. growth in 2015. The is priced for its colors and perfor- challenge. “We’re taking the opportunity to have Palladio is carried at Sally Beauty opportunity is cer- at $10. mance, its benefi cial ingredi- Mark appear in stores and get face-to-face with and Ulta locations and in more tainly there and with ents continue to play a vital American consumers. Because Ulta has so many than 2,500 domestic professional this whole new level role in the brand’s unique po- brands, it has become a mecca for beauty hair junk- beauty-supply retailers. of activity for the sitioning, noted Winarick. ies and the right place to be,” Farquhar said. — F.B. IN LOVING MEMORY OF

HENRY SEGERSTROM

YOU WILL BE MISSED

DIOR_Henry_Segerstrom_Tribute AD B/W 10” x 13.875” 14 WWD friday, february 27, 2015 Retailers Not Buoyed by Economic Gains ket. As Terry J. Lundgren, Macy’s chair- Kohl’s corp. reported a 10 percent in- tiatives will create some margin pressure By WWD STAFF man and chief executive officer, told crease in net income in the fourth quarter as we liquidate old product to make room WWD this week, “The consumer is defi- ended Jan. 31, to $369 million, from $344 for new product,” Mansell said. GAS priceS AnD unemployment are nitely putting more money in their pock- million in 2014. earnings rose 17 percent ross Stores surpassed expectations down and the stock market is up — but ets than a year ago [because of lower gas to $1.83 a share in the fourth quarter, from for fourth-quarter results yet issued con- retailers just aren’t feeling they’ll see prices]. The question is whether they $1.56 a share in the 2014 quarter. The re- servative guidance for the year ahead. much of a lift in business this year de- spend money in categories we are in.” sults beat Wall Street’s average estimate in the three months ended Jan. 31, net spite the positive indicators. Gap, boosted primarily by its Old of $1.80 a share for the quarter. income at the Dublin, calif.-based off- That became apparent among midtier navy performance but still dragging Total sales in the quarter advanced 3.9 price retailer advanced 14.2 percent to fashion-focused retailers reporting results with Gap brand, reported Thursday that percent to $6.3 billion from $6.1 billion and $248.5 million, or $1.20 a diluted share, Thursday, including Gap inc., Kohl’s corp. net income rose 3.9 percent to $319 mil- comparable-store sales grew 3.7 percent. from $217.6 million, or $1.02, in the prior- and ross Stores inc., all of which issued lion in the fourth quarter ended Jan. 31, earnings per share rose 5 percent to year quarter as revenues advanced 10.6 conservative projections for 2015. news from $307 million in the year-ago period. $4.24 in 2014, from $4.05 the previous year. percent to $3.03 billion from $2.74 bil- Thursday about store closings and layoffs earnings per share increased 10 percent Kohl’s plans to repurchase $1 billion lion. comparable-store sales were up 6 at chico’s didn’t help the mood, with the to $0.75 per share on a diluted basis, worth of shares at an average price of percent in the three months. company revealing plans to cut headquar- from $0.68 the fourth quarter a year ago. $70 a share and pegged capital expendi- Analysts, on average, expected epS of ters staff by 240 people, close 120 stores by net sales were up 3 percent to $4.71 tures at $800 million. $1.11 on revenues of $2.93 billion. the end of 2017 and forecasting low-single- in the quarter ended Jan. 31, chico digit comparable sales increases this year. FAS incurred a net loss of $31.8 million, retailers are factoring in the impact or 21 cents a diluted share, versus a loss of currency exchanges, the West coast Fourth-Quarter retail earnings scorecard of $348,000, or zero cents, in the 2013 pe- ports slowdown that ended last week but revenues comps earnings vs. eps riod. Stripping out restructuring charges impacted first-quarter receipts, a bitter consensus as well as a pretax goodwill impairment cold winter hindering early spring sell- charge for the Boston proper brand ac- ing, and their significant expenditures on sears -23.5% -4.4% Smaller loss BEAT quired in 2011, adjusted epS was 5 cents technology and omni-initiatives. a diluted share, above the 2-cent profit While consumers have more dollars Kohl’s 3.9% 3.7% 10.5% BEAT expected, on average, by analysts. in their pockets, retailers remain uncer- Sales rose 3.4 percent to $656.9 mil- tain whether they’ll opt for tech gadgets gap 2.9% 2% 3.9% BEAT lion, above the $639.9 million analysts’ over garments. consensus estimate and compared with Despite its solid fourth quarter, ross J.c. penney 2.9% 4.4% Loss vs. profit MISS $610.2 million registered in the prior- Stores sees first-quarter comps growing year period. Both transactions and aver- 2 percent to 3 percent and earnings be- ross stores 10.6% 6% 14.2% BEAT age sales rose. tween $1.21 and $1.26, below the $1.29 chico’s Fas * 3.40% 4.3% 27.4% BEAT “everybody has been so damn promo- expected, on average, by analysts. For the tional, including us, that i think that [the full year, comps are expected to grow less, customer] doesn’t really even know what rising 1 percent to 2 percent, while prof- the right price is anymore,” said David its are seen moving to between $4.60 and SOURCE: COmpany REpORtS* BaSEd On adjUStEd EaRningS data Dyer, chico’s president and ceo. “i think $4.80, with the upper figure just 1 cent billion, compared with $4.58 billion in Kevin Mansell, Kohl’s chairman and ceo, that’s one of the things that certainly we above the current consensus estimate. the year-ago period. On a constant cur- said during a conference call with analysts are going to do on our own is to get back “As we enter 2015, we continue to face rency basis, net sales increased 5 per- that the company’s previously announced to pricing that is more consistent with ongoing uncertainty and volatility in the cent. comparable sales rose 2 percent. emphasis on national brands paid divi- our history. even if it’s slightly at the ex- macroeconomic and retail climates,” said Art peck, Gap inc.’s new ceo, on dends in the quarter, with national labels pense of sales, it will drive margin.” Barbara rentler, chief executive officer. Thursday revealed his latest appoint- driving higher comps than private and ex- The earnings report came a day after “While we hope to do better, based on these ment, Wendi Goldman, as Gap brand’s clusive brands. Sales of nike, the top per- published reports that private equity external factors and our own challenging head of design and product development. former, rose 24 percent, while Levi’s, carter firm Sycamore partners had abandoned multiyear sales and earnings comparisons, Goldman served as co-president at the for- and Fila Sport each gained 10 percent. negotiations to acquire the retailer. we are remaining somewhat cautious in our mer Limited Brands, now called L Brands, While women’s apparel reported a chico’s 120 store closures, including outlook.” where she developed the pink brand and positive gain, it was outperformed by 35 in the current year, are expected to Gap expects diluted earnings per expanded express. Most recently, she men’s and children’s. “The business save the Fort Myers, Fla.-based women’s share to decline slightly to $2.75 to $2.80 worked at Burch creative capital LLc, we’re most focused on gaining more trac- specialty retailer about $55.2 million for 2015, compared with $2.87 per share including as executive vice president and tion in is our women’s business,” Mansell a year upon completion. The company on a diluted basis reported for 2014. chief product officer at the now defunct c. said. “it’s trailed the company’s perfor- recorded pretax impairment charges of Gap factored in the estimated nega- Wonder chain. She rejoins Gap inc., hav- mance for some time, but the gap is nar- $5.3 million in the fourth quarter as a re- tive impact of about 6 percentage points, ing served in product and merchandis- rowing between women’s and the rest sult of the accelerated closings schedule. or 16 cents, due to foreign currency fluc- ing roles at Banana republic early in her of the store. The biggest opportunity we The 240 job cuts, representing about 12 tuations at current exchange rates, and career. earlier this month, rebekka Bay, have is in women’s. That’s an issue we’re percent in headquarters and field manage- the estimated negative impact of about 4 executive vice president and creative di- really attacking as we move into 2015.” ment staff, resulted in a pretax charge of points, or 13 cents, due to delayed mer- rector of Gap brand, left the company, and Gaiam, a collection of casual, yoga and about $8.2 million, to cover severance and chandise receipts at West coast ports. the position was eliminated. fitness apparel and accessories such as other costs, in the most recent quarter. Kohl’s is expecting a total sales in- “none of us is satisfied with the per- yoga mats and yoga bags, will bow in April. “As the retail environment continues crease of 1.8 percent to 2.8 percent and formance of the Gap brand,” said peck, Kohl’s in March will unveil Bliss skin-care to evolve, we must look at new stores projected comp-store sales to grow be- in a conference call. “it starts with right- and body products in 500 doors, then roll through a more sharply focused lens tween 1.5 percent and 2.5 percent. ing the women’s business. Denim is the brand out to remaining units in 2015. than in the past,” Dyer told analysts. earlier this week, Macy’s inc., too, showing signs of life but we need to have Kohl’s converted beauty departments in “However, we will continue to make the projected slim sales gains of just 1 per- the women’s business hitting on all cylin- 500 stores to a new format last year, with necessary allocations to both the custom- cent to 2 percent on a comparable basis ders.” Old navy, on the other hand, has additional doors slated for the redo this er experience and the seamless integra- for 2015, and took a hit on the stock mar- consistently performed well. year. “The continued rollout of beauty ini- tion of digital with bricks and mortar.”

— such as Lands’ end last year — have left that has claimed retailers like circuit Sears’ Struggles Continue it primarily with the option of exploring city, Borders, radio Shack and others.… real estate alternatives. The financial results certainly are not {Continued from page one} Oddly enough, they actually aren’t doing Johnson and others speculate that where we want them to be yet, but we did relevance to our location,” Lampert said. that badly on the e-commerce side on a a bankruptcy could still be in the cards see our performance trend improve.…” Lampert added: “We believe that many topline basis. They have a good technol- down the road — even if a year or two Lampert also spoke of “material chang- locations can be repurposed with or with- ogy platform, but it’s hard to know how out — in a scenario where the company es” to certain businesses, such as con- out Sears Holdings as an anchor, which much money they are making since the transitions to a real estate operation, sumer electronics, where the new model would give the reiT the potential for only way to sell anything online or in with its retail business entering into a “requires less working capital and operat- value creation, as well as downside protec- stores is via deep discounting.…if i were pre-packaged bankruptcy as a way to exit ing expenses by partnering with other pro- tions if Sears Holdings were unable to con- to take a snapshot of Sears, i would say leftover, unprofitable leases. viders,” suggesting that vendors could be tinue to operate certain stores profitably.” they are making more money now in the Lampert, in his annual letter to asked to share more of the category costs. Lampert, through eSL investments, is role as landlord than as a retailer.” shareholders on Thursday, rebuked the While the company has closed stores the majority shareholder of Sears, with a Although Johnson said the Kmart naysayers. Specifically, he noted that and given its investments in the e-com- 48.5 percent equity stake. nameplate is one whose time has “come the company has provided more details merce business and transformation at- craig Johnson, president of research and gone,” he emphasized that company- about what it is doing, in an effort to be tempts for the last few years, it still can’t and analysis firm customer Growth owned Kmart stores are very valuable: more transparent, to “clarify some of the stop bleeding red ink. partners, said that Sears as a company “These freestanding stores are in urban complexity around our financial results” The loss for the fourth quarter ended has already evolved into a real estate areas with a large footprint that would to clear up any confusion or misunder- Jan. 31 narrowed to $159 million, or $1.50 firm, given its subleasing of space and be very difficult for a commercial or resi- standing about what it is trying to do. a diluted share, from a loss of $358 mil- the plans regarding Aventura Mall in dential developer to acquire.” He also discounted the idea of a bank- lion, or $3.37, a year ago. revenues fell 23.5 South Florida that effectively turns the How much longer Sears can survive has ruptcy, stating that if it wasn’t for the “ag- percent to $8.10 billion from $10.59 billion. company into a part-time developer. been the topic of speculation for some time gressive steps” taken to move Sears from Kmart comparable-store sales declined 2 As for the retail operation, Johnson among Lampert’s naysayers. responding a brick-and-mortar based to a multichan- percent, while Sears Domestic stores fell 7 said, “The company is heading downhill to its critics, Sears has maintained that it is nel, integrated shopping experience, “we percent. Wall Street was expecting a loss of and nobody is stepping on the brakes. asset-rich, although asset sales and spinoffs might have been stuck on the same path $1.89 a share on sales of $8.30 billion. WWD FRIDAY, FEBRUARY 27, 2015 15 WWD.COM

ASME Analyzes Magazine Advertising Rules {Continued from page one} sult of a troubled print media landscape. guidelines, which were published two At a separate panel the same day, W years ago. editor in chief Stefano Tonchi harped on Calling the guidelines “outdated,” about all the meetings he has had over he said the new rules would “reaffi rm the “bespoke” unit. Magazine Media’s commitment to trans- “Native advertising is such a topic parency between edit and advertising these days. We’ve had meetings and while leaving execution to individual meetings,” he said, explaining that while brands. The new guidelines will also un- ’’ magazines have a clear relationship with derscore that the primary role of the edi- advertising, there are “different degrees tor is to serve the reader. It doesn’t take of compromise.” helicopters and rockets in the desert to But that squishy view isn’t held by all. tell you that when an audience has rea- Although major newspapers such as son to lose faith in a journalist, business- The New York Times and The Wall Street es like Magazine Media built on the trust Journal have content studios, there is a of media consumers are hurt. The new stricter separation between edit and ad staff. guidelines have to go through another Dean Baquet, executive editor at The round of edits but will be in place before Times, told WWD that he “didn’t much the ASME Annual Meeting in early May.” like” the idea of native advertising, but But behind closed doors, sources told he has become more comfortable, so long WWD that there is currently a struggle as content is “clearly identifi able,” and over how ASME should deal with jour- “the newsroom has nothing to do with it.” nalists creating advertising, and the ASME is reviewing native advertising guidelines for publications. The Financial Times takes an even stricter line. According to FT U.S. com- Condé Nast unit is at the center of that IMAGES SPENCER PLATT/GETTY PHOTO BY debate. If it holds firm, then Condé mercial director Brendan Spain, the pubs would not be eligible for National paper wants nothing to do with a custom Magazine awards, a thought that seems There are two problems with native. One, when content division. implausible to many, which is why, one “For the foreseeable future, I don’t source said, the new principles will be see us doing it. I think it has to do with “up for interpretation.” readers don’t know who it’s written by, or two, our journalistic integrity,” he said. A key reason why native continues “People who read us pay a lot for our to be a lightning rod issue is because of when the relationship gets blurred. subscriptions.” the dollars it can command. According Spain explained that The FT’s “di- to data from Business Insider, na- — BRENDAN SPAIN, FINANCIAL TIMES versified” revenue stream allows for tive ads would reach $7.9 billion this this omission, but that doesn’t mean the year and grow to $21 billion in 2018, up ing arsenal of skills. Condé Nast, which de- fully understand the need for each maga- paper has removed itself completely from just $4.7 billion in 2013. During a clined to comment for this story, has been zine to set its own guidelines.” from the conversation. 2013 workshop called “Blurred Lines: vocal in recent weeks over its decision to Other editors at Condé preferred to A year and a half ago, The FT devel- Advertising or Content?” Federal Trade have editors wear both hats. In a sense, it speak on background only, but expressed oped a program called Smart Match for Commission’s director of bureau of con- is a new selling tool for the company — who concern for the new arrangement, while native display ads. On FT.com, an in-house sumer protection Jessica Rich referred better to write an advertisement for a fash- adding that it was still too early to tell developed algorithm pairs pertinent part- to native advertising as a “multibillion- ion brand than a Vogue editor? what may happen. ner content in banner ads next to editorial dollar industry.” “Today the interest in While 23 Stories has yet to offi cially Earlier this month, The Association of stories. But isn’t that native advertising? native advertising is stronger than ever,” launch, much has already been made Magazine Media held a conference at the “It depends how you defi ne native. If Rich said at the time. “The goal is that over the notion that Condé editors will Marriott Marquis in Times Square on the native is creating content for an advertiser consumers can distinguish native adver- be tapped to promote the products of its magazine business in the same banquet hall then, no, we aren’t interested in that,” he tising from editorial content.” advertisers. used the night before for the ASME Awards. said. “We are putting sponsored content Although that workshop did not lead New Yorker editor in chief David There, Condé Nast president Bob into different parts of the page in an ar- to any new guidelines, an FTC spokes- Remnick declined to comment for this Sauerberg referred genially to 23 Stories. tistic way. People are generally willing to man told WWD in December that pub- story, but pointed to recent comments he “We are building ‘bespoke’’’ content,” he have related content. There are two prob- lishers should “expect a report or fol- made to Digiday. said, using a familiar word that is syn- lems with native. One, when readers don’t low-up guidance from that workshop “The people who run Condé Nast onymous with custom-made fashion, not know who it’s written by, or two, when the sometime” in 2015. trust the editors of their magazines to de- advertising. relationship gets blurred. We’ve never had But the landscape appears to be shifting cide what to publish and how to negoti- Sauerberg noted that the content divi- a complaint about Smart Match. If you get very quickly with editors now being asked ate a fast-evolving technological world,” sion is another revenue generator for the results and people are engaging with the By EVAN CLARK to add the role of marketer to their grow- Remnick said. “The executives here also publisher of Vogue, W and GQ, not the re- content, that’s a good thing.” VICTORIA’S SECRET breezed past the turmoil at the West Coast Ports — which are now only starting to get back up to Edwab Retires From Men’s Wearhouse Execs Talk E-commerce full speed after a long-simmer- ing labor dispute. men and women, who have worked tirelessly to “We bypassed all the West By JEAN E. PALMIERI grow our business into an industry leader in men’s By RACHEL STRUGATZ Coast strikes because we made retail. For me, the time is right to shift my atten- decisions to air everything,” DAVID EDWAB, the wizard behind the curtain for The tion to family and other personal interests. I will EXECUTIVES FROM Net-a-porter, Spring and cus- said Sharen Turney, president Men’s Wearhouse for more than 30 years, has retired. always be available to support the management tom 3-D-printed headphone company Normal gathered and chief executive offi cer of L Edwab has been the primary dealmaker for the team if called upon and fi rmly believe they will Wednesday to discuss personalization online, customer ac- Brands Inc.’s Victoria’s Secret retailer since joining the company in 1991, nego- confi dently lead the business into its next phase of quisition, mobile shopping and the omnichannel experience. Direct unit, on a conference call tiating the acquisitions of Jos. A. Bank Clothiers, growth and success.” “We don’t have control over the whole shopping expe- with analysts. “We will continue Today’s Man, JA Apparel, After Hours and Moores. Jon Kimmins, who joined Men’s Wearhouse rience,” said David Tisch, cofounder of iOS marketplace to air everything in.” Edwab, who began working with the company as from LF-USA Inc. in 2013, now serves as the com- Spring, at the panel hosted by the UJA Federation of New The jam up at the ports has its independent auditor in 1983, was instrumental pany’s chief fi nancial offi cer and treasurer. In York’s fashion and tech division at Normal’s headquarters cost other retailers. Karen in growing sales from $100 million in 1992, when light of last year’s $1.8 billion acquisition of Jos. A. in Manhattan’s Chelsea neighborhood. “While we can’t Hoguet, chief fi nancial offi cer he spearheaded its initial public offering, to $3.5 Bank, the company has said it will spend the next touch every angle because the brands fulfi ll orders, we are of Macy’s Inc., said Tuesday billion today. three years integrating the two men’s wear chains super focused on extending this to allow brands to tell their that about 12 percent of the re- Edwab, who will turn 61 this year, will remain as as it moves toward its goal to become America’s own story.” tailer’s fi rst-quarter merchan- vice chairman and be available to provide consult- largest seller of men’s apparel. It ranks third From the discussion, it was clear that each of the three dise receipts would be delayed ing services to the company, Men’s Wearhouse said. behind Macy’s Inc. and Kohl’s Corp. As a result, companies on the “Tech Talk: Fashion & E-commerce” because of the ports. “This will “Our company has been very fortunate to sources do not expect the company to make any panel played a distinct role in the online ecosystem. Spring have some impact on our sales, have had the benefi t of David’s insight and guid- major deals within that time frame as it works to is a mobile-fi rst marketplace that works with 700 brands, gross margin and expense in the ance for over 30 years,” said Doug Ewert, Men’s pay down debt from the deal. Net-a-porter serves as a luxury, multibrand online retailer fi rst few months of the year,” she Wearhouse’s chief executive offi cer. “His contribu- Edwab joined the company as senior vice presi- and Normal launched as a direct-to-consumer headphone said. tion to our success has been immeasurable, and dent, treasurer and chief fi nancial offi cer. In 1993, company last summer. While it can help importers we are pleased that he will continue to be acces- he was named chief operating offi cer. Four years And although the nature of their respective businesses avoid some headaches, shipping sible to management and that he will continue to later, he was elevated to president. In 2000, he left differ, Tisch, Normal founder and chief executive offi cer via air is more costly than using serve on the board of directors.” Men’s Wearhouse to join Bear, Stearns & Co. Inc. Nikki Kaufman and Net-a-porter’s vice president of mar- ships. The quicker turnaround Ewert pointed to Edwab’s 40 years of experience as a senior managing director and head of the re- keting for the Americas Heather Kaminetsky agreed on one times with air shipments, how- in the retail business, saying since he spearheaded tail group in the investment banking department. thing: the importance of mobile. ever, help brands be more reac- the company’s IPO, he has “helped build our brand He rejoined the company in 2002 as vice chair- “You cannot order Normals online,” Kaufman said of tive to trends and capture more and played a very signifi cant role in developing the man. He remains an inactive certifi ed public ac- the product that’s sold only through its app or in the store. full-price sales. company’s growth strategy. David has been a partner countant and serves on the boards of New York & “We wanted to make it simple for customers to order any- Asked if there were a chance and confi dant to many members of the management Co. Inc., and the Vitamin Shoppe Inc. where in the world. [The app] is the only way you can to boost profi t margins by mov- team throughout his career. We are all appreciative Men’s Wearhouse was founded in 1973 and now order if you aren’t physically here.” Spring exists only as ing some shipments back to for his mentorship and leadership,” Ewert said. operates more than 1,700 stores in the U.S. and an app, and Net-a-porter maintains an app and has made the seas, Turney said Victoria’s Edwab said he was “grateful to have had the Canada. It will report fourth-quarter and year-end signifi cant investments in its mobile Web experience in Secret would stick to the skies. privilege of being surrounded by a great group of earnings on March 12. the past year. “I am so passionate to air everything,” she said. “There is not going to be a reduction of air freight. I think that [shipping Remembering Henry Segerstrom

16 WWD friday, february 27, 2015 WWD.COM RemembeRing HenRy SegeRStRom A Visionary, A Pioneer DEVELOPER AND PhiLANthROPist henry segerstrom, 91, who was a creator Henry Segerstrom photographed in his home in 2013. of south Coast Plaza in Orange County, Calif., one of the most successful shop- ping centers in the country, died on Feb. 20 at his Newport Beach, Calif., home

after a short illness. he was also known for his public and private involvement in the arts, and was a major figure on both the retail and the art scenes. Behind his achievements was a vision that he had early on, that Orange County could be a

destination in itself for shopping and the arts, and not a stepchild to Los Angeles. segerstrom’s paternal grandparents, Charles Johan and Berthe segerstrom, emigrated from sweden in the 19th century, leasing, then purchasing, the first farm that’’ would eventually be- come part of a much larger landholding of 2,100 acres in Orange County, Calif., which would make the family firm, C.J. segerstrom & sons, the biggest private- ly held producers of lima beans in the United states. henry was born in santa Ana and at- tended santa Ana high school. he en- listed in the Army at 19 shortly after the bombing of Pearl harbor. he received the Purple heart, the European theater of Operations Medal with Battle star and the Good Conduct Ribbon and attained the rank of captain. he was severely in- The philosophy is, the more exclusive and unique the retailer, the greater distance people will come to visit it. — henry segerstrom

jured, and he was returned to the U.s. he was treated for his injuries and for the bone disease osteomyelitis for the next two years, and learned to write with his left hand, since his index finger on his right hand had been torn off in an explosion. As he put it, “i was very lucky in the fact that they put me in a hospital near stanford so that i was able to get on with my studies.” he got an M.B.A. from stanford Business school in 1947 and joined the family business the next year. At the time, they were only involved’’ with ag- riculture. in 1950, though, the freeway had opened in santa Ana, and the family was approached about acquiring some com- mercial property in santa Ana, then the top city in Orange County. they built a seven-story building, the first in the city to feature central air conditioning. When the segerstrom company first developed the south Coast Plaza, the anchor tenants were sears and the May Co. Later came Bullock’s, i. Magnin, Nordstrom and saks Fifth Avenue. then segerstrom, who had become managing partner, brought in the center’s first lux- ury retailer, Courrèges, followed by Yves saint Laurent and Mark Cross. he had help from his cousin hal, until he died suddenly in 1994, but henry was the most involved. “i put in most of the work,” he said, “but that’s my passion — to such a degree that i’ve dropped my business cards all over the world.” the idea from the beginning was to house luxury stores and boutiques and for the center to be- come an international destination. segerstrom was always conscious of

{Continued on page 18} sardello donato photo by

18 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM REMEMBERING HENRY SEGERSTROM

{Continued from page 16} the competition, which included Fashion Square and Fashion Island malls in, re- spectively, Santa Ana and the area that would become Newport Beach. “The fi rst concrete support we had was a commit- ment by Tiffany to open a store with us because no other luxury retailer had yet verifi ed that Southern California, which was now 20 million in population, was a viable market,” he recalled. In 2013, the SCP unit was Tiffany’s second-best per- forming store after New York. He said, “The philosophy is, the more exclusive and unique the retailer, the greater distance people will come to visit r Henry Segerstrom receives Carnegie Hall’s 2010 it. Consequently, we draw from a 100- Medal of Excellence; with Elizabeth Segerstrom, Terry mile radius. Most centers will draw from Lundgren, Sanford and Joan Weill and Clive Gillinson. a seven or 10-mile radius. About 35 per- South Coast Plaza PHOTO BY ZACH LIPP PHOTO BY cent of our business is from tourists. The JOHN AQUINO PHOTO BY reason they come to South Coast Plaza is not only because of the environment we Henry graduated from Stanford in 1947. have created, but also the unique stores.” Even as the Great Recession hit, lux- ury remained the organizing principle of South Coast Plaza. Harry Winston, Christian Louboutin, De Beers, Oscar de la Renta, Canali and Rolex were a part of it. Newcomers in 2012 includ- ed M. Missoni, Red Valentino, Jaeger- LeCoulture, Barbara Bui and IWC Schaffhausen. Lanvin opened a store in 2013. South Coast Plaza has 280 shops and is visited by 22 million visitors a year, who spend a total of $1.7 billion there. Segerstrom’s work with the arts in- volved purchasing and commissioning pieces from artists, particularly sculp- tors, including Isamu Noguchi, Henry Moore, Alexander Calder, Jean Miro and Jean Dubuffet, and often evolved into friendships with the artists themselves. “I remember I met Richard Serra at the re- opening [of the Museum of Modern Art in New York] and I thought, ‘I better go talk An atrium view to him because my husband would like of the mall. one of his pieces, and I might never get to meet him again,’” said Segerstrom’s wife Elizabeth. “Well, I went away to get a drink and they must have exchanged numbers, because we got home, and at 3 in the morn- ing the phone rang, and it was Richard.” The Segerstrom Center for the Arts is MILESTONES the county’s biggest nonprofi t arts organiza- A look at the life and business of Henry tion. It owns and operates the opera house- Segerstrom. like Segerstrom Hall, which seats 3,000; the 500-seat Renée and Henry Segerstrom Concert Hall; the Samueli Theater, which seats 500; the 250-seat Founders Hall, and the 46,000-square-foot Arts Plaza. The cen- ter’s international dance performances have included collaborations with the “Connector” by Richard Serra at the Bolshoi Ballet, the Mariinsky Theatre, Segerstrom Center for the Arts.

the New York City Ballet, the Merce ERWIN DARMALI PHOTO BY Cunningham dance company, and others. The world premiere of Alexei Ratmansky’s was celebrated in spring 2013, the 23rd col- ated entirely through private donations. is survived by her and his children, “Firebird” by the American Ballet Theatre laboration between the two organizations. Segerstrom was married for 31 years Andrea, Toren and Anton, their husbands In the Sixties, leaders of the community to his wife Yvonne, with whom he had and wives, six grandchildren and seven in Orange County decided that it was time three children, and they then divorced. great-grandchildren. There will be a pub- for the area to have a top-quality perform- He married his wife Renée in 1981, lic visitation and tribute at Fairhaven ing arts venue. The Segerstroms donated a and they were married until her death Memorial Park in Santa Ana on Saturday. 5-acre site for the arts complex, and it was in 2000. He married his third wife, — LORNA KOSKI, WITH CONTRIBU- decided that the complex would be cre- Elizabeth, later that year. Segerstrom TIONS FROM MARCY MEDINA

1948 I Segerstrom, having graduated from Stanford Business School with an M.B.A., joins C.J. Segerstrom & Sons, which at MILESTONES the time was focused on agriculture. It eventually becomes a real estate A look at the life and business of Henry Segerstrom. development company.

Late 1800s April 5, 1923 1950 I Charles John and Bertha Segerstrom I Henry Thomas Segerstrom is born, I Henry marries Yvonne de Chaviney (grandparents of Henry Segerstrom) the second of two children of Anton and Perry. They have three children: Andrea, emigrate to the U.S. from Sweden, first Nellie Ruth Segerstrom. (His sister is Toren and Anton. (The marriage ends in settling in St. Paul. They soon move to Ruth Ann Segerstrom.) divorce in 1981.) Santa Ana, Calif., and have a total of 11 children. 1942 1966 I Henry Segerstrom enlists in the I May Co. and Sears open on the 1898 U.S. Army at age 19, after the attack family’s land, marking the start of the I C.J. Segerstrom begins amassing on Pearl Harbor. He rises in rank from Segerstrom family’s foray into retail. land in Orange County, starting private to captain in field artillery with a 10-acre acquisition. The and is awarded the European Theater 1967 family begins a farm and eventually of Operations Medal with Battle I South Coast Plaza opens with 70 stores Henry enlisted in the U.S. Army in 1942. becomes the largest grower of lima Star, the Purple Heart and the Good on March 15. beans in the country. Conduct Ribbon. {Continued on page 20} In lovIng memory of

mr. Henry SegerStrom

A vISIonAry, InduStry leAder And frIend

wHo wIll be deeply mISSed by All

mAX mArA SoutH CoASt plAZA 3333 brIStol Street, SuIte 1407 CoStA meSA, CA 92626 714.754.7900 20 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM REMEMBERING HENRY SEGERSTROM Admiration Society Retail and fashion executives fondly recall the visionary developer.

Terry J. Lundgren, chairman and chief executive Segerstrom on many events at the mall, officer, Macy’s Inc.: “I was 29 years old, and “every time we had an idea, he was on my second day on the job as store the first to say, ‘Yes,’” Toledano said. manager of Bullock’s South Coast “He was so prompt to react to things. He Plaza, and in walks this tall, Swedish was a fantastic businessman, but he was gentleman. He introduces himself and also a people person. He would look you pronounces my name in Swedish. I said in the eye and when he committed to I was very proud to have been selected something, he committed.” for the job and proud that this was the number-two volume store in the Pete Nordstrom, president of merchandising, company. He said, ‘Who’s number one?’ Nordstrom: “Our relationship with Henry I said Bullock’s in Sherman Oaks. And started years ago when he reached out he said, ‘When do you plan on beating to my dad’s generation to encourage them?’ I felt like I was reporting to him. Nordstrom to open a store at South Coast “Within one full year, we passed Plaza. Years later, in the early Nineties, I Sherman Oaks and Henry had a lot to was the regional manager for Nordstrom do with that. He created one of the most in Orange County. I got a chance to work special shopping centers in the world. directly with Henry then. Every specialty store, every department “Henry was a real gentleman. He was store, the locations were chosen by really engaged with the business and Henry. The vision for the future began incredibly knowledgeable. He had an with Henry. He was one of the most ambitious vision for South Coast Plaza involved shopping center owners I’ve and anything that was going to happen known. Fifteen or 20 minutes before there. He was a great evangelist for he died, I got a call from his wife, his business and our store — he really Elizabeth, telling me how much Henry Sidney Toledano of raised a high bar for us to operate at the regretted that he couldn’t fi nish a letter Dior, Eva Mendes and highest possible standard. he was writing to me, to congratulate Henry Segerstrom. “Henry had a real fondness for

me for something. I was so moved. I DOMINIQUE MAÎTRE PHOTO BY Nordstrom, just as we did for him. He am going to miss Henry, his advice, his was a great partner and a very kind council. He was always challenging me.” man. We’ll miss him very much.” Kelly and Marie Henry with Terry Lundgren. Sidney Toledano, ceo of Dior, said Segerstrom Gray of St. Max Mara, chairman, Luigi Maramotti: “We’ve left a lasting impression with his John Knits. been there for 18 years and it’s a unique combination of haute professionalism location. Henry Segerstrom was a and human kindness. point of reference of great integrity. Their rapport and friendship He curated the mix of brands over the stretches back to 1998, when Dior years, and this was not so obvious 10 opened at South Coast Plaza. Toledano or 15 years ago when others were only described Segerstrom as a visionary to worried about maximizing a financial make Orange County a destination for gain. He was a visionary because he had luxury, a métier for which he had a deep understood that luxury brands need to appreciation, refl ected in his detailed communicate. He was disciplined about approach to everything he touched. the quality and the realization of the In 2010, when Dior extended its spaces. He invested a lot, but he also boutique with a new Peter Marino wanted the brands to develop top-level concept, Segerstrom offered a dinner projects. Many followed in his footsteps, worth remembering for the French but at the time, he was unique.” brand at his Newport Beach villa. “He insisted that I stayed at his Frédéric de Cesar Pelli, senior principal, Pelli Clarke home. I stayed for two nights and he Narp of Bally. Pelli Architects: received me like I was family,” Toledano “I’m still very saddened by his passing. recalled. We have been collaborating for almost The beachside property boasted a 30 years. He was a fantastic client, a guesthouse, which Segerstrom equipped wonderful man and a delightful person. with a butler and monogrammed towels He did so much for Costa Mesa and Orange just for Toledano. County and worked very hard to give “He took care of me like a father,” Orange County a heart based on the arts. Toledano marveled. “I met him in the early Seventies when The weekend included long chats on he used to come to the Victor Gruen Segerstrom’s terrace, where talk turned Associates offi ce where I was a partner. to the developer’s experiences during Rudi Baumfeld there had designed South World War II, along with his passions for Coast Plaza. Then Henry came to me in art and philanthropy. the mid- to late-Eighties together with PHOTO BY JOHN AQUINO PHOTO BY Toledano said Dior partnered with CAVALLI MARCO PHOTO BY {Continued on page 20}

1985 At the future site of South Coast Plaza. MILESTONES I Henry’s son Anton Segerstrom {Continued from page 18} officially joins South Coast Plaza.

1973 1986 I The first expansion brings Bullock’s I Segerstrom Hall, a state-of-the-art and 60 more stores to the center. performing arts center, opens, with soprano Leontyne Price singing the “Star 1975 Spangled Banner” and Zubin Mehta I South Coast Plaza begins introducing conducting the Los Angeles Philharmonic. luxury retailers. The first is Courrèges. I Second expansion: Crystal Court wing 1976 opens with 60 stores. I South Coast Plaza’s Concierge Program begins. I Orange County Performing Arts Center opens. I Yves Saint Laurent, Halston and Mark Cross open. 1993 I First overseas tourism outreach 1982 trip, a collaboration with the State of I Henry marries arts patron Renée California and Japan, takes place. Mary von Issenberg. (She dies in 2000.) {Continued on page 22} 037927A / NY NE Region 2/27/15 Women’s Wear Daily early due: 2/25/15 10” x 13.875” FC 100LPI C: Kirsten D: Maria P: Cat

HENRY SEGERSTROM ExpandingExpanding fromfrom thethe PacificPacific Northwest Northwest to to California California in in 1978 1978 was was a awatershed watershed moment moment for for Nordstrom. Nordstrom. We’reWe’re foreverforever gratefulgrateful toto HenryHenry SegerstromSegerstrom for encouraging us to join South Coast Plaza atas the start of ourour nationalnational expansion.expansion. HeHe waswas aa truetrue visionaryvisionary and friend, and he will be missed.

Untitled-1037927A.WWD- 1 Henry Sergerstrom Tribute.indd 1 2/25/152/24/15 11:2711:29 AM CP 22 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM REMEMBERING HENRY SEGERSTROM

Werner Escher, executive director of domestic “He really inspired me and was and international markets, South Coast a most incredible visionary and Plaza: “The Segerstrom family, and charismatic leader. He turned what particularly Henry Segerstrom, really essentially was a piece of desert Admiration Society had the vision to populate South into one of the most luxurious and Coast Plaza with name-brand retail. prestigious shopping environments in And today, more than ever, it’s grown the world. Henry was someone with {Continued from page 20} Luigi because shopping is on the traveler’s a quest for excellence and an innate ICM and we built a building that became Maramotti itinerary. Without his vision, it understanding of retail and client needs. Plaza Tower. He was very happy with that. wouldn’t have the worldwide appeal “I was in South Coast Plaza this “Then we designed for him an it does. I think this is testimony to the week, and met with Barney Page, one additional wing of South Coast Segerstrom family and certainly Henry of his closest and most trusted business Repertory theater. Then we designed to give me the green light to market partners over the last three decades. the Renée and Henry Segerstrom beyond the core markets…. I truly felt, through Barney, Henry’s Concert Hall [opened in 2006]. He was “This was a family that really knew presence, vision, fi ghting spirit, sense very involved with that. He gave the what they wanted to do and there was of leadership and business, all around land and $40 million on top of that, a lot of planning….In one instance, and always with a deep human touch. and he bought the landmark Richard because of Henry and certainly the This was so meaningful to me, as I felt Serra sculpture to top the space, that family’s connection — because they I was able to say farewell to Henry. was also another $20 million. It must had emigrated from Sweden — we were My most heartfelt condolences go to have been $80 million all together. fortunate to have the [Swedish] royal Elizabeth, the Segerstrom family, and all The acoustics there are unmatched. family. We planned for a good three those whose lives he touched — and he Orchestras that play at Disney Concert months for the arrival of the king and touched many! He will be deeply missed Hall come there and say, ‘Oh my God, queen. There were actually weekends and his legacy will live on.” this is incredible.’” of preparation with Henry and with his “What was wonderful about Henry wife at the time and coordinating the Prosper Assouline, Assouline, which published was that he obviously had a very security and there was to be only one a tome on Segerstrom’s art projects in 2013: tough interior, but his exterior was speech of welcome. And that was to be “Henry is undoubtedly the most always so gentle and friendly. He [given by] the chairman of the county important man I have met in a long time. was always smiling no matter what board of supervisors. He is an example of what a man should the circumstances. He was very “So the royal family arrived, and the be: a gentleman of impeccable style, his sharp and understood instantly and reception started, and the mingling and shoes always polished, matched with a could make very quick decisions. ANDREA DELBO PHOTO BY the press…And the program was to start tie and a clean blue suit. He was a delight of a client. He also at 11 and then it went on to 12. But what “I admired him for the couple he surrounded himself with the best. We Max Azria happened was I got two calls from the formed with his wife, Elizabeth, and never had any arguments. I trusted chairman…she was in a hearing and for his way of thinking. I learned a him completely. He never asked for that hearing was running late. That’s lot from the conversations I had with silly things and all his requests were when I went to Henry Segerstrom and him. I think he was also the youngest intelligent and well-grounded. He he…told me ‘You work it out.’ And I got man I knew: a witty and contemporary had a very good eye and he could tell up and made the welcoming address. I character, interested in everything that when something was beautiful. That guess I’ll never forget his words, ‘You was going on around him; at the age [Isamu] Noguchi plaza is amazing. work it out.’” of 90, he still had all the fi gures in his Every time I went there, I could sit for head — it was impressive. half an hour and meditate. Max Azria, founder and ceo, BCBG Max Azria “Let’s not forget the man built the “I still can’t believe he’s gone. He was Group: “Henry was a class act who biggest luxury mall in the middle of so full of life; you sensed he enjoyed life brought commerce and culture to Orange nowhere. He even got the government fully, not necessarily doing fancy things. County. He was a visionary who lived the to change the route [of the San Diego He was just a happy person, just happy American dream — he transformed what Freeway] to make it happen. The to be alive.” was once a small region between L.A. American dream — to me, that’s him.” and San Diego into a significant market Marie Gray, cofounder, St. John Knits: in American retail. He was not just a Gloria Brandes, ceo, BB Dakota: “I’ve known him for a very long time and developer, he was a pioneer.” “When they opened a new he was truly a very kind and generous Bloomingdale’s at South Coast Plaza, person. Very, very supporting of Orange Frédéric de Narp, ceo, Bally: “During my Bloomingdale’s ceo Michael Gould was County business and an enormous eight-year tenure in the U.S., I had the there. We did a tour with Henry. As we visionary with what he did with South pleasure of getting to know Henry not were on the escalator heading upstairs Coast Plaza, what he did for the arts only professionally, but on a personal to the contemporary area, Henry asked [and] what he did with Orange County. level as well. And what an honor it Michael, ‘Do you have BB Dakota?’ It’s a great loss for Orange County and was. We had the privilege of sharing so Michael said, ‘I don’t think so.’ Henry he will be greatly missed. many defining moments together — of told him, ‘Well, you really should.’ “He was always so supportive, not building brands at South Coast Plaza, “I don’t know if it was directly related just with his fi nancial things, but he to tripling businesses, to cohosting VIP but we are in Bloomingdale’s now. It was supportive with his time. And I love events in his private home, to being certainly didn’t hurt. It was sweet of the fact that he came to so many of our the sponsor of the grand opening of the [Henry] to say that.…He was a very events and he was always so kind. That’s Segerstrom Center for the Arts.…Henry thoughtful, very kind, very generous what I remember most about him, just was an extremely open, generous and human being. And very successful. You his gentleness.” caring person. Not to mention a shrewd don’t always get that whole package in

PHOTO BY ALEXEI HAY PHOTO BY businessman to boot! one person.”

2007 MILESTONES I {Continued from page 18} South Coast Plaza marks its 40th anniversary. 2000 I The Bridge of Gardens and 2008 Garden Terrace, designed by I The Penthouse, South Coast Plaza’s renowned landscape architect new luxury level, makes its debut Kathryn Gustafson, opens. adjacent to Nordstrom on Level 3. Christian Louboutin, Oscar de la Renta, I Henry marries his third wife, the Marché Moderne and Canali are the former Elizabeth Macavoy. first Penthouse tenants.

2002 2010 I South Coast Plaza marks its 35th I South Coast Plaza is the first shopping anniversary and surpasses $1 billion center in the U.S. to install state-of-the- in annual sales. art charging stations for electric vehicles.

2006 2011 Elizabeth and Henry at the I Renée and Henry Segerstrom Concert I South Coast Plaza introduces center- naming of the center, 2011.

Hall opens at the Orange County wide Lunar New Year celebrations. DOUG GIFFORD/SCFTA PHOTO BY Performing Arts Center. I Orange County Performing Arts Center shopping center to accept the China long-standing relationship with the I South Coast Plaza completes changes its name to Segerstrom Center Union Pay Card. American Ballet Theatre is celebrated a $35 million interior renovation for the Arts. with the world premiere of Alexei project including all-new flooring, I South Coast Plaza records Ratmansky’s “Firebird.” teak seating and the addition of t 2012 $1.5 billion in annual sales. wo glass observation elevators in I South Coast Plaza, marking its 45th 2015 Jewel Court. anniversary, becomes the first U.S. I The Segerstrom Center’s I Henry Segerstrom dies at age 91. SALVATORE FERRAGAMO HONORS THE LEGACY OF

HENRY T. SEGERSTROM

AND HIS INVALUABLE CONTRIBUTIONS THROUGH FASHION AND PHILANTHROPY

31221_Ferragamo_WWD_FP_10x13.875_nr03.indd 1 2/25/15 7:06 PM 24 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM Ready-to-Wear Gets Edgy at Capsule Show Exhibitors appeared pleased with the pace of 2010, was selling shoe clips, including pom-poms. “It’s By LISA LOCKWOOD business at the show. been really good,” said Anna Birse, wholesale manager “The fi rst day was very busy,” said Ben Hedlund, of Cleo B. “You put them on trainers, and they come in NEW YORK — Retailers were pleased with the edgy director of The Barbarian Agency, which repped sev- rabbit, faux fur and crystals,” she said. The shoe clips ready-to-wear and accessories featured at Capsule, which eral brands such as Triwa watches, Kaibosh sunglasses, wholesale for $25 and come in pairs. At the show she moved this season to Pier 94 from Basketball City here. Wood Wood, About Baltic Underwear and Stutterheim. saw such retailers as Harvey Nichols Dubai and Nasty The three-day exhibition, which ended Tuesday, “The day was the most buyers ever [at Capsule],” he Gal, as well as some major Japanese distributors. featured more than 200 ready-to-wear brands and said. Traffi c slowed down on Monday when Coterie Donna Potter, cofounder and creative director of 250 accessories brands (within Capsule Accessories). began at the Javits Center and seemed pretty steady Potter, said she was having a good show. She was doing It also had a section called Beauty Lab focusing on on Tuesday, said Hedlund. He was seeing many buy- well with her jackets. She was showing textural velvets, beauty and skin-care brands. With raw fl oors and ers from independent boutiques, such as Old North tattered silks, warm wool blends and chunky knit sweat- exhibitor booths mostly comprised of clothing racks Clothing in Asheville, N.C. and such Canadian accounts ers that are handmade in Brooklyn. “We’re seeing a lot and a table, Capsule had the appearance of a no- as Nouvelle Nouvelle and Leo Boutique in Calgary. of people come to check it out and setting up appoint- frills warehouse. He was doing brisk business with About Baltic ments for the next week,” said Potter. Brooke Richman, founder and chief executive Emily Collins, press and marketing coordinator for offi cer of Coop and Spree, a boutique on Elizabeth Lazy Oaf, said, “Business has been good. I have been af- Street in New York, said she liked a few pieces fi rming relationships we already have,” she said. Lazy from Potter and might write them for fall. In par- Oaf has a nostalgic, cartoon infl uence. She said the line ticular, she was excited about the slightly oversize isn’t very active and includes “apathetic sportswear.” gray turtleneck sweater hand-made in Brooklyn, “It’s a British brand and very sarcastic,” she said. One which she called “supercozy and perfect for fall.” of the sweaters had the graphics “Lazy” across the chest. It had details such as cutouts by the shoulders and Orla Kiely was showing at Capsule for the sec- thumb holes. She also liked Potter’s cut-and-sewn ond season. Katelyn Dewan, brand coordinator, pieces, such as the T-shirt and tanks, which she said “It’s been going really well for us. Retailers called “very edgy.” are taking notes and writing paper.” Orla Kiely Richman also liked several other brands, includ- launched its handbags 20 years ago and its rtw in ing Stone Cold Fox, made in downtown Los Angeles, 2011. Meghan McEwan, U.S. operations manager, and Flynn Skye, made mostly in L.A. “Both brands found the size of Capsule to be appealing, com- are not easily found or stocked in New York City,” pared with some of the bigger trade shows. “It’s a said Richman. She said both brands had a similar bit smaller and more manageable, and people can aesthetic and vibe “which refl ects the downtown spend time with you and get to know your brand. L.A. girl — very chic, laid-back and bohemian in- It’s great space here,” she said. spired. The clothing is inherently feminine, but also Frasier Sterling, a jewelry fi rm, worked with reads as edgy and effortlessly cool,” she added. Barneys New York and Free People on Monday, She was also impressed by the accessory selection A raincoat from said Frasier Lipton, president and creative di- at Capsule, citing many new jewelry brands, especially Stutterheim and rector. The handmade jewelry, which is easily ones that are locally made in Manhattan and Brooklyn. bags from layered, is all made in Los Angeles. Capsule “The handbag line called Marylai was very strong, Great Bag Co. was the fi rst trade show the fashion jewelry we’re going to pick up a few styles to test,” she said. JOHN AQUINO PHOTOS BY company has participated in, having launched Richman found that one of the advantages of offi cially last November. Capsule, versus some of the larger, more formal com- Underwear, which is an activewear line for women and Wesley Clapp is a representative for Great Bag Co., mercial shows around town, was “the ability to meet men. The collection, known for its high-quality jersey, which is a bag collection designed by Robert Verdi. The and interact with the designers and owners of the does a big reorder business and sells to such stores as one-piece molded handbag fabricated from Fashion brands which are exhibiting. It’s a great way to learn Goose Barnacle in Brooklyn. “It’s good for stores that Flex with a soft luster wholesales for $60. Clapp said about a brand’s ethos and history from people who are want a replenishment business and can turn it into that Bloomingdale’s just picked it up. “It’s a really fun so integral to the brand’s existence,” she said. $10,000 a month,” said Hedlund. Made in Lithuania, the summer bag. It’s not only a beach bag, but a great ‘bad Tetsuo Hashimoto, a New York agent for Big Apple, a line includes women’s and men’s underwear, wholesal- weather’ bag or yoga bag,” he said. store in Tokyo, was shopping Capsule in search of jew- ing for $9, a women’s merino long-sleeve shirt, wholesal- West 14th, which is based in Australia, sells to a elry, jeans, bags and accessories. He said he liked the ing for $26, and bodysuits for $26. handful of stores in the U.S. , a store in the U.K. and jeans at Skargorn, as well as the striped knits. He also Stutterheim, which is based in Stockholm, sells to stores about 15 stores in Australia. Violeta Tentomas, director, liked the seashell jewelry at Chibi Jewels. such as Barneys New York, Dover Street Market, Goose said Capsule was about “fi nding new stores and being Jessica Sanderson, director of product at Seaside Barnacle and Scoop. It includes Swedish fi sherman’s rain- more accessible.” The line, which is sourced globally Luxe, had just arrived at Capsule in search of ac- coats, modernized and slimmed down. Offered in a variety of and manufactured in China, features soft black leather cessories and novelty items. She was buying for her colors, the unlined version wholesales for $160 and the lined jackets, colored leather jackets, shearling coats and stores in Hawaii and the Caribbean, which are locat- version is $244. The collection launched sweaters for fall. shearling vests. “I’m mostly meeting people. With leath- ed inside different resorts. “Our customers are more Cleo B was selling shoes and shoe accessories at er, it’s a considered purchase. They have to think about timeless than trendy,” she said. the show. The British-based company, established in it. For me, it’s starting the conversation.”

brand’s site,” explained Dahl. For each jackets and outerwear with prices Faircloth & Supply garment sold, one ranging from $78 to $198. The sportswear FASHION SCOOPS Nepali girl receives two school uniforms collection will be available in Mavi’s and a one-year scholarship through U.S. distribution of 800 department and a partnership with General Welfare specialty stores. CALVIN KLEIN DRESS HEIST: Calvin Klein asserted that the pearls are all natural. Pratisthan. The brand has enabled — SHARON EDELSON officials had no comment Thursday about “The $150,000 estimate that many nearly 1,000 Nepali girls to attend school Lupita Nyong’o’s pearl-embellished Calvin news outlets are reporting would be an in 2014, and Dahl aims to triple that KENNEDY HITS THE HIGH STREET: Lulu Kennedy, Klein gown that was stolen out of approximate estimate for number this year. who founded the London emerging her room in the London Hotel in cultured pearls. Knowing how — MARCY MEDINA designers’ showcase Fashion East, is set West Hollywood, Calif., Tuesday. rare natural pearls of this to bring her eye to British retailer Marks The actress wore the dress to quality are, we estimate the MAVI AMPLIFIES RANGE: Mavi is getting & Spencer, designing a line for its Indigo the Academy Awards on Sunday value of the dress much higher comfortable. The denim brand, which Collection brand. The collaboration came night. News of the heist was first for just the raw pearls alone, was founded in Turkey, in the fall will about after Kennedy appeared in M&S’s reported by TMZ. which may be why the dress launch Popstar, an addition to the Mavi spring 2014 ad campaign shot by Annie The custom halter dress with became a target for theft.” Gold collection made from a stretch fabric Leibovitz, alongside names such as Emma an open back was designed It has been reported with memory. Mavi teamed Thompson, Annie Lennox and Rita by Francisco Costa and featured that the dress was stolen up with Turkish denim Ora. Kennedy’s 19-piece line FOR MORE 6,000 white pearls. The police sometime during the day fabric producer Iskotm to SCOOPS, SEE will launch in May, and takes its report put the value of the on Tuesday, while Nyong’o create the line. The company cues from the spirit of Tulum, gown at $150,000; however was gone from her room. said Popstar capitalizes on WWD.com. Mexico, where Kennedy has AmericanPearl.com, an West Hollywood sheriff’s Iskotm’s trademark Pop been vacationing for the past e-commerce luxury jewelry detectives said they were stretch technology with 15 years. “There is a laid-back, retailer, has calculated the value investigating the theft. comfortable construction. Ardie beach babe feeling [with] bright, at about $1 million wholesale, or — LISA LOCKWOOD Ulukaya, senior vice president at Mavi, said Caribbean colors and soft, washed-out $10 million at auction, (but, then, the company has been partnering with fabrics,” said Kennedy of the collection. it does sell pearls so would no TEAMING UP: Phoebe Dahl’s Iskotm for more than a decade. “We’re Among the designs are silky cargo pants, doubt trumpet the higher value). Made in L.A. clothing line using their fabric at premium price peasant blouses and maxidresses, “Based on our analysis of the Faircloth & Supply will points,” he said. “The result is a fit that with Kennedy describing the woman

size range of the pearls used in SARDELLA DONATO PHOTO BY launch its first collaboration molds to a woman’s figure and enhances she’s designed for as having a “boho the dress, over a hundred 16- The Calvin Klein with Urban Outfitters her curves.” Mavi Popstar prices will sensibility.” The collaboration follows inch strands of natural pearls of dress. on Sunday. The capsule range from $115 to $148. Kennedy’s launch of her Lulu & Co ready- 4 millimeters to 7 millimeters collection is made up of six In addition to Popstar, Mavi will to-wear line in 2010, as part of which in diameter would be needed to create organic linen and dead-stock cotton launch on April 15 in the U.S. a new Kennedy teams with designers, artists and this dress. Natural pearl strands of silhouettes from the brand’s debut sportswear collection for men and illustrators to create a collection. this size and quality are easily valued season in new colorways retailing from women. The company already offers Following the May M&S launch, at $10,000 each for fair market value,” $159 to $300, and will be exclusive to the its sportswear in Europe and decided Kennedy said a second collection for the said Heidi Cohen, director of marketing retailer and its Web site. “I’m exploring it was time to bring it to America. The retailer is “already in development.” for American Pearl. She said that Costa ways to open distribution outside of the casual line will feature knitwear, dresses, — NINA JONES In MeM ory of an extraordI nary vI s I onary and huM anI tarI an

HENRY SEGERSTROM 26 WWD FRIDAY, FEBRUARY 27, 2015 WWD.COM

Edie Campbell

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Headline Here Headline H Lily Donaldson, Ellie Goulding, Karlie Kloss, Taylor Swift and Cara Delevingne. Natalie Vodianova CAMPBELL PHOTO BY DAVE BENETT; ALL OTHERS BY TIM JENKINS ALL OTHERS BY BENETT; DAVE CAMPBELL PHOTO BY Jourdan Dunn Fashion Fun House NATALIA VODIANOVA and Karlie Kloss popped threw at the wall of stilettos that formed the open their party tent and slapped on their designer’s “Louboutin Shoe Down” game. top hats to host a celebrity-stacked bash in Osman Yousefzada won a Louis Vuitton luggage London to raise money for the Naked Heart tag at the Mariacarla Boscono-manned hook-a- Foundation children’s charity. duck game. He also found time to taste the “The World’s First Fabulous Fund Fair” coconut sorbet served up by Eva Herzigova at unfolded at the Roundhouse performance a Dior-sponsored stand. Vodianova herself space in Camden on Tuesday night, with a manned the kissing booth, gave out Guerlain host of familiar faces whooping it up in a lipstick kisses and posed for selfi es with an surreal setting. unending stream of male and female admirers. Stella McCartney dished out vegetarian hot Tokens came in 50- and 100-pound dogs, model Maryna Linchuk challenged people denominations, about $77 and $155 at current to ping-pong matches and Pat McGrath exchange, and guests traded them in for Stella ran the face-painting stand. While Suzy prizes, food and one-off experiences. McCarthy Menkes presided over a Swarovski Leggy Russians and models slid crystal ball and told fortunes in a down the full-size helter- gypsy tent, Stephen Jones hosted a Daisy skelter, a conical tower coconut game in which guests had Lowe surrounded by a spiraling to knock hat-wearing coconuts slide that was the event’s off their stands to win one of the centerpiece, as other guests eye milliner’s creations. including Gizzi Erskine, Charlotte “It’s been crazy. We’ve had 85 and Andrea Dellal, Antoine Arnault winners in three hours,” said and Mary McCartney indulged in Jones. “The kids have been best all the amusements. at it. I’ve seen a lot of upset Whitney Port, in a Natasha faces on fathers when their Zinko dress, was there, after sons have outdone them. The having attended her fi rst London mothers have looked terribly Fashion Week. “Everyone has just pleased, though.” been a lot nicer than they are in Lindsay Lohan did a victory New York,” said the Angeleno, who dance — an impressive is getting married to TV executive sashaying salsa — after Tim Rosenman this year, adding that she she won herself a pair of didn’t take any chances on the ring. “I Christian Louboutin made an engagement ring just in case shoes by knocking my fi ancé asked my sisters what I’d FOR MORE PHOTOS, SEE down three pairs of like and it worked — he nailed it,” she Charlotte Dellal WWD.com/eye. heels in a row with said, holding out an impressive oval-cut and Stephen Jones the little red beanbags diamond perched on a pavé band. she determinedly — JULIA NEEL

best-dressed-list ranking. “There were a gowns. There was Jamee Gregory, in a Copping Out couple of dresses [Sienna] was interested pink fl oral frock from the label’s current in,” Copping said. “What I was really happy season. “I’m treasuring this forever PETER COPPING SLIPPED into cocktail with is that she didn’t mind the idea of them because it’s probably the last Oscar that hour at the Museum of the City of New coming straight from the catwalk. The show was made by Oscar,” she said. And Marina York’s Winter Ball like a veteran of the had been shown just a couple of days before Rust, in a fl oor-length green number social circuit. “I have to say, I’ve been and there had been a lot of hype around from “three seasons ago...I think. For to quite a few functions since I arrived the show, I was very fortunate that so many me, it doesn’t matter what season it is, three months ago, that’s for sure,” he said people were interested in it. So I think it’s Oscar. I keep them forever,” she said. shortly after his arrival. “I think that I’ve from her perspective, that she was the only Meanwhile, Eliza Bolen, stepdaughter of been out in New York already more times woman to wear Oscar de la Renta to such a the late designer and the company’s vice than I went out in 20 years in Paris.” major event was kind of a nice scoop for her. president, wore a dress from Copping’s Indeed, courting the upper crust is an We did sign an exclusivity agreement with fi rst collection for the house. “Forward, adjunct duty of his new role as creative Sienna, it was a request that came from Kate always forward,” she said. director of Oscar de la Renta — one that de Young, her stylist, who said, ‘You know, we Inside the ballroom, Mark Gilbertson, la Renta himself fulfi lled with gusto. “One really want to wear something from Oscar cochair of the museum’s Director’s thing is, I’m never going to be Oscar and but we’d like to be the only one.’ Which I Council, took to the microphone, noting I don’t want to emulate him, but this was think was a nice way to do it.” that the event raised $610,000. “I’d also something that was important to Oscar,” He added: “I’ve always admired like to mention that we have in our midst he said of the fund-raiser, which the house Sienna, I think she has great style. What Peter Copping, the new creative director sponsored. “I think he was out pretty much I think is good is that, to an extent, she’s of Oscar de la Renta. And, from what I every night of the week — he was a very slightly reinventing herself. I think she hear, fashion week’s toast of the town.” social man. So, yes, I want to keep that wants to put some of that boho chic He may very well be. But, at least for going, but obviously in my own way.” behind her. I think that’s what appealed now, Copping’s personal brand of toasting The gala also came at an opportune to her about Oscar de la Renta, it was and schmoozing is on a quieter scale. Eliza Bolen time for Copping, a week after his runway something more sophisticated.” “I really like observing people,” in Oscar de debut (“That’s always a big relief, when Sophisticated: A word that certainly he said. “So, that’s what I’ll be most la Renta with it’s out of the way...”) and days after Sienna came to mind when scanning the crowd interested to do [tonight], just look and talk Peter Copping. Miller wore one of his designs on the red of Upper East Side socials, many of to people, and see what they’re wearing.

PHOTO BY STEVE EICHNER PHOTO BY carpet at the Oscars, earning her many a whom were wearing Oscar de la Renta It’s major research.” — ALLY BETKER “Be Bold” – Henry T. Segerstrom

As the visionary and driving force behind South Coast Plaza and Segerstrom Center for the Arts, Henry T. Segerstrom forever changed the cultural landscape in Southern California and leaves behind an unparalleled legacy of dedicated public leadership and community service. Mr. Segerstrom helped transform the region into a diverse and thriving center of art, culture, innovation, entrepreneurship and leadership in business and technology.

A great humanitarian who led by example and understood the importance of giving back to the community, he brought world-class arts to the area, commissioned significant public works and established a groundbreaking partnership with Carnegie Hall. Mr. Segerstrom received a Purple Heart for his military service, an MBA from Stanford University and countless honorary degrees and awards, including the Carnegie Hall Medal of Excellence for his lifetime business achievements and his personal support of the arts and was past National Chairman of the Business Committee for the Arts. He will be most remembered for leaving an indelible mark on Southern California that will impact and inspire generations to come.

39841_15_WWD_TributeAd_FNL_minusYm.indd 1 2/26/15 5:21 AM

WWDMADEINITALY

SECTION II Funding Fashion The Italian fashion industry is spending millions to help restore monuments, architecture and artwork all over the nation, and in return, the government is investing more than $40 million to prop up business and the Made in Italy label.

THE FACTORY HOUSE BRAND LOMBARDY: COSMETICS CENTRAL STATS AND FACTS PHOTO BY LORENZO CICCONI MASSI LORENZO PHOTO BY

4 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II WWD.COM

MADE IN ITALY

Last year, Florence’s Baptistry of Piazza San Giovanni was “Puccifi ed” as part of the events orchestrated by ITALY Pitti Immagine to celebrate the 60th anniversary of the BY THE NUMBERS Florentine center for Italian fashion. Pucci covered the building with 21,528 square feet of PVC material showing the same pattern of the “Battistero” scarf, a colorful silk foulard designed by the marquis Emilio Pucci in 1957, LA MODA IN LOMBARDY featuring an arty aerial view of Piazza San Giovanni. 35,000: Total number of fashion companies in the Lombardy region.

14,000: The number that are manufacturers.

1 out of 3: The number based in Milan.

2 out of 3: The number managed by men.

234,000: Employees in Lombardy’s fashion companies.

100,000: Stats Number of those workers in Milan. $3.5 billion: The value of clothing, textile and And Facts leather exports from Lombardy, up 5.3 percent in the first nine months Notes and numbers from of 2014 from the prior year. around the country. SOURCE: CAMERA DI COMMERCIO PHOTO BY GETTY IMAGES/ISTOCKPHOTO PHOTO BY

FOUNTAIN OF YOUTH 2,145: Number of entrepreneurs under age 35 who launched fashion companies in Lombardy.

936: Number of individuals under age 35 who own an apparel store; 726 create and produce clothes. SOURCE: CAMERA DI COMMERCIO The Milan Expo is slated to take place May 1 to Oct. 31 with the motto “Feeding the Planet, Energy for Life.” Taking place all around the city, the EXPORTS ON THE CLIMB primary themes center on food and nutrition. Estimated gains in Italian exports in 2014 compared with 2013.

The ancient southern Italian city of Matera has been named the 2019 European Capital of Culture by the UNDERWEAR: 4.2 percent Commission of the European Union. Other Italian cities to have earned the designation include Florence, Genoa and Bologna. The city will develop a series of installations, activities and events over the next HOSIERY: 2 percent four years designed to contribute to its long-term cultural and social development, according to the FOOTWEAR: 6 percent Commission. Matera is home to the famous Sassi, a designated UNESCO World Heritage Site dating back LEATHER GOODS more than 7,000 years, made of cave dwellings and rock churches built into the sides of the mountain. AND LUGGAGE: 8.4 percent JEWELRY: 8 percent EYEWEAR: 6.9 percent SOURCE: UNICREDIT (BASED ON CERVED TOP 10 IMPORTERS OF ITALIAN MEN’S WEAR (JAN-SEP 2014) GROUP AND DATABANK DATA) COUNTRY PERCENTAGE CHANGE IN MILLIONS IN MILLION A look FROM 2013 OF EUROS U.S. DOLLARS from Caruso. (AT CURRENT EXCHANGE) MEN’S WEAR QIn the first nine months of 2014, FRANCE 11.3 -2.3 507 577.8 exports totaled $5.1 billion, up 4.9 SWITZERLAND 10.0 9.8 448 510.6 percent, while imports totaled $3.8 billion, up 9.3 percent. UNITED STATES 9.3 7.8 415 472.9 QFrance is the biggest GERMANY 9.1 3.7 407 463.9 importer of Italian men’s wear UNITED KINGDOM 8.3 9.0 370 349.9 including young men’s, with 11.3 percent of global imports, SPAIN 5.8 9.2 260 296.3 while Russia ranks 10th in imports, with 3.8 percent (For HONG KONG 4.7 14.7 212 241.6 more details, see chart.) THE NETHERLANDS 4.5 10.4 200 227.9 QOnline sales increased JAPAN 3.9 -5.2 175 199.5 62.8 percent for fall 2014 RUSSIA 3.8 -13.7 169 192.6 compared with fall 2013. SOURCE: SISTEMA MODA ITALIA PHOTO BY ANDREA DELBÒ PHOTO BY — Compiled by Eleonora Molesti

6 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II WWD.COM

MADE IN ITALY Hedging Their Bets Subject to the uncertainties of the marketplace, high-end producers are capitalizing on their fi nely honed techniques and capacity to launch their own lines. By Alessandra Turra

PRODUCT IS KING in the Made in Italy scenario. around the world, also kicked Before the explosion of homegrown fashion labels Castor launched Mantù ready-to-wear in 2010. off a partnership with North in the Eighties, Italy was already fi lled with small to American men’s fashion blogger midsize companies making high-quality clothes and Nick Wooster, launching a suc- accessories. Later, as European luxury brands began cessful capsule collection, now in to dominate the market, they became these factories’ its second season. best clients, eager to buy impeccable Italian-made Even though the brand’s products, and take advantage of the quick service sales have been steadily grow- and competitive prices. ing, according to Lardini, the But markets can change quickly. With many firm — which produces more fashion fi rms bringing production in-house — from than 200 blazers every day — Prada, which acquired an old French tannery, to still relies heavily on its port- Kering, which recently opted to manufacture its folio of brands, which account brands’ eyewear collections, formerly licensed to for 70 percent of total revenues: Safi lo — numerous Italian manufacturing companies last year, they totaled 71 million have decided to establish their own fashion labels. euros, or $86.6 million, up 30

This change is visible across sectors from ready- percent from the previous year. to-wear and accessories to yarn spinners, such as Raised in the midst of knit- Botto Giuseppe or the Tollegno 1900 Group, which ting machines in his family’s both introduced knitwear lines. Genoa-based company, Mirko “Realizing that we had developed very specifi c Ghignone is at the helm of skills, we started thinking about launching our own Liapull, a knitwear fi rm founded

brand…with a product that looks good and offers by his mother, Lia Gambetta. great value for the money,” said Marielle Srl owner PITEA MARCO PHOTO BY Liapull produces for a number Andrea Distante, who established the Distante of international luxury brands. Ghignone, who is not Cashmere label in 2013. The Lardini family started a only an entrepreneur but also an artist, in 1994 found- Designed by Siglinda Paoletti, the women’s luxury namesake men’s label in 2013. ed high-end brand Avant Toi, controlled and manu- knitwear brand is sold in 24 stores internationally, factured by the family’s enterprise. The label is sold with a heavy concentration in Russia, Korea and worldwide, including’’ at about 50 multibrand stores Japan. It accounts for 20 percent of Marielle’s total across the U.S., and is best known for its one-of-a-kind revenues. The brand’s wholesale prices range from scarves and sweaters, painted with a hairbrush and 80 euros [$91] for accessories, to 320 euros [$363] for treated to have a lived-in effect. cashmere coats. Italy is also home to many leather goods compa- Founded 60 years ago in Florence, Marielle got nies that have launched their own labels. Case in its start producing children’s knitwear for important point: Bottega Manifatturiera Borse, which started Italian and international labels and retailers. producing for third parties in 1968. About 15 years About 20 years ago, the company de- ago, company founder Gianfranco Lotti teamed up cided to set aside children’s wear and with DFS, Duty Free Shoppers Galleria, to start his instead focus on different product cat- namesake luxury bag brand, which launched at about egories: knit accessories, including 70 stores, especially across the Asia Pacifi c region. gloves, scarves and hats, and then knit “Every season, the Mantù line is the fi rst we start de- men’s and women’s rtw. The high-qual- veloping and producing to avoid any kind of problems ity manufacturing and attractive pric- with other labels,” Picozzi said. She noted that after Realizing that we had ing soon got the attention of a range of years of supporting designers in the creation, produc- European luxury brands. tion and distribution of their lines, she realized there To satisfy the growing number of was room in the market for a different type of brand. developed very specific skills, fashion company clients, Marielle, “At a certain point, we saw there was a lack of lines which used to manufacture every- that are design-driven but respectful of the body pro- we started thinking about thing internally, shifted gears portions of real women,” said the entrepreneur. in the Nineties, creating a Mantù accounts for 40 percent of Castor’s launching our own brand… solid network of factories revenues, which in 2013 hit 6.4 million euros, located across Italy — es- or $8.8 million at average exchange. pecially in the Tuscany, “Mantù’s prices are about 20 percent with a product that looks Emilia-Romagna, Marche lower than the designer brands we compete and Umbria regions — with, but we haven’t compromised on qual- good and offers great that work exclusively for ity,” said Picozzi, adding that the label’s av- the Florentine company, erage wholesale price is 350 euros, or $397. value for the money. making about 120,000 Mantù collections are now available pieces a year. in 60 high-end stores around the world, — ANDREA DISTANTE, MARIELLE SRL Asked about the rela- such as Bergdorf Goodman in New tionship between the in- York, Joseph in London and New York, In 1997, when French luxury conglomerate LVMH house brand and those Isetan and Takashimaya in Japan, as Moët Hennessy Louis Vuitton acquired a majority the company produces well as Al Ostoura in the Middle East. stake in DFS, the Gianfranco Lotti brand was not for other labels, Distante Another Italian family company, part of the deal, and Bottega Manifatturiera Borse said: “We don’t want to Lardini, was also able to put its skills discontinued the line, focusing instead on produc- copy anyone. We want to use, establishing a well-respected, tion for other high-end brands. to offer high-quality, ar- Avant Toi is the house international namesake brand. Since In 2013, Lotti fi nally found a business partner in tisanal knitwear. One of brand of Liapull. the early Eighties, the fi rm has pro- German fund Halder, which invested in developing the our fi rst goals is fi nding duced for about 20 prestigious fashion brand and expanding its retail strategy. According to the right fi t.” companies, including Gianfranco Lotti ceo’’ Franco Lucà, 30 Managing the port- Burberry, Brooks fl agships will open within fi ve years. folio is crucial, accord- Brothers and Etro. Two boutiques have already been un- ing to Angela Picozzi, Launched in veiled in Florence and Paris, while chief executive of- 2013, the Lardini another will open on Milan’s Via ficer of Castor. The men’s wear label, Montenapoleone at the end of April. Mantua-based com- focusing on high- “We are also going to intro- pany, which manufac- quality fabrics duce a wholesale business,” said tures the collections and fresh color Lucà, noting that the label ac- of a range of luxury palettes, offers counts for 15 percent of Bottega labels, including an updated ver- Manifatturiera Borse’s total busi- Giles Deacon, Antonio sion of tradi- ness, valued at 35 million euros, or Marras and emerg- tional tailored $39.7 million. ing designer Caterina men’s wear. Last “The goal is to have Gianfranco Gatta, launched Mantù, year, the brand, Lotti generating 50 percent of the its in-house women’s which sells to about Gianfranco Lotti company’s revenues within five rtw label, in 2010. 600 multibrand stores is expanding its years,” Lucà said.

retail network. GOIZE FRANÇOIS PHOTO BY parfums.ferragamo.com 8 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II

MADE IN ITALY Rescue Me! Preserving the master craftsmanship tied to an industry’s creativity and production — as well as a country’s culture — is well worth the investment for many Italian fi rms that don’t want these artisanal skills to become extinct. By Luisa Zargani

spolvero, or “pounce,” which Staff International SpA, which Left: Hand-painted was used for frescoes in the holds licenses for the produc- porcelain by Richard 17th and 18th centuries, or that tion and distribution of the Ginori, which was saved of threaded gold that’s infused Dsquared2, Just Cavalli, Marc by Gucci. The brand on the ceramics by hand. A tra- Jacobs, Maison Margiela, Viktor Piazza Sempione (with ditional Richard Ginori manual & Rolf and Vivienne Westwood a look shown here) was airbrush technique also helps brands; the Marni Group; Neuf rescued by Sinv. make each piece unique. Sarl — holder of the Maison It’s not the fi rst time the two Margiela trademark — and houses have connected. Gucci Viktor & Rolf BV. collaborated with Richard “As soon as I heard that Staff Ginori in the late Seventies, risked going bankrupt, I didn’t and a number of the pieces they want to let that happen,” re- created together from that time called Rosso, still sanguine are on display at Gucci’s muse- about the potential loss. um in Florence. At the time, Staff Le Divelec pointed to “sub- International was producing the stantial intervention” in the fashion-forward, high-quality revamp of the production struc- Diesel Style Lab. “I always be- tures and tools, although she de- lieved in the high-end product clined to say how much it cost. range, it’s a separate world with The company hired 270 employ- an attention to details that [dis- ees in the factory when it took regards] speed and a different over, and the number continues cost per minute,” Rosso said. to grow. With the new year, Gucci Asked to outline the reasons opened a training school, tapping for the near-bankruptcy and WHY SAVE A COMPANY from into the Art Academy, to shape the decisions made to fi x Staff

sure bankruptcy? the next generation of skilled International, the entrepreneur The efforts and investments workers. Le Divelec said it takes pointed to “bad management required to right a troubled 10 years to train a painter. The and wrong strategic choices on firm’s wrongs seem to make brand’s fi rst collection under its the [licensed] brands, with sky- perfect sense when one ex- new ownership was presented rocketing costs, little quantities amines a La Perla fi ligree em- last year, and a Gucci-branded ce- and zero margins. The fi rst thing

broidery with gold threads, or ramics line is in the wings. I did was to bring in top man- a Richard Ginori hand-painted Renzo Rosso’s acquisition agement, rationalize our stock- porcelain — two brands that of Staff International in 2000 keeping units and the choice of were not only rescued, but also not only helped preserve one of brands, stepping up technology given an opportunity to grow. Italy’s manufacturing experts, and bringing in our treatments.” The exquisite craftsmanship but was also the fi rst step to- One of the first successful needed to execute’’ these prod- ward his dream project of cre- new licenses was Dsquared2, ucts is rarely replicable and ating a higher-quality product and Rosso held on to the existing takes years of patient training and a top-range fashion pole. Vivienne Westwood and Maison to master. Today, Rosso’s OTB SpA, Martin Margiela agreements, “Even in their darkest mo- network of modeling agencies, fi cations of its workers was in line which rings up sales of more shedding others such as Bella ments, La Perla’s seamstresses secured the company for 69 mil- with Gucci’s long-standing atten- than $2 billion annually, controls Freud or New York Industrie. were trying to stay on until the lion euros ($78.2 million at cur- tion to the territory, explained the Diesel group; Brave Kid Srl, Skills today, he said, range end,” explained Nick Tacchi, rent exchange), and rehired all Micaela le Divelec, Gucci’s ex- which manages under license from producing a 3-D dress to a global marketing director of the the employees. ecutive vice president and chief the production and distribu- knitwear atelier, among others. luxury Bologna-based lingerie Tacchi said Pacifi c expect- corporate operations offi cer. tion of children’s collections for Based in Noventa Vicentina, innerwear and swimwear firm. ed to invest 100 million euros, In April 2013, Gucci took con- the Diesel, John Galliano, Hello not far from Rosso’s Diesel “They felt tied to one of the few ($113.4 million) in the fi rst three trol of the tableware and ceram- Kitty and Dsquared2 brands; and OTB headquarters, Staff companies that allowed them to years, but that this amount “was ics brand, which had declared bankruptcy in January that year. In this case, too, Gucci’s offer was approved by a Florence The artisanal production techniques court. Based outside Florence, in Sesto Fiorentino, not far are art in every sense. We knew these from Gucci’s own headquarters, Richard Ginori 1735 SpA (from were unique skills that were at risk. the date it was founded) special- izes in handcrafted and decorat- — MICAELA LE DIVELEC, GUCCI ed porcelain tableware. Gucci was the only company that had exercise this art, the research and surpassed after seven months.” stepped up to help preserve the workmanship that is at the base of Production remains in brand, with an offer of 13 mil- the brand’s sartorial tradition.” Bologna, and Italian craftsman- lion euros, or $17 million, pledg- San Francisco-based private ship is a must for the brand, ing to keep 230 employees out of equity fund JH Partners LLC founded in 1954 by Ada Masotti, a total of 308. had taken full control of La Perla and led by her son Alberto “We have been discovering from the founding Masotti family Masotti until the sale to JH a world that goes beyond what in 2008. The luxury innerwear Partners. Under Pacifi c Global you see in the product. The ar- company was struggling and had Management, La Perla is suc- tisanal production techniques 140 employees on government- cessfully expanding globally, are art in every sense. We knew funded leave until it became leveraging an even’’ more luxuri- these were unique skills that part of telecommunications en- ous product. Case in point: the were at risk,” le Divelec re- trepreneur Silvio Scaglia’s port- brand presented its new Atelier marked, underscoring some folio, following an auction at the Collection in January during complexities that were unex- Pacifi c Global Management bought court of Bologna in 2013. Paris Couture Week. pected. The company has been La Perla and preserved the jobs Pacifi c Global Management, Safeguarding the Richard recovering hand-painting tech- of artisanal seamstresses. which also owns the Elite World Ginori brand, the skills and quali- niques, such as the antique WWD FRIDAY, FEBRUARY 27, 2015 9 WWD.COM

International exemplifies Rosso’s idea of Made in Italy production, which he “strongly” believes in. Italian Government “There is an increased return to local manufacturing. Actually, I think there will even be more requests than [we have capacity Steps Up Fashion Funding for]. We should hold onto these skills to satisfy growing demand.” THE APPEAL AND relevance of Made The different production poles, starting European Parliament. Aware of the Also in the Vicenza area, Sinv in Italy production is not lost on the from Biella, Como and Prato, will have to opposition from many governments, we SpA last year rescued the Piazza government, which has been pumping bring forward a communal plan to reach pushed to advance it and to bring it to the Sempione label. Piazza Sempione up investments in the fashion industry a single project to control international Competitiveness Council in December, was previously controlled by and keeping a closer eye on the sector. markets. Also, the program will allow so it would be clear to the European Luxemburg-based SLPS — a hold- The country’s deputy minister of different areas of production to develop public [who] the members of the EU ing company that includes LVMH economic development, Carlo Calenda, relevant projects specific to industrial [are] who strongly support the need for Moët Hennessy Louis Vuitton’s has said the government plans to lines and sales channels (fashion, textiles more transparency and more consumer private equity fund L Capital; channel 40 million euros, or $45.5 and yarns, [large-scale distribution], etc.). protection, and those who oppose it. the brand’s founders Marisa million at current exchange, into the I want to clearly say to our production Guerrizio and Roberto Monti, who nation’s fashion industry in 2015. WWD: I know it’s not easy to beat rivalries system that our battle is not over yet. are husband and wife, and former That’s up from an annual average of locally and within the sector, but have you The proposal of a regulation has not chief executive officer Enrico 5.2 million euros, or $5.9 million, for noticed if any have already been overcome? been definitely set aside. As Minister [of Morra. Named after the square the past five years. The figure, revealed C.C.: The plan is to create a collaboration economic development Federica] Guidi where it was originally located, at last month’s men’s trade show Pitti of the “systems” in markets outside has clarified, Italy will continue to fight Piazza Sempione was founded in Uomo in Florence, is even more than Italy and a synergistic cooperation of in every way at the European level. 1991. Monti and Guerrizio left the the 36 million euros, or $41 million, the trade fairs in Italy to strengthen On the other hand, there is an inside company shortly after they sold it that was originally earmarked for 2015. Made in Italy. I can absolutely say that issue, which is the risk of losing our to L Capital in 2006. Among the main goals, the it has already had positive effects, and classic production and with it the skills Hit by the financial crisis in government is working to attract more that some existing mental barriers have and the knowledge. It is thus necessary 2011, in October 2012 the Milan- international buyers, who come from been overtaken: jewelry is an example to safeguard the tradition and know-how based company filed a petition expanding markets, and boost business [with Arezzo and Vicenza]. The strategic of Made in Italy producers.…The fairs with the court, and in February with Chinese, American, Canadian agreement between Fiera Vicenza and will be the showcase of Made in Italy 2013, Piazza Sempione submit- and Japanese firms. In large part, the Arezzo Fiere in the goldsmith sector product, communicating their value, and ted a restructuring plan, includ- government aid will go toward helping stipulated in January on the occasion the creativity and artisanal skills of the ing a proposal for renting the promote Italy’s main trade fairs. of the inauguration of Vicenzaoro (and producers of Italian fashion. Then there brand to Sinv for a year before Here, Calenda discusses government officially supported by Confindustria will be agreements at the GDO [large-scale selling it to Sinv, which was ac- strategies and Made in Italy production. and Federorafi) is a first step toward a distribution] level, which will benefit cepted by both the court and — LUISA ZARGANI coordinated industry trade-show offer. the entire pipeline but especially small the brand’s creditors. The total producers: in fact, this will allow amount paid was “a formal sum” WWD: What prompted the quality labels from medium and small of 3.5 million euros, or $4.6 mil- government to invest so Deputy Minister companies in the distribution channel lion at average exchange. generously in the industry? of Economic that could not otherwise have access “Piazza Sempione is a wom- Carlo Calenda: The government has Development to GDO on their own. We also plan to en’s brand of great value, his- ambitious objectives, aimed at deeply Carlo Calenda. mentor new talents to accelerate the toric and totally made in Italy,” innovating initiatives in support of growth of the next generation of Made said Sandra Spinacè, general internationalization. We have set the In Italy designers. director of Sinv and ceo of increase in exports reachable within Piazza Sempione. “We take 2016 at 50 billion euros [$56.7 billion], WWD: How will the 40 million euros pride in the fact that Italian between mature markets to further [$45.4 million] announced this production is one of the brand’s enhance, emerging ones in which to month be invested? two main assets, which we want expand our quota and new markets C.C.: We will channel funds to main to maintain. The other asset is with high potential. trade-show events in the fashion that it has a strong presence in Today we face a stagnating local and lifestyle system to strengthen international markets.” demand, a condition on a par with their position with competitive Despite its alternating for- many mature countries. Also, the trade fairs abroad. tunes, Spinacè marveled at the most recent data confirm exports In total, the funds are eight “strong affection” that contin- are the only dynamic component of our WWD: What are the main issues? times the average financing in the ues to be shown to the brand. gross domestic product. In 2014, our C.C.: A change of mentality is necessary previous five years. Asked to single out best-selling sales outside Italy grew an additional 2 to overcome rivalries and arrive at a designs and unique skills, the percent, reaching a record 398 billion shared vision, to identify clearly the WWD: How do you plan to attract executive pointed to the Audrey euros [$451.7 billion]. Our trade balance roles that will enhance the different international buyers? cropped pants, “which have was positive at 42.9 billion euros [$48.7 [territory specialties], the wealth of C.C.: The fairs obviously have the main been around since the dawn of billion]. Never in the preceding years skills and traditional production know- role in this sense. The government time,” for their level of comfort, did we reach such a high trade surplus. how within the pipeline. I believe that supports them with financial and the artisanal needle-punch In the future, we must do more. the Made in Italy plan, which is based contributions to the trade-show system knit techniques, in addition to Millions of consumers are appearing in on these assumptions, will be able to and the international missions in target the double, “almost sartorial” world markets seeking products with a stimulate the system to give its best, countries. Our concerted actions help manufacturing process. strong content of quality and innovation. overcoming any division. bring buyers from those markets in “Our customers understand A middle class that will grow in the next contact with Italian producers. In this the value of this product,” 15 years by 800 million individuals — WWD: What endangers Made in Italy context, we plan initiatives in markets Spinacè stated. and not only in emerging markets — is production the most? with the greatest potential, like China, Sinv has a 30 percent stake an opportunity that we must know how C.C.: There are two aspects. On one the U.S., Canada and Japan. in Moschino, the majority of to catch. Hundreds of millions of new side, there is an external threat, i.e., the which is controlled by Aeffe consumers will appear on the global phenomenon of counterfeits of Made WWD: How do you plan to support SpA, and also owns 100 percent market in [coming] years, an expression in Italy in fashion and accessories. industry trade shows? of men’s ready-to-wear and ac- of a middle class that is expanding The industry of counterfeits and the C.C.: They can count on our funding, cessories brand Luca Roda Srl. and that favors quality products and imitation of fashion products represents, aimed at strengthening and developing Founded in 1975, Sinv is admires the concentration of style and at national and European levels, a initiatives already mapped out to support owned by the Dalla Rovere fami- innovation represented by Made in Italy. persistent threat for our companies. the growth and internationalization ly. Over the years, it has produced Italy has adopted legal tools to [address] of companies; [bringing in] foreign sportswear and casual lines WWD: What are the first steps to the matter…and to [try to] prevent the operators, the organization of events under licensing agreements for take in the short and medium-terms? phenomenon. The European Union did in foreign markets that have the most labels including Voyage Passion, C.C.: The government has recognized not do as much, unfortunately. potential to develop, training meetings Krizia Jeans, JPG by Gaultier and the fashion industry’s priorities and In Europe (and this is valid for our and tools to [match supply and demand] DKNY Jeans for men and women has mapped out a plan for the pipeline, country, too), “country-of-origin” labels during the events. The main criteria we’ve in Europe, Asia, the Middle East, in light of the most recent studies on are not mandatory. A label indicating a used for the choice of events are, in order: Australia and New Zealand. global trends and in the sector. As our product’s origin — already mandatory in ■ The position of leadership held by The acquisition of Piazza first steps, we expect to forge a synergy all the biggest markets in the world except the fair in the specific market segment Sempione is part of a strategy of between the “fashion cities” and the for Europe — is a proposal that Italy has (meaning the importance that the event diversification with a brand that production districts; the definition of been carrying out since 2003, and one that holds at a global level for the operators is entirely owned by the group, a “positioning” that will reflect the has been on the table of the Council of in the sector); explained Spinacè. natural evolution of successful stories the European Union since 2005. ■ Future growth potential; “Our efforts are aimed at and recognizable elements, such as, for Over the years, we have picked it ■ Synergies between groups restoring credibility while re- example, the men’s and women’s shows up several times to try to bypass the of trade shows; specting the brand’s values. The in Milan; men’s and children’s wear opposition of some countries in North ■ The chance to develop joint pipeline is still there — the ma- in Florence, or scouting activities and Europe. In April, the Regulation operations in the pipeline or the sector chine had just clogged up.” enhancing new talents in Rome. proposal was finally approved by the abroad [for fairs outside Italy]. 10 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II WWD.COM

MADE IN ITALY Lombardy: Cosmetics Central Look in your makeup bag. Chances are, many products in there came from this northern Italian region. By Cynthia Martens

VISITORS TO THIS northern Italian ucts have no trouble attracting as a beauty mecca in the Eighties. A spokeswoman said that Intercos city might not immediately realize it, but top brands as customers. That fi rm, known for its high-tech employs 3,420 people worldwide, 1,080 they’re at the heart of the beauty business. “I would like our region and stylish lipstick, eye shadow, of whom work in Lombardy, where the All together, Italy produces 65 per- to recognize the cosmetics mascara, foundation, powder, firm is headquartered. Intercos has cent of the world’s makeup. The region industry’s contribution to pencils, nail polish and skin-care branches around the world, includ- of Lombardy alone counts about 520 of the economy and to the job products, closed 2014 with gross ing in China, the U.S., Switzerland, the the country’s estimated 1,000 cosmet- market a little more,” sales of 354 million euros, Netherlands and Brazil. ics fi rms. Of those 520, 54 percent are he said, adding that or $470 million at average Fabio Franchina, president of hair in the province of Milan, according to local universities exchange, 54 percent of product company Framesi, agreed that recent data from Cosmetica Italia, the should tailor more which was tied to its Lombardy’s “cosmetic valley” offered Italian trade association of cosmetics business-related Italian production an appealing combination of technology companies. Lombard cosmetics exports courses, so stu- sites. Last December, and creative fl air. account for 63 percent of the Italian dents interested Intercos inked a “We have a high concentration of total, and in 2013 (the most recent fi gure in the beauty small businesses, specialized in niche available), Italy’s cosmetics trade categories and not very outwardly vis- balance hit 1.54 billion euros, or ible. The big multinationals aren’t here. about $2 billion at average ex- Collistar’s When people think of cosmetics, they change. That’s higher than the bal- limited-edition usually think of the big French and ance for pasta (1.25 billion euros, collaboration American brands,” Franchina said. or $1.66 billion); yachts (1.18 bil- with Kartell. Framesi turns 70 this year. It employs lion euros, or $1.57 billion); steel an estimated 220 people directly and tubes (930 million euros, or $1.2 indirectly. The company counts 10 pro- billion) and helicopters (830 mil- duction plants and serves 45,000 clients lion euros, or $1.1 billion). internationally; 70 percent of its consoli- Whereas certain cities and dated turnover is from exports. districts in the fashion and tex- Above and Alessandro Palmitano, develop- tile sectors are known for their right, Versace ment and quality control manager hosiery, denim cloth or woolens, and Moschino at Milanese cosmetics and skin-care throughout Italy beauty compa- fragrances are brand Collistar, said Lombardy is dense nies produce all sorts of cosmetics made by Euroitalia. with manufacturing companies that and fragrances. What’s remark- invest heavily in research and develop- able is the abundance of these ment, and have patented technologies. businesses up north: Of Italy’s “It’s important to note 35,000 people directly employed that Italy stands out for its in the cosmetics industry, 18,000 The ICR lab. strong push on innovation, work in Lombardy. which suppliers invest in The region’s citizens spend more — and their export fi gures money on cosmetics than other are extremely high,” he Italians, too: whereas in 2014, the said. “Suppliers…since they average Italian spent 150 euros ($199) on industry are better equipped to start aren’t brands, don’t com- beauty products, the average Lombardy their careers. municate what they do and resident spent 195 euros ($259.) Ancorotti Cosmetics, founded in how they do it: This leads to “Lombardy is a region that has always 2009, is considered an expert on mas- a misconception that their represented the highest concentration cara, producing 14 percent of the role doesn’t add value. of our country’s GDP — it’s no coinci- world’s billion pieces sold annually. “Most of our suppli- dence that Milan is the economic capi- That’s no small feat, considering about ers are from Lombardy, tal and Rome is the political capital,” half of the total is manufactured in- specifically from around said Cosmetica Italia president Fabio house by brands. The fi rm employs 130 Milan and Brescia, as are Rossello. He noted that together with people directly, and derives 85 per- warehouse employees and other northern Italian cities, such as cent of its turnover from exports, with a large number of staff at Turin and Genoa, Milan has long been an France, other European Union coun- deal with American private equity fi rm Collistar’s headquarters, as well as var- industrial hub, “a kind of Italian London” tries and the U.S. among top markets. Catterton, which acquired a 43 percent ious sales agents,” Palmitano added. that is business-savvy and more cosmo- Ancorotti credited powerhouse stake in the cosmetics supplier just over Fragrance is another Lombard spe- politan than other parts of the country. Intercos, founded in 1972 by Dario two months after it canceled a planned cialty, with two major perfume produc- Still, Rossello acknowledged that Ferrari, with cementing Lombardy’s role stock exchange debut. ers just outside Milan: ICR-ITF, based many people more readily associate in Lodi, and Euroitalia, located in Italy with wine and beautiful shoes than Cavenago di Brianza. with cosmetics, and Milan is famous as Milan’s international renown in the a fashion, rather than beauty, capital. THE NATURAL LOOK fashion industry, combined with the “I believe that cosmetics companies city’s industrial heritage, facilitated here have focused more on doing than EMILIA-ROMAGNA, the northern Italian region just south of Lombardy, is home to the growth of the local fragrance sec- promoting,” he said. cities such as Parma, Bologna and Ferrara, and more often associated with culinary tor, said Roberto Martone, president This year, with Milan hosting the delicacies than makeup. Yet, the region is second in cosmetics manufacturing only and chief executive offi cer of ICR and World Exposition from May 1 to Oct. to Lombardy, accounting for 10.2 percent of the country’s beauty production. vice president of distribution arm 31 and more than 20 million people Davide Bollati, a Parma native and founder of Davines and Comfort Zone ITF. The fi rm makes and distributes expected to fl ock to the city, the local professional brands, has combined twin passions for good food and innova- fragrances for Dsquared2, Pomellato, cosmetics industry hopes to change tive cosmetics in a deal with Italy’s Slow Food Foundation for Biodiversity. Blumarine and Trussardi. that perception. Cosmetica Italia The foundation protects and coordinates efforts of local small-scale farmers, He said about 70 people work for has teamed up with BolognaFiere, cheesemakers, growers and others, and works with projects around the world ITF, 550 at ICR and another 100 in- the parent company of trade show to promote environmentally and culturally sustainable agriculture. directly for both. “The majority are Cosmoprof, as offi cial partner of the In its new Essential Haircare line, Davines offers a range of nine product women from Lodi. Originally, the Expo Biodiversity Park and Organic “families,” each of which relies on a specifi c ingredient — such as yellow melon, factory was in Milan, and about 80 and Natural Pavilion. lentil seeds, capers or buckwheat — harvested by slow-food producers in Italy. people worked there, then the move “We will be using this as one of sev- “In creating ‘beauty,’ we want to encourage people to take care of them- increased development around Lodi,” eral ‘trampolines’ to make this sector selves, of the place where they live and work, of what they love,” said Bollati, Martone explained. better known, as it deserves to be, in noting that he has always been sensitive to environmental issues — for in- Giovanni Sgariboldi, president of Italy itself, as well as abroad.…If we are stance, the plastic used in the Essential Haircare packaging is food-safe and Euroitalia, said his fi rm employs about 50 able to produce so many things here, recyclable. In addition, the names of individual farmers appear on the labels. people directly. “Many are from the prov- it’s because we’re able to combine great “We wanted to be transparent all the way in our communication with cli- ince of Milan, and we work with a lot of quality with creative ability” and artis- ents,” Bollati noted. companies in Brianza [a half-hour drive tic passion, Rossello said. “By including farmers’ names on the labels, we guarantee the traceability north of Milan],” he said. Renato Ancorotti, founder and presi- of the supply chain, not just the slow-food association that we work with, but Euroitalia holds the licenses for dent of Ancorotti Cosmetics, said that of specifi c farmers that are part of it,” he said. “Every active ingredient in Versace, Moschino and John Richmond while Italy’s makeup supply chain fl ies the Essential Haircare line has the face, story and name of the person who fragrances, and it also produces make- under the radar of many consumers, the harvested it with care and passion.” — C.M. up for Naj-Oleari. Exports account for country’s high-quality, innovative prod- 92 percent of Euroitalia’s turnover.

12 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II WWD.COM

MADE IN ITALY National Treasure Fashion houses play a big role in restoring Italy’s artwork and archaeological monuments. By Cynthia Martens

AN ELDERLY NUN in “The Great tions for the fi rst-century Verona Arena, Beauty,” Paolo Sorrentino’s controver- and since 1989 Intesa Sanpaolo has con- Prada helped restore this sial 2013 film, declares that she only eats tributed to more than a thousand works 16th-century archway roots, “because roots are important.” of art, archeological sites, museums and at Bologna’s Palazzo The line resonates in Italy, where the churches through its Restituzioni proj- dell’Archiginnasio. ruins of Pompeii and Herculaneum sit ect, which the bank’s managing director alongside modern-day Naples. According of artistic heritage, Andrea M. Massari, to the United Nations World Tourism described as a close, ongoing partner- Organization, Italy is the world’s fifth ship with the public sector. most-visited country, with 4.77 million arrivals in 2013, the most recent year avail- able. Additionally, Milan and Rome landed in the top 20 of MasterCard’s 2014 Global Destination Cities Index. But with an economic malaise that has persisted through the governments of several prime ministers, public funds for the main- tenance of celebrated land- marks are scarce. In a bid to salvage national trea- sures from neglect, various Antonio Canova’s “Return of Telemachus to Ithaca,” at private donors have rushed Venice’s Correr museum, which is receiving support from forward with their support. the American Friends of Venice Foundation. Some are philanthropic organizations or local church parishes Intesa Sanpaolo seeks to restore dedicated to restoring the glory of a “also lesser-known works, or those of particular city or town. The banking lesser-known artists, that don’t guaran- industry has also been stalwart in its tee media attention but that neverthe- devotion to Italy’s cultural heritage: less are an integral part of the ‘eco- UniCredit is helping fi nance restora- museum’ that is the wealth of Italy,”

Massari said. This year, in honor of Milan, which is hosting the World Exposition, Intesa Sanpaolo is restor- ing the home of Alessandro Manzoni, where the celebrated author of “The

Betrothed” lived from 1813 to 1873. Jean-Christophe Work begins in March and is expected Babin, ceo of to be over by the end of summer. Bulgari, which is restoring the SHOP AT BORBONESE.COM SHOP AT Pietro Celli, a Florence-based law- yer with expertise in cultural heritage Spanish Steps issues, said Italian prime minister in Rome, among Matteo Renzi and minister of culture’’ other landmarks. Dario Franceschini — who have been LEON LORENCO RAMY PHOTO BY energetically courting private donors “It’s a privilege and an honor for me — are “very attentive to the potential and for my family to be able to contribute Italy could have with a more up-to- to the rescue of one of the most beautiful date management of its cultural heri- and important monuments in the world,” tage, which is still one of the most pro- Della Valle told WWD. “Unfortunately, tected and cared for in the world.” Italy isn’t accustomed to models of pa- In this context, donations from a tronage found in the Anglo-Saxon parts of plethora of luxury fashion fi rms have the world. There is still some skepticism, garnered considerable attention. but I hope that this will change soon. The most widely publicized com- “Companies, [as well as] private citi- pany in this arena zens who are for- is Tod’s, whose tunate to live com- outspoken chief fortably, should executive officer, Unfortunately, Italy give a bit of posi- Diego Della Valle, tivity back to the bestowed 25 mil- isn’t accustomed to country,” Della lion euros in 2010 Valle affi rmed. — about $33 mil- Celli explained lion at average ex- models of patronage that the ninth ar- change for the pe- ticle of the Italian riod — on Rome’s found in the Constitution as- 2,000-year-old signs the safeguard Colosseum, which Anglo-Saxon parts of the country’s is now undergoing historical and artis- a complex restora- tic heritage to the tion project that in- of the world. state, which must volves water spray manage mainte- cleaning, fillings — DIEGO DELLA VALLE, TOD’S nance and restora- and the process- tions. A separate ing of metallic ele- article of the con- ments, among other operations. stitution specifi es that maintaining the His offer preceded a 2012 legisla- value of cultural heritage is both a fed- tive change that specifi ed how private eral and regional responsibility. sponsors are selected to restore public Superintendents at the Ministry works, and Della Valle found himself in of Cultural Assets and Activities and a hailstorm of criticism over the alleged Tourism authorize all restorations of commercialization of a major landmark. ’’{Continued on page 14}

87!> persol.com 14 WWD FRIDAY, FEBRUARY 27, 2015 SECTION II

MADE IN ITALY

{Continued from page 12} gazette, set a budget and solicit propos- cultural assets, whether publicly or pri- als, before choosing the best bid from a vately owned. The Ministry also determines pool of potential sponsors. which assets are of historical and artistic “Even when public funds are lack- value and deserving of state protection. ing, it is the State’s responsibility to Private citizens and companies can con- ensure the protection of Italy’s cultural tribute to restorations either through dona- heritage,” Celli said. “So if there are tions of less than 40,000 euros ($45,600 at companies willing to invest — provided current exchange), with tax incentives, or that they follow the rules — then the by becoming offi cial sponsors, which gives only important thing is to regulate.” them promotional rights connected with Franca Coin, president of the non- the cultural asset they are supporting. profit American Friends of Venice Even in the case of private sponsor- Foundation, said she has long believed ship, public assets must remain public in the role private donors can play in — and the Ministry ensures that the ul- sustaining Italy’s cultural heritage. timate goal of protecting Italy’s heritage “We’ve tried to get people to under- Tod’s ceo Diego Della Valle is respected. The 2012 legislative update stand that the goods we have, the beau- is fi nancing the restoration requires the Ministry to publish project ty, it belongs to all of us and in equal of the Roman Colosseum.

summaries in at least two national dai- measure. It’s a very specifi c message: ZENO COLANTONI PHOTO BY lies and the Italian Republic’s offi cial Even small donations [help], because together we can,” Coin said. part of LVMH Moët Hennessy Louis Vuitton, lion at average exchange) donation from Drawing on her background in the fash- observed that many public artworks were the luxury fi rm. Bulgari founder Sotirio Gucci is contributing ion industry — she worked as a correspon- originally commissioned by private citizens, Bulgari opened his fi rst store in 1884 on to the refurbishment of 10 dent in Italy for French Vogue Homme and and the line between public and private Via Sistina, and in 1894 and 1905, added 16th-century Medici tapestries Vogue Sport in the Seventies and early fi nancing for the arts has never been abso- two more on nearby Via Condotti; both commissioned by Cosimo I de’ Medici. Eighties, and is married to Piergiorgio lute. He views support for restorations as streets lead up to the Spanish Steps. Coin of Italy’s Coin department store chain “an act of civic responsibility.” Pietro Beccari, chairman and ceo of — she has put her marketing savvy to use Rome is “the densest city in the world Fendi, also part of LVMH, said reactions for Venetian culture. in terms of works of art,” he said, adding to the company’s donation of 2.18 million AFVF works on a project-by-project that relative to the number of tourists it euros (about $3 million) to restore the Trevi basis. The group financed new gold attracts, the city’s population — about 4.3 Fountain have largely been positive. The plating on the ceiling of the Hall of the million live in the metropolitan area, ac- restoration is part of the fi rm’s “Fendi for Great Council at the Doge’s Palace, cording to national statistics bureau Istat Fountains” project, which allotted another and is now working on a project called — is quite small. “While the citizens of 320,000 euros (more than $436,000) to the Sublime Canova with the Civic Museums Rome undoubtedly have certain benefi ts Four Fountains, a group between Via delle Foundation of Venice, the Venice living surrounded by so many works of Quattro Fontane and Via del Quirinale. Foundation and the Comité Français art, it would be unfair to expect them to Just this month, work on the Trevi pour la Sauvegarde de Venise. The goal single-handedly maintain such a historic fountain’s facade and famous Ocean is to restore the Correr museum’s exten- city” through their taxes, Babin said. statue by Pietro Bracci were completed. sive collection of works by neoclassical Bulgari seeks to support landmarks “We are a Roman company, and so for artist Antonio Canova, who spent much of symbolic value to the company, such us it was important to send a message of his working life in Venice. as the Spanish Steps, which last year re- of support to the city of Rome,” he said,

PHOTO BY VITTORIO IMAGES FOR GUCCI ZUNINO CELOTTO/GETTY PHOTO BY Jean-Christophe Babin, ceo of Bulgari, ceived a 1.5 million euro (roughly $2 mil- noting that later this year, the entire res-

WWD FRIDAY, FEBRUARY 27, 2015 15 WWD.COM

toration project should be fi nished. 600,000 euros ($797,000) in 2014 to up- tion should be left in the hands of experts lion euros (about $4.1 million) from gallery Supporting hometown heritage is a re- grade the air treatment and security sys- from the public sector, also because if a tenants Versace and Prada, and a contri- curring theme among fashion companies: tems of eight rooms that had been closed restoration is done wrong, it can actually bution from publishing giant Feltrinelli. Brunello Cucinelli helped restore a 14th- to the public. Once the project is com- damage the works in question. But I think Work is expected to wrap up this spring. century castle and surrounding buildings plete later this year, visitors will be able facilitating the contributions of private com- “As soon as the work began to renovate in Solomeo, Umbria, where his company to see Renaissance paintings from the panies is a good thing,”’’ Ferragamo added. the space behind the plaster walls, capitals, is headquartered, as well as the famous likes of Domenico Ghirlandaio, Alesso Another Florentine brand, the Kering- friezes and countless other original decora- Etruscan Arch of Perugia. Diesel founder Baldovinetti and Piero di Cosimo. owned Gucci, has also been actively sus- tions that survived the bombings of World War Renzo Rosso, a native of the Veneto re- “We have always felt very close to the taining Italy’s artistic legacy. By earmark- II and remained hidden, were discovered,” gion, gave 5 million euros ($6.5 million) beauty of Florence. When we have con- ing 50 percent of ticket sales to its Gucci noted Versace ceo Gian Giacomo Ferraris. to Venice’s iconic Rialto Bridge in 2013 tributed it has always been with a pro- Museo to a special fund, last year the Prada, also a Milanese brand, has been through his OTB Srl holding. found sense of gratitude,” said Ferruccio fi rm was able to contribute 340,000 euros quietly sprucing up Italian treasures for Salvatore Ferragamo Group has sup- Ferragamo, the company’s president, (more than $460,300) to the refurbishment many years. In 2010, the fashion fi rm kicked ported various gems of Florence, from noting that the family chooses which of 10 16th-century Medici tapestries com- off a partnership with the nonprofi t Italian the Renaissance Holy Trinity Bridge in projects to support “with the heart. missioned by Cosimo I de’ Medici, which National Trust, and subsequently contrib- 1996 to the Uffi zi Gallery, which received “I think the technical aspects of restora- are on display in Palazzo Vecchio’s Hall uted to the restoration of a range of historical of the Two Hundred in Florence. works in Bologna, Padua, Bari and Florence, Prada also helped restore the Ca’ Corner della Regina on the Grand Canal in Venice. I think facilitating the contributions of private companies is a good thing” — FERRUCCIO FERRAGAMO

Gucci is also leading sponsorship for a all cities where the brand has boutiques. traveling exhibition organized by the presi- The fashion fi rm also gave a new curtain to dency of the Italian Republic with the mu- Turin’s Regio Theater in 2014, and the same nicipalities of Florence and Milan, and Expo year, supported the municipality of Arezzo in 2015, called “The Prince of Dreams: The Tuscany in its efforts to restore the ancient Medici’s Joseph Tapestries by Pontormo San Donato in Cremona church. and Bronzino.” Through the initiative, 20 In 2011, the Fondazione Prada, Prada’s Renaissance-era tapestries stretching an es- art foundation, worked with the city of timated 263 feet are traveling from Rome to Venice and its superintendents on the res- Milan during the city’s Expo, and returning toration of its new exhibition space, the to Florence next January. 18th-century Ca’ Corner’’ della Regina on Last year in Milan, a 13-month res- the Grand Canal. The foundation is also toration project kicked off for the at work on new Milanese headquarters in 150,695-square foot landmark Galleria a restored distillery on Largo Isarco, de- Vittorio Emanuele II, a 19th-century signed by Rem Koolhaas’ OMA architec- shopping arcade, with more than 3 mil- ture studio and set to open this spring.

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WWD JAPAN 35th Anniversary “Japanese consumers have an eye for fashion. That’s why if you can make it in Japan, you can make it in Asia and in the world.” Japanese sensibil- ity towards fashion has been receiving well-deserved high praises from many in the fashion industry from around the world. Japanese consumers aggressively gather information on fashion and beauty through magazines, internet, and recently, social media, and JAPAN’S assimilate it to one’s own. It’s not only consumers who have high standards, but designers and suppli-

ers as well. The origin of Japanese creators challeng- ing the world dates back to the 60s with Hanae Mori and Kenzo Takada, and continued with Issey Miyake, Rei Kawakubo, and Yohji Yamamoto presenting their collections in Paris in the 70s and 80s. Now, Japanese brands are only second to French maisons in num- bers presenting in Paris Fashion Week. With Kojima, Okayama’s denim at the head of the list, Japanese fab- rics and materials, known for its innovative attributes and high quality, are beloved by countless internation- ally renowned designers. In our 35th Anniversary spe- cial report, WWD JAPAN, Japan’s only weekly fashion newspaper, features Japan’s, and soon the world’s, lead- ing companies. Through interviews with top executives, we explore the secret to Japanese fashion. LEADING C MPANIES

ISETAN MITSUKOSHI HOLDINGS ONWARD HOLDINGS WORLD SHISEIDO WACOAL HOLDINGS YAGI TSUSHO CROSS COMPANY BAYCREW’S GROUP YKK SEIKO WATCH DIAMOND HEAD 2 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY ISETAN MITSUKOSHI HOLDINGS Actualizing “this is japan.” Utilizing the Five Senses to Provide Japan’s Superior Goods and Services

Established in 1673, Mitsukoshi has declared itself as Store. In the future, we would like to offer items that we a department store in 1904 becoming the first of its can call “JAPAN Premium.” We’ll also be offering luxury kind in Japan. Mitsukoshi has since merged with Isetan, brands and cosmetics on the same floor. whose corporate slogan is “The world’s number one WWD J: Do you have any plans for abroad? fashion department store,” to become Isetan Mitsukoshi H.O.: We plan to offer goods that represent Japanese Holdings Ltd. Both stores began as Kimono fabric shops, values at the Isetan Kuala Lumpur Lot 10 store in and both have a long standing history of tradition and Malaysia. In contrast to the Ginza duty-free shop’s renovation. The merger has created Japan’s largest de- total floor space at just 3,300-square-meters, the Lot 10 partment store group with sales of 1.3 trillion yen and store has 11,000-square-meters, housing a vast array more than 200 million customers annually. With the of high-quality Japanese products. In terms of sales, Tokyo Olympics in 2020, just five years away, the com- we will place our top sales people, the “Evergreen”s, pany has formulated a new corporate message, “this to build a basis for excellent customer care, with the is japan.” Under Hiroshi Ohnishi President and CEO’s goal to ultimately surpass even Japanese customer ser- strong leadership, the new message will be implemented vice. Currently there are 31 stores to our overseas net- and announced to the world in the spring of 2015, lay- work. The Southeast Asian region is our priority. Our ing the foundation for the company’s business strategies. Singapore store, in operation for 41 years, was our first overseas store. Located in a prime location on the cor- WWD Japan: What is the objective of your new corporate ner of Orchard Road, the floor space is quite limited. message, “this is japan.”? In the future, we want to set up our ASEAN flagship Hiroshi Ohnishi: Since 2011, we have been implementing a store in a location where we can really showcase Isetan. new sales strategy called “JAPAN SENSES,” which rep- Though China has political issues, it has tremendous po- resents a re-affirmation of the values created by tradi- tential. We want to expand our Chinese operations when tional Japanese cultures and aesthetics, presenting these the time is right. attributes to customers in the form of new values. At In the U.S. and Europe, real estate prices are pro- the same time, the company has bolstered supply struc- hibitively high, making it difficult to place a permanent ture reform, sought out materials and craftsmen, and store. Last February; however, we did set up a pop-up engaged in Japanese-style “monozukuri” manufacturing. store, “Nipponista,” in New York, which we want to The company has taken steps to intensify this movement INOUE RYOICHI BY PHOTO follow up with similar stores in London and Paris. In by labeling “this is japan.” a business strategy, thereby HIROSHI OHNISHI / PRESIDENT & fact, an opening in Paris next fall is a strong possibil- publicizing our intentions of building a new department CEO, ISETAN MITSUKOSHI HOLDINGS ity. Though the store in New York was one-dimensional, store for the future. The goal is to establish new Group PROFILE: BORN JUNE 13TH, 1955 IN TOKYO. AFTER GRADUATING FROM, KEIO UNIVERSITY, HE JOINED ISETAN we want to learn from our experience in New York and stores that bring the best of Japan to the world, span- IN 1979. HE TOOK ON THE POSITION OF PRESIDENT OF ISETAN, A POST HE HAS HELD SINCE 2013. make the Paris store multi-dimensional. ning everything from unique “monozukuri” manufactur- WWD J: What are your sales strategies for overseas? ing and event projects to Japanese-style hospitality and Japanese culture and history, selling for instance under H.O.: Our main sales measure is to export the know-how sales service. the brand name “JAPAN Premium.” Regarding design- we have accumulated on supply structure reform and WWD J: What are the key themes? er’s labels, we will assist talented young designers go supply chain, and to see it take root overseas. In procur- H.O.: That would be the “five senses.” Japanese are out into the world. We are also planning large projects ing materials and manufacturing globally, our goal is to blessed with four distinct seasons, and we have devel- with some of Japan’s big name designers. Meanwhile, sell products overseas that have aesthetic value equal to oped keen five senses. Utilizing the five senses, we strive we are moving forward with developing a product line that of Japan’s. We are also considering selling locally to provide products and services, store decor and envi- with the theme “Japan from the perspective of foreign produced items back in Japan. ronment that appeal to the five senses. This will lead to designers.” People may have certain visual con- realizing the concept of our Isetan Shinjuku Main Store, ceptions of Japan, and we’re interested in produc- ISETAN SHINJUKU MAIN STORE MITSUKOSHI GINZA STORE “Fashion Museum.” In addition to a vast array of prod- ing original products using textiles that highlight ucts, we want to exert traditional values unique to Japan the technique of Japanese craftsmanship. such as speech manner, attitude, and smile, to attentive- WWD J: Which point of sales is emblematic of your ness and insightfulness, not only to understand but an- new corporate message? ticipate the customers’ needs. “this is japan.” is a perma- H.O.: That will be our city-center duty free shop nent corporate message. It’s not a one-way message, but called “JAPAN DUTY FREE GINZA,” which will a creative process in collaboration with our customers. open this fall in Japan in our Mitsukoshi Ginza WWD J: What is important to product development? store. With this project, we’ll upgrade the “JAPAN H.O.: The Japan Apparel-Fashion Industry Council SENSES” project that we’ve been holding primar- launched a product certification process to acknowledge ily at our three main metropolitan area stores, COMPANY OVERVIEW: ISETAN MITSUKOSHI HOLDINGS LTD./HEADQUARTER ADDRESS: SHINJUKU-KU 5-16-10, TOKYO/ made in Japan products, “J QUALITY.” Our company the Isetan Shinjuku Main Store, the Mitsukoshi ANNUAL GROUP SALES: 1.3215 TRILLION YEN/GROUP EMPLOYEES: 12,190/NO. OF STORES: 28 (IN JAPAN)1 IN ITALY, 1 is also considering creating a product line that suits Nihonbashi Main Store, and the Mitsukoshi Ginza IN THE U.S., 6 IN SINGAPORE, 4 IN MALAYSIA, 1 IN THAILAND, 5 IN CHINA, AND 13 IN SHIN KONG.

TOPICS-1 TOPICS-2 Announcing to the World in 60 Languages Initiatives to Identify Talent On January 1st, posters and banners in stores around the world, Isetan Mitsukoshi Holdings is engaged in deal- as well as full-page ads in all major newspapers exhibited the ings with brands overseas. Club 21 Japan was corporate message, “this is japan.” The corporate message was established with Singapore’s Club 21, which translated into 60 different languages and placed on the website, holds distribution rights in Southeast Asia for with global dispatch in mind. Not only to convey Japan’s good numerous labels. Last year, the company ac- points but also to accurately convey perceptions of Japan from quired additional stock in Club 21 Japan, taking overseas, the company selected Michael Emmerich, a senior a majority share of 51%. The company, which associate professor at the University of California Los Angeles expects to see a surplus in FY2015, is aggressive (UCLA), to oversee the project. Emmerich is a literary schol- in securing distribution rights for labels, recently ar known for translating for Japanese literary figures such as adding Alexander Wang, rag & bone, and Proenza Yasunari Kawabata and Banana Yoshimoto. The result was a Schouler. President & CEO Ohnishi remarks, “How highly detailed and poetic expression with specific nuances. to identify unestablished brands with growth poten- As a symbol of “this is japan.,” Saira Kunikida, a great-great tial? The key is personnel. We are working to develop- granddaughter of novelist Doppo Kunikida, who was also the ing personnel with strong personalities who can forge first editor-in-chief of Fujin Gaho, was selected as the model. networks overseas.” On the other hand, luxury brand

Saira Kunikida, daughter of a Japanese mother and an Italian The “this is japan.” corporate initiatives involve famous labels that are recog- (SUPPLEMENT) OHASHI KOTARO BY PHOTO father, was born in London and raised in Paris. In search message in 60 different nized around the world. Seeking proper balance Proenza for her roots, she debuted as a model based in Japan, in languages on the Isetan between contemporary and historic elements to Schouler Spring September 2014. Mitsukoshi website. ensure successful brand development. 2015 Collection

4 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY ONWARD HOLDINGS Raising Presence in World Markets Fostering a Group Framework Based on 40 Years of Overseas Strategies

Onward Holdings began expanding into overseas mar- his work, together we took up the challenges of an inte- kets in the early 1970s with initiatives to promote its grated brand business, tackling various aspects of plan- global business. In 2013, Gibo’ Co., one of the European ning, production, and sales. We have become very close Group subsidiaries, formed Onward Luxury Group, since friends, so that we can talk to each other about virtually which time it has been extremely active in the markets. anything. Representative Director, Chairman, and President, The second thing was taking up the challenge of ICB Takeshi Hirouchi, looks back on the company’s over- in 1995. We attempted to promote our Japanese brand seas strategies, and talks about the future direction of to the world from our base in New York; however, the Onward Holdings as a global company. wall to the world was just too high to surmount and our efforts were futile. Though, we did learn a great deal WWD Japan: What overseas strategies has Onward Holdings about the difficulties of maintaining and actually devel- implemented? oping a label on the world stage, and this served to fa- Takeshi Hirouchi: In the early 1970s, Junzo Kashiyama, cilitate our business later on. who founded the company, decided to initiate overseas Third was the establishment of Onward Luxury expansion because he sensed that the “world would Group (OLG) in June 2013. To create a world-class be interlinked in the future.” He began this process in “Made in Italy” production location, we began to take 1972, when his company purchased a men’s wear store- various companies under our corporate umbrella. Gibo’ front on 5th Avenue, followed by the acquisition of a Co., the apparel manufacturer we acquired in the 1990s, Paris boutique, Bus Stop, in 1973. Then, he launched set as the core company, bought out a series of luxury a men’s wear boutique in Milan in 1974. By setting up brand factories, knit factory ERIKA, shoe factory IRIS, both subsidiaries and retail shops in the world’s three and bag factory FRASSINETI. OLG has already integrat- biggest fashion cities, the company kept pace with the ed Gibo’ Co. Group and Jil Sander Group, and plans latest fashion trends, and utilized the information thus to buy out Joseph Group as well. By integrating our gleaned in product planning back in Japan. European businesses, we strive to increase management We established an overseas division in 1981. As efficiency and profitability. the first manager of the new division, I oversaw all of WWD J: What does Onward Holdings have in mind for the subsidiaries in an integrated manner, and develop the future? awareness that each of the different overseas companies T.H.: By establishing OLG, we have created our base represent a component of our overseas strategies. In the from which we can expand on into the world. This is latter half of the 1980s, we set up subsidiaries in Hong a huge asset for us. We now have additional M&As in Kong and the U.K., and launched a designer licensing our sights, and we plan to expand further as a fash- business. Since the 2000s, we joined the Chinese and ion group, that is to develop North American, Middle ASEAN markets in full force, also bringing Joseph and Eastern, and Asian markets with high-end, high quality Jil Sander under our corporate umbrella. So our forty- TAKESHI HIROUCHI / REPRESENTA- products. In particular we plan to establish Jil Sander’s plus years of overseas strategy has incorporated a vari- TIVE DIRECTOR, CHAIRMAN, & second line, Jil Sander Navy, and bring it to the world. ety of initiatives. PRESIDENT, ONWARD HOLDINGS In the global business today, e-commerce and omni- WWD J: What were some of the memorable moments channel strategies are indispensable, and we’re tak- PROFILE: TAKESHI HIROUCHI WAS BORN IN 1942. IN 1965, HE JOINED ONWARD KASHIYAMA. throughout these experiences? SUBSEQUENT TO SERVING AS OVERSEAS DIVISION MANAGER, HE WAS APPOINTED PRESIDENT AND ing an aggressive stance on this overseas as well as in T.H.: Firstly, meeting Jean-Paul Gaultier. When we sought CHAIRMAN IN 1997 AND 2005 RESPECTIVELY. IN SEPTEMBER 2007, HE TOOK ON THE POSITION OF Japan. We believe that there is still plenty of room for out a designer for Bus Stop’s original line, it was then CHAIRMAN OF BOTH ONWARD HOLDINGS AND ONWARD KASHIYAMA. HE BECAME PRESIDENT OF growth, and we have great expectations for these high- young Gaultier that we selected. While we supported ONWARD HOLDINGS IN SEPTEMBER 2011. growth sectors.

From left: Joseph Fulham Road store, London; Jil Sander Crosby St. store, New York; Jil Sander Navy Beverly Hills store, Los Angeles INTERVIEW platform consisting of our in-house labels Jil Sander and Joseph, we will continue to build on our original licensing business Working as an Integrated Group to Take and brand strategies.” On future market trends, Pene pre- on Rapidly-Changing Global Markets dicts “Greater acceleration of trends and FRANCO PENE / PRESIDENT, ONWARD LUXURY GROUP polarization, but also movement in mul- tiple directions. To keep pace with these trends, we need to aggressively address After serving as President of Gibo’ Co., building a solid Group framework, we channels that have not been developed Franco Pene currently leads Onward have created a synergistic effect involv- yet with new marketing targets and e- Luxury Group as President. On the com- ing each individual company and the commerce, in addition to creating fash- pany’s initiatives, Pene comments con- items they offer. In addition, we have ions together with our in-house labels. fidently, “After Gibo became a part of established our corporate structure in We are working on new ideas and busi- PROFILE: FRANCO PENE WAS BORN IN 1952. AFTER WORKING Onward Holdings in 1990, we bought the market, which facilitates strategy, ness models that can accommodate a AT AN APPAREL MANUFACTURER, IN 1993, HE WAS APPOINTED out luxury brand manufacturers in knits, development, and speedy management world fashion market that now changes REPRESENTATIVE DIRECTOR OF GIBO’ CO., AND PRESIDENT IN shoes, and bags, establishing our plan- decision making.” On future initiatives, at incredible speeds, in some cases with- 1996. HE BECAME PRESIDENT OF ONWARD LUXURY GROUP UPON ning and production base in Europe. By he adds “Along with further utilizing our in a year or less.” THE GROUP’S ESTABLISHMENT.

6 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY WORLD WORLD’s Innovative Brand Development Multiple Business Formats to Accommodate Changing Channels

WORLD CO., LTD. has a wide array of labels includ- ing UNTITLED and TAKEO KIKUCHI, offering optimal Chapter 1: UNTITLED fashion that meets the changing needs of the times. As “Wholehearted creation and sharing of values - always Celebrates its 20th Anniversary strive to go beyond” as its corporate statement, the com- pany continuously renovates and evolves. At this junc- ture of its 56th year, we will look back at WORLD’s his- One of WORLD’s leading career brands, UNTITLED, cel- tory of continuing innovations. ebrated its 20th anniversary along with its Spring 2015 Collection. On its 20th year, the label plans to evolve as a career brand that meets the needs of the times by Prologue elevating both aesthetics and quality, bringing “contem- porary” to the fore. Pertaining to product development, the target market and the concept, “The Body is Your Canvas,” remains the same while shifting towards a more contemporary style to meet current aesthetics. The brand improved on quality control by initiatives in domestic manufactur- ing centers and in-house plants. Furthermore, the label is aggressively initiating in collaborative projects with other labels known and loved around the world, includ- ing Keds sneakers of the U.S. and le minor cut-and-sew from France. In the area of branding, Tamotsu Yagi, world re- nowned art director who has been involved with UNTITLED since its concept was formulated in 1995, was re-appointed to creative director. Yagi’s first task was adopting key themes, “art” and “culture”, creating a WORLD COORDINATE (currently known as CORDIER) launched more sophisticated aesthetic to convey the amazing ap- in 1967. peal of UNTITLED. The promotional visuals for Spring 2015 Collection, which presented a new world view of TAKEO KIKUCHI’s Spring 2015 Collection Lookbook WORLD was established in Sannomiya, Kobe, on the label, were shot by photographer Takashi Homma, January 13th, 1959. The corporate name, “WORLD,” renowned for his unique approach to delicate sceneries line to include high value products that meet the needs came from the hope that the company would one day and facial expressions and adept sense of color. 2015, of the target. The brand’s suits and jackets primarily flourish in the world. WORLD, which got its start as a on its 20th anniversary year, UNTITLED is planning use imported high end fabrics and materials, and are ladies’ knit wholesaler, was recognized for their uniquely a variety of endeavors to commemorate the mark. In offered in a wider range of sizes to accommodate chang- stylish designs and superior quality, and its distribution terms of both product and brand image, the label plans ing body types. Casual items have been re-designed to channels soon expanded. The company’s approach to to enhance its value as a relevant career brand. fit the silhouette of men in their 40s. Further, TAKEO Japanese-style “monozukuri” manufacturing, formu- KIKUCHI offers a number of limited-edition prod- lated when the company started, is “a single product ucts with a specific theme every two months as “30th could determine the future. We must create products Anniversary Commemorative Collaboration Items,” that won’t betray the customers’ expectations.” This reaching out to a wider target market with a wider array philosophy laid the foundation for WORLD of today. of products. 1967 marked the debut of WORLD COORDINATE, the TAKEO KIKUCHI’s advertisements presents the company’s first brand which allowed the wearer to “co- brand’s prestige as one coveted by men in their 20s and ordinate” their entire outfit. This was an unusual devel- 30s. For a limited time only, pop-up stores stocked with opment in Japan at the time. Producing a series of hit collaboration products and special order items were products allowed WORLD to establish a foundation in placed in major department stores nationwide. The the wholesale business, leading the company to grow brand’s topical multi-channel approach constantly gath- into a comprehensive apparel manufacturer. WORLD ers attention, earning high praises from buyers. proceeded to establish its second “total coordination” label, Lui Chantant, and the company’s first antenna shop, LIZA. Audrey Hepburn was used as the face of Epilogue LIZA’s Ginza store in 1983, drawing much attention. The antenna shop has enabled the company to become WORLD in order to render its brands and products more adept in gathering information from the street, building relevant and more appealing to the needs of the times, a comprehensive base for the apparel business including proceeds to develop new brands while rebranding exist- store design, VMD, sales, systems, and more. ing labels. In 1993, the company launched its first SPA brand, Spring 2015 Collection exhibition at the WORLD Kita-Aoyama WORLD will launch a new brand, LA VORI, with OZOC, expanding into a full-blown retail business. Since Bldg., November 2014 several store locations specializing in fashion goods in- the launch of the second SPA brand, UNTITLED, in cluding bags and accessories this spring. Furthermore, 1995, WORLD has developed numerous types of busi- as an initiative common to all brands, the company will nesses and labels to accommodate changes in distribu- enhance product quality by taking advantage of its in- tion channels. Chapter II: Thirty Years of house manufacturing. TAKEO KIKUCHI

The TAKEO KIKUCHI label was launched by Takeo Kikuchi, who joined WORLD in 1984. Since then, he has stayed one step ahead of the changing times, unveiling men’s fashion from a new perspective. Between a clear and precise brand image and Kikuchi’s great charisma as a pioneer, he has become a leading figure in men’s fashion and his work has been beloved and admired by men over the past 30 years. On its 30th anniversary, the label bolsters the TAKEO KIKUCHI label in stores and in advertising, as an “elegant” and “mature” brand, focus- ing on endeavors to enhance its value as a prominent men’s label. Specifically, in tandem with the aging of the second generation of baby boomers, the label raised its target LA VORI, to be launched in the spring of 2015, a variety store Right: OZOC’s main store in Shibuya opened in 1993 age group to men in their 40s, and shifted the product for sophisticated women

8 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY SHISEIDO Shiseido’s Marketing Reform Begins The First Step Starts with the Global Brand SHISEIDO

In April 2014, Shiseido, Japan’s largest cosmetics com- is already in you.” Uotani ex- pany, initiated marketing reform. Leading this initiative plains, “The idea of drawing is the first President and CEO in the company’s history out one’s inherent power is to be appointed the position through outside recruit- universal.” Given that Shiseido ment, Masahiko Uotani. The first phase of the reform is will be taking on global markets of the company’s global brand marketed in 89 countries even more in the future, it does around the world, “SHISEIDO.” needs a global perspective in President and CEO, Masahiko Uotani is a proponent market analysis, concept-build- of both hands-on policy and the customer-first policy, ing, product development, and and the driving force behind the company’s marketing communication. Uotani adds, reform. “While maintaining SHISEIDO’s As the first course of action, the company selected core values, we’re reforming a focus brand in order to utilize the significant brand the brand by merging emotional power of “corporate Shiseido” and boost the images components with innovation.” of the unintegrated brands. It also adopted the Brand On ULTIMUNE, a product Management System, which controlled all processes that has enjoyed an excellent ranging from product development to store sales and start, Uotani comments, “The profit management. product serves not only to build The subject of this first stage of reform was the global customer loyalty but to draw brand SHISEIDO. The company launched SHISEIDO new customers, rejuvenating ULTIMUNE Power Infusing Concentrate worldwide the brand as a whole. What starting in July 2014. Global sales by the end of 2014 is truly important is after the surpassed initial sales targets by approximately 140%, product is introduced to the making ULTIMUNE a record-breaking hit product for market. We must continuously the company. improve the product by faithful- SHISEIDO ULTIMUNE Uotani selected the SHISEIDO brand for the criti- ly responding to our customers’ Power Infusing cal first stage of this initiative because, “It is a symbolic feedback.” Starting with brand Concentrate (30mL) TOYODA TETSUYA BY PHOTOS brand named after our company. Though the brand is enhancement through market- $65, (50mL) $95, MASAHIKO UOTANI / PRESIDENT & now in 89 countries, more than 100 years has passed ing reform, the company plans (75mL) $125 CEO, SHISEIDO since the launch, and it’s hard to deny that the brand to implement further reforms in power has weakened. We want to continue reinforcing rapid succession. Shiseido aims to realize consolidated PROFILE: MASAHIKO UOTANI WAS BORN IN 1954. HE JOINED LION TOOTHPASTE (CURRENTLY LION CORPORATION) IN 1977. AFTER EARNING AN MBA FROM COLUMBIA BUSINESS SCHOOL, HE JOINED the brand to reach sales in the range of 100 billion yen sales in excess of 1 trillion yen, operating profits sur- KRAFT JAPAN (CURRENTLY MONDELEZ JAPAN, LTD.), WHERE HE SERVED AS VICE PRESIDENT. HE by 2020.” passing 100 billion yen, and an ROE of 12% or higher, SUBSEQUENTLY HELD THE POSTS OF BOTH PRESIDENT AND CHAIRMAN OF COCA-COLA JAPAN CO., LTD. As part of the reform initiative, Shiseido established taking its first step in becoming not only a leading cos- IN APRIL 2013, HE WAS APPOINTED GENERAL MARKETING ADVISOR OF SHISEIDO. HE HAS HELD HIS a brand statement for SHISEIDO, “Because the beauty metics retailer in Japan but in the world. CURRENT POST OF PRESIDENT AND CEO SINCE APRIL 2014.

INTERVIEW-1 INTERVIEW-2 The First Step to Becoming the Successful New Initiatives Helped World’s Most Skin-Considerate Brand Exceed Sales Expectations ATSUSHI SHIMOMURA / DIRECTOR OF DOMESTIC HEIDI MANHEIMER / CEO, SHISEIDO COSMETICS AMERICA COSMETICS AND NEW BUSINESS DEVELOPMENT DEPARTMENT

“Upon launching ULTIMUNE, we planned an inte- “The launch of ULTIMUNE has exceeded our expec- grated global marketing initiative as well as promo- tations and we continue to see strong sales. In fact, tion catered to markets in each country. We now the 50ml size is already our #2 SKU,” Manheimer have a system in place where information is deliv- commented on the U.S. market’s reception of ered to retail stores more rapidly. We shared suc- ULTIMUNE. To create buzz for this innovative prod- cessful case studies, providing customers informa- uct, in addition to sampling and other traditional tion from first-hand experience, laterally to overseas promotional methods, Shiseido Cosmetics America locations as well as domestic locations through our adopted “newer initiatives such as blogger and in- new internal system,” says Shimomura, the man fluencer outreach, social sampling, and interactive in charge of introducing ULTIMUNE. The compa- digital advertising.｠ In addition,｠ an informative PROFILE: ATSUSHI SHIMOMURA JOINED SHISEIDO PROFILE: HEIDI MANHEIMER - AFTER WORKING ny engaged in a variety of advertising in overseas IN 1983. HE HAS BEEN IN INTERNATIONAL microsite was created and features emotive and FOR BLOOMINGDALES, SHE SERVED AS VP OF markets, from store promotions, sample giveaway MARKETING, LAUNCHING MAJOR BRANDS. HE technological videos allowing us to further storytell BARNEY’S NEW YORK. IN 2000, SHE JOINED events, ad-wrapped buses, to media jacking sub- HAS BEEN AT HIS CURRENT POSITION AS OF layered with highly engaging campaigns on all so- SHISEIDO COSMETICS AMERICA AS GENERAL ways, and more. JANUARY 2015. cial platforms.” These initiatives resulted in “success MANAGER, AND APPOINTED TO CEO IN 2006. “We are getting the sense that there is more in- across all channels which is a good indication that teraction with new customers in each country, which means improved brand we are reaching a wide array of consumers. The development of ULTIMUNE positioning. We need to take steps to build a deeper relationship with customers. allowed us to retell our brand story of innovation and skincare research once To be recognized as the world’s most skin-considerate brand, we want to be again. We are seeing repeat purchases, so we can conclude that users are satis- known for our products that meet the fied with and loyal to the product and needs of the times.” that their impression of Shiseido has been enhanced.”

(Above) Galley event held at the Promotion conducted in the U.S. (Above) Shanghai Parkson Department Store Display at the SHISEIDO Counter, (Right) Advertising at Wuhan City Bloomingdales 59th St. (Right) Special subway station display at Macy’s Florida Dadeland

10 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY WACOAL HOLDINGS Wacoal Europe Starts Celebrating 30 Years in the US, Wacoal Moves to Synergize with the European Market

The history of Wacoal goes back to 1946, when founder through our branches in countries around Europe, Koichi Tsukamoto started a women’s accessory whole- drawing on Wacoal Europe’s solid sales base. We are saler business. Though at the outset the company dealt also building our sales networks in the U.S. by sharing in the sale of accessories, in 1950 it started manufac- specialty store sales channels in the U.S. and our own turing bras. In the wake of World War II, the company department store sales channels. Another way we work created a new intimate apparel culture that went hand- to expand market share is by offering products form in-hand with the growing popularity of Western-style Wacoal Europe and Wacoal America that appeal to both clothing. By the early 1960s, Wacoal had grown to be- markets. come Japan’s top intimate apparel manufacturer. In the WWD J: What is your strategy for the U.S. market? 1970s the company expanded into overseas markets, Y.T.: 2015 marks Wacoal’s 30th year in the U.S. market. and subsequently grew into a global company. This year Though we are the top sellers of bras in mid to high marks the 30th anniversary of Wacoal entering the U.S. end department stores, we need to consider how we can market. Moving into yet another phase, the company continue to expand our market share. We are introduc- has now launched Wacoal Europe. We asked Yoshikata ing a high-end line that is planned and manufactured by Tsukamoto, President & Representative Director of Wacoal Europe, adding to our existing Wacoal brands, Wacoal Holdings, about Wacoal’s ongoing globalization we can meet the needs of a broader range of customers. strategy. The high-end line will feature the fit, quality, and com- WWD Japan: How did Wacoal’s global operations develop? fort Wacoal has always been known for, with European Yoshikata Tsukamoto: From the time our company still had tastes in terms of the silhouette and touch of the richer fewer than 100 employees and was still barely known fabric. By providing a greater range of products includ- even in the Kansai region, my father and predecessor, ing basic day-to-day items to stylish pieces, we’re striv- former President Koichi Tsukamoto, kept speaking of ing to boost our share in the high-end segment. “Wacoal of the world.” As the company founder, he WWD J: And for Chinese and ASEAN markets? drew up a 50-year plan for every decade. The first ten Y.T.: In China, we focus on making local development of years were dedicated to developing the domestic mar- new brands targeting middle-income groups, which are ket, by the company’s 20th year we would dominate expected to grow in the future, into one of our growth the domestic market, after 30 years we would expand pillars. Also, incorporating research results from the overseas, at 40 years we would develop a presence in Wacoal China Human Science R&D Center, we achieve overseas markets, and by our 50th year Wacoal would performance and designs that other companies cannot be fully grown as a global company. Our overseas ex- offer. We are also working on offering extended services pansion began in 1970 with joint ventures in South at our stores. In the ASEAN nations, we are improving Korea, Thailand, and Taiwan, and now with locations in our business infrastructure to make us more competitive 22 countries in the U.S., Europe, China, Southeast Asia, YUSUKE MORISHITA BY PHOTO in the capacity of product supply. we sell to roughly 60 countries. Our mid-term three-year YOSHIKATA TSUKAMOTO / PRESI- WWD J: What is the secret to Wacoal’s success as a global plan started in 2013, designed to create a solid business DENT & REPRESENTATIVE DIRECTOR, company? base to ensure sales of 40 billion yen and a 10% oper- Y.T.: Initially, we set up production centers overseas to ating profit rate in the three major markets of Europe, WACOAL HOLDINGS supply to the Japanese market. At the same time, we the U.S., and China, where we operate wholly-owned PROFILE: YOSHIKATA TSUKAMOTO WAS BORN IN KYOTO IN 1948, JOINED WACOAL IN 1972. FOLLOWING began to develop local markets, which resulted in us AN APPOINTMENT AS EXECUTIVE MANAGING DIRECTOR IN 1981, HE TOOK ON THE POSITION OF subsidiaries. PRESIDENT OF WACOAL IN 1987. IN 2005, HE BECAME PRESIDENT AND REPRESENTATIVE DIRECTOR OF manufacturing and selling products locally. Our local WWD J: Tell us about Wacoal Europe which started this WACOAL HOLDINGS. HE ALSO SERVES AS A CHAIRMAN OF THE JAPAN BODY FASHION ASSOCIATION, plant supervisors and sales team leaders are sent to year. AMONG OTHER ORGANIZATIONS. Japan to learn the basics. However, since markets dif- Y.T.: It took us longer to develop our business in Europe. fer by country, we encourage local staff to adopt the We were unable to achieve favorable results in this chal- businesses in full-scale. One of the merits to acquiring good points of Japanese business style but also leave it lenging environment. In 2012, Wacoal acquired U.K. Eveden was that they knew how to produce and sell to their discretion to localize management. Regarding lingerie company Eveden, following which we spent plus-size lingerie. Though we’ve been wanting to, we did human resources, we like to give opportunities to staff two years improving its planning, production, sales, and not have know-how of manufacturing plus-size lingerie. who can challenge themselves, and who are interested distribution. The company marked a new start when it With the acquisition of Eveden, now we are equipped in making “Wacoal of the world.” It is also our ongoing was renamed to Wacoal Europe in January this year. to manufacture a wider range of sizes. We are planning policy to create an environment where employees can We focus on accelerating expansion of our European to expand the Wacoal brand in the European market focus on their work by proving the necessary support.

TOPICS-1 TOPICS-2 Freya for Plus Sizes, Wacoal Europe for Luxury In Bloom Marks Wacoal’s 30th Anniversary

Freya by Eveden is a brand specializing in large cup sizes. The brand offers 2015 is Wacoal’s 30th 1 superior fit as well as stylish designs in bright colors and prints not often found anniversary of full- in large cup sizes, in both bras and swimwear. They come in UK sizes and avail- fledged operations in able up to a Japanese K cup size. Meanwhile, Wacoal Europe’s high-end Wacoal the U.S. During which line offers gorgeous new lingerie in delicate time, the brand has materials. The excellent fit is also a typical fea- consistently offered ture of Wacoal. lingerie to bring out the natural beauty of the individual woman. The brand’s signature gorgeous designs and comfort are extremely popular with American women. This spring, Wacoal presents In 2 Bloom, its 30th an- 1. In Bloom, Wacoal’s 30 niversary collection. year anniversary collection These items with sen- commemorating three sual designs feature decades in the U.S. market, feminine floral motifs features large floral 1 2 and chic color schemes. patterns and embroidered (Collection is not avail- petals for accent. 1. New line by Wacoal Europe. 2. Colorful lingerie by Freya. able in Japan). 2. 30th anniversary logo.

12 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY YAGI TSUSHO Value Chain System Ushers in a New Era The Renewed MACKINTOSH Coming this Fall

Yagi Tsusho, which was established as a textile trad- on style, more than fashion. The brands we handle ing company in Osaka in 1946, will celebrate its are timeless and soulful in that their products speak 70th anniversary next year. In its beginning stages, for themselves. the company was engaged the export of yarns and Of course, we believe creativity and a contem- fabrics to Asian markets and then Yuzo Yagi ex- porary look are necessary too. Therefore, we plan panded the textile export market to other parts of to launch a newsworthy project within the next the world. However, faced with sudden yen appre- few years. Separate from our main lines, we’ll ciation in the early 70s, Yagi completely changed be announcing a new designer line. We’ll also be the company’s strategy from the textile export to the starting a licensing business with Sanyo Shokai, import of luxury fashion goods, as he fi rmly believed MACKINTOSH London, in the fall. We are confi dent yen appreciation will further continue. He opened an that we can produce clearly distinct products, while offi ce in Milan for the purpose of importing Italian maintaining the same brand core. fashion goods for the Japanese market. Later, Yagi WWD J: Will there be more brand acquisition initia- Tsusho extended its import and export business into tives in the future? Can you tell us about the criteria Paris, New York, and Shanghai. In the latter 2000s, for brand selection? the company began entering a string of acquisi- Y.Y.: Though we are unable to make any offi cial an- tions and joint ventures with brands, starting with nouncements at this time, we are in the fi nal stages the buy-out of MACKINTOSH in 2007, an establish- of talks on additional labels. As for selection criteria, ment of a Japanese joint venture with Moncler Italy we want the product to be excellent, but it should in 2009, another joint venture with Italy’s Henry also exude both universal appeal and creativity. To Cotton’s the following year, the acquisition of J&M give some recent examples, we began handling the Davidson in 2013, and more joint ventures with bag label Jerome Dreyfuss starting the Fall 2014 Kenzo France and Helen Kaminski of Australia last Collection, at the same time opening a fl agship store. year. Furthermore, starting with Moncler, the compa- As of the Fall 2013 Collection, we started import- ny has opened fl agship stores for Barbour, Woolrich, ing Lorena Antoniazzi, a high-end knit label. We are Faliero Sarti, and more entering into the distribution focusing on seeking out labels not necessarily well- business. Consolidated sales for the March 2015 known and developing them. quarter is forecasted at 39 billion yen (excluding WWD J: What is your outlook for the future? Moncler and Kenzo). Yagi Tsusho is expanding on Y.Y.: We are in the process of setting up sales chan- its business by maximizing its strengths as a trading nels in Asian markets for European luxury brands, company specializing in fashion. not only Japan but also China, South Korea, Taiwan, and more. So far, no Japanese company has suc-

WWD Japan: What are the strengths of Yagi Tsusho? ASHIDA HIROTO BY PHOTO ceeded in similar endeavors, and we have received Yuzo Yagi: We have our own value chain from luxury YUZO YAGI / CHAIRMAN OF THE numerous requests in this regard. We believe that brand makers to trading, distributing, licensing, and re- MACKINTOSH and J&M Davidson, two brands that we tailing in luxury fashion goods. Also, we still hold our BOARD & CEO, YAGI TSUSHO have helped develop, have potential for further growth, traditional strengths of making and exporting our collec- PROFILE: YUZO YAGI WAS BORN IN HYOGO ON OCTOBER 26TH, 1941. AFTER EARNING AN MBA FROM and we are working on developing our North American MICHIGAN STATE UNIVERSITY, HE JOINED YAGI TSUSHO IN 1964. HE HAS HELD HIS CURRENT POST tion of fashion fabrics to American and European fash- SINCE 1986, IN THE INTERIM TAKING THE POSITION OF GUEST ADJUNCT PROFESSOR MICHIGAN STATE sales base. In the long term, we have plans to estab- ion makers and at the same time importing fabrics from UNIVERSITY. 1993, HE WAS MADE AN OFFICER OF THE NATIONAL ORDER OF MERIT OF FRANCE, AND IN 2011 A lish a luxury brand group offering timeless, high-quality Europe for Asian fashion makers. We are able to offer COMMENDATORE OF THE ORDER OF MERIT OF THE ITALIAN REPUBLIC. HE WAS ALSO AWARDED THE ORDER products. Though there is no precedence of a Japanese a wide variety of options to our clients based on their OF THE BRITISH EMPIRE IN THE SAME YEAR. company succeeding in the American and European various needs through our value chain and our network luxury fashion sector, we believe that we can. Indeed, of offi ces in the world market. Our value chain is indeed brand, which we plan to shift towards a heritage brand since 1971, we have a track record of steadily expand- our product and our great strength. imbued with a luxurious mood. The best model case is ing our business overseas, though it may be smaller in WWD J: Which brand will you be focusing on in 2015? our very own joint venture, Moncler. The rare kind of scale. We will continue to set up brand fl agship stores in Y.Y.: MACKINTOSH. We’ll be renewing the brand for success we’ve had with Moncler stems from the fact that Tokyo; however, we feel that rather than expanding our the Fall 2015 Collection. Ever since we began import- it has become a luxury brand adored by not only top business by enhancing retail in Japan, we want to chal- ing the MACKINTOSH label in 1998, we believed it end but also upper-middle market. The key to renew- lenge ourselves in the overseas markets, which is our had the potential to be rendered a luxury brand. Until ing the MACKINTOSH label is not to over design. With forte. To achieve this, we’ll be investing in plants and now, it has been regarded as a classic, modern heritage MACKINTOSH as well as our other labels, our focus is brands with potential. TOPICS-1 TOPICS-2 MACKINTOSH Slated for Changes in the A Concentration of Flagship Stores in the Omotesando Area The area between Miyuki Dori St. where shops open. There are plans to open a Kenzo 2015 Fall Season Moncler’s fl agship shop is located and one street fl agship store in Tokyo this year and an ap- The MACKINTOSH label will undergo over where MACKINTOSH’s fl agship shop is proximately 600-square-meters Moncler store in a renewal for the 2015 fall season. It located, has seen so many Yagi Tsusho brand Ginza by 2017. will get a new logo and a new identity, with an upgraded collection and reno- OMOTESANDO MAP vations to the Aoyama fl agship store. MEIJI DORI ST. AOYAMA DORI ST. The label was launched by Charles Macintosh in 1823, when he created a OMOTESANDO HILLS APPLE STORE CARTIER rubberized coat using the “Mackintosh Cloth,” a waterproof fabric made by Moncler compressing two pieces of cloth with COMME DES GARÇONS Jerome Dreyfuss natural rubber placed in between. This rubberized coat was the begin- ning of the now world-famous GYRE Mackintosh brand MACKINTOSH, which is OMOTESANDO STATION OMOTESANDO MIYUKI DORI ST. PRADA planned for an upgrade to a luxury

IN FRONT OF MEIJI-JINGU STATION OF MEIJI-JINGU IN FRONT Woolrich line. While continuing with the OAK OMOTESANDO J & M Davidson Traditional staple-design, the brand’s next Barbour Weatherwear collection will be imbued with Three Dots Faliero Sarti a contemporary mood. The UNDERCOVER brand plans to collaborate with renowned designers as well. *Stores in bold letters are affi liated to Yagi Tsusho.

14 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY CROSS COMPANY KOE’s Global Strategies Global Flagship Store to Open Next Year with the U.S. Market in Sight

From its humble beginnings in Okayama incorporates artisan techniques and cul- as a boutique with just 13-square-meters tures from around the world. Through of space, Cross Company has grown collaborative projects with provincial over the past 20 years to become one local companies and workshops on of Japan’s leading apparel companies, natural fibers, KOE conveys its phi- with sales exceeding 100 billion yen. losophy on fair fashion. KOE’s brand Following the success of its major SPA manager Naomi Shinonaga comments, brand, “earth music&ecology”, a brand “Compared to the U.S. and Europe, that essentially created a new culture awareness of eco fashion is not as de- of girls’ fashion in Japan, the company veloped in Japan. We realize the impor- expanded into a variety of different tance of promptly building fair supply sectors including businesses catered to chains in order to differentiate ourselves families, speciality stores, beauty, gifts, from large apparel brands, both inside and more. In 2004, the company signed and outside Japan. We aim for KOE to a franchise deal with Hong Kong’s IT impact the world by achieving this.” In Limited, subsequently setting up loca- addition to CSV (Creating Shared Value) tions in China and Taiwan. In 2009, projects, Cross Company placed two Cross Company invested in a U.S. com- of its internal auditors to work with 70 pany, Thom Browne, surprising the affiliate plants in China. These person- fashion industry throughout the world. nel conduct regular audits to ensure Last fall, with the establishment of KOE, that Cross Company’s supply chain which has a corporate philosophy of conditions are met. The checklists con- maintaining a “Fair supply chain,” the sist of more than 150 items including company announced that it would ex- work environment and plant facilities. pand into the U.S. market. Let’s take a Shinonaga adds, “To create a fair sup- look at how Cross Company approaches ply chain in Japan from scratch, we aim taking on the global fashion market. to foster fair and happy “monozukuri” Cross Company is drawing the most manufacturing that spans everyone from attention for its KOE line, which was the person who makes the product to launched last fall. With KOE, the com- the potential customers who wear our pany is working to establish the new products.” idea of a fair supply chain, which in- It is Cross Company’s strategy to cre- cludes reducing environmental stress ate fashionable, aesthetically pleasing, and much consideration to on-site work- and fairly-made products, by focusing ing conditions. Based on the concept more on materials development, which “Mode for everyone,” Cross Company Top: 2015S/S KOE ad visual. Left: Okayama store workshop. Right: Inside the Okayama store. is one of the brand’s strengths. The is working to bring fair fashion to the company is planning to open stores in world. The brand, which is reasonably priced, utilizes tion, the company has road-side locations in Niigata and both the Kanto and Kansai regions this year, as well as sustainable materials such as high-quality “eco leather” Takamatsu, Kagawa of approximately 660-square-meters a global flagship store in Tokyo next year. Though KOE and “eco fur.” Targeting the new family unit led by each. For Cross Company, KOE is the company’s first is still a new initiative, the company plans to establish people in their 30s and 40s, the line offers women’s, line to incorporate children’s wear, sustainable materi- its base for it as Japan’s leading fair supply chain brand, men’s, juniors (ages 10-13) and kids (ages 2-9), as well als, and large roadside stores in regional locations. and to take the first step toward moving into global mar- as maternity items. Besides the original Okayama loca- KOE’s current focus is on its label, KOE From, which kets including the U.S., Europe, and China.

INTERVIEW

In China, we gave up on the idea of expanding by company Cooperation between KOE stores, and instead decided to team up with local commercial and Thom Browne is a possibility agents. This meant that our original strategy was completely YASUHARU ISHIKAWA / PRESIDENT, CEO & CMO, eliminated, and in some cases CROSS COMPANY INC. we had to spend double our ini- tial budget. But we believed that there was sufficient potential in President, CEO, and CMO, Yasuharu ourselves apart from fast fashion. China to warrant that.” This is Ishikawa, is pleased with his new big Ishikawa notes that the marketing how Cross Company developed brand KOE, which was established only know-how gained through the com- its own “spontaneity strategy,” five months ago. “We’ve never had a pany’s experience in Asia as well as changing strategy on-site to ac- store larger than 500-square-meters, the U.S. and Europe proved a great celerate its overseas expansion. but I thought operating bigger stores support to the company in the launch The company is consider- would be interesting.” Prior to open- of its global brand. “We started with a ing the U.S. as the location ing, he conducted a thorough analysis franchise agreement with Hong Kong- for KOE’s first store outside of

of the timing of product arrivals for based retailer, IT Limited, followed by Japan. Elaborating on further HOSOKURA MAYUMI BY PHOTO global brands. “Our target is the new setting up local subsidiaries in China global initiatives, Ishikawa PROFILE: YASUHARU ISHIKAWA WAS BORN IN 1970 IN OKAYAMA PREFECTURE. HE ESTABLISHED CROSS COMPANY IN 1994. IN FY2013, THE COMPANY BROKE 100 BILLION family unit segment in their early 30s, and Taiwan, and then our investment in added, “The biggest ben- YEN IN SALES, OPERATING IN 28 COUNTRIES WITH SOME 1,100 STORE LOCATIONS. we opened roadside stores in provincial Thom Browne. We gradually increased efit of our investment in Thom ISHIKAWA IS ALSO THE CHAIRMAN OF THE ISHIKAWA CULTURAL FOUNDATION. regions, and were especially particular our risk factor to steadily build our Browne is the personal connec- about environment-friendly quality and marketing prowess outside of Japan.” tions. We plan to utilize the personal KOE is a possibility.” In 2013, Ishikawa pricing. Even for our urban store open- Ishikawa lived in Shanghai for a year connections developed through busi- was selected as the Japanese representa- ing, we’re choosing locations where and a half in 2011, at which time he ness to launch a U.S. based company, tive at the EY Entrepreneur of the Year people define their lifestyles instead of would make snap decisions by observ- KOE USA. Through KOE USA, we will 2013 Japan, held in Monaco. “Meeting crowded main streets. For example, if ing and surveying commercial facilities then look to establish KOE in China. other top entrepreneurs from around the New York, it would be Brooklyn rather and how the local people felt about fash- To facilitate the process, we’re going to world, I felt that we are not a fully glob- than Fifth Avenue. Our distinguishing ion, and conducting market research in open a global flagship store in Tokyo or al company yet. We want to continue factors are our sales channels and our the local area. “There are things you New York next year, at which time co- to develop into a company recognized contemporaly kids’ wear. We’re setting come to understand just by being there. operation between Thom Browne and around the world.”

16 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY BAYCREW’S GROUP Showcasing People Based Strategies Boosting Manufacturing to Meet Latent Customer Needs

The Baycrew’s Group was established in sonnel which focuses on nurturing indi- 1977 as an apparel manufacturer. In the viduality and teaching how to utilize it. To 1980s, the company began opening com- boost personnel potential, in light of these pany stores, and in the 1990s, they started factors, Baycrew’s has a system where numerous select boutique businesses which twice a year, employees can request to grew into one of the most prominent fash- be transferred to a different type of busi- ion select boutiques by the 2000s. The ness within the group. The company has annual sales reached 81.2 billion yen for employees who have made the shift from the FY2014. Since, the company has been the apparel sect to the restaurant sect, engaged in a diverse array of businesses in- and systems department personnel who cluding restaurants, interior goods, fitness has become a fitness trainer. In October gyms, and many more. Recently, they have 2012, the company launched its “Growing brought the popular Parisian boulangerie, Up Program,” a program aimed to support Gontran Cherrier, and Brooklyn’s Gorilla the growth of each employee. It includes Coffee to Japan. As of September 1st of lectures and group work corresponding to last year, founder and former CEO, Hiroshi MBA curriculums. Further, since the com- Kubota, passed on the role of leadership to pany is in the clothing business, it seeks to Shigeru Sugimura CEO. We review the ever aid employees sharpen their five senses. evolving company’s strengths and strate- The company’s sales staffs accompany gies. other personnel on overseas business trips, A major characteristic of the Baycrew’s or take part in shop openings to deepen Group has always been that its brands their understanding of brands and business exude the company’s unique philosophy, categories, and to gain ideas on-site. Given that is, “everything starts with the people.” its roots in manufacturing, manufacturing is Because the company develops its business a forte of Baycrew’s; however, they are fo- through highly creative, highly original per- cused on strengthening their line of original sonnel, the fact that it has multiple brands products reflecting customers’ latent needs. and types of business (38 brands) is a great As of March 2013, the company launched strength. Baycrew’s business is now separat- a training program for young merchandis- ed into seven different companies, allowing ers and product planning staff to improve each company to swiftly and effectively in- their skill for the development of truly orig- stituting managers and directors’ ideas and Flagships JOURNAL STANDARD in Omotesando, ACME Furniture in Jiyugaoka, and the first inal items. product strategies. In addition, the proxim- Gorilla Coffee in Japan The crux of these initiatives is the com- ity between management and staff engen- pany’s pride in its select boutique business. der dense and frequent communication, so everyone has helm of each business lends an edge and a speed factor In all of Baycrew’s different business, it is clear that a first-hand understanding of the company’s state and that works to facilitate the launch of still more new busi- each individual employee has been engaged in brand point of view. Company presidents and directors draw nesses. In a positive sense, this structure is dependent development drawing on their individuality and creativ- up their own management strategies to solve problems, a on individualized skills, which has enabled the company ity, using their discernment as their biggest weapon. system that has the benefit of training numerous person- to grow organically and act as a support to its develop- Baycrew’s continues to take on the challenge of identify- nel capable of making management decisions. ment. ing new value for its customers through its people based Having highly original and creative personnel at the The company employs a unique system to train per- business strategy.

INTERVIEW

Business Development Centered on Five Key Brands SHIGERU SUGIMURA / CEO, BAYCREW’S GROUP

Shigeru Sugimura, Baycrew’s Group’s engaging in and developing a range of elements. Spick & Span continuously new CEO as of September last year, has businesses spanning fashion to restau- exudes European style. With 28 years this to say about the strengths of the rants. “I was always taught that it was of history, the brand now has a wider company. “We have the groundwork my job to make something possible out audience, including a large share of to treat all thinking and imagination as of the impossible. The key to growth is women in their 30s.” creativity. Bringing the originality of all gradual development that is not only As for company development, start- of the staff together, we take a proactive creative, but comes with the struggle ing with its Spring 2015 Collection, approach to new challenges, includ- of being a business, and one cannot be Baycrew’s launched its new label AILE, ing store operations and businesses.” afraid to get their hands dirty.” a brand in the same vein as EDIFICE

Sugimura is the leader of seven group Currently, Baycrew’s five major and IENA, all of which emphasize made KAZUO YOSHIDA BY PHOTO companies consisting of 38 different brands consist of EDIFICE, IENA, in Japan quality. The new label features PROFILE: SHIGERU SUGIMURA WAS BORN IN KANAGAWA IN 1962. AFTER types of businesses, with approximately JOURNAL STANADRD, Deuxieme products embodying Japan’s aesthet- WORKING FOR APPAREL MANUFACTURERS, HE JOINED BAYCREW’S IN 1984. IN 2003, HE WAS APPOINTED PRESIDENT OF THE COMPANY’S FIRST 3,300 employees. Classe, and Spick & Span. The attri- ics and technology, based on the key SUBSIDIARY, JOINTWORKS, FOLLOWED BY HIS APPOINTMENT AS NEW CEO Baycrew’s handles clothing brands butes of EDIFICE and IENA include the words “Japan,” “ocean,” and “unisex.” ON SEPTEMBER 1ST, 2014. with long histories such as Spick & Span fact that “They are of exquisite French The company is considering taking this as well as new brands, passionately style, and though they are available in brand to overseas markets in the future. added. store complexes, they maintain their Last October, Baycrew’s started to On January 17th, Baycrew’s opened unique look and appeal. JOURNAL strengthening initiatives with overseas Gorilla Coffee of Brooklyn, a new estab- STANDARD is based on American ca- based brands, including opening a lim- lishment to Japan. Opening day was a sual wear, but clearly has its own con- ited edition “Save Khaki United” store, big success, with more than 100 people cept and world view. This brand will and is also taking an active approach lining up to get in. The company also always be characterized by attention to to alliances. “We aren’t interested in has a record of successful wholesale detail.” As for Deuxieme Classe, on the simply bringing goods to Japan from business offering in-house brand prod- occasion of its Shinjuku store renova- other countries, but also in a collab- ucts such as JOURNAL STANDARD and tion in 2013, Sugimura adds, “Building orative partnership developing origi- EDIFICE to major European and U.S. on this brand’s essential world view of nal lines that suit the taste and needs department stores and boutiques. There relaxed traditional style, we succeeded of the Japanese market as we did with are high hopes for their success over- The Deuxieme Classe’s Roppongi Hills store in rebranding by incorporating modern Gontran Cherrier of Paris,” Sugiura seas.

18 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY YKK The 10 Billion-Zippers-a-Year Plan Covering All Items, from Luxury to, -Sports to Fast Fashion

YKK zippers are one of Japan’s best known WWD J: You set a new record in FY2013 for both brands in the fashion industry. With its superior sales and profits. From your position at the fore- quality and technology, the company has long front, what is your sense of your company’s per- supported the fashion industry in many fields, formance? spanning from luxury items to sports items to M.S.: Group consdidated sales for April-September jeans. As of last fiscal year, the company made a 2013 term totaled 340.2 billion yen, 104% on the shift to a new strategic focus on quantity, with an previous year, while operating profits stood at 31.7 annual production goal of 10 billion zippers. billion yen, 119% on the previous year, setting our all-time record. Our fastening product business was WWD Japan: How have you been able to maintain especially robust, with sales of 159.9 billion yen, your brand prowess in the fashion business? 106% on the previous year, while operating prof- Masayuki Sarumaru: We’re seeing increased demand its reached 32.5 billion yen, 115% on the previous in the sports category, high quality jeans, and, in year. Our zippers have been doing well in Europe, the past several years, in the luxury segment. In ASEAN, and Southeast Asia. Our jeans sector, the 1990s, when globalization of apparel produc- however, has been very sluggish. tion began accelerating around the world, we set WWD J: You project sales and profits in FY2014 to up a global marketing structure that could quickly reach an all-time high. Why? supply the same quality zippers anywhere in the M.S.: We estimate sales for FY2014 at 720 billion world. This system became our driving force. yen, with operating profits of 64 billion yen, net Since 2009, we have been sending our engineers profits of 67 billion yen, and net profits of 47 to Europe to boost product development with a billion yen. There are two reasons behind this. focus on design and fine quality. With our high First, in the wake of the economic downturn pre- quality and technology as a base, we have been cipitated by the Lehman Brothers’ bankruptcy able to incorporate luxury brands’ concepts into in 2008, we made numerous structural reforms product development. through a very meticulous improvement process, WWD J: What is the intention behind announcing such that we would turn a profit even if sales your goal of selling 10 billion pieces of zippers did not grow at all. The second, we achieved re- per year? cord-setting profits in FY2013 because we were M.S.: Never before have we set a numerical goal able to acquire new customers. In FY2013, we for the pieces of zippers to sell. We wanted to launched a four-year mid-term plan, under which make clear, both inside and outside the company, we switched to a product development system tai- that we are focused on the pursuit of both quality lored to regions and applications. This move had and quantity. a positive effect. WWD J: Are you planning to sell more in Asian WWD J: Japanese companies that were once num- markets? ber one in many sectors, such as electronics and M.S.: We’re not limiting ourselves in that way. It is HOSOKURA MAYUMI BY PHOTO semiconductors, are now losing their dominance. true that over the past few years the Asian mar- YKK; however, remains number one in terms of kets have expanded, especially China. However, this MASAYUKI SARUMARU / both quantity and quality. Why? phenomenon is not limited to the emerging economies. PRESIDENT, YKK M.S.: In addition to Japan, our zipper production plants Over the past 15 years, clothing prices in Japan have PROFILE: MASAYUKI SARUMARU WAS BORN IN HYOGO PREFECTURE IN 1951. HE JOINED YKK AFTER are located in China, South Africa, and many other fallen by nearly 20%. When I visited the U.S. recently, GRADUATING FROM SOPHIA UNIVERSITY IN 1975, WHERE HE WAS ASSIGNED TO WORK IN THE U.S. FROM places around the world. Aside from assembling zip- I felt that this segment was already becoming the price 1977 TO MARCH 1994. IN 1999 HE WAS APPOINTED MANAGING EXECUTIVE OFFICER AND SENIOR MANAGING pers parts, we also develop and manufacture the ma- leader due to the impact of e-commerce retail. To en- EXECUTIVE OFFICER IN 2003. HE TOOK ON THE POSITION OF VICE PRESIDENT IN 2008, AND HIS CURRENT chines that produce the materials we use in zippers. We sure the growth of our company, it is critical that we POSITION AS OF JUNE 2011. have maintained the heart of our zipper production at take up the challenge of moving into this sector. The our machinery and tools plant in Kurobe City, Toyama reason for a quantitative goal in addition to sales and short a time as possible. To meet these kinds of re- Prefecture, Japan. This is the source of our competitive- profit targets is that we need to consider the quantity quirements, everything needs to be changed from the ness. Our very foundation lies in “Technology Oriented aspect of the market, including Fast Fashion, as seri- foundation up, including materials, plant layout, sales Value Creation,” and this phrase encapsulates the way ously as we do high performance and high quality. methods, and more. We’ve been working on initia- we operate. You may think that it’s only a zipper, but if WWD J: What are the issues? tives related to deadlines for the past two years at our a zipper breaks, the value of the entire product is lost. M.S.: The Fast Fashion sector demands manufacturers Shanghai plant. We’d like to see standardization and We are proud to support the global fashion industry to produce products with a range of variation in as automation within the next few years. through our zippers. TOPICS COMPANY OVERVIEW

Established: 1934 Constructing the Kurobe Machinery and Tools Plant, Sales: 696.9 billion yen (FY2013) No. of employees: 40,708 the Heart of YKK’s Zipper Production (Japan: 17,229 people, Overseas: 23,479 people)

YKK is slated to build a dedicated machinery and tools Corporate structure: 71 countries, 108 companies plant that will be the heart of its zipper production operations in Kurobe City, Toyama Prefecture, Japan. 1934 While the plant footprint will be cut in half from the YKK Founder, Tadao Yoshida, establishes San-es original 40,000-square-meters to 20,000-square-meters, Shokai in Nihonbashi, Tokyo, launching processing previously decentralized production lines will be con- and sales of zippers centrated in one place and linked to machinery as- sembly lines. Because the plant will integrate the entire 1959 production process form orders to shipment, lead time YKK New Zealand established as YKK’s first com- will be cut by approximately half, and production costs pany overseas cut by 20-30%. The concept of the new plant is “real- 1974 izing automation and flexibility by looking ahead five Integrated production plant for zippers established to ten years.” Completion is scheduled for April 2016, in Georgia, U.S. and the project will have an investment of 7.8 billion yen. The sophisticated precision machinery plant is 2013 equipped with temperature, humidity, and vibration Four-year mid-term business plan specifies sales controls, as well as the uncommon attribute of natural goal of 10 billion zippers annually lighting to foster a better working environment. Sketch of completed facility

20 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY SEIKO WATCH Seiko’s Major Collections & Global Strategy From Wako Ginza and New York Flagship Store to the World

The year 2014 was a landmark year for Seiko Watch. ing and time correction function, is a The company has initiated a new phase in the United perfect model for the U.S. market as States with the opening of a boutique on Madison it has six time zones. Also, the design Avenue, positioning Grand Seiko, Astron, and Prospex has a strong presence that appeals to as its three global collections. Shinji Hattori, Chairman male consumers. The watch promptly and Group CEO of Seiko Holdings and President of adjusts to local time with the touch of Seiko Watch Corporation, talked about the company’s a button. I believe this watch will emo- three global collections and their two primary markets, tionally appeal to American men’s sen- and what is required of today’s luxury watch industry. sibility. I have great expectations for it. If we can achieve the same kind of WWD Japan: What are the strengths of Grand Seiko, success elsewhere that we have at the Astron, and Prospex? flagship on Madison Avenue, we’ll be Shinji Hattori: Grand Seiko is the pinnacle of practical able to dramatically boost our overseas watches made with precision by master craftsmen. The sales share. first Grand Seiko released 55 years ago was named a WWD J: A watch, as a mechanical Mechanical Engineering Heritage by the Japan Society piece, is thought of in terms of preci- of Mechanical Engineers last year. Seiko’s tradition con- sion and accuracy. It’s interesting that tinues to pursue the utmost precision. Astron, which you mention “emotional.” receives GPS signals to determine the time zone and S.H.: The key to the future of the watch automatically corrects itself to local time, is the world’s industry is the concept of “playful- first GPS solar watch. Seiko’s many years of GPS mod- ness.” We need to appeal to the emo- ule research and efficient power-saving method led to tions of consumers by giving those the realization of the much smaller and thinner second- functions that get them excited. When generation Astron last fall. Now the watch has a chro- it receives a GPS signal, the Astron’s nograph function and the electronic setting function of needle indicates the number of satel- the crown for easy operation. We are proud of the fact lites detected, giving the wearer the that this small-and-light watch feels exceedingly com- feeling that they’re communicating fortable to wear, a much advanced feature compared to with outer space. We are mindful of re- our competitors’. Prospex has full-scale functions ideal flecting this “playfulness” in our prod- for sports and other outdoor scenarios. We are the first uct designs and advertising. company to offer Japan-made chronograph and diver’s WWD J: What about the Japanese mar- watches, and have strong ties with sports through our ket? standing as an official watch timer for numerous inter- S.H.: While it is true that at one point

national athletic contests. Japanese consumption dropped due to NAKAJIMA YUJI BY PHOTO WWD J: What are your strategies for overseas? the increase in sales tax, the recovery SHINJI HATTORI / CHAIRMAN & S.H.: We are currently boosting our overseas boutique was a quick one. The increasing inbound consumption strategy. The opening of our New York flagship on supplemented the decreased local consumption. We’re GROUP CEO OF SEIKO HOLDINGS Madison Avenue last summer represents that. We have seeing large numbers of foreign tourists at the Wako AND PRESIDENT OF SEIKO WATCH now designated Grand Seiko, Astron, and Prospex, Ginza store. Wako is really an iconic presence not only CORPORATION priced at medium to high range, as our three global in Ginza but in Tokyo as well. Many of our foreign cus- PROFILE: SHINJI HATTORI WAS BORN ON JANUARY 1ST, 1953. AFTER GRADUATING FROM THE KEIO collections. As we foster a sophisticated image in each tomers request their gifts be wrapped in Wako’s wrap- UNIVERSITY FACULTY OF ECONOMICS, HE JOINED MITSUBISHI CORPORATION. HE LATER JOINED SEIKOSHA country where we operate, we are shifting away from ping paper. It is a very important location in promoting IN 1984. IN 2003, HE WAS APPOINTED PRESIDENT OF SEIKO WATCH CORPORATION, TAKING ON THE POSITION the lower prices ranges. Astron, with its GPS position- the Seiko brand. OF PRESIDENT AND CEO OF SEIKO HOLDINGS IN 2010. HE HAS HELD HIS CURRENT POSITION SINCE 2012.

TOPICS-1 TOPICS-2 Three Collections at the Center of Global Strategy The Flagships in Tokyo and New York Bridges the World Seiko Watch has selected Grand Seiko, Astron, and Prospex as its global col- Seiko Watch currently has more than 50 stores around the world, the first of lections at the heart of its overseas strategy. All three brands are high-end but them being the one on the Saint-Germain-des-Prés in Paris. The company will reasonably priced. An integrated brand image is essential for the company’s focus on directly-owned store strategy in order to promote the three global col- global strategy, which is to be implemented in Asia, the Middle East, Europe, lections with a globally common brand image. In Japan, the role of the boutique and the U.S. is fulfilled by Wako Ginza, a Tokyo landmark located in the Ginza intersection. GRAND SEIKO ASTRON PROSPEX WAKO in GINZA Seiko is looking to boost customer exposure at the Wako Ginza location using the roof floor, with Ginza’s symbolic clock tower, as an event space to communicate with customers. Recently, it held a joint event with Japan Airlines. SEIKO Boutique in New York In August 2014, Seiko Watch established a Grand Seiko Mechanical Astron retrieves Prospex Marinemaster boutique on Madison Hi-Beat 36000 GMT offers position and time Professional features Seiko’s Avenue in New York high frequency of 36,000 information from GPS own automatic wind Spring (between 52nd and 53rd vibrations per hour for satellites to adjust to Drive movement. This streets). This store will even more stable, superior the correct local time. professional-spec diver’s watch offer mainly Grand Seiko precision. The watch This is the world’s first is suitable for saturation diving and Astron as well as the also displays GMT. Case GPS solar watch. Case to the depths of 600 m. Case models only available in diameter=40 mm. diameter=44.6 mm. diameter=50.7mm. the U.S.

22 WWD FRIDAY, FEBRUARY 27, 2015 ADVERTISEMENT

JAPAN’S LEADING COMPANY DIAMOND HEAD Offering Total Support to EC Businesses Platforms Tailored to Specific Customer Needs

Diamond Head celebrates its 10th anniversary this end products, there is still more room for growth in year. Its highly original e-commerce site operation e-commerce sales. platforms spanning system development, design, prod- WWD J: What are Diamond Head’s greatest strengths? uct photography, sales promotion, order management, K.S.: Our customers recognize us for the quality of customized support, logistics coordination, business our photography in particular. On e-commerce sites, and operational support, and more, have been adopt- product photographs and descriptions interact with ed by a number of major corporate clients, primarily customers, taking the place of sales staff. Crude pho- in the fashion industry. Diamond Head has earned a tography will never do the job. Therefore, we shoot reputation for the pursuit of excellence, answering to the product using styling and models specific to each each and every clients’ need, a reputation that makes brand’s vision, thereby increasing sales. Recently, it a prime candidate as an e-commerce partner to cor- we’ve found videos to be effective as well. By using porations. these visuals not only on our clients’ company-owned sites but also on e-commerce malls, we unify our cli- WWD Japan: What does this 10th anniversary mean to ents’ brand image and boost sales. We provide both you? inventory information and product data including im- Koichiro Shibata: At the time we started out, the entire ages, videos, product number, materials, and sizes to fashion industry was unenthusiastic about the e-com- e-commerce malls which earned our systems quite merce business. But I started this business which cre- a favorable reputation with these malls. Our great- ates e-commerce platforms specifically for the fashion est strength is being able to answer detailed indus- industry in the hopes that we could contribute to the try needs with precision. Further, for the benefit of industry’s growth utilizing IT technology. overseas consumers, we are considering developing WWD J: Your company’s performance positioned you systems and services that can accommodate foreign as a leading company. Your made-to-order service is languages. especially well-received. WWD J: What is your outlook for the future? K.S.: The idea of customizing platforms came from K.S.: We believe that Diamond Head’s most important our desire to meet individual needs as closely as we role is to continue building on platforms. For our first could. To overturn the conception that platforms re- five years, we focused on building our operations base quired massive investments, we decided to work flex- including full-support systems for e-commerce, and ibly with individual companies on a one-to-one basis, the following five years were mainly about building tailoring our services to meet their sizes and strate- systems linking inventory and master product data. gies. This year will be about boosting the quality of our en- WWD J: Though it has taken root now, your coordi- tire repertoire of services, as well as working with our nated inventory system was considered revolutionary KOICHIRO SHIBATA / PRESIDENT & customers to determine their needs. Our plan for the a few years ago when it was first launched by Diamond next five years is to prepare systems and services in ac- Head. CEO, DIAMOND HEAD cordance with what we find customers want. If corpora- K.S.: We made it our policy to constantly inquire of our PROFILE: KOICHIRO SHIBATA WAS BORN IN TOKYO IN 1979. WHILE HE WAS STILL IN HIGH SCHOOL, HE READ tions are willing to invest more in e-commerce, we can ARTICLES ON THE IT BUSINESS OVERSEAS, WHICH LED HIM TO REALIZE THERE WERE GREAT POSSIBILITIES customers what their needs were, and to ascertain what IN THE FIELD. HE ESTABLISHED DIAMOND HEAD IN 2006. THE COMPANY WORKS IN A RANGE OF DIFFERENT even offer supply chain services spanning coordination was required of the e-commerce business in the fash- AREAS WITH A FOCUS ON THE APPAREL SECTOR, INCLUDING PRODUCT PHOTOGRAPHY, E-COMMERCE SITE with regional production centers and materials manufac- ion industry. The coordinated inventory system made OPERATIONS, AND CONSULTING. turers. Although many companies are capable of creat- it possible for the customers to get what they wanted ing systems, we are unique in that we have the flexibility when they wanted it, the goal being to match supply WWD J: Is building e-commerce sites for brands based that meets specific needs of the rapidly changing fashion and demand as much as possible. All companies sell overseas one of your strengths? industry. We are focused on offering a wider variety of their products not only on their own e-commerce sites K.S.: We have worked with some 50 brands based in systems and services that are user-friendly and create but also on multiple e-commerce malls. If we could use other countries including the Japanese-language version new value specifically tailored to our customers’ needs. the coordinated inventory system with as many of these of the Barneys New York official e-commerce site, as We recognize that over the past ten years, our clients malls as possible, it would cut sales opportunity losses. well as operations for Tory Burch and Repetto by LOOK have helped us to become a better company, and we’d The next thing we are looking to do is to develop sys- INCORPORATED. Our work with Barneys helped to im- like to utilize the experience we’ve gained in the fashion tems capable of estimating the amount of inventory re- prove many issues related to the renewal of their brand, industry to provide more services that are ahead of the quired. resulting in a dramatic increase in sales. Even with high- times.

Geared for use with multiple TOPICS e-commerce malls (including Featured Service: company-owned e-commerce sites), the system ascertains What Is the Coordinated Inventory System? current inventory in multiple warehouses and stores, and takes orders. Specifically, linked Company-owned warehousing enables items e-commerce site to be sold at multiple e-com- merce malls, allotting product Coordinated Inventory orders to be filled in the order Warehouse 1 System they were received at the e- Mall A commerce malls. Because the interface is flexible enough to customize, it is easily adopted, and works to cut sale oppor- tunity losses. The company is Mall B planning to expand the scope of the system’s unique functions, Warehouse 2 1 2 including applying it to advance Consolidated Complete sales and allotment of physical Mall C store inventory. inventory inventory shown

SHOP information on site COMPANY OVERVIEW NAME: DIAMOND HEAD Mall D ADDRESS: TDS MITA BLDG., 6TH & 7TH FLOORS, MITA 2-7-13, MINATO-KU, TOKYO Stores WEBSITE: HTTP://DIAMONDHEAD.JP/

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