From Primary to Neon — Enliven All Manner of Contemporary Accessories for Spring, from Bags and Shoes to Rope Bracelets

Daily Edition november 20, 2018 1

Digital Sustainability Prada chairman Carlo Mazzi talks risk and reward. Page 4

The Luxe Side Fashion. Beauty. Business. Of Social A look inside Facebook’s luxury division. Pages 8 and 9

Going With Your Gut New York & Co.’s Gregory Scott on the brand’s transformation. Pages 6 and 7

Vivid colors — from primary to neon — enliven all manner of contemporary accessories for spring, from bags and shoes to rope bracelets. For more on the Kurt Lyle’s block-heel sandal, Orly Genger by Jaclyn trend, see pages 12 to 13. Mayer’s bracelet and photograph By Corey Olsen Loeffler Randall’s box bag. rop Stylist: M elissa Stammer Stylist: rop P 2 november 20, 2018

business business Can John Mehas Save Victoria’s Secret? Urban ● The intimates giant women around grappled with numerous public errors in the globe.” judgment recently. Earlier this month, Outfitters announces a new ceo Still, shares of in a move that analysts called “tone and its latest earnings L Brands, parent deaf,” the annual fashion show returned amid a flurry of public company to to New York, complete with scantily- Charges On, relations nightmares. Victoria’s Secret, clad waifs gracing the runway. The same closed down 2.1 day, Ed Razek, chief marketing officer Doubles Down By Kellie Ell percent to $34.55 for L Brands, told Vogue magazine that on Monday and the brand didn’t have any interest in Victoria’s Secret is struggling to remain continued to plus-size or transsexual models. The With Tmall the intimates retailer of choice. fall more than 4 comments sparked a backlash and forced ● In an attempt to revive the brand, percent in after- John Mehas the company to apologize on Instagram. The company is taking the lingerie company has named John hours trading. Over the weekend, founder of rival its brands to Alibaba’s Mehas the new chief executive officer, During the intimates company ThirdLove Heidi Zak confirming an earlier report by WWD. third quarter, which ended Nov. 3, 2018, took out a full-page ad in The New York main platform following Mehas, who is replacing former lingerie Wexner said the company made “some Times, written as an open letter, criticizing its Singles’ Day success. exec Jan Singer, will begin the new gig in tough decisions” in an effort to improve Victoria’s Secret and Razek’s comments. By Evan Clark early 2019. Singer resigned unexpectedly business. Those decisions include shutting “Your show may be a ‘fantasy,’ but we last week after just two years on the job. down Henri Bendel and exploring other live in reality,” Zak wrote. “Our reality is “The tailwinds continue to blow.” Mehas, a seasoned retail exec, served as options for its smaller intimates company, that women wear bras in real life as they So said Richard Hayne, chairman and president of Tory Burch for two years and La Senza. go to work, breastfeed their children, chief executive officer of Urban Outfitters was ceo and president of Club Monaco, a L Brands has been steadily play sports, care for ailing parents and Inc., who has been pointing to stronger Polo Ralph Lauren brand, before that. losing market share in recent years serve their country.…It’s time to stop consumer trends for at least 18 months and “John is an outstanding retail merchant as companies like American Eagle telling women what makes them sexy — reported Monday that his company posted and we could not be more excited for Outfitters’ aerie and Lively, brands that let us decide.” big third-quarter gains on the back of a him to lead Victoria’s Secret Lingerie to emphasize inclusivity, are growing in Before that, Victoria’s Secret eliminated “vigorous U.S. economy, record consumer a new phase of success,” Leslie Wexner, popularity. Company shares are down its swimwear category, a potentially confidence, ultra-low unemployment and chairman and ceo of L Brands, said in about 40 percent for the year. lucrative category for the brand. And then a changing fashion silhouette.” a statement Monday. “Our number- Comparable sales at Victoria’s Secret, there was the fan-favorite catalogue that The firm’s revenue rose 9 percent to one priority is improving performance both in-store and online, fell 2 percent disappeared around the same time. Amid $973.5 million for the three months ended at Victoria’s Secret Lingerie and Pink. during the quarter — on top of a 4 percent all this, the seemingly stubborn company Oct. 31 as comparable sales rose 8 percent In doing so, our leaders are coming in decline in the same period last year. Net has not closed a single Victoria’s Secret with double-digit e-commerce gains and with a fresh perspective and looking sales slipped 0.7 percent to $1.53 billion in store; a move that seems bizarre for even “positive” sales in its stores. All of the at everything…our marketing, brand the third quarter. the most successful brands as more and firm’s brands, channels and geographies positioning, internal talent, real estate Meanwhile, income in all of L Brands more retail shifts online. posted gains. By division, the firm’s portfolio and cost structure.…I am was only a third of last year’s figure at “This is a company that needs Anthropologie Group’s net sales rose 9.4 confident that, under John’s leadership, $103 million, compared with $319 million change,” said Ike Boruchow, a Wells percent to $385 million, Urban Outfitters Victoria’s Secret Lingerie, the world’s a year ago. In fact, all of the company’s Fargo analyst. “The investment gained 7.2 percent to $379.2 million leading lingerie brand, will continue to be growth comes from its Bath & Body community needs to see change. They and Free People advanced 12 percent to a powerhouse and will deliver products Works business. need to know that management isn’t $202.2 million. and experiences that resonate with In addition, the company has going to sit on its hands anymore.” That all led to a 71.9 percent increase in third-quarter income to $77.5 million, or 70 cents a diluted share. And Hayne told analysts on a business product and mass merchandising — a point conference call that there was plenty that has been misrepresented in several more growth ahead in e-commerce, articles and posts....it was never about international markets, wholesale and Brett’s Severance Revealed; cheapening the core J. Crew brand, it was from the firm’s smaller concepts, such as about introducing Mercantile products garden concept Terrain. Makes His Case on LinkedIn that are accessible to a broader range of E-commerce remains the company’s customers.” largest opportunity, the ceo said, and ● J. Crew announced the for three years, grappling fashion misses, He also put in a plug for his record at already accounts for about 40 percent of exec’s departure on Saturday, pricing issues and management changes. West Elm, writing, “I always talk about the retail segment’s business. Not long ago, it restructured its debt to how happy it makes me to see that West And the business is taking a very after just over a year as ceo. make it more manageable. Elm has continued to grow and thrive after international flair. By David Moin To offset difficulties at the J. Crew brand, I’ve left. That means that we built a solid “Singles’ day is the biggest one-day the corporation has been growing its foundation and a great team. Now, I was sales event in the world,” Hayne said. J. Crew Group successful denim-based Madewell division there for a very long time and obviously “And this year the Urban brand achieved is making chief and it recently started the Mercantile I was only at J. Crew for a year and a half. the number-one apparel brand on Tmall executive officer lower-priced division. Also, third-party But I think the team is great, the products Global. As you may know, global is Tmall’s Jim Brett’s brands are being added to the assortment. are looking great, and I only hope for smaller platform, for brands that don’t departure a little But sources told WWD that Brett’s continued success for the company. The carry inventory in the country. We’re less painful for the fall relaunch of the J. Crew brand lacked differences that led to my departure told Tmall Classic, their larger platform, executive. sufficient verve. There have also been existed between a very small group of generates approximately 10 times greater Brett is getting reports that Brett’s idea to start another people — and this happens all of the time customer demand than global. Thus, we a rich severance, brand wasn’t liked by the board. Tensions in corporate America. Just remember that plan to launch all three brands on Tmall including $1.25 between Brett and his new guard and the the soul of the company has never been Classic next year.” million over the old guard at J. Crew are also said to have about any individual — it comes from the But that doesn’t mean the retailer is Jim Brett next 18 months, been a factor in his departure, with board 10,000+ field and corporate associates that forgetting its roots. The firm plans to open which is an members worried about more defections come to work every day with the intention 10 to 20 new stores across all of its bands amount equal to what was his base salary; from the company. to better serve the customer.” in Europe in each of the next two years. a cash bonus payment of $2,812,500, over On Monday, Brett took the unusual Brett claimed to have “contributed in a period of 18 months, and another bonus step of pleading his case on LinkedIn, some way to the future success of the of $750,000, representing what was writing, “I suggest you shop the site and company” though others would disagree. unpaid from his signing bonus. the current holiday collection. You will He went on, as if delivering a state of He’s also getting an additional 18 find really differentiated and sophisticated the industry speech, about the future of months of service credit with respect to product that creates a compelling brand retail, the consumer, how change can be time-vesting management equity that was narrative. You will find upgraded quality, scary, building communities and a host granted to him. accessible price points and style, all while of politically correct topics like diversity After bolstering West Elm, the furniture still feeling iconic to J Crew.” and sustainability. retailer, Brett joined J. Crew 15 months ago Arguing against those who say his As reported, while the on a mission to turn around the J. Crew relaunch of J. Crew was a flop, Brett company searches for a new ceo, Group, specifically the long struggling J. said on LinkedIn that his strategy was Brett’s responsibilities will be assumed by Crew brand. to be “inclusive...having more fits, more an office of the ceo comprised of Michael The company said Saturday that a sizes, and bigger ranges of beautiful Nicholson, president and chief operating “mutual agreement” was reached by the color. And showing the products worn officer; Adam Brotman, president and board and Brett, but sources said Brett was by a much more diverse group of people chief experience officer; Lynda Markoe, The Urban forced out. — a truer reflection of the diversity of our chief administrative officer, and Libby Outfitters Paris store. The J. Crew brand has been struggling country. It’s not about watered-down Wadle, president of Madewell. AP / RE X/Shutterstock Lennihan/ by photograph B rett FEBRUARY 5-7, 2019 SOURCING AT MAGIC OPENS FEB 4 LAS VEGAS & MANDALAY BAY CONVENTION CENTERS

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Exclusive no rules. I am not saying we have to shut down the Internet, it’s a great territory open and rich, but it requires an effort of Prada Chairman on Digital cultural evolution and to find new rules to manage it and to avoid the biggest risks. Everything stems from this new attitude Sustainability, Risks, Opportunities of the customer, this new relationship of trust. Who did the customer trust in ● Carlo Mazzi shares his Carlo Mazzi the past? The salesperson or the store owner, who would make suggestions and perspectives ahead of the talk about the quality and the materials. second “Shaping a Future” Today customers have skipped this step, event to be held in Milan today. they look on the Internet, they see a lot of things, they compare information, By Luisa Zargani sometimes they get confused, like those MILAN — Is the Internet the new Wild who go to the doctor [after having West? Digital platforms offer countless checked their symptoms online]. And opportunities but there are risks that then they go to the suppliers — that’s us. need to be taken into consideration as We have to take note of this and be part regulations on several fronts are few and of this kind of language and attitude and far between. Prada chairman Carlo Mazzi also convert our collaborators. They exclusively talked with WWD about the must be more open-minded, have a more group’s approach to all things digital ahead thorough knowledge of the products and of the second “Shaping a Future” event their use, of what maybe once was not to be held in Milan on Nov. 20, exploring as relevant. We must work very hard to the relationship between sustainability seize and be in charge of the systems, to and digital innovation, and once again better understand the customer, and how in a partnership with The Schools of different that customer is, start a new Management of Politecnico di Milano and dialogue with this new language. the Yale Center for Customer Insights. Miuccia Prada and her husband Patrizio WWD: The company and Patrizio Bertelli, who share the chief executive Bertelli himself have admitted there officer title, have been vocal about has been a delay in selling online research into more ecological materials compared to a number of luxury and investing in sustainable industrial competitors and some problems in complexes surrounded by greenery and identifying the brand’s customers. vineyards. Choosing his words carefully C.M.: We started late but we are and conveying his personal interest in recovering. Luxury in general was late the subject matter, Mazzi here joins the — the reason? Snobbism, because the conversation, one that revolves around the industry felt depositary of the style, topic of the event, “Shaping a Sustainable of the privileged relationship with Digital Future.” The relationship with the customers and there was an objective customer has become ever more central and key problem, which was that of the and the chairman explains how Prada is locations. Luxurious stores, sophisticated focusing on building and developing it, but, and trained salespeople were essential in the end, he underscores that, despite the and to transfer the exclusivity of a store technological innovation and the changes to the Internet and a small screen, in the industry, product and quality are which did not differentiate a store what the customer comes back to. on Via Montenapoleone from one on Corso Buenos Aires [a popular mass WWD: What prompted Prada to focus market shopping street in Milan] was on sustainability with a dedicated event? difficult. There were prejudices but this Carlo Mazzi: As a public company uncertainty turned out to be useless in Hong Kong, it is mandatory to pay Here, too, I believe we have done a lot The theme is digitalization and and wrong, because the new customer, adequate attention to sustainability. and, again, because it’s fundamental sustainability, consistency and risks, or independently of wealth and social status That said, it could just be a formal for ourselves. Fondazione Prada has conflicts, to better put it. It’s a subject is interested in the Internet in the same rule, but beyond that, there are always been conceived as more than a that regards our sector because all brands way, so it’s a matter of understanding reasons, subjective, of an ethical nature sponsorship; a way to study, learn and are revolutionizing the relationship with how to be online without diminishing and driven by the world outside. update our cultural sensibility as society customers — it’s a theme that is very much one’s offer. Consumers are developing a different and style evolve. of the moment. E-commerce is perhaps not as sensibility compared with the past, On the one side there is the digital important as in other sectors but as a and today the theme of sustainability, WWD: Why did you choose to focus on revolution, which is negatively affecting stand-alone way to create a relationship in all its very different forms, is a digital sustainability for this cultural many companies, but at the same time with customers, it is very important. fundamental principle, especially for appointment? it also offers enormous possibilities, the new generations but also for the C.M.: We must and want to dedicate creating new activities and stimuli to the WWD: What are the biggest risks older ones. Subjective and objective attention and resources to the theme in economy. On the other hand, we see the connected to the Internet and the needs to converge, because, even if general and this is shared by the Prada risks and problems that are connected digital tools? someone were so selfish to not think board of directors. It’s important to to this revolution. Privacy is an example, C.M.: The risk is to use it in ways that are about sustainability, to stay on the reflect on sustainability and the best but more complex is the question, not correct and not efficient. We have market, they would have to respect the way to do that is to talk about it. It can how much is digitalization a tool to to integrate this tool, which allows us consumers and their demands. be done in private among friends after manipulate people? We are not talking to elaborate a lot of data, with the right dinner or in public stimulating a debate, only about criminal acts, frauds or a training of our employees — there is no WWD: What has sustainability meant and this is the way we want to proceed, negative influence on young people, that standard way to train our workers. There for Prada so far? so last year we decided to involve Yale is also a problem. But there are problems is still a lot to do. C.M.: As a company, we pay attention to and the Politecnico. As the saying goes, that are geopolitical. Digitalization waste, to saving energy and recycling. try to talk with someone better than you, is responsible for the destruction of WWD: Miuccia Prada and Patrizio’s In terms of land preservation, please otherwise it doesn’t help. That’s why we confidence in the institutions. It can be son Lorenzo Bertelli has been allow me to say we are leaders. The looked to some of the best universities. revolutionizing or traumatic, it can build appointed head of digital for the large majority of our plants are set up consensus that is extremely demagogic group, so this is quite a signal of the on recovered old industrial areas trying WWD: What was the feedback you and it can lead to manipulation. channel’s relevance for the company, to improve the location and when we’ve received after the first conference? With the concept of “post-truth,” you isn’t it? built new sites, we’ve worked thinking C.M.: It was positive, and based on this question the concept of truth. This is a C.M.: The fact that a resource, who is so of the quality of the workplace and of we decided to continue and hold a second phenomenon that has not been invented important for us, the son who intends the integration of the buildings into the edition, trying to find a different subject by the Internet but one that through the to be part of the company with a long- landscape on top of everything. Consider matter but linked to our work. Internet is largely applicable. term and significant involvement, is [Prada’s plant in Tuscany] Valvigna Today, with digital tools, the concept dedicated to this sector as his first task, is as an example. We’ve paid attention to WWD: Could you give us a preview of of trust goes beyond the institutions. It’s noteworthy because we consider this the sustainability in terms of the respect of the event? a great risk, and it’s a problem connected most important factor in this moment, people, gender, rights, age, and so on C.M.: There will be two round tables to this phase of transition as there are but we should not forget that the product — we employ more women than men... and one keynote speech with Nicholas no rules yet to regulate this tool that is is the basis of loyalty. It’s not only about We’ve contributed to the development Negroponte [chairman emeritus, MIT Media so powerful. As an example, think of digital communication; loyalty passes of the company and its shareholders not Lab], so a person of great relevance but also the Wild West, it was an opportunity to through quality and product, otherwise only in financial terms but also culturally. very “simpatico” and communicative. discover new territories, but there were the customer won’t come back. november 20, 2018 5

business business The Bridal Shop inside a David’s Target Reveals David’s Bridal store. Bridal Plans Cyber Monday Deals Exit From ● During this competitive Threshold, Project 62, Made by Design, season, retailers rush to Hearth & Hand with Magnolia and more, will be discounted 30 percent; Nov. 27 to Bankruptcy announce deals first. Dec. 1, discounts of 30 percent on indoor rugs, bar stools and media stands; Nov. ● Exit financing is in By Sharon Edelson 28, a free $10 Target gift card for spending place, and the plan is for With Black Friday three days away, $40 on personal care or beauty products, Target Corp. today revealed its Cyber and Nov. 29, discounts across electronics. unsecured trade vendor Monday deals, a sign of how competitive Retail experts have said holiday 2018 claims to be paid in full. the holiday season is shaping up to be. will be won on convenience as well as By Vicki M. Young Cyber Monday 2017 was the biggest product assortment and prices. Target online shopping day in the U.S. with $6.6 for the first time on Cyber Monday is Bankrupt David’s Bridal Inc. plans to exit billion in sales. Retailers such as Macy’s offering same-day delivery with Shipt, bankruptcy proceedings by mid-January, and Walmart Inc. last week raised the last-mile delivery service it acquired keep all stores in operation and make good their fourth-quarter earnings forecasts, for $550 million in December 2017. The on its debts to unsecured trade creditors. indicating that the 2018 holiday season service is available nationwide to millions The company and three affiliates filed a will be strong for at least some retailers. of consumers in hundreds of markets. voluntary Chapter 11 petition for bankruptcy before interest, taxes, depreciation and Walmart is expected to eclipse Apple Target is also offering free two-day court protection on Monday in a bankruptcy amortization was $83 million for the fiscal with 4 percent of total online spending shipping with no minimum order court in Delaware. Because the filing was year ended Dec. 31, 2017, and $77.7 million in 2018, moving to third place in the requirement. Other options include a pre-packaged bankruptcy, the bridal for the first nine months of 2018. The rankings, according to eMarketer, which delivery from store and Target Restock, retailer also filed with the court a plan of majority of stores have “profitable four-wall pegs Amazon’s share at 48 percent of total a replenishment program for household reorganization and disclosure statement. EBITDA.” Hilson said the company has e-commerce spending. While Walmart basics. Amazon recently said it would It expects to exit bankruptcy proceedings “only [experienced a] model loss of market and Amazon continue to battle over online offer free shipping in the U.S. with no by Jan. 14, and has in place exit financing of share.” The tipping point was the amount groceries — an area where the Bentonville, minimum order, and removed the Prime between $40 million and $60 million. of debt, most of which was slated to mature Ark.-based behemoth has made some membership requirement. In a statement filed by Joan Hilson, within the next 12 months. headway — Target has been developing Target launched a gift ideas hub, with executive vice president and chief The retailer’s financial over-leveraging private apparel and home brands. suggestions for him, her, kids, pets, financial and operating officer, she said was due to debt from a leveraged buyout. Walmart’s web site said, “Cyber teachers, coworkers and white elephant. the current plan of reorganization has the A 70.6 percent stake in David’s Bridal Monday’s Coming Soon. In the Gifts for women can be fine-tuned further company paying trade vendor claims in was acquired by Clayton, Dubilier & Rice meantime, check out these other deals with categories such as style and beauty, full. Noteholders are part of the agreed in October 2012, with Leonard Green & you’ll love,” with offers for Black Friday. spa night, coffee lovers and new moms. upon workout agreement that reduced the Partners retaining a minority interest of 24.2 Target on Cyber Monday, Nov. 26, will For the latter, a Spa 210 Utrasonic Cool company’s debt to $343 million, upon exit percent. Leonard Green affiliates acquired reprise its one-day sale with 15 percent Mist Aromatherapy Essential Oil Diffuser from bankruptcy, from a prepetition total the company in 2007 from Federated off hundreds of thousands of items on by TrueGuardian, $44.99, was suggested. indebtedness of $777 million. Department Stores. The bridal retailer target.com, including regular-priced and Mark Tritton, executive vice president Tim Hynes, an analyst at Debtwire, said, became part of Federated’s portfolio after sale items. and chief merchandising officer of “Based on projections, the $343 million is Federated acquired May Department Stores The Minneapolis-based retailer will Target, said, “Each day throughout Cyber a reasonable amount of debt.” He noted Co. May acquired David’s Bridal in 2000, offer weeklong deals beginning on Week guests will find new sales and our that since David’s Bridal was a financial and before that the bridal retailer was a Sunday. Offers include a Swagtron Metro lowest prices of the season, and on Cyber reorganization and didn’t have anything to publicly listed company on the New York Hoverboard with LED lights, $150, a Monday, we’re giving them a chance to do with restructuring its operations — the Stock Exchange. It completed its initial $79.99 savings; Philips Analog 4-quart save even more with an extra 15 percent issue was the retailer’s inability to refinance public offering in 1999. Air Fryer, $99.99, $100 in savings; iRobot off hundreds of thousands of items, its term loan — he expects the bankruptcy David’s Bridal employs 9,260 people, of Roomba 960 vacuum, $449.99, $250 including top gifts, on target.com.” process should “move along fairly quickly.” which 2,260 are full time. It has 311 stores, savings, and 15 percent off all KidKraft Hynes also noted that the case is also including 296 locations across 49 states, 11 dollhouses and kitchens. somewhat rare since the retailer is also not stores in Canada, four in the U.K. and two There will be daily category specials closing any stores, another factor that will franchised stores in Mexico. All stores are during Cyber Week. For example, help to move the process along faster. leased, except for two stores in New Jersey on Nov. 25, all apparel and accessories The largest unsecured creditor is the and Virginia. for women, men and kids will be “buy Wilmington Trust Co. based in Guilford, Hilson said revenue comes from the one, get one at 60 percent off.” On Nov. Conn., the trustee of the 7.75 percent senior davidsbridal.com site and at more than 300 26, in addition to the buy one, get one note due 2020, at $270 million. The top brick-and-mortar retail locations, alteration 60 percent off apparel offer, hundreds of fashion trade vendors are Ignite, New York, services at retail locations, franchising thousands of items on target.com will be N.Y., $791,500, and Alex Apparel Group arrangements and partnership programs reduced an extra 15 percent. On Nov. 27, Inc., New York, N.Y., $733,038. with other companies, as well as wedding Target’s exclusive home brands, including According to Hilson, adjusted earnings services programs.

business including warehousing build-outs and IT much higher than the investor average infrastructure, which are expected to pay and we will improve on our gross profit off next year. and also net profit,” said Xuande Huang, JD.com Continues to Grow JD is China’s second largest e-commerce JD’s chief financial officer, during the call. ● Both top and bottom chairman and chief executive officer of company behind Alibaba — and although Revenue growth in the quarter was also JD. “Our ‘Retail as a Service’ strategy is the two are in the midst of a pitched battle at its slowest since the company went lines improved during the also gaining traction as we provide a wide for market share, JD is clearly willing to public in 2014. The top line expansion was quarter, but investors fear range of partners with innovative retail jump into an idea that works, including impacted by sales of large ticket electronics larger macro headwinds. infrastructure solutions.” Singles’ Day, the shopping festival started and appliances during the quarter. The company’s approach and its by Alibaba that has become something And the September arrest of JD’s By Kellie Ell growth clearly has made some believers. like Black Friday in China. founder and chairman Liu Qiangdong in JD.com is growing — and changing — MKM Partners rated the stock a buy and JD rang up 159.8 billion yuan, or $23 Minneapolis over suspicions of sexual fast, but it still might not be moving quick set a price target of $41 — nearly double billion, in sales on Singles’ Day this year. assault — charges he denied — also hasn’t enough for some on Wall Street. the current price. Throughout the quarter, JD continued done much to tame investors fears. The company reported third-quarter Yet some investors aren’t so certain. to attract more brands, including Still, the seemingly unwavering earnings Monday with total revenue of The stock fell more than 6 percent during L’Occitane de Provence, House 99 and enthusiasm among Chinese consumers 104.8 billion Chinese yuan for the quarter Monday’s morning trading session, to less Hera, the South Korean beauty brand, as might be too strong to cause lasting ending Sept. 30. That’s about $15 billion, than $22 a share. The Chinese economy well as fashion labels Salvatore Ferragamo problems to JD. or an increased of 25.1 percent year-over- has been slowing lately, putting more and Furla. Names such as John Galliano, “Until there are either events that year. Income tripled, to 3 billion yuan pressure on JD. And some market watchers Buccellati and Shang Xia can now be improve sentiment or confirm fears, from 1 billion yuan. are concerned JD is slipping as it continues found on JD’s Toplife, the company’s company-specific factors will matter little “We are pleased to report solid to fight for online shoppers against its giant luxury platform. for the stocks,” according to an analysis results for the third quarter, with our e-commerce competitor, Alibaba. And in August, Walmart and JD from MKM Partners. core JD Mall business driving consistent During a conference call with analysts, partnered to invest $500 million in Dada-JD JD expects fourth-quarter revenue to growth under its highly experienced JD executives talked about this year’s Daojia, a Chinese online delivery company. grow at a rate of 18 to 23 percent, out arget photograph by Shutterstock/Sam Kresslein Shutterstock/Sam by photograph arget

T management team,” said Richard Liu, heavy investments into the business, “In a nutshell, next year, we will grow stripping the pace from a year earlier. 6 november 20, 2018

business Greg Scott Greg Scott on Saving NY&Co. And the Power of Celebrities ● The ceo rings the opening 11 stores. “We’ve never been strong at bell of the stock market today, plus-sizes. I don’t think we could do it [effectively] without Fashion to Figure.” telegraphing New York & Co.’s The division has tapped actress and new business model. singer Danielle Brooks as its first “brand ambassador” celebrity tie-in, beginning this By David Moin holiday season. Gregory J. Scott, chief executive officer of Last August, the company struck a New York & Company Inc., has a flair for multiprong, multiyear agreement with Kate the unexpected. Hudson. The “Almost Famous” and “How At meetings with field leaders and senior to Lose a Guy in 10 Days” actress will serve management, “It’s like if I want to get as ambassador of New York & Co.’s $225 people excited, I do a headstand on stage. million Soho Jeans business, and a Kate It’s my out-of-the-box moment. I can do Hudson ready-to-wear brand, yet unnamed, headstands and handstands,” Scott said. will be developed. He dyed his hair bright blonde and let his “With Kate Hudson, what’s different is beard grow to do a segment for the reality that the line won’t say ‘exclusively sold at TV show “Undercover Boss” and had some New York & Co.,” unlike New York & Co.’s rocky times at Bebe Stores during the course Eva Mendes dress collection and Gabrielle of two stints, first as head of merchandising Union’s collection, Scott explained. The and then, following Arden B where he was Kate Hudson line will be sold on her own president, he rejoined Bebe as ceo at the age site, the New York & Co. web site, at New of 40. He was ceo for five years until 2009 York & Co. stores, and additionally, “our when he got fired despite the company hope is her site creates a demand with reporting an 8 cent profit that quarter. As a other consumers so we could possibly buyer at Macy’s and Ann Taylor, he amazed wholesale the collection and open pop-up visiting the corporate division at 11 Penn colleagues with some outsized orders on stores as well,” Scott said. Plaza in New York. “I learned product styles his gut told him to gamble on. New York & Co. started selling an development, how to make the garment, “My first bet was on a Charter Club exclusive collection by actress Union how to cost the garment, how to develop interlock knit turtleneck for Macy’s in August 2017. She’s also the brand the product, which was very fortuitous as West in the late Eighties. Everybody was ambassador for the company’s wear-to- I moved on through my career. If I was just buying like 10,000 or 15,000 units. I said work 7th Avenue subbrand, and with buying off people’s lines, I don’t know if I we’re going to buy 50,000 units of that juggling filming a new TV series and would have the ability” to advance. turtleneck, and Macy’s East and Macy’s being a new mom, “there is opportunity After Macy’s West, Scott moved to South thought my boss and I were crazy. in athleticwear and streetwear. That’s a New York, worked for Henri Bendel for The divisions were very competitive. big part of her life,” Scott said. “Today a year, and joined Ann Taylor when Sally They didn’t want you to win. But that knit she’s just sportswear. We probably could Frame was ceo, Joe Gromek was head of turtleneck sold like crazy. It sold out. It never do active without someone who has merchandising and Kay Krill ran sportswear. was so successful, it gave us the confidence credibility. In active we have none,” though “These were very important people. to buy a lot of polos the next season.” the closest the company comes is selling That’s been a big part of my story. I’ve When he joined New York & Co. initially loungewear, which represents 8 percent or always had amazing people to learn from. as president and six months later becoming 9 percent of the company’s total volume. “Ann Taylor was really my first venture ceo in February 2011, he continued his After more than three decades in the into specialty. It allowed me to understand appearances on Home Shopping Network, industry, the 55-year-old Scott still finds the benefit of going direct. In those days, selling a sportswear line he developed after it fun. specialty was on fire. If Ann Taylor didn’t leaving Bebe in 2009. “I always knew I loved retail,” Scott said have a 10 comp, it was bad. You could “People in the company didn’t know me during a wide-ranging interview at New create product and the consumer loved yet and said ‘Who is this weirdo? They saw York & Co. headquarters on West 34th almost everything you made. Those were me on HSN and said, ‘That’s our boss???’” Street in Manhattan. the heydays of specialty retail. Department Today, Scott has another out-of-the-box As a student at UCLA in the Kennedy stores were like, eh, and specialty retailing moment. He’s ringing the opening bell on School of Government, Scott, a native was coming up. You could do no wrong. It the New York Stock Exchange, to broadcast of Napa, Calif., originally wanted to be was a super fun time in retail. There was the renaming of the corporation from New a lawyer. “I found out I needed to make not a lot of consumer intelligence. York & Co. to RTW Retailwinds, which money first to get into law school. I worked “Today, the customer tells us what she became effective Monday. The name change at the UCLA book store, became the wants. The amount of consumer data signals the corporation’s reinvention from a manager, and just always loved the art of that we have today give us so much more monobrand to a multibrand “lifestyle” retail selling and art of merchandising.” intelligence. The speed of intelligence we platform. The stock price closed Monday at When Macy’s recruiters visited the are getting from digital is making it thrilling $3.50 and has gone from a high of $5.55 to a campus, Scott interviewed for the training again. You can absolutely get early reads low of $1.96 in the past 52 weeks. program, joined Macy’s West, and moved to about what is selling, get back into the “We are looking at what the other San Francisco. “What I thought was going to pipeline much faster than before.” opportunities are outside of New York & be two years with Macy’s turned out to be At Macy’s, he learned he had “an innate Co.,” Scott said. nine. Macy’s training program was genius. If talent for picking product — figuring out A priority is Fashion to Figure, the $20 you were inquisitive, you worked hard, they what was going to sell. I still believe that million plus-size online and brick-and- promoted you really quickly. You started out talent is innate. [But] it can be developed. It mortar retailer, founded by the grandsons as a trainee, rose to department manager, can be trained. It can be honed,” Scott said. of the late Lena Bryant of Lane Bryant and assistant buyer, group manager, buyer. “But to have that innate talent makes it much purchased out of bankruptcy by New York You were always learning and I loved that. more thrilling. I love stores. I love selling & Co. in November 2017. Growing up in Southern California, Macy’s and seeing things sell. My favorite thing is “Could that business be $150 million was always the premiere store.” His first job knowing what’s going to be the best thing to $200 million — yes,” Scott said. “The was in the trim-a-home department. “I had every woman wants and being able to buy it question is how fast can we ramp up to decorate 18 stores for Christmas.” at a great cost, market it, put it in a store and the digital and how fast can we ramp up Scott later became Macy’s West’s buyer be in there and watch people shop.” Gabrielle Union the brick-and-mortar,” from the current for the Charter Club private brand, often When he decided to quit Ann Taylor to Chinsee G eorge by photograph Scott november 20, 2018 7

join Bebe, Frame called him into her office. number-one product. There is a lot of art “She said, ‘You should leave, not because I and a lot of gut to that, but you can totally don’t want you but because you are going teach how to make it a big idea.” to understand the Bebe customer more Last year, New York & Co. turned than anybody I know.’ She knew I always profitable, reporting net income of $5.7 pushed the envelope on fashion,” and she million, from a 2016 loss of $17.3 million. even created a “hybrid” department for Comparable sales rose 1 percent; total Scott to bring products to the business that sales were $926.9 million. For the third weren’t being developed in-house. “I was in and fourth quarters this year, the company the market. Nobody was doing this. I said expects comparable sales to increase guys, this is a big opportunity, and Sally in the low single-digit range, leading to said ‘I understand, but is it for the brand?’ improvements in operating results. She created ATX. I became the merchant. In 2010, New York & Co., which in 1995 I didn’t work through internal design. I was renamed from Lerner New York, “the went to the market,” including Laundry, to brand to most people meant nothing,” supplement Ann Taylor’s familiar wear-to- acknowledged Scott, though there were still work and casual offerings. some loyal shoppers. Now at the vertically structured New “When I came here, my first meeting was York & Co., Scott will encourage his teams Q2 2010 and the cfo said we are going to to utilize the market and as a source of lose $50 million this quarter and we only product it represents around 10 percent of have $20 million in cash. All my research the business. did not tell me that was happening.” As far as picking products and placing Then, after pre-releasing the dismal those big bets, “I’m making less of them,” results, Scott recalls his first investors’ said Scott, explaining a major difference in meeting for New York & Co. “An investor responsibility from his buyer years. “I’ve looks at me and says, ‘This sucks. This is got great teams running merchandising and horrific. Why do you even exist?’ I didn’t planning and allocation, but I still love the have an answer to that. But you better thrill of it. I always say to people, if you put believe in the next five months I got an 15 dresses up on a wall, for some reason, answer — that we exist to make women look one dress pops off that wall for me. It’s like good and feel great and because we have a 3-D. It’s like you look at the wall and see place in their lives.” nothing else but that dress, which becomes From the depths of 2010, Scott traces the a focal point for the next season. That’s the company’s salvation to four key reasons: innate piece. • Investments. A patient investor, John “I don’t know if you can teach the 3-D Howard of Irving Capital Place, which owns piece. But I know you can teach people how 49 percent of the company and has money to assort, how to buy, how to allocate, how made off the business. Irving Capital bought to run a business correctly, how to chase into New York & Co. in 2002 from L Brands. bestsellers. How you move it through the It went public in 2004. “John has had the organization. You can do all of that. The business for a very long time,” Scott said. one thing I’m sure about, even 33 years “Because of his patience, his love of his later, is that you can’t teach how to pick the business, his love of the customer, we have been able to move forward. If he had gotten Danielle Brooks out, this thing could have fallen apart.” • A new leasing strategy. “We stopped doing 10-year leases because we couldn’t Eva Mendes spend the money on building stores. When a lease came up, there were two choices — online. We were still collecting phone in 2010. It took a very long time to land close a store or renegotiate for one or two numbers, not e-mail. We used to send a our first celebrity. Eva gave us a shot. We years. Over time, we closed 150 stores. We postcard every week. Fast forward, online will continue to grow Eva, Gabrielle and kept a lot of stores opened with little to no is in excess of 30 percent of our business.” Kate. We still believe 7th Avenue, a $250 capital and today 70 percent of our real In addition, POS was overhauled and last million subbrand and Soho Jeans a $200 estate is on one- and two-year deals. This year stores became mobile-enable. “We million subbrand, have great opportunity allowed us to over time reduce our store were investing capital on technology even to gain [more] awareness and grow. New costs significantly, renegotiate every lease when weren’t doing amazingly.” York & Co. is really the operating company and have a flexible real estate strategy with • Celebrity. “I will give Grace Nichols of all these great brands that you can find two-year deals or less. Last year, we opened [non-executive chairman and a former head nowhere else. 10 or 12 stores, this year 10 or 11 will open. of Victoria’s Secret] credit for saying we “Am I picking the styles now? No. But We are taking over [some former] Bebe need something to give us that amplification never question that I still influence on stores, which is kind of sad.” so celebrity could be that something. And major big ideas,” Scott said. “The company, • Technology. “The biggest thing was from Day One, I was saying it’s Eva Mendes. John Howard, Grace Nichols, they wanted a three Christmases ago, we turned on She scores incredibly high for style, beauty merchant ceo. They wanted someone who order-online, ship-from-store. It grew our and for people liking her. Along with understood the consumer, who understood online business 100 percent that year. We technology and the store piece, Eva Mendes the product for the consumer. They want to never knew what real demand was. When saved this company. We signed Eva Mendes always make sure I have still have the ability I came here we did $35 million [3 percent] in 2013 but we started talking about Eva to influence product direction.” ■

everything in the business and say things like suiting is dead getting fired from Bebe. I was Day.’ August is about getting the 40 percent or 50 percent off. Quotables how to negotiate the best price when it was lion’s share of the never fired before. It was 2009, kids ready for back-to-school So we created ‘New York Deals’ possible. When you work with business. So we buy jeans, and the world was coming off the and it’s mom’s last few days with, for example, an item listed From a founder, they want to know he was so right, the suiting trend Lehman debacle and the board on the beach and she’s not at $48 and reduced to the how much you’re spending was dying, jeans and a jacket and Manny decided they could thinking about what to wear for everyday low price of $29. She is Greg Scott for a paper clip. I learned how were starting to happen.” do it better. We still made eight fall. So we’ve made Valentine’s seeing that value. We added that to construct a store, pick real cents that quarter.” Day more important and it to our assortment. It’s improved On Manny Mashouf, founder estate, manufacture a shopping On his worst day at work: “It has worked. We’ve made St. conversions and sales.” of Bebe: “At my first meeting bag. That benefited me in a huge was when New York & Co. stock On the best day: “You know Patrick’s Day an event and it’s with Manny, he sits me down way. It allowed me to understand dropped 40 percent in one what? Getting fired from Bebe worked. June used to be all On the weather: “I don’t let and says, ‘I want to talk about a P&L [profit and loss] and affect day. We had an unbelievably was the best thing that ever about sale. Now we bring in a anyone talk about the weather. triangles, what each point of every line item. You had to know horrible quarter. The stock happened to me. I had a time of collection of the bestsellers of When you had a bad quarter, the triangle means and how the cost sheet inside and out. in the after hours was down my life. I still had a lot of energy spring that customers can buy it’s tough. I never think it is the that influences your life, my I learned about the brand and 20 percent. The next day it and passion. I took a year off, in fresh, new colors and prints, environment. It’s always hot life and fashion.’ For the next how to keep in your lane. We was down 40 percent. I had got to figure out what I really not on sale, and they’re the best somewhere and always cold two hours, I talked to Manny were sexy before sexy was sexy, never seen anything like that. wanted in life, spend time with things we do all summer.…The somewhere. Granted, weather about triangles. I thought, ‘Oh our customer was suiting with We went to $1.50. Everybody my family and ski. I did a lot of second thing, was on pricing can influence business, but I my gosh, what did I get into?’ a sexy appeal; Rose McGowan thought we were going bankrupt introspection and I was smarter and promotion. He wasn’t wrong. don’t want to use that as the There was a point to discussing was our celebrity at the time. and that we were not doing when I got this job.” The only thing I would say is our excuse. The excuse is maybe triangles but I can’t remember We started with 40 stores, what we promised. How was I research tells us [shoppers] we should have more wear-now what it was.…It was my first time doing $40 million. When I left going to get the morale of the On takeaways from the actually like the coupon game. assortments. Maybe August I worked with an entrepreneur, a we had 320 stores, doing $800 company up? How am I going infamous Ron Johnson She likes things on a sale. But isn’t about pre-transition founder. The art of negotiation million. Manny had crazy visions to get people to believe in the playbook at J.C. Penney: “A we had nothing in our business anymore and it’s still summer. I with Manny was always a that were dead on. He needed story? And how are we going to couple of things helped our that showed her the actual won’t let anyone say the word big deal. He was all about someone to take that vision and make some changes quickly? business a lot. Ron was all about price she was paying. Everything ‘fall’ until after Labor Day. knowing every single detail of apply it to reality. Manny would The second worst day was ‘February is about Valentine’s was a coupon. Everything was — David Moin 8 november 20, 2018

Digital Download Doubling Down on Luxury At Facebook and Instagram Since Morin Oluwole launched the social media giant’s luxury unit in Paris in 2015, brands have lined up to test new functionalities. By Joelle Diderich

PARIS — The days when luxury brands Morin Oluwole M.O.: I would say the eagerness to were reluctant to adopt social media innovate. Brands [were initially] hesitant to strategies seem far away indeed, yet it was really be in this world, but I think that that’s only four years ago that Morin Oluwole shifted quite a bit over the past few years. moved to France to spearhead Facebook’s And again, it has a lot to do with helping luxury division. brands understand and feel comfortable Since joining the social media giant in about how they can best communicate on 2006, the Stanford graduate has seen the our platforms and how to create the imagery company grow from a staff of 150 to almost that creates desire, without necessarily 30,000. Her unit, meanwhile, has expanded cheapening the value of the brand. from two people initially to a network of There’s this desire to innovate and to be support teams across the United States, first in market, first to test, but that is built United Kingdom, Italy, United Arab Emirates, on a base of trust. Would we have been able Japan, South Korea and Hong Kong. to do that four years ago? Not necessarily. So As Facebook and Instagram have added there’s trust, there’s a deeper understanding new functionalities — amid a steady of our platforms, deeper understanding stream of controversy and scandal at of their consumers on our platforms, and the parent company — the platforms’ deeper understanding of the value that we collaborations with luxury brands have bring to their brand image, notably. bloomed: Louis Vuitton was the first house to use Instagram Stories, shooting WWD: Does this mean they actually exclusive video content to launch its believe in the platform enough that they spring 2017 men’s collection, while Dior think the risk of failure is fairly low? was the earliest to adopt Facebook Stories M.O.: Well, there’s two things. They believe after it launched in March 2017. in the platform, and also we have taken the The statistics suggest luxury brands are time to understand what their needs are wise to engage with their customer base on and to minimize risk where possible. Facebook, which counts 2.2 billion monthly We needed to have a separate team to active users worldwide, and Instagram, have a different approach for luxury. You which has 1 billion. Luxury consumers couldn’t talk to luxury the same way you have almost twice more followers and like talk to consumer packaged goods or other three times more content than the average sectors. It really has to have an intimate Instagram user, Oluwole points out. understanding of the savoir faire and “They’re on the platform every single heritage, and the way that luxury brands day, seven times a week, connecting about communicate, and respect that, to be able 14 times a day — that’s an average,” she to also propose then the right opportunities said. “The lesson here from the brand to innovate and test. perspective is, if a brand is thinking about posting once a week and thinks that they’re “Our focus is not to be too pushy, too WWD: How do you see influencer reaching their consumers, they’re reaching marketing evolving? just 1 percent of the time that the consumer commercial, but to really help brands tell their M.O.: We’re just at the beginning of our spends on our platform, just because integration into this branded content they’re so active.” story in a creative way and an immersive way.” world. I say that because we essentially A case in point is Bottega Veneta. In the took a bit of a back seat prior to this year, midst of a complex turnaround, the maker in that we saw that brands are having these of Intrecciato handbags ran a series of ads communications and relationships with on Facebook and Instagram in April in a vertical and our global luxury partnerships. WWD: When you look at Instagram these content creators and we knew it was bid to boost brand awareness, attract new We work with the biggest groups and, of now, it seems like everyone is on there. happening on our platform, but our goal potential customers and increase sales course, the biggest houses around the When you started four years ago, was was not to be the intermediary, to be an conversions. Thanks to a combination world to develop their communication, it still quite hard to convince luxury agency, or to create links between brands of video ads, photo ads in carousel media and content strategies on Facebook brands this was a necessary strategy? and consumers. format and dynamic ads developed with and Instagram. M.O.: Yes, because we hadn’t been Our focus is on creating an experience Facebook marketing partner SocialCode, Even though the brands either produce present in front of them, so the challenge that is very authentic for the consumer on the Kering-owned brand registered a 68 their own content or work with agencies, was helping them understand what to do our platform, but of course, we’ve observed percent incremental lift in sales online and we guide them on how to develop the and why it was important: helping them how this has evolved over time. Where we in-store, and a doubling in incremental best mobile-optimized content for our understand that luxury consumers are on stand now is to make sure that we foster an return on ad spend. platforms, Facebook and Instagram; media Facebook and Instagram, helping them environment that is authentic, meaning we It’s just one of the examples of how strategies, how to reach the consumers that understand that we can drive business want consumers to be able to see content high-end brands are leveraging the power are most pertinent to them, normally high- results, helping them understand they that is original, that is relevant to them. of social media. In an interview with WWD, net-worth consumers; how to also measure have to rethink — that doesn’t mean create We want to focus on integrity, meaning Oluwole talks about using mobile phones impact of their media investments on specifically, but rethink — the way they we want to stop bad actors, potential to drive customers to stores, who gets to both their online sales in-store and overall create content for the mobile experience. fake accounts, fake likes, many potential eyeball online data, and how Facebook brand development — all that aligned with I don’t think today that there is a deceptive behaviors on our platforms. We deleted 1.3 billion fake accounts in the innovation as well. hesitation to be present on digital. want to create additional transparency, space of six months. We do so with a core marketing team, I think that there is a potential be able to give more visibility to brands to as well as with cross-functional teams, misunderstanding, or even lack of understand, if they work with a content WWD: How did you come to launch support teams that we call “creative understanding, on how to do it and how creator, what is the reach? Facebook’s luxury division? shop,” so they work on creative aspects, to be best at it, and how to make sure it We think it’s important to be able to build Morin Oluwole: I’ve worked across both marketing sciences. They work on drives both brand impact and business tools that give that transparency, because product and engineering as well as, now, measurement and making sure that we impact. That’s where we come in. that doesn’t really exist in this world of sales and business in our HQ in California can measure impact and ROI for brand influencer marketing. and New York, before moving to Paris investments on our platform. The third WWD: A key challenge for luxury How do we measure what that impact four years ago. key team is what we call “solutions brands is to be close to their consumers is for the brand, either in terms of brand This was the first time that the company engineering,” so they really help us with on their smartphones while retaining equity or in terms of sales? I don’t have had chosen to create the global hub of the technical back end, because some of an aspirational quality. In the four much to say on that aspect now because business for a particular business outside this work is actually quite technical, and years since you’ve established the we really are at the beginning of that of the U.S. So you have here in Paris my making sure that campaigns are activated, practice, what’s been the change that conversation, but again, authenticity, team and myself who lead the global luxury running properly. has most marked you? integrity, transparency and ► november 20, 2018 9

measurement are what we see as our role feature. Historically, the shopping feature that can translate to in-store visits. That’s more work for me as a consumer? in how we can support this world. And was limited to feed and limited to images. how we’re able to match the people who M.O.: I would relate that to our approach so, what kinds of creators are going to be And so they tested shopping on Instagram saw ads and who went in-store. to time spent on the platform, specifically more present tomorrow versus today? I Stories, which was video. How we can drive sales online is really on Facebook. Because our focus really strongly believe: those who are the Stories is really where we’re focusing key and really important, and what kind historically has been to maximize, if you most authentic. efforts and we’re seeing that consumers are of formats really drive that desire for the will, the time that consumers spend on spending more time — even up to half of brand, at the same time, to purchase. our platforms. WWD: When did Facebook intensify its their time on Instagram. Cartier is one of our key partners that Since the beginning of the year, we are crackdown on fake followers? The reason why we’re focusing on worked on a new launch of a feature called very much focused on creating a more M.O.: Our efforts have always focused the shopping experience is that we see Collections that was on Facebook. We relevant experience for consumers. What on really preventing the number of bad that Instagram is a very strong tool for worked with them on their Valentine’s Day does this mean? actors and fake accounts on our platforms. discovery. People discover products on 2017 campaign and they were beta testers We are going to make a shift in terms of Certainly in the past two years or so, we’ve Instagram. We started getting anecdotal for the Collections functionality. What is content in the news feed to focus more on devoted even more resources to safety feedback from our clients that people Collections? It allows you to essentially content shown from friends and family, and well-being on our platform. Just to would come in-store to showcase a picture see an image or video and then also see a versus content shown from media and give a bit of context or to quantify that: in on Instagram saying, ‘I want this purse, I product catalog. publishers. That is a very tactical strategic terms of the teams that work on safety and want this dress.’ So we wanted to create This notion of “brandformance”: Here decision that the company took to make well-being on our platforms, we had about a way for consumers to know that, ‘O.K., you have the brand message and the sure that the time spent on the platform 10,000 teams about 18 months ago, and our if I see an image on Instagram, how do I performance by seeing the products and is time well spent, not just maximize focus is to have 20,000 in 2019. translate it to the brand and where can I pricing. This is really what we’re aiming to amount of time spent. And we did that And if I want to be even more specific on find it?’ And so that’s why we’ve created work on and develop with our partners, with the knowledge that that could mean fake accounts, from October 2017 to March these shopping features that create that because our focus is not to be too pushy, that people spend less time on Facebook 2018 this year, we deleted 1.3 billion fake link. You can’t purchase on the platform, too commercial, but to really help brands or that the time spent doesn’t grow, but accounts — just think about that scale. so it’s not about purchasing on Instagram: tell their story in a creative way and an we are focusing on measuring metrics on It’s ongoing work, and most of these it’s really about discovery, and how the immersive way. what we call ‘cares about users.’ They’re accounts are deleted before people consumers either find the products that metrics that help us determine what’s even see them, at the point of creation, interest them or similar products. WWD: What are the big projects and the sentiment behind the consumer because they use bots and animation On the business aspect, we are very challenges you’re looking forward to in experience, versus focusing only on to create these fake accounts, and so keenly focused on how we can support and the next 12 to 24 months? quantitative metrics, like number of we literally catch them with our spam, notably measure drive-to-store impact. M.O.: I would say the two keywords are minutes spent per day. integrity and security systems. A key partner with whom we ran a test innovation and value. Innovation is that is Bottega Veneta in the U.S., where they we continue to work with our partners WWD: How does the launch of IGTV WWD: What have been some of your integrated their customer relationship and ensure that luxury — especially given play into this? notable successes in recent months in management (CRM) consumer database. the creative, visual nature of luxury — is a M.O.: It’s a functionality that we terms of campaigns by luxury brands We showed a set of ads to consumers leading sector to help us drive innovation launched in June of this year to give the on Facebook and Instagram? on Facebook and Instagram. When you on Facebook and Instagram. When I opportunity to creators to develop long- M.O.: A key focus has been not just purchase in-store, you provide your say innovations, it’s what are the new form content. on innovation, but also on driving information: e-mail address or phone ways in which content can be shared We want to cater for all kinds of business results. number. We are able to use a system — and communicated on our platforms? experiences, because at different points We ran up a test with Louis that’s encrypted, of course — that matches Tomorrow, even starting today, we’re going in your day, you could be in the subway, Vuitton over the summer to be able the e-mail or phone number to one’s to be working on augmented reality and where you could just watch 10-second to have the opportunity for people account on Facebook to showcase that virtual reality experiences. We have brands Stories, or before bed, where you have to discover products in the Stories when consumers see an ad on a platform, that are already testing this and exploring more time to watch more long-form what this means for their interactivity and content. IGTV is an opportunity for helping consumers connect with their creators to develop authentic content brand. Dior Couture tested their new that’s built for the mobile experience. collection of sunglasses. Chanel tested their It’s still very much in its infancy, but our new collection of sunglasses as well. focus here is to ensure that people are able You are essentially able to have the to get the content that is most adapted to experience here where you can try on them, to their experience, and that they the product. also feel as though they can get a richer, more immersive message from the brands. WWD: Are there any mistakes or failures that have helped you learn WWD: What other evolutions are you about what you shouldn’t be doing on focused on? the platform? M.O.: We’re going to evolve and really build M.O.: For me, personally, yes. But from up the Instagram shopping experience the brand experience, I think we take across the platform. The first piece that the time to really look at how we launch we developed was Instagram shopping products on our platform and what this for the news feed, where you can discover means for the consumer experience, products; Instagram shopping for Stories, because what we don’t want to do is to be that we’ve tested, and we’re also looking disruptive in a way that we create more to think about what that looks like in the work for our consumers. explorer tab. Because the explorer tab is When we launch new products, really this kind of unexplored, ironically, new features, we test them beforehand area where people can discover new even before brands test them. So we content that is relevant for them or relevant have consumer focus groups that test for their experience. these functionalities. It used to be a little bit of a dead page, It’s a fine line, because when we test if you will, it didn’t really showcase with brands, we are pushing them to test much, and we turned it very much into the unknown, but we also have confidence an active space. that our goal is to build for a better experience. And we take very seriously WWD: What is interesting from the brand input and feedback. For example, media sector’s point of view is that the Collections example that I mentioned, Instagram is providing a platform for that functionality was built for all sectors. emerging voices in fashion who are We found that fashion and luxury sectors not tied to advertising budgets and were really big users of that, but for luxury have greater freedom of expression. in particular, we found that showcasing the M.O.: Exactly, and I think that’s the price was not necessarily a preferred tactic, aspect that scared the houses a little. because it’s either sticker shock or the We kind of came in and said, how do prices are quite elevated. We worked with we make sure that we don’t lose the Gucci, for example, who shared feedback message that we want to communicate, that for luxury, it needs to be possible to that we still maintain this one-to-many have this functionality without the price. point of view which, quite honestly, Our engineering teams listened, and they is really a bit of an archaic way of evolved and changed the product so there’s thinking about things, for thinking an option to utilize Collections without about communication? But our focus is showcasing the price. to respect the sector. We’re not here to disrupt the sector, but to respect them WWD: What would be an example of and think about and share what it means A Bottega Veneta ad on Facebook. a functionality where you’re creating to communicate in this new world. ■ 10 november 20, 2018

A rendering of Cartier’s future storefront at Hudson Yards in New York. business the whole West Side evolve over the years, along with the north end of the High Line.” Cartier’s new location will be more Cartier Shifts Gaze West to Hudson Yards modern than some existing Cartier units. ● The venerable jewelry house is “a nice mix of luxury and new interests luxury jeweler on Oct. 4 filed a lawsuit “The exterior facade allows us to do sets sights on new customers. and other retail concepts that don’t have a in local New York court against Saks, something different. The store will be store in New York yet,” Abramo said. “[The part of Hudson’s Bay Co., claiming the a bit more bold and contemporary and By Sharon Edelson Related Companies, developer of the $25 retailer’s $250 million remodel and a inviting,” Abramo said, adding, “Our store billion mixed-use project] has the ability to related attempt to end years early a design is evolving to be more experiential. Cartier is taking a walk on the West Side. pull together all of those elements.” five-year lease for a retail space within Boutiques will have a local touch. Since As part of a shifting distribution strategy, The Hudson Yards unit will carry its flagship is damaging its business. we’re in an arts community, we’ll find the luxury jeweler on Dec. 24 will close its Cartier’s entire range, from signature Cartier is seeking at least $40 million ways to incorporate art and the artistic two-year-old temporary location at 767 Fifth jewelry collections such as Love, Trinity in damages. Saks two days later filed a mind-set. Cartier has been a pioneer in Avenue and 58th Street, in anticipation of de Cartier, Juste un Clou and Panthère de countersuit against Cartier. promoting the arts through the Fondation opening a 4,669-square-foot unit at the Cartier to engagement and bridal jewelry “The decision to go to Hudson Yards Cartier pour l’art contemporain. Curiosity Shops & Restaurants at Hudson Yards in the and high jewelry. Also on offer will be has been a couple years in the making,” and originality is inherent in our design.” spring, when the Neiman Marcus-anchored iconic timepieces such as Tank, Santos Abramo said. “Hudson Yards was always Abramo said The Shed at Hudson shopping center is slated to bow. de Cartier, Drive de Cartier, Panthère de in our mind in terms of planning to Yards, a new center for artistic invention, Mercedes Abramo, president and chief Cartier, and a variety of leather goods open a store on the West Side. It’s not is of interest to Cartier. “It will be a executive officer of Cartier North America, and fragrances. connected to Saks. The Saks closing was an showcase for emerging artists and will said the Paris-based brand will be one of “We always have at the opening a unplanned situation for us. We had been have indoor and outdoor concert series. two ground-floor tenants — the other, being selection of high jewelry and our unique committed to Saks through 2021.” Abramo We’re thinking about the future and how Watches of Switzerland — with an exterior creations,” Abramo said. “Depending on declined further comment, saying only to involve the Shed with the foundation. facade on the building. “It’s a prime the reaction of clients, we’ll adjust and that the issue is an active legal matter. Hudson Yards is part of the evolution location,” Abramo said. “It will be quite a shift our merchandising. We’ll see what Of the decision to become part of of Manhattan’s retail landscape, and mixture of our luxury peers.” resonates with them. The mansion has Hudson Yards, Abramo said, “Cartier Abramo is keeping an eye out for other The Shops & Restaurants at Hudson four floors, so it will always have more has always been about being curious opportunities. “When we opened the Yards, with nearly 720,000 square feet product. Between Hudson Yards and the and pioneering and top-of-mind with mansion 100 years ago, this was a one- of gross leasable space spread across mansion, we’ll service every client profile.” our clients, with our beautiful creations location city,” she said. “It’s all about six floors, has signed leases with luxury Unrelated to Hudson Yards, Cartier, and locating boutiques where they shop, staying close to our clients. Once Hudson brands such as Van Cleef & Arpels, Piaget, a subsidiary of Compagnie Financière live, work and play. The Hudson Yards Yards is open, we’ll understand and Patek Philippe and Rolex, among others. Richemont SA, recently exited Saks environment and development has been evaluate our retail needs. We’re always Hudson Yards, located between 30th and Fifth Avenue’s Manhattan flagship, very inspiring to us. We’re inventing in open to looking at more stores, but we 34th streets, and 10th and 12th avenues, where it operated a leased space. The a new destination. We’ve been watching have no plans to discuss at this time.”

accessories ability to connect with a younger customer. The collection will launch with 40 styles, each with about five stockkeeping units. Victoria Beckham Taps The new line is set to be sold globally in select department stores, specialty stores, Marchon for Global and premium sun and optical retailers, as well as in Victoria Beckham retail locations and online at victoriabeckham.com. Eyewear License “Our organization is immensely proud to be collaborating with Victoria and ● The new sunglasses Nicola Zotta, who is president and chief her team. We believe that the Victoria and optical frames will executive officer of Marchon, said the eye- Beckham brand is on the rise and quickly wear company was already starting from a becoming one of the most influential in the debut for fall 2019. strong base. “The glasses are already doing industry,” said Zotta. By Samantha Conti very well, so this won’t be a revolution. It’s Paolo Riva, ceo of Victoria Beckham a great start,” she said, describing Beck- Ltd., who had previously worked with Mar- LONDON — Who does the woman famous ham’s aesthetic as modern and fresh. chon before joining Victoria Beckham, said for her sunglasses trust with a major eye- He said that while the Marchon teams the new partnership comes at an exciting wear license? Marchon. were still at work on the new collection, the time, “as we work towards reaching our Victoria Victoria Beckham Ltd. and Marchon Eye- plan is to expand the distribution of Victo- global potential and expanding the brand Beckham wear Inc. have inked a long-term, global ria Beckham optical, and to create special following a series of strategic partnerships licensing agreement for eyewear, with the fits for certain markets including the Asian and appointments since our new share- while continuing to offer our customers a aul Stuart retail rollout starting in the fall of 2019. one. He said there were innovations in the holders NEO Investment Partners. product that they can feel empowered in, Beckham had already been doing eye- pipeline, too, such as lens treatments. The “Eyewear is synonymous with our and excited by.” wear in-house, and Marchon principals collection is being developed in Italy. founder and this license will allow us to Marchon, one of the world’s largest high- said the idea is to build and expand upon Asked how involved Beckham would be, scale our presence in the eyewear retail end eyewear manufacturers and distribu- the existing business and aesthetic, with Zotta called her “the soul of the company,” market and capitalize on Marchon’s techni- tors, works with brands including Calvin optical frames and sunglasses that will and said she’d be taking part in every step. cal innovation, expertise in product devel- Klein, Chloé, Diane von Furstenberg, Etro,

retail between $250 and $500. He added that he was wowed by the brand’s opment and global distribution network, Karl Lagerfeld, Marni and Nike. P by B eckham photograph november 20, 2018 11

Surprisingly, brick-and-mortar retailers business were not drowned out by the noise and energy of online sales and held their own this festive season. 11 Honoré to William Bissel, vice chairman of retail group Fabindia, told WWD that sales were up 13 to 14 percent over the last festive Open Pop-in season, “although the exact estimate is a challenge because of the changing ● The Curated NYC pop-in calendar time of the festive season, will feature an array of which is set by the lunar calendar. While styles in sizes 12 to 24 it was on October 19 last year, it fell to November 7 this year. The sales period is from several designers. approximately one month earlier to a few By Lisa Lockwood days after,” he explained. “I think last year was a subdued year for Size-inclusive everyone following the implementation of luxury e-commerce the goods and service tax, and the earlier site 11 Honoré will demonetization,” he said, indicating open a pop-in that this time all the cities performed space within The Shoppers at a reasonably well. Curated NYC, FLFL-operated Central department Bissel said that there had also been a the multibrand store in India. shift in the real growth categories, with boutique curated by fusion and Western wear being among the Christian Siriano. Patrick Herning business top sellers. “Traditional is also doing well The Curated with, double-digit growth,” he said, adding NYC, at 5 West 54th that stores across the country saw growth Street, includes luxury women’s wear, India’s Festive Season: in business, which was also fueled by the ready-to-wear, accessories, fragrances, large format Experience centers that the vintage home decor and gifts. retailer has been opening. The 11 Honore’s pop-in will be open Department store chain Shoppers Stop, from Nov. 30 to Dec. 30 and will feature A Boon for Retailers which has 83 stores in 36 cities, saw a brisk an array of styles in sizes 12 to 24 from ● E-commerce giants claims of being the leader by far in this business nationwide as well. “Overall, our designers such as Brandon Maxwell, La season’s sales. revenues have increased by a healthy 7.4 Ligne, Prabal Gurung, Sally LaPointe, Flipkart and Amazon saw Both companies said that electronics percent adjusted to the new accounting Victor Glemaud and Zac Posen, in addition exponential growth, but was their biggest sales segment, followed system and goods and service tax in the to others on the platform. Customers brick-and-mortar retailers by fashion. second quarter of financial year 2019 versus will also have the option to order custom Flipkart broke past all existing records last year, despite Diwali and Puja shifting Christian Siriano pieces, as well as other performed strongly as well. to set new benchmarks for the retail by a month this year,” said Rajiv Suri, styles available on 11 Honoré. By Mayu Saini industry, with gross merchandise value managing director and ceo of Shoppers. Patrick Herning, founder of 11 Honoré, sales growing 80 percent over last year, “With a view to ease shopping and make said, “There is truly no better brand NEW DELHI, India — India’s festival and units almost doubling on a year-over- Shoppers Stop’s fashion collections alignment than Christian Siriano’s The season saw strong growth across all year basis. Traffic on Flipkart grew by available to maximum customers, we Curated for our first extended pop-in. categories of retail, both online and at 60 percent over 2017, while transacting scaled our Click & Collect service to more With New York being our largest market brick-and-mortar stores. customers rose 62 percent. “We are clear than 50 stores and expanded our fulfilment coupled with historical event data showing E-commerce companies broke all leaders in smartphones, fashion and center base to 37 stores in addition to the us that our customer average order value previous records, and sales were up in home products. We don’t see any relevant four existing district centers. With this triples when we engage with her in real high double digits over the last year for competition this festive season. We have combined effort, Shoppers Stop has been life, there is tremendous momentum and retailers across India during the almost six- a share of at least 75 to 80 percent this able to serve over more than 25,000 pin excitement around this retail launch.” week period, which includes the festivals time,” said Kalyan Krishnamurthy, chief codes in India,” he said. Herning said 11 Honoré has had a lot of Dushera and Diwali. executive officer of Flipkart. Talking about the changing consumer, of success with trunk shows around the Diwali marks the new year day in the Earlier this year, Walmart Inc. acquired he said they were “looking for fresh country. “The duration of those events Hindu calendar and is also known as the a 77 percent stake in Flipkart with an fashion and latest merchandise during the does not typically exceed a three-hour Festival of Lights. investment of $16 billion. festive season rather than old discounted window. With this type of extended Analysts estimated that the festive But Amazon has been claiming a inventory.” A nationwide campaign, residency and more robust programming period generates almost 30 percent of winning share of the market as well. “Wardrobe Refresh,” had offers from more and storytelling capabilities, we are able retailers’ annual revenues. India’s $750 “The great Indian festival 2018 was our than 400 brands. “Our beauty range, to engage with our customer in a more billion retail industry has been growing biggest celebration ever with more than half women’s shoes, handbags, ethnic wear, authentic and meaningful way,” he said. in double digits, but has seen a slowdown of online Indian shoppers choosing to buy accessories, fragrances, decor and luggage He also believes the pop-in experience over the last two years due to the on Amazon.in, making it the most visited have performed exceptionally well during could signal a need for his own store. introduction of a goods and service tax in and transacted marketplace in India,” the festive period,” he said. “The data that we receive from the July 2017, and an abrupt demonetization said Amit Agarwal, country head, Amazon Other brick-and-mortar retailers that 11 Honoré pop-in at The Curated will policy in November 2016. India. Fashion emerged as the biggest have achieved scale across India reiterated further validate our hypothesis that a Collating results of the highly anticipated category in terms of units sold and new the fact that consumers had not given up more permanent retail strategy is on five-day sale that is held each year by customers acquired, with 63 percent of on traditional retail. the horizon. Most likely, sooner than we e-commerce companies Flipkart and orders coming from Tier 2 and Tier 3 cities. Sadashiv Nayak, ceo of Future Retail think,” he added. Amazon, consulting firm RedSeer said that Amazon Fashion had its biggest Ltd., which has 80 Big Bazaar and 800 there was 64 percent year-on-year growth celebration ever, the company noted, Easy Day stores across 160 locations in the A look from over the same time period last year, with clocking a 2.2 times jump over the first country, said that the Big Bazaar group had House of Fluff that will sales of both companies exceeding $2.3 wave of the Great Indian Festival in 2017. an approximate 20 percent growth over be offered at billion, versus $1.4 billion last year. Women’s shoes saw a 4.25 times jump over last Diwali. “In the fashion space, there the 11 Honoré This was due to a number of reasons. last year and top brands grew exponentially. was a lot of traction in the ladies ethnic pop-in. According to RedSeer, these included W for Woman jumped nine times; Bata, 14 wear and the kids’ wear categories,” he the growth of shoppers from smaller times; Clarks at 12 times; Pepe Jeans spiked said, adding that with efficient vendor cities, more people coming online, 13 times; Casio grew 11 times; Puma, eight management and careful stocking of goods higher awareness of sales and a higher times; Titan, nine times, and Shoppers Stop across the retail store formats, the prices participation by banks and credit card firms brand spiked 8 times over their usual daily were reduced by 4 to 5 percent, giving to offer schemes along with the discounts business, the company said. Jewelry saw a customers more affordable options. and the building of loyalty programs. jump of 3 times. As FabIndia’s Bissel pointed out, there Popular and recognizable to customers In terms of beauty sales, which grew was certainly a clarity of growth this .com

A now are Flipkart’s Big Billion Day sale four times over last year, makeup festive season. (which ran October 10 to 14), and Amazon’s products grew by over 4 times with Kajals “It is clear that the retail landscape Great Indian Festival (October 10 to 15), and lipsticks being big sellers, daily care is changing — the consumer sentiment marked by a blitz of discounting and a time essentials like shampoos and conditioners is high, there is much deep discounting when both companies generate revenues saw a five times jump in sales and, with going on by e-commerce companies and but burn cash at the same time (due to the the winter season setting in, body lotions there is a shift in the way retail works. The deep discounts to draw customers in). The saw a six times growth led by Vaseline huge increase that you see for e-commerce sale period was followed by other special and Nivea. International fragrance sales players of 25 to 30 percent is not just offers for the ongoing festive season, and were up by five times. higher growth — the economy is growing a war of words as both companies claimed “Sales in the first 36 hours nearly about 7 percent — but the seismic shift to have outdone the other in terms of surpassed the entire first wave last year and from smaller retailers is being picked up capturing market share. the event exceeded our most aggressive by e-commerce, from unorganized sector

erning photograph by M adison c G aw/ B F by H erning photograph Industry analysts backed Flipkart’s plans across all categories,” said Agarwal. to the organized sector,” he said. 12 november 20, 2018

All kinds of accessories are broadcasting bright colors for spring. photographs By Corey Olsen Prop Stylist: Melissa Stammer

Sandro’s sneakers, Pared Eyewear’s sunglasses and Lacoste’s watch. november 20, 2018 13

Marc Fisher LTD’s sandals and Furla’s candy bag. 14 november 20, 2018

In Focus: Business Insights

Textiles online Texworld Returns to N.Y. Study: ● Texworld USA’s winter edition Global Online experts. Tricia Carey, Lenzing Fiber’s will take place at the Jacob K. director of global business development, Javits Center on Jan. 21 to 23. said, “During this time in which the Shopping apparel industry faces many sourcing By Tracey Greenstein challenges, we look forward to a robust Texworld USA supporting alternatives Adoption Textile sourcing event Texworld and solutions for the market. The Lenzing USA will soon return to New York for Innovation Seminar Series includes topics Has Peaked its winter edition with a refined focus ranging from sustainability, trends and on sustainability, according to show sourcing. For the direct-to-consumer ● The Pitney Bowes survey polled organizers. The event will take place at (DTC) businesses seeking flexible more than 13,000 consumers the Javits Convention Center on Jan. 21 to suppliers, Lenzing has recommendations 23, showcasing previews for upcoming for sourcing fabrics with Tencel Lyocell and more than 650 retailers. spring 2019/2020 “colors and textures.” and Modal.” Texworld unites industry experts, And Apparel Sourcing USA, one of designers, fabric buyers, merchandisers the few events in North America that and sourcing professionals with focuses on sourcing finished apparel, manufacturers and global suppliers, contract manufacturing and private including fabric, trims and accessory label development, is co-located with suppliers. Its product selection will Texworld USA and will also underscore feature over 16 categories, including sustainability as its “spotlight” across its knits, functional fabrics and denim at 21 product groups. Apparel Sourcing USA “reasonable” prices, show organizers is a long-term joint venture partnership said. And Texworld’s Local Loft will between Germany’s Messe Frankfurt and return for its winter edition, which China’s CCPIT-Tex (Sub-Council of Textile features domestic and local suppliers that Industry), show organizers noted. Online shopping. focus “on low minimums.” Jennifer Bacon, show director, The event’s education component fashion and apparel, said Texworld’s E-commerce adoption by consumers has includes a trend showcase and exhibitors “now more than ever know Textiles. reached its peak — but they are shopping assortment of complimentary educational the importance of speed to market as online more frequently, according to the sessions that cover chemical-free dyeing well having the ability to supply eco- trade fair organizers, we are addressing latest Pitney Bowes global e-commerce processes, effects from tariffs and friendly sourcing options to retain and this market change by spotlighting this study that revealed a decline in global, China’s take on sustainable solutions, obtain buyers. Manufacturers are starting topic in our upcoming winter edition online cross-border shopping for most among other subjects, in addition to a to see this as a requirement and not of Texworld USA. Our educational countries except the U.S. and Japan. revamped lineup of Textile Talks and just an option due to increased global platform will provide a prospective from The survey, which polled more than 650 Explore the Floor discussions centered concerns about business practices. countries, retail brands and industry retailers and more than 13,000 consumers, on topics such as technology and fabric Though sustainability seems like a ‘buzz’ experts practicing sustainable, conscious also found that, on average, most consumers innovation. Also of note is Texworld‘s word in the apparel industry and few ways of apparel sourcing. Our featured (about 60 percent) are shopping at online educational Seminar Series, organized brands have made serious commitments, Resource Row will give our attendees marketplaces such as Amazon, Tmall or by Lenzing Fibers, which will feature the question is becoming who will get tools for fabric recycling, ethical fashion eBay. The rest are buying goods online at a various sessions hosted by industry ahead of the game or be left behind. As education, fair trade and more.” retailer or brand site such as macys.com, walmart.com or apple.com. Regarding consumer behavior, the survey revealed that 91 percent of consumers technology abandon online shopping carts when shipping is not free or fast enough. Authors of the report said while expectations for “fast and free are becoming more and more Dosh Card-Linked App demanding,” 95 percent of respondents “consider two-day free shipping ‘acceptable,’ only 47 percent consider it ‘fast.’” Offers Cash Back Some additional takeaways from the study include that 90 percent of online apps “purely for the use of shopping” and 69 shoppers in the U.S. “say they have, or will ● Trending as the number-one Cashback through percent of Millennials and 68 percent of Gen "card-linked" offers. hurt a retailer’s brand in response to a bad shopping app on the Z shoppers “frequently purchase items on post-purchase experience, ranging from Apple Store, Dosh aims their smartphones.” sharing their frustrations on social media With card-linked apps, users get cash of consumers.” to never purchasing from the offending site to put the money back into back automatically on their everyday And making this connection seamless again,” researchers said. consumer pockets. spending — perhaps saving up for high- with “real-time data” and transaction The report showed the prominence and value goods down the line, rather than matching, the money is there — more importance of subscription boxes. More By Kaley Roshitsh waiting to accumulate points or coupons, than 37 million in cash back was allotted than half of the Millennials polled “are now which often sit unredeemed if a lengthy to Dosh subscribers. enrolled in at least one subscription box” “Easy money” — that’s the aim of Dosh, redemption process exists. As to the benefits for retailers and and the researchers said this is expected to a cash-back app trending last week on the For consumers, the ability to “save on direct-to-consumer brands, Brodigan sees grow “11 percent by next year.” Apple store as the number-one shopping what they want to do and need to do” is card-linked offers as “the next generation “Rather than search for a product app, even beating out the Amazon shopping how Dosh provides a service, said Brad of performance-based advertisements, themselves, consumers can rely on brands app, which landed in second place. Brodigan, president and chief operating especially for brick-and-mortar retailers.” to come to the table and curate products Dosh is a “card-linked offer” provider officer of Dosh, in an interview with WWD. With the consumer need for on their behalf, creating a new opportunity that works by securely linking a customer’s Working with retail partners such as experience and human connection as a for retailers to generate awareness in their credit card, be it American Express, Forever 21, Payless, Sephora and World prevailing motive for in-store shopping, brand,” Pitney Bowes stated. MasterCard, or Visa, to their everyday Market — Brodigan states how the value for Dosh sees an opportunity to drive Regarding cross-border transactions, the spending and back to their wallets. Dosh partner retailers lies in propagating in-store transactions, stimulate new adoption rate of U.S. consumers shopping Dosh is trending today as the number- more purchases and repeat customers. consumer loyalty and optimize average globally increased 2 percent year-over-year. one shopping app on the Apple Store. With a firsthand knowledge in payment order value on a performance basis. In Japan, the rate rose 3 percent. But all Nothing new here, Millennials and Gen processing and hosting from his five Already seeing a 92 percent user other countries showed declines. Zers have shown an affinity for app usage. years at PayPal, Brodigan believes retention rate with their cashback The study found that high shipping According to Dosh’s loyalty survey, more the value of Dosh lies in connecting offering, the card-link offer may serve costs and slow delivery times were the top than 60 percent of Millennials and Gen Zers consumers to missed cash opportunities as a valued link between retailers and reasons for cart abandonment of cross- nline shopping photo shutterstock.com O nline shopping photo Frankfurt; M esse of courtesy photo extile

T have directly linked their bank accounts to “connecting billions of dollars to millions consumer loyalty. border shoppers. —Arthur Zaczkiewicz VIRGIL ABLOH

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It Might Be Time for Leila George To Quit Her Waitressing Job The daughter of actors Vincent D’Onofrio and Greta Scacchi was raised out of the spotlight and, at 26, is just now ready for Hollywood. By Leigh Nordstrom photograph By Lexie Moreland

On paper, Leila George When asked the reason are you doing, what do you want She wanted to protect me from expected, I would just be like, Santa Monica called Élephante. should’ve been the leading for her trip to New York, she’s to eat today?’” that and raise me away from ‘No, no!’” she says. “And I always “So that's why I sound like a starlet of a soapy teen drama immediately humble. “I'm here George was born in Sydney, everything. I spent my childhood thought I was going to direct rescue dog or something,” she years ago. She’s Hollywood to promote my movie ‘Mortal raised near Brighton, U.K., building huts out of sticks and instead — because then I could says of her accent. “I feel like offspring (daughter of actors Engines.’ Not my movie,” she purposefully out of the film riding my bike with my neighbor boss my parents around.” it used to be this strange mix Vincent D'Onofrio and Greta says, momentarily embarrassed. industry's spotlight — save for down to the woods with saws to She was studying film at between English and Australian, Scacchi), she’s gossip mag ”That was super obnoxious.” some time on the Chelsea Piers cut down trees.” the Sydney Film School, and but my dad's born and raised fodder (see this summer’s Daily She’s just completed her first set of “Law and Order,” which her Naturally, she resisted acting when it came time to apply to in Brooklyn, so I've had him in Mail photos from her beach Comic Con for the film, and the father was on for a decade. in retaliation against following in directing programs for university, my ear all my life. Waitressing vacay with Sean Penn) and, experience gave her her first “My mom moved us there her parents’ footsteps, until she she found herself stuck, in America, people don't when she strolls up at the Roxy taste of Hollywood culture shock. when I was one; she grew up in finally gave in. unmotivated. “I remember sitting understand what I'm saying. So Hotel in downtown New York in “I've never done that kind of the same area,” she says of the “Because of my parents, in this tiny shoebox room that I I'll add Rs to things just to not an ab-baring crop top and flared thing before where I'm walking Brighton area. “It was kind of like people would always ask me if had in Sydney on Bondi Beach have to explain my whole life white jeans, clearly possesses out on stage and people are a little nest to raise me in. She's that's what I was going to do. and I called my dad. He said, story at every table I go to.” a natural self-confidence that excited to see me and then an actress, too; at that time, Maybe out of embarrassment 'What are you afraid of most in “Moral Engines” is her first makes you instantly want to we're doing all the panels where she was quite a public figure. or feeling annoyed that it was the world?' And I said, ‘Acting.’ big project. Following, she will know her story. we like do our signatures. And he said, 'I think that's what be seen in “The Kid,” which is But the life of a scion hasn’t And it's so new to me that my you need to do.’” her father’s directorial debut interested George, who, at signature changed like five times She says she was intimidated and which stars Chris Pratt and 26, only recently gave into a throughout the day,” she says. by her parents’ success in the Ethan Hawke. George says she’s longtime interest in acting and “So, like, everyone has a poster “[My dad] said, industry and was afraid she moving at a slower pace than decided to pursue it slowly, with a different signature.” wouldn’t be able to measure up, some of her peers because on her own terms, and while That, and the craze of Comic ‘What are you afraid of but knowing that her father was she’s “picky” and wants to supporting herself as a waitress Con, is a bit different from the life right, enrolled at the Strasberg choose projects consciously. out in Los Angeles. she’s hopping back to in L.A. most in the world?’ Institute in New York. “And that was “At the moment, while I don't Despite an upbringing from “I'm thinking, ‘This is really it. It was kind of, like, ‘I guess this is have any kids or family to support, two industry figures, George is weird because I'm now going to And I said, ‘Acting.’ what I'm doing now,’” she says. I would rather work in a restaurant far from a Hollywood princess, get on a flight to go back to L.A. She moved out to L.A. roughly and support myself that way and she still maintains the rather where I'm still waitressing four And he said, ‘I think that’s four years ago, which is where than do s--tty jobs that I don't adorable innocence of an up- days a week,’” she says. “I'm here what you need to do.’” she is based now, auditioning believe in,” she says. “So I've been and-comer, before all the media one minute and then the next and waitressing on the side as holding out to do the good things. training seeps in. minute I'm gonna be like, ‘Hi! How Leila George a newly opened rooftop bar in Hopefully it pays off. We'll see.” ICSC A SHOWCASE OF THE LATEST AND GREATEST IN RETAIL REAL ESTATE

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FOR MORE INFORMATION, PLEASE CONTACT SAMANTHA HARTJE, ACCOUNT DIRECTOR AT 646 356 4703 OR [email protected] 18 november 20, 2018

Fashion Scoops

The move comes at a time “She will work closely with the and jewelry. A look from Celine. Marianne Romestain when a growing number of brands company’s other departments “Lori’s passion and are opting to present women’s to offer customers a global, enthusiasm resonates not only and men’s wear at the same time. differentiating and omnichannel within the NPD organization, but Maison Margiela staged its first fashion range,” the group said in makes her a highly respected coed show this season, while a statement. and well-known presence in brands including Stella McCartney, Romestain reports to the industries she touches. Balenciaga, Haider Ackermann Nicolas Houzé, ceo of Galeries As we look to take our beauty and Sonia Rykiel featured models Lafayette and BHV Marais, and business to the next level, Lori’s of both sexes on the catwalk. is a member of the executive expertise will allow us to partner French conglomerate LVMH committee. The executive had with clients in new and different Moët Hennessy Louis Vuitton is been chairwoman and ceo of ways, and identify additional making a high-profile push into Lancel since 2014, and prior to opportunities to help grow the booming men’s wear market that was ceo of the Gérard Darel their businesses,” said Joanne with the launch of the category Group from 2011 to 2013. — J.D. Sackett, president of NPD’s at Celine, an increased focus on Softlines sector. men’s at Givenchy, as well as the “Exciting changes are under appointment of new designers Beauty way in the beauty space — an at the helm of Louis Vuitton, Dior industry which, in many ways, and Berluti in the last year. Chief is setting a precedent for — Joelle Diderich The NPD Group has a new others. I am thrilled to be part head of its U.S. beauty division — of the industry during this accessories and beauty for the Lori Monaco. critical moment in its evolution, Romestain Galeries Lafayette and BHV Monaco was most recently and leading a talented NPD Marais department store chains, president of the firm’s fashion team with the data assets and Joins effective immediately. footwear, accessories and luxury industry expertise to guide Givenchy to switch back to the Romestain, who has divisions. At her new role as our clients during this For the Boys men’s wear fashion calendar for Galeries 25 years of experience in president of U.S. beauty, Monaco competitive, yet opportunistic The Paris men’s calendar just the fall 2019 with a presentation management, consulting, will be responsible for overseeing time,” said Monaco. gained another heavy hitter: Celine on Jan. 16, as reported. Lafayette marketing and communication NPD’s portfolio of beauty Sarah Bloch is assuming will stage a show in January, mere Celine is in talks with the Galeries Lafayette Group for companies including Fast services and product offerings. the role of commercial lead for months after creative director Fédération de la Haute Couture et has appointed former Lancel Retailing and Cartier, is charged She has been with NPD since NPD’s fashion footwear and Hedi Slimane launched its men’s de la Mode on an exact date for its chief executive officer with developing the retailer’s 2003, working across fashion, accessories practices. She has wear division during a coed show display, which could also include Marianne Romestain as head offer to support its digital footwear, accessories, food, been with NPD for three years, on Sept. 28, a spokeswoman for a handful of women’s designs, of a newly created buying and transformation, strengthening beverage and packaged goods. and has more than 16 years the brand said on Monday. though no decision has been merchandising department brand partnerships and boosting At NPD, she helped spearhead of experience in the footwear This follows the decision by taken, the spokeswoman said. responsible for ready-to-wear, its private label offer. the firm’s tracking of watches industry. — Allison Collins

Gucci’s “World (The Memo Pad Price of Love)” book.

have been countless internet — teasing “Be honest: This is why Goop Tube takedowns of Goop’s advice and you’re here in the first place.” Katzeff There’s no stopping the growth products and it recently settled The financials of the potential of Gwyneth Paltrow’s Goop. with the California Food, Drug and deal are unclear, but Paltrow To CNE The high-end, love-it-or-hate-it Medical Device Task Force over has been developing the show Condé Nast has hired online lifestyle brand that Paltrow started some product claims it published, for more than a year, telling video executive Oren Katzeff to just over a decade ago as a list of but there’s no arguing that The Hollywood Reporter last run its entertainment division. her favorite things and places for wellness consumerism has done September that she was working Katzeff is joining Condé from inquiring friends has had a busy little but grow in recent years, with with a production company Tastemade, a Millennial-focused year. With an additional $50 million no signs of a slowdown. to get a series pitch together. online platform that makes and in Series C funding, Goop has A Netflix spokeswoman Paltrow is also speculated to star distributes videos on cooking, gone international and pushed declined to comment on talks in the show, which is said to be food and travel, where he was further into traditional retail, or an impending deal, as did a shaping up to be a series looking global head of programming expanded its own brand, which spokeswoman for Goop. at wellness and homeopathic for five years. He’s taking up is set to make up at least half But mockery and watchdog traditions in different cultures. But the title of president of Condé of the company’s e-commerce concerns can’t sideline the nothing is yet final, sources said, Nast Entertainment, previously revenue, launched a podcast and brand’s ambitious growth and not even the prospective deal with held by Dawn Ostroff, who in taken back control of its quarterly derision seems to only embolden Netflix. And Paltrow’s involvement June left Condé for Spotify. The magazine from Condé Nast. it — it’s even starting to absorb could turn out to be more like position also includes oversight of Next up is TV. Sources tell WWD the inevitable criticism into its the Goop podcast, sources said, CNE’s TV and film business, which that Goop is in talks with Netflix marketing. The recent launch which is often hosted by chief has previously included work with to shoot and stream a series of its annual gift guide included content officer Elise Loehnen. Netflix, Vice and Amazon. a digital publisher for the photography, Parr shot models based on the brand’s core theme a section for “the ridiculous but Netflix is more of a content “We had incredible interest in Internet. Katzeff led video for sporting Gucci attire and of “wellness” — a focus that has awesome” — with suggestions producer than ever, and over the this role from highly accomplished Tastemade, which only launched passersby around Cannes, on put both Goop and Paltrow, the ranging from 24-karat gold rolling past year has cut mega-deals with candidates with backgrounds in 2012 and boasts 250 million the French Riviera. In particular, company’s chief executive officer, papers to an electric yacht to producer/creators like Shonda ranging from traditional television active monthly viewers with 3 most images are set at the local under the microscope. There renting out a small Spanish town Rhimes and Ryan Murphy, who’s and film to digital pure plays, but billion video views per month, InterContinental Carlton Cannes creative partner Brad Falchuk Oren stood out because of his and where he executive hotel and beach club, where Gwyneth Paltrow at just married Paltrow. The platform unique insight, ability to create produced a number of shows talents posed holding ice cream the recent opening has worked recently with media addictive content, and innovative for Facebook Watch. Prior to and inflatable beach toys. of a Goop pop-up. brands and notable people on operational expertise,” Condé’s Tastemade, he led marketing With 1,000 copies available, shows, like Vox and the Obamas, chief executive officer, Bob for ZEFR, which mainly trades “World (The Price of Love)” will which are reportedly developing Sauerberg, wrote in a memo on in movie trailers and clips, be distributed by London-based a nonfiction series, an area Netfix the hiring. and held various executive or independent publisher Idea and has become a go-to for. Sauerberg, to whom Katzeff management positions at humor will retail at $60 starting from Goop also has a knack for will report, added that he sees site Cracked and Yahoo! Media. Nov. 29, when it will be officially incorporating third-party branding Katzeff as “the future of our Katzeff, who starts at Condé launched at the Gucci Garden into its retail, editorial and video business.” in two weeks, said he’s “excited to in Florence with a special e-commerce businesses, which When Ostroff left six months lead the team at such an inflection book-signing event with Parr. In offsets cost and drives revenue ago, Sauerberg stressed CNE and point for CNE’s growing video addition to the Florence unit,

for both parties, something that video as key to the company’s business.” — K.H. the tome will also be available O wen Kate Celine by A / RE X/Shutterstock; could well continue in a TV show. future and noted that the division at the newly opened Gucci More interesting to Netflix is likely generates more than 1 billion Wooster Bookstore in New York, the brand’s built-in audience — unique video views per month. The Gucci Riviera select stores worldwide and on asmus/ B F live wellness summits featuring company currently creates about Gucci is launching its latest Idea’s e-commerce. Paltrow and other celebrities have 5,000 videos a year. limited-edition publication, titled Founded in 2009 by Angela sold out, as have Goop’s vitamins, Katzeff does seem to have “World (The Price of Love).” Hill and David Owen, Idea already and many of those fans would a background tailor-made Named after a song by the distributed Gucci’s former limited- likely watch a Goop series based for Condé’s ambitions around British band New Order, the book edition publications “Disturbia” on the brand’s wellness position. video — the company’s main includes imagery of the brand’s by Peter Schlesinger, “Hortus And many more would likely area of investment and growth cruise 2019 collection lensed by Sanitatis” by Derek Ridgers and tune in as well, if only to hate- as it shifts from being a print photographer Martin Parr. “Epiphany” by Ari Marcopoulos.

watch. — Kali Hays publisher of magazines to Known for his documentary — Sandra Salibian N eil R by photograph altrow P