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Wwdadvertisement ADVERTISEMENT WWDTUESDAY, SEPTEMBER 9, 2014 ■ WOMEN’S WEAR DAILY ■ $3.00 REL19_CH_Adv-WWD_106144_REL19_v4.indd 1 8/18/14 3:05 PM REL19_CH_Adv-WWD_106144_REL19_v4.indd 2 8/18/14 3:05 PM LIMITED EDITION PUSHING ON MASERATI AND ZEGNA UNVEIL THEIR SALAD THE NEW YORK FASHION COLLABORATION. PAGE 23 WEEK PARTY SCENE DAYS SPRINTED INTO ITS BLOGGER CHIARA THIRD DAY — WITH FERRAGNI OF THE SOME INCREASINGLY BLONDE SALAD TALKS UBIQUITOUS FACES. ABOUT HER GROWING PAGES 22 AND 23 BUSINESS. PAGE 16 LOOKING TO INVEST Know These People: Fashion’s Money Men By EVAN CLARK THE FASHION RUNWAYS are being stalked by in- vestors wanting to buy more than the latest looks. Dealmaking is heating up in the industry. And while designers are very familiar with many of the would-be buyers — including Bernard Arnault, TUESDAY, SEPTEMBER 9, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY François-Henri Pinault and Johann Rupert — there’s WWD another group out there that’s extremely well-fund- ed and can’t be ignored. So designers not only need to know those three luxury titans, but also Stephen Schwarzman, John Danhakl, David Dominik and lots, lots more. Private equity players have a record $1.2 trillion in “dry powder,” or committed capital that is yet to be invested, according to research fi rm Preqin. That’s $139 billion more than the big-money investors had at their previous high-water mark in 2008. The successes of not just the Michael Kors and Tory Burches of the world, but also of the Warby Parkers, Nasty Gals and Rent the Runways have whetted the appetites of big-money investors looking for exponential growth. “Warby Parker’s become a kind of verb,” said John Howard, chief executive offi cer of Irving Place Capital, referring to the attention the company’s direct-to-consumer model has garnered in invest- ment circles. “The idea of getting rid of the middle man and get- ting right to the consumer is profound,” Howard said. And tech is only becoming more intertwined with fashion, which is gaining currency in Silicon Valley. Norwest Venture Partners has found its way to fashion brands via technology and e-commerce and has invested in Gilt Groupe, ModCloth and Kendra Scott. Sonya Brown, a general partner at Norwest, Garden said, “The thing about e-commerce is we want to fi nd areas where we don’t think Amazon can play in a big way, so areas that aren’t going to get commoditized Party SEE PAGE 20 Carolina Herrera’s modern take Twitter’s ‘Buy’ Button on fl oral arrangements featured fl amboyant blooms, digitally Debuts With Burberry printed, blown up and pixilated, on dresses, cropped jackets and By RACHEL STRUGATZ fl uid pants. Here, an ivory gown NOW IT’S Twitter’s turn to try commerce. blossoms with a single big bud. The social network, which boasts 271 million average monthly users, on Monday unveiled a “buy” button that For more on New York Fashion allows users to buy directly from a tweet. The move is Week, see pages 8 to 14. an attempt by the social network to generate another revenue stream and satisfy the ever-hungry Wall Street for ongoing growth. And the Street seemed to like the concept: On Monday, Twitter’s shares closed at $52 on the New York Stock Exchange, a 2.6 percent increase. The tool, built in partnership with platforms such as Fancy, Gumroad, Music Today and Stripe (for order fulfi llment, presentation and transactions), is being unveiled with some big names. Burberry is the sole brand from the luxury fashion world participat- ing in the initial launch, with Eminem, Demi Lovato, Pharrell Williams, Soundgarden, Wiz Khalifa, Home Depot and nonprofi ts like GLAAD, Red and 9/11 Day also part of a select test group. “When you’re talking about a consumer’s payment info and commerce in general, we’re going to wade very cautiously into those waters — [so] when larger brands jump in they can feel great about the experi- ence,” Nathan Hubbard, head of commerce at Twitter, told WWD, citing Burberry as a brand that is innova- tive in its use of Twitter. “We’re testing with them, and I think we’ll break some grand with them and set some examples of other ways brands can follow.” Twitter views commerce as a stand-alone revenue stream. The company thinks e-commerce can parallel PHOTO BY STEVE EICHNER SEE PAGE 6 elietahari.com elietahari.com 4 WWD TUESDAY, SEPTEMBER 9, 2014 L’Oréal Buys Brazil’s Niely Cosméticos THE BRIEFING BOX The deal is subject to regulatory approvals, IN TODAY’S WWD By MILES SOCHA L’Oréal noted. Latin America represented 8.9 percent of PARIS — Continuing its push into emerging mar- L’Oréal’s revenues last year, with the zone posting a kets, L’Oréal inked a deal to acquire 100 percent of gain of 11.5 percent in the period. New York Fashion Week Brazil’s Niely Cosméticos. Investment bank Michel Dyens & Co. advised street style. For more, The French beauty giant described Niely as the larg- Niely’s shareholders in the transaction, according see WWD.com. est independent hair-color and hair-care company in to sources. Brazil, generating net revenues in 2013 of 405 million L’Oréal has been one of the most active beauty Brazilian reals, or $188 million at average exchange. firms on the mergers and acquisitions front re- The company’s main brands are Cor & Ton for cently, demonstrating interest in brands at various hair color and Niely Gold for shampoos and care. stages of their life cycles. Both are sold at “accessible prices and enjoy a In June, it added the makeup artistry brand large penetration among the country’s middle NYX Cosmetics to the fold. Last April, L’Oréal class,” L’Oréal said. completed the acquisition of Magic Holdings Daniel Fonseca de Jesus founded the company International Ltd., a maker of Chinese facial masks, in 1981, and is to join L’Oréal Brazil’s strategic com- and the purchase of Decléor and Carita from mittee as vice president. Shiseido Co. Ltd. KIBLER “The acquisition of Niely Cosméticos is a stra- And last October, The Body Shop, which is tegic move for L’Oréal in Latin America and Brazil, owned by L’Oréal, purchased a 51 percent stake in RYAN one of the biggest and fastest-growing hair-color multibrand beauty retailer Empório Body Store BY and hair-care markets in the world,” said Frédéric in Brazil, with an option to increase its ownership PHOTO Rozé, executive vice president of L’Oréal in charge share to 80 percent by 2019. of the Americas. Brazil has a population of about 200 million and Niely Cosméticos has industrial and logistics fa- claims the largest economy in Latin America. The cilities based in Nova Iguaçu, part of the greater beauty market there has been booming and ranks A growing and varied group of investors wanting to buy more Rio de Janeiro area. fourth in the world. than the latest looks is on the hunt in fashion. PAGE 1 ’’ Twitter made its most ambitious entrance into the commerce space by unveiling a “buy” button that allows users to buy Manufacture NY Awarded Obama Fund Grant directly from a tweet. PAGE 1 Herman Bott, 74, a well- respected senior human resources resurgence,” said MNY chief executive officer Bob PAGE 6 By ARTHUR FRIEDMAN executive in the apparel industry, died Thursday. Bland. “We’re hopeful that this recognition of our hard work will help to inspire other domestic man- Humberto Leon and Carol Lim love nothing more than to stage NEW YORK — Manufacture New York, a hybrid ufacturers to move forward. Local apparel produc- a show, but the Opening Ceremony spring show was theater in fashion incubator and factory for independent de- tion is indeed beginning a renaissance in New York PAGE 11 signers, has been named one of 50 national winners City, and we’re grateful that the SBA is willing to its most literal sense. of a U.S. Small Business Administration award and contribute to our incubator’s ability to help local will receive a $50,000 grant as part of an Obama ad- startups and entrepreneurs.” Coco Rocha turned up early for Carolina Herrera’s show ministration Growth Accelerator Fund competition SBA launched the Growth Accelerator Fund com- Monday — in the audience. The model has a new Harper Collins looking to invest in job creators. petition in May to award “supplemental and critical book due out late next month called “Strike A Pose.” PAGE 16 capital to the operating budgets of entrepreneurial ecosystems across the United States.” Special consid- The Blonde Salad’s Chiara Ferragni is perhaps the first eration was given to “any accelerator models which blogger who’s managed to parlay a personal style blog into a Local apparel production support manufacturing.” fully realized brand and global business. PAGE 16 “The SBA is empowering accelerators and start- is indeed beginning a ups that are on the cutting edge of successful, in- Factories and customers looked beyond price to critical novative new endeavors,” said SBA administrator factors such as flexibility, quality, service and speed to market renaissance in New York City. Maria Contreras-Sweet. “We’ve seen the enormous at Sourcing at MAGIC. PAGE 17 success of the accelerator model in communities — BOB BLAND, MANUFACTURE NEW YORK like Silicon Valley. We believe we can export this Première Vision’s fall edition will unite all six trade shows type of sophisticated support structure across the featured under the Première Vision Pluriel banner.
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