In Some Respects, We Go Down Parallel Tracks Because the More
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“I think the future “You never do Jeffrey [department] things thinking Nicolas Gennette store is going you will make a big Ghesquière to be a di erent statement. It just cocktail of goods happens sometimes and services and you are lucky. and di erent You don’t think William Marigay Bratton operating you will do McKee Chip models.” a revolution.” Bergh — Jeffrey Gennette WWDWEDNESDAY, OCTOBER 29, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY — Nicolas Ghesquière Michelle revolutionGloeckler 2014 WWD APPAREL & RETAIL CEO SUMMIT John Spelich NEW YORK — CREATIVITY. CHARM. PASSION. INSTINCT. PERSONALIZATION. DRIVE. THESE WERE ALL WORDS evolutionUSED BY FASHION AND RETAIL EXECUTIVES GATHERED AT THE PIERRE HOTEL HERE AS THEY DISCUSSED SUBJECTS INCLUDING THE GROWING MADE IN THE USA MOVEMENT, THE CREATIVE FORCE, THE FUTURE OF THE David DEPARTMENT STORE, THE INDUSTRY’S INCREASING GLOBALIZATION IN ONLINE AND OFF-LINE RETAIL, AND THE Walker- VITAL NEED TO INSPIRE EVERYONE FROM THE CONSUMER TO THE EMPLOYEE. FOR MORE, SEE PAGES 4 TO 12. Smith Stefano Rosso “Charm is one of the most undervalued things in business today. People respond exceptionally well to charm. It’s a challenge for department stores today, especially when they’re very large. That element of charm leads to the need for personalization, to tailoring the sale to di erent customers.” Rick José Caruso — Marigay McKee de Jesús Legaspi “We’re trying to fi nd “When it comes to our investment in U.S. a defi ned market in manufacturing, we know it’s not only the right thing Deena the United States for to do, it’s good for business, it’s good for communities Varshavskaya and it’s good for our customers.” Christina goods that are made Mercando here. And with capital — Michelle Gloeckler and innovation, we’re trying to expand “In some respects, we go down parallel tracks because the more secure we can make Alexei those markets and Agratchev the communities that we serve, the more create more jobs.” Oliver — Tom Kartsotis business we can generate for your world.” Walsh — William Bratton “We want to buy brands that have a global approach and potentially can have a Ara Katz strong heritage. They must have a size that’s scalable already.” — Stefano Rosso Maxine Bédat Mary Nathalie Jennifer PHOTOS BY JOHN AQUINO AND GEORGE CHINSEE Beech Remy Schmidt 2 WWD WEDNESDAY, OCTOBER 29, 2014 WWD.COM Report Claims Slavery in Indian Mills THE BRIEFING BOX yarns from Super Spinning, H&M said. By KRISTI ELLIS “As this third-tier spinning mill is unwilling to IN TODAY’S WWD cooperate with H&M in a transparent way and since WASHINGTON — A new report alleging “modern- we have come so far in our transparency work, we day slavery” in five Indian textile mills prompted at see no other option than to blacklist Super Spinning least three of the Western retailers — H&M, Primark Mills,” the company said. “This will mean that H&M and C&A — linked to the factories on Tuesday to requires that our suppliers do not order yarn from A look from the pledge to take either punitive or remedial action. this spinning mill for H&M orders.” streets of Tokyo. The report, “Flawed Fabrics,” was released by the The retailer said, “Sumangali and all forms of For more They Are Center for Research on Multinational Corporations forced or bonded labor are totally unacceptable…and Wearing looks, and the India Committee of the Netherlands, two not compliant with our code of conduct.” The compa- see WWD.com. human and labor rights nongovernmental organi- ny said the practice mainly occurs in third-tier sup- zations based in the Netherlands, detailing alleged pliers over which it does not have direct influence. egregious abuses found at Indian textile spinning “Therefore, we acknowledge the need of an indus- mills in Tamil Nadu, considered a major hub in the try multistakeholder approach,” said H&M, noting global textile and knitwear industry. that it is a member of the Ethical Trading Initiative Based on in-depth interviews with 150 work- that addresses exploitative labor practices in Tamil ers at the five mills, researchers said they found Nadu’s garment and textile sector, particularly those some of the worst abuses of garment workers in associated with those types of schemes. KOSKI the world, ranging from forced and bonded labor Primark denied any links to the Sulochana mill, imprisoning the workers in virtual slavery to de- as alleged in the report, but acknowledged that ONNIE plorable working conditions and the worst forms of contractors supplying apparel to the British firm BY child labor, according to the report. source from Jeyavishnu. PHOTO The mills named in the report are Best Cotton Mills, “The company notes that working and employ- a cotton yarn spinner and knitwear maker employ- ment conditions there are generally better than in ing 5,000 people; Jeyavishnu Spintex, the spinning the other mills surveyed in the report,” Primark division of a vertically integrated knitwear manufac- said. “However, Primark accepts that this mill has A new report alleging “modern-day slavery” in five Indian turer named K.M. Knitwear; Premier Mills, part of issues that need rectification and will continue to textile mills prompted at least three Western retailers to pledge The Premier Group, a manufacturer and exporter work with them to resolve them.” to take either punitive or remedial action. PAGE 2 of fine-combed cotton yarn employing 5,000 work- Primark said retailers often do not have direct re- ers; Sulochana Cotton Spinning Mills, part of The lationships with spinning mills in their supply chains, Iconix Brand Group Inc. is seeking larger fish in the mergers Sulochana Group, producing cotton yarns and employ- which means they have “little leverage” over them. and acquisitions pond. PAGE 2 The retailer also said it plans to implement at ing 1,500 workers, and Super Spinning Mills, part of the Jeyavishnu “as soon as possible” a program it has Sara Elgi Group, producing 100 percent cotton yarn. General Growth Properties and Ashkenazy Acquisition Corp. Tamil Nadu is home to some 1,600 mills, with a with Verité, an international NGO and member are taking a stake in the Miami Design District. PAGE 13 workforce of more than 400,000 workers, according of the Alliance to End Slavery and Trafficking, to the report. Sixty percent of the labor force con- called “Fair Hiring, Fair Labor.” The program was sists of girls and young women. launched in 2012 to build management systems Coach Inc. managed to beat analysts’ first-quarter estimates, The young women and girls toiling in the five mills capacity and internal self-monitoring and provide but investors remain skeptical and its stock took another told researchers they were lured away from their vil- practical guidance and tool kits for recruiters, beating on Tuesday. PAGE 13 lages on the promise of decent jobs and wages, but screen brokers and labor agents, and provide on- instead were forced to work without a contract or pay site management and monitor hostel management. Tommy Hilfiger is planting his second anchor store in Paris slips up to 60 hours a week or more year-round, were “Sumangali is completely unacceptable and could across the street from one of the city’s most storied music not allowed to leave hostels where they lived without result in the termination of a relationship should we halls. PAGE 14 supervision, were forced to endure “humiliating” find that the system exists in our suppliers’ opera- disciplinary measures and work in unsanitary and tions,” said C&A, linked indirectly to Best Cotton. The Christian Dior is making major moves in Tokyo, making its unsafe conditions. Conditions were said to be so ex- company said it has made a commitment to ensure presence known in the same city where it will stage its pre-fall treme and severe that one 14-year-old girl reportedly that the system of Sumangali is “eradicated in India,” runway show Dec. 11. PAGE 14 committed suicide in March and another threatened but noted that without the support of local partners to kill herself, according to the report. “it will not be possible to abolish the system.” Pharrell Williams is using his star power to promote racial as In addition, the mills recruited workers on the prom- Hanesbrands does business with Best Corp., well as gender equality. PAGE 14 ise of paying them a lump sum at the end of their con- parent of Best Cotton Mills, for production of cer- tracts, but there was no form of a written contract and tain types of underwear. The company said it will Swedish retailer Hennes & Mauritz is continuing an artist workers often did not know how much was owed to them. “thoroughly review the report, conduct an appro- sponsorship of “Jeff Koons: A Retrospective,” which opens in The practice in India is known as a “Sumangali priate investigation and review its findings with the Paris on Nov. 26. PAGE 15 Scheme,” which has been used by textile and garment Fair Labor Association,” of which it is a member. producers to “keep workers in a position of bonded Hanesbrands said outside audits have been con- labor.” Often the majority of workers are “Dalit” girls ducted on Best Corp. and it is in “good standing.” Bobbie and Lew Frankfort received the 2014 Fiorello H. who are younger than 18, come from poor families “Our compliance program goal is to work with fa- LaGuardia Award for distinguished service to New York City and agree to work for a lump sum of money to be paid cilities to drive continuous improvement, but we will and New York City Center.