LOOKING BACK, A NEW GET READY FOR VEGAS AND AHEAD THEORY ANDREW ROSEN TALKS THE MEN’S TRENDS FROM EUROPE — AND ABOUT THEORY’S AD WHAT’S INSPIRING DESIGNERS STATESIDE. CAMPAIGN AND LOGO. THINGS TO KNOW ABOUT THE EXHIBITIONS IN LAS VEGAS, PAGES MW4 TO MW7 PAGE 4 ONES TO WATCH AND MORE. SECTION II APPAREL, TEXTILES INCLUDED U.S. Files WTO Suit Over China Subsidies By KRISTI ELLIS WASHINGTON — Trade relations between the U.S. and China took a dramatically downward turn Wednesday. The U.S. fi led a World Trade Organization case against China, targeting a broad export subsidy pro- THURSDAY, FEBRUARY 12, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY gram and seven sectors, including apparel, textiles and footwear, and could have broad ramifi cations for WWD the industry’s sourcing strategies. The U.S. is challenging China’s “Demonstration Bases-Common Service Platform” export subsidy program that American offi cials claimed provided $1 billion over a three-year period to suppliers, which then gave discounted or free services to Chinese man- ufacturers that export in the sectors identifi ed. The value of subsidies provided per base varied depend- ing on size, industry and location, but offi cials said there is evidence that certain “base enterprises” have received at least $635,000 worth of annual benefi ts. Exports from the Demonstration Bases program comprise a “signifi cant portion of China’s global ex- ports,” U.S. trade offi cials claimed. In 2012, 16 of the estimated 40 “demonstration bases,” or clusters of companies, in the textile sector allegedly receiving subsidies accounted for 14 percent, or $33.25 billion, of China’s textile exports to the world, trade offi cials said at a news conference. The other six sectors identifi ed by the U.S. as being subsidized by China’s program include advanced materials and met- als, light industry, specialty chemicals, medical prod- ucts, hardware and building materials, and agriculture. “China designates certain companies in these sec- tors as being demonstration bases, which is contingent on them exporting their products,” said U.S. Trade Representative Michael Froman. “Once designated, they are eligible for subsidized services provided by the ‘common services platform.’ So if you are a Chinese tex- tile fi rm designated as a demonstration base, you might get subsidized IT services, subsidized product design SEE PAGE 14 NYC to Invest $15M To Boost Fashion Think Different By LISA LOCKWOOD MADE IN NEW YORK is having a fashion moment For the latest installment of The Iconoclasts, Miuccia Prada looked to the movies, Underscoring the importance of the fashion indus- inviting top costume designers to interpret her spring collection in Prada stores in New try to New York City, Mayor Bill de Blasio and Deputy York, London and Paris. Perhaps not surprisingly, “American Hustle” designer Michael Mayor for Housing and Economic Development Alicia Glen unfurled new and expanded programs Wednesday Wilkinson and his partner Tim Martin took a trip to Studio 54 for their installation, night to support the city’s fashion industry, tripling the opening tonight at the store in New York’s SoHo. Here, a golden moment in progress. current investment to $15 million from $5 million. For more on our exclusive interview, see Bridget Foley’s Diary on pages 12 and 13. The mayor spoke at a press conference at Milk Studios to launch MADE, a six-year-old organization that provides about 35 New York City designers with space, production and other resources to show their collections at no cost during New York Fashion Week. During the press conference, the mayor revealed the city has decided to name a street in the Bronx in honor of Oscar de la Renta. It will be at the intersec- tion of East Fordham Road and Creston Avenue. “He brought such joy in all he did. He will be forever in- grained in the fabric of this city,” said the mayor. De Blasio outlined new and enhanced programs that will directly support and put a spotlight on manufacturers, emerging designers, aspiring de- signers, and students in New York City. Among the attendees were Diane von Furstenberg, Nanette Lepore, Yeohlee Teng, Andrew Rosen, Stacey Bendet, Joyce Brown, Gary Wassner, Maxwell Osborne and Dao-Yi Chow of Public School, Stan Herman and Jeffrey Banks. “Fashion week has become something extraordi- nary for the energy, the artistry, the glitz and glam- PHOTO BY STEVE EICHNER our, this industry is more vital than ever and employs SEE PAGE 6 2 WWD THURSDAY, FEBRUARY 12, 2015 WWD.COM W. Coast Ports Suspending Operations basic longshore wage, according to the PMA. In Southern THE BRIEFING BOX By KHANH T.L. TRAN California, terminal operators will extend hours on non-holiday weekdays, including on Friday, the PMA IN TODAY’S WWD LOS ANGELES — The Pacific Maritime Association said. The yards, trucks and railways will continue op- is again suspending operations for unloading ships erations during the suspension of vessel operations. at the West Coast ports affected by negotiations The PMA’s decision to continue suspending oper- over a key labor contract. ations spurred a growing number of frustrated com- Mia Moretti at the The association representing cargo carriers and panies who rely on the ports for shipping to call the David Yurman store terminal operators — which is in a nine-month- White House to intervene. “The continued intran- opening in New York’s long dispute with the International Longshore and sigence by labor and management to reach a new SoHo. For more, see Warehouse Union — will cease the loading and un- contract is unacceptable. Retailers and the rest of WWD.com. loading of cargo off vessels for four days, affecting the supply chain are frustrated beyond belief. The work on Thursday, Saturday, Sunday and Monday. slowdowns need to end. The brinkmanship needs to The ports will operate as normal on Friday. stop. It’s time for the White House to immediately The four-day suspension follows a previous one engage in this critically important economic priority imposed by the association on 29 ports last weekend. and force the two sides to remain at the negotiating In response, the union called the second suspen- table until a deal is done,” said Jonathan Gold, vice sion an effort to put economic pressure on dock- president for supply chain at the National Retail workers and gain leverage in the talks. It added Federation. “The ILWU and PMA are delaying cargo that after canceling a negotiating session on and merchandise in the short-term while harming Wednesday afternoon, the PMA hasn’t been avail- the competitiveness of the West Coast ports in the able for negotiations since last Friday. long-term. This stalemate is hurting American busi- Considered a holiday period sandwiched between two nesses, their employees and consumers.” PHOTO BY LEXIE MORELAND PHOTO BY presidents’ birthdays, workers during the four days would — WITH CONTRIBUTIONS FROM command a pay premium of at least 50 percent of the ARTHUR FRIEDMAN The U.S. fi led a World Trade Organization case against China on Wednesday, targeting a broad export subsidy program and seven sectors, including apparel, textiles and footwear. PAGE 1 Jack Ma Defends Scale, Future of Alibaba New York Mayor Bill de Blasio unfurled new programs Ma also spoke about the need to expand great- to support the city’s fashion industry, tripling the current By LARA FARRAR er access to the mobile Internet and e-commerce investment from $5 million to $15 million. PAGE 1 to China’s rural areas, as well as how Alibaba will BEIJING — Jack Ma, the high-profile executive shift its focus to using data analysis, or “big data,” Theory has redesigned its logo and will launch a new chairman of Alibaba, says the Chinese e-commerce to predict consumer trends and, in turn, help both advertising campaign on billboards, in store windows and digital, giant isn’t “too big to fail.” brands and small businesses. print and campaign books for retailers. PAGE 4 Ma spoke about the future of Alibaba, which had Meanwhile, on Tuesday, China’s General a record-breaking public offering in New York last Administration of Quality Supervision, Inspection Balmain has opened a London fl agship, marking a new fall, in a two-hour speech to China’s securities reg- and Quarantine or AQSIQ, said in a statement post- ulatory commission here. ed on its Web site that a senior offi cial with the gov- development phase for the French house, which in recent years As Alibaba’s business expands to other sectors, ernment agency told Ma during a meeting Monday focused largely on fast-growing Asia. PAGE 9 ranging from fi nance to online video, cloud comput- that Alibaba’s business practices are potentially ing, mobile and health care, Ma’s speech seemed an damaging China’s reputation overseas as well as Jay Z has found a chief executive offi cer to lead his Roc exercise in humility and an attempt to allay fears that consumer confi dence in e-commerce at home. Nation Apparel brand: Patrick Guadagno, a former top executive he will not squeeze new entrants into such sectors, as In response to AQSIQ, Alibaba said the company at Versace and Dolce & Gabbana. PAGE 9 well as existing players out of business. Over the past is “dedicated to the fi ght against counterfeits.” year or so, Alibaba has invested millions of dollars in “We work closely with our government partners, Nicky Hilton is going back to her roots for her latest fashion a diverse menagerie of businesses. Most recently, the brands and industry associations to tackle this venture, a fall capsule collaboration with L.A.-based handbag company revealed Monday that it had bought a mi- issue at the source,” the company said.