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INSPIRING THE BUSINESS WORLD

INSPIRING THE BUSINESS WORLD

INSPIRE LEADING THE TEAM YOU INHERIT Assessing & INSPIRINGINSPIRING THE BUSINESS THE WORLD BUSINESS WORLD reshaping your new company CMO, CFO, CTO, COO FIVE STEPS TO Which role RECLAIMING sits on top of YOUR the business COMMUTE As featured in pyramid?

INVEST WHO WANTS TO HOW TO BE A TRILLIONAIRE? ATTRACT PLUS: What a thousand The CEO Magazine A GLOBAL billion dollars will FUND actually get you MANAGER For more info visit LEADING theceomagazine.com THE CHARGE SANDY HU, TEXAS INTRUMENTS PRESIDENT One of China’s highest-rated businesswomen reveals her long-term investment plans ISSN 24249831 merican APPEAL

How do you take two distinctly American brands and make them successful in the Asian market? Frank Cancelloni knows how.

WORDS ADRIAN FLORES • IMAGES GARETH BROWN

f you made a list that ranked the most recognisable fashion brand Anames in the world, and would be pretty close to the top of that list. Both brands are owned by PVH Corp, headquartered in New York. But while its headquarters may be on the other side of the world on a different continent, according to Regional President for Asia IPacific Frank Cancelloni, PVH also “really understands Asia”. Reflecting on his three-and-a-half years since taking on the role, he says he has “absolutely no regrets” and that the company “ticks all the right boxes”. “The Asian audience appreciates what we bring to different American brands. We run the business with great attention to local nuances, which makes PVH a much better company to work with in Asia,” Frank says. “When you look at the people, the vision, the brands and the company that owns the brands, it was a no-brainer.” Several factors make PVH stand out from the competition in Asia, according to Frank. The first is the company’s stable and experienced management team. Frank explains that part of this stability is around knowing what is happening

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across the Asian region, which not only licenser–licensee relationship. “On the makes it easier to attract talent but also one side, you have the licenser, in this retain it. case , that owns the trademark and “Second, we have two extremely strong has a long-term vision, while the licensee brands,” Frank says. “That helps us to is responsible for developing a specific “I think it’s important to have a vision remain focused and not divert and dilute product category and might have a more our attention towards a lot of other smaller short-term vision for the brand,” says for the brand, but that’s not enough. brands. Calvin Klein and Tommy Hilfiger Frank. “The licenser-licensee relationship You need to communicate this vision. are instantly recognisable brands, and PVH is one where there is a brand owner and has been resistant to expanding its stable a brand renter and in many cases they You need to have an action plan.” any further – though it does license Van have very different visions for the brand.” Heusen and – because we believe Devanlay eventually bought the Lacoste each of the brands has tremendous growth brand, and Frank found that it became opportunities ahead.” stronger and more consistent when it Third, despite being a company with was managed directly rather than through over 35,000 associates globally, Frank the licenser–licensee relationship. “When thinks PVH is also very good at the the brand manages all the key product decision-making process. “We have an categories under one roof, you’ll see that approval process, but it’s not one where there’s more alignment, which is key, and you have to get 15 to 20 signatures before there’s also more investment being made opening up a store,” Frank says. “We’re in the brand,” he says. pretty agile and that’s really great. We Perhaps unsurprisingly, Frank singles make decisions quite quickly, which out China as the country with the greatest approach maybe five years ago, but now is key to being successful.” opportunities for growth for both the customers expect something else. They do So how did someone who grew up Calvin Klein and Tommy Hilfiger labels not want to go to a 2,000-square-metre in France end up managing distinctly within Asia, and says that PVH has already store to access the entire range.” American products for an Asian audience? been developing the brand in China for PVH has already invested in a digital For Frank, the initial motivation to work the past five to 10 years and has very showroom in Hong Kong, and has plans abroad comes from the fact that during strong business there. He also believes to roll out more across the rest of Asia, his second year at his business school, he the company can double the size of the starting with China and then followed by had the unique opportunity to study for Tommy Hilfiger and Calvin Klein Japan. Frank believes it is the right six months in Japan, Korea and China, and businesses in China. approach for the company and has then to backpack across South East Asia. “China remains the largest growth received a positive initial reaction from He eventually found a job in Singapore opportunity for us. In the apparel industry, buyers. “It creates savings through better working for a building materials company we call it a once-in-a-lifetime opportunity. efficiency in time, costs and processes, and in 1988. It was a long-term internship of It’s really rare to encounter this kind of that’s really the way we should proceed 24 months jointly subsidised by the opportunity in your career,” Frank says. further. It should become more digitised, company and the French Government. Despite the immediate recognition that instead of continuing to rely solely on need to communicate this vision. You “Though it was not very well paid, it gave brand names such as Calvin Klein and traditional salesmen,” he says. need to have an action plan. It’s crucial me the opportunities to start doing Tommy Hilfiger attract, these brands are CEOs always talk about the importance to have alignment and, once you have business in Asia at a junior level with not immune to the digital disruption that of a well-thought-out vision and a strategy that, it’s all about execution. The speed already some meaningful responsibilities,” has wreaked havoc on the fashion and to accompany that vision. But in an Asian and the quality of execution by the team Frank says. apparel sector. This can no longer be market where rapid change and disruption will definitely make the difference going Frank has firmly established a base for ignored, and companies must embrace are par for the course, even the best vision forward,” says Frank. himself within Asia for almost 30 years the digital age or else they will go under, is sometimes not enough to survive. For “This is what I believe will make the since then, most of it spent in the apparel according to Frank. “How we envision Frank, the key to flourishing and standing difference between the winners and the industry. Before joining PVH in December the store of the future is something that out goes all the way back to a company’s losers. I think we tick all the boxes, and 2013, he was the CEO of Asia–Pacific for is really key for the company. When we team dynamic and how the company that Calvin Klein and Tommy Hilfiger Devanlay, the licensee of the Lacoste talk about the flagship store, or a brand’s manages people. will keep on winning in the coming brand. At Devanlay, he learned about the embassy, those days are long gone,” says “I think it’s important to have a vision years, possibly globally but most definitely complications that can occur with the Frank. “That was probably the right for the brand, but that’s not enough. You in Asia.”

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