BODY SHOP’S NEW HEAD/2 ARNAULT, FRERE FORM FUND/2 Women’sWWD Wear Daily • The Retailers’FRIDAY Daily Newspaper • October 20, 2006 • $2.00 Beauty

▲ Clarins’ new Expertise Digging 3P. Page 4. For Gold Parfums Christian Dior has set its sights on recapturing a share of the high-end U.S. specialty store business with L’Or de Vie, a two-item skin care offering developed specifi cally for the American market. Two forms, a cream for $320 and an extract for $350, will enter 60 Neiman Marcus and Saks Fifth Avenue doors on Dec. 26, and sources estimate they could do $5 million at retail in their fi rst year on counter. For more, see page 4.

Tommy’s Latest Take: Moving Upscale While Expanding Abroad By Miles Socha The $1.7 billion company “The one thing we want to avoid PARIS — At a massive party soldiers on with a global upgrade at all costs is overexposure,” said headlined by Lenny Kravitz and expansion, but aims to do so Fred Gehring, chief executive officer

Y MEGAN MCINTYRE performing for a busload of in modest, measured fashion, now of Tommy Hilfiger Corp. “We’re celebrities, Tommy Hilfiger this that it’s out of Wall Street’s glare not going to be volume-driven.” week feted his new flagship here in following its acquisition last May That’s quite a change for the fine, flashbulb-popping style. by an Apax Partners fund. See Reconfi gured, Page 9 PHOTO BY ROBERT MITRA; STYLED B ROBERT PHOTO BY 2 WWD, FRIDAY, OCTOBER 20, 2006 WWD.COM L’Oréal Taps Director for Body Shop By Julie Naughton that they can do great business around the world.” L’ORÉAL SA HAS NAMED That’s a belief he shares with WWDFRIDAY Philip Clough global brand di- Agon, who said in March, “The Beauty rector for The Body Shop. This Body Shop can succeed in all is the fi rst appointment L’Oréal parts of the world. In France, it GENERAL has made to The Body Shop’s has very few boutiques, so there The $1.7 billion Tommy Hilfi ger operation is marching on with a global upgrade management since acquiring is a lot of development poten- 1 and expansion following its May acquisition by an Apax Partners fund. the global chain for $1.14 bil- tial there, as well as in Eastern L’Oréal has named Philip Clough global brand director for The Body Shop, lion in March. Europe. In the U.S., where there 2 L’Oréal’s fi rst appointment since acquiring the global chain in March. In his new role, Clough will is very little penetration, there is be charged with strategic plan- huge potential. In Latin America, BEAUTY: Parfums Christian Dior wants to reestablish a stronghold in ning for The Body Shop on a Philip there are only a few stores in 4 upscale U.S. stores with L’Or de Vie, an antiaging skin care offering. global basis. He will report to Clough Mexico, and in Asia there are Wall Street will be looking for signs of how this year of seismic shocks Peter Saunders, chief executive several in Hong Kong. It is not 6 plays out as beauty fi rms start reporting third-quarter earnings next week. offi cer of The Body Shop, and beefed up its men’s facial skin present in China or in India. The will be based in London. care business and created sev- globalization of The Body Shop MARKETING: Fashion and luxury fi rms are looking beyond the art world Clough is expected to begin eral breakthrough skin care tech- is only just beginning.” The Body 10 to raise brand profi les to the fi elds of literature, theater and architecture. his new job in December. nologies, including the “survival Shop operates in 54 countries, in By tying a luxury brand to a noble cause, companies are giving consumers Clough, who has been presi- molecule” that powers its best- many of them through franchised a chance to feel virtuous about upscale products they purchase. dent of Kiehl’s Since 1851, a selling Abyssine Cream, an anti- businesses. 12 role he will relinquish within aging moisturizer. The Body Shop acquisition the next few weeks, has been Derm Solutions, Kiehl’s an- gave L’Oréal an entry into the EYE helping his successor, Rob swer to the proliferating doctor burgeoning masstige market, as As they say, there’s no rest for the weary, and this week’s jam-packed Robillard, settle into his new skin care lines, is also thriving, well as the growing fair trade 16 social schedule in New York and Los Angeles was no exception. role. Robillard, formerly senior Clough said. market, both positions that vice president of marketing for The Body Shop — founded L’Oréal will likely leverage as it Classifi ed Advertisements...... 15 L’Oréal Paris, was named gen- by Anita and Gordon Roddick in grows The Body Shop. There is To e-mail reporters and editors at WWD, the address is fi rstname. eral manager of Kiehl’s on Sept. 1976 — has long been regarded also a direct-selling component [email protected], using the individual’s name. 5. At that time, L’Oréal execu- as the wild child of the environ- of the company, dubbed The Body WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- tives said that Clough “would be mental/fair trade movement, but Shop at Home, which is expected RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. named to a key post elsewhere Clough points out that the chain to be a major growth engine for VOLUME 192, NO. 84. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- in parent L’Oréal within the is already a global force with a the company. ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, next few weeks.” clientele as devoted as Kiehl’s. Clough, a longtime L’Oréal ex- Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and Clough oversaw Kiehl’s for “Jean-Paul Agon saw great pos- ecutive, has been general man- C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; three years, helping it to evolve sibilities for The Body Shop, or ager of Kérastase worldwide David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance from a cult brand to a retail pow- it wouldn’t have been acquired,” and helped L’Oréal integrate Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. erhouse with a solid scientific said Clough, noting that The Body Matrix when it acquired the Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable foundation. The brand is available Shop is being run as an indepen- salon brand. Later, he was the Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS in about 150 specialty store doors dent entity within the L’Oréal brand’s international head. CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, in the U.S., including Neiman Mar- group, selling only The Body Although he’s excited to take ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four cus, Barneys New York, Saks Fifth Shop-branded products. “The on a new challenge, Clough noted weeks is required for change of address. Please give both new and old address as printed on most recent label. Avenue and Nordstrom, as well as Body Shop already has over 2,000 that it’s an “emotional wrench” Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. 22 Kiehl’s freestanding stores and freestanding stores, and that to be leaving Kiehl’s.“It’s only for First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, at kiehls.com. number will likely double. The a job like this one that I would and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To On Clough’s watch, Kiehl’s Body Shop has already proven consider it,” he said. subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, Bernard Arnault Looks to Grow Portfolio OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED By Miles Socha media, fi nance and energy. Arnault and Frère, who sits on LVMH’s board, PARIS — Like the shoppers who fuel his luxury have a long history of joint deals. In 1998, they teamed empire, Bernard Arnault is in a mood to spend. up to buy Château Cheval Blanc, one of the top Saint- Quote of the Week On Thursday, the French titan said he would team Emilion vineyards. The following year, Frère bought up with longtime business ally Albert Frère to ac- a majority stake in British retailer Joseph, and quire mainly European companies via a new fund of Arnault’s LVMH retained a minority interest. “It’s important to be there, but no 1 billion euros, or $1.25 billion at current exchange. Earlier this year, Arnault and Frère teamed up Arnault, chairman of LVMH Moët Hennessy Louis to buy another Saint-Emilion vineyard, Château one is making any money in China Vuitton, is creating the joint investment fund through La Tour du Pin Figeac. his Groupe Arnault family holding and Frère’s Although LVMH has slowed the pace of its ac- at the moment.’’ Belgium-based NPM/CNP (Nationale Portefeuille quisitions, with its last big purchase in 2004 when Maatschappij/Compagnie Nationale a Portefeuille). it snapped up the whisky maker Glenmorangie, — Sir Paul Smith The billionaire partners said they were already Arnault has continued to make deals via various studying “several” possible acquisitions, but de- investment arms. L Capital, a private equity fund clined to identify them, nor give any indication sponsored by LVMH, last July acquired a majority what sectors might be considered. However, a stake in Piazza Sempione, a high-end Italian fash- In Brief Frère spokesman noted the partners would con- ion manufacturer. Over the past fi ve years, L Capital sider minority and majority stakes, and listed and has completed 16 investments in everything from unlisted companies. fashion accessories to food and garden furniture. ● BRAG AWARD DINNER: The Black Retail Action Group Inc., a Frère, one of Europe’s most active dealmak- Groupe Arnault also holds stakes in LVMH and not-for-profi t organization promoting men and women of color in ers, has investments in such varied industries as its holding company, Christian Dior SA. retail and related industries, will host its 36th Annual Scholarship and Awards Dinner on Oct. 27 at Cipriani Wall Street. This year’s honorees are hip-hop artist Nelly, ceo of Applebottoms LLC and co-owner of the NBA’s Charlotte Bobcats; Carl Banks, former NFL linebacker and president of sports licensing for G-III Apparel Lopez Back to St. John as V.P. of Design Group; Stephanie Murphy, vice president of retail sales for the NBA Store; Cydni Bickerstaff, president and ceo of Bickerstaff ST. JOHN SAID THURSDAY THAT FORMER John’s chief merchant and head of the design Sports & Entertainment, and Nick Grayston, president and ceo senior designer Maria D. Lopez is rejoining the studio. She began working for St. John as a de- of Foot Locker, Foot Action and Kids Foot Locker America. The $400 million apparel company as vice president signer in 1993 and rose to senior designer and fund-raiser supports scholarships, summer internships, student of design. second in command to then-creative director clubs and BRAG’s annual leadership conference. Lopez is the second high-ranking executive Tim Gardner until she left the company last to return to St. John in recent weeks. Bruce May. Gardner departed two months later. ● OAKLEY SEES STRONG SALES: Oakley Inc.’s third-quarter Fetter, the company’s one-time co-president and “We are delighted that Ms. Lopez has re- earnings rose 7.5 percent Thursday to $17.3 million, or 25 cents a chief operating offi cer, is resuming those duties turned to St. John,” Miller said in a statement. diluted share, from $16.1 million, or 23 cents a share, in the prior starting Nov. 1. Lopez’s appointment is effective “Her great creativity and design sense, com- year on a gain of 21.2 percent to $210.2 million from $173.4 mil- immediately. bined with her knowledge of our brand and lion. “Our optics initiatives are working and we’re seeing posi- Interim chief executive offi cer Philip Miller, loyal customers, enables her to make a tremen- tive results across all geographies and channels of distribution,” who succeeded Richard Cohen in April at the dous contribution to our design group and the said Scott Olivet, ceo, in a statement. He said the firm continued Irvine, Calif., fi rm, is putting into place and pro- resultant product.” to build on its early success with the launch of women’s eyewear. moting executives with an understanding of the Cohen’s tenure was marked by a radical Other key drivers Olivet cited were the growth of the company’s 44-year-old company’s product and customers change in the product, sliding sales and the de- retail platform, improvements in its Oakley Custom Program, as the search for a new ceo continues. parture of many employees. double-digit growth in the optics category and the acquisition of Lopez will report to Lowell Breving, St. — Marcy Medina Oliver Peoples and The Optical Shop of Aspen. It just breaks my heart when I see younger women look older than I do.

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*When compared to alpha-lipoic acid, kinetin, vitamin C, vitamin E and coenzyme Q10. ©2006 Elizabeth Arden, Inc. Elizabeth Arden and “Proof...not promises.” are trademarks of Elizabeth Arden companies. Allergan Dermatology and PREVAGE are trademarks owned by Allergan, Inc. 4 WWD, FRIDAY, OCTOBER 20, 2006 The Beauty Report Dior Hopes for Gold Rush A Brave New World In Upscale Specialty Stores arfums Christian Dior is hoping to hit gold — and re-establish a For Groupe Clarins Pstronghold in high-end American specialty stores — with L’Or de Vie, an antiaging skin care offering with a lofty price that lives up to the PARIS — Groupe Clarins is planning to introduce a futuristic name. Dior’s tony new initiative is headed for 60 Saks Fifth Avenue treatment product, called Expertise 3P, worldwide in January. and Neiman Marcus doors on Dec. 26. The French beauty fi rm will unveil Expertise 3P, a facial spray L’Or de Vie is the fi rst product developed specifi cally for the said to protect skin from electromagnetic waves and urban pollution U.S. market since Pamela Baxter, president and chief executive (the three p’s stand for Poly Pollution Protection), as part of its offi cer of LVMH Perfumes & Cosmetics, North America, joined Clarins brand. LVMH Moët Hennessy Louis Vuitton in 2003. L’Or de Vie’s key in- Clarins executives said the company has demonstrated through a gredient is an antioxidant cocktail sourced from the centuries- six-year study in collaboration with an unnamed university research old Chateau d’Yquem vineyard, of which LVMH became the main institute that exposure to electronic items, such as cell phones and shareholder in 1999. microwaves, can accelerate skin aging. “We wanted to reopen our high-end specialty store business in “Artifi cial electromagnetic waves from say the telephone and a big way, and to do that, we needed to create a product targeted the television are an additional factor in the aging process,” said Lionel de Benetti, director of research and development at Clarins laboratories “More and more people are concerned about the effects of our We wanted to reopen our high-end environment, what using a cell phone or a BlackBerry does,” added “ Caroline Pieper Vogt, the Clarins brand’s senior vice president of specialty store business in a big way, marketing. “While we can’t comment on health, we can comment on skin.” and to do that, we needed to create a De Benetti’s team studied the effects of 900 megahertz waves — the type most commonly product targeted to a luxury consumer. used worldwide for communications, according — Terry Darland, Dior Beauty” to Clarins — on the skin. The fi rm’s laboratories found that when exposed to such waves, the skin’s free radical production increased, its to a luxury consumer,” said Terry Darland, senior vice president protective barriers deteriorated and cellular of sales and education for Dior Beauty. Before Baxter and Darland renewal slowed by 26 percent. The subsequent joined Dior, the brand’s cosmetics and skin care businesses had ex- visible effects include a less smooth surface ited many of these doors because of bloated distribution. Baxter has and dehydrated and more sensitive skin, been steadily trimming Dior’s U.S. door count. By the end of Baxter’s factors that contribute to skin aging. fi rst year, 2004, the brand’s cosmetics and skin care doors had been “These waves can travel through walls,” reduced from 800 to 575, and its fragrance door count from 2,000 to said de Benetti. “If we consider our skin as 1,450. These totals now stand at 700 U.S. department store doors for L’Or de Vie L’Extrait being like a brick wall, these waves loosen the cosmetics and skin care and 1,100 for fragrance. Since joining the concrete and lead to weaker skin.” company, Baxter has also put renewed emphasis on leveraging the connection between Dior’s beauty He added just six hours of exposure to and fashion businesses in the U.S. electromagnetic waves daily can accelerate Dior began quietly testing the top-tier specialty store waters last year by creating a new tester skin aging, however, most people are exposed unit that was installed in a few Neiman Marcus doors, including the Fashion Island location in for longer than that. Newport Beach, Calif., and a store in Beverly Hills. However, L’Or de Vie represents the fi rst major Clarins turned to natural ingredients to launch intended to bring the specialty store customer back to Dior. That made perfect sense, said counteract the effects of new technology. Darland, who noted that this consumer base is exceptionally savvy about skin care and has the The product’s formula includes a magnetic cash to spend on it — not to mention the fact that those in this income bracket are familiar with the defense complex comprising Rhodiola rosea, Chateau d’Yquem name. a plant that survives in freezing Siberian The key ingredient in L’Or de Vie is extracted from hand-harvested Sauvignon grape vine branches, temperatures, and Thermus thermophilus, a which are aged six months before they are processed. A proprietary technology extracts 10 molecules, marine organism that thrives 2,000 meters including Myobenol C and Reserveratrol Trimer, which come together to form the “most potent an- beneath the Pacifi c Ocean’s surface. The tioxidant ever used in skin care,” said Lisa Hawkins, vice president of marketing for Dior Beauty, complex protects the skin from pollutants and adding that they are “far superior” to existing antioxidants such as vitamins C and E and idebenol. safeguards skin cells, according to Clarins. Hydroin is designed to maintain the water supply in cells, encouraging epidermal-dermal turnover, A second formula, dubbed Anti-Pollution she explained. Complex, includes white tea for its anti- “It doesn’t stop time, but it oxidant benefi ts, succory dock cress, which slows it way, way down,” added grows near motorways despite car emissions, Darland, noting that the vines pro- and glycofi lm, said to protect the skin’s tect, rebuild and regenerate each surface. year — something L’Or de Vie is “We are not going to stop waves from Clarins’ meant to replicate for consumers, penetrating the skin,” said Pieper Vogt. “But Expertise 3P. she said. The product is said to in- we can help it to be more resistant and more crease fi rmness and resilience, as in control of its response.” well as regenerate epidermal and James McCoy, a senior consultant at London-based tracking fi rm dermal functioning. Mintel, lauded Clarins’ opening of a new niche product category. Two forms will be produced: “I’m sure no one’s even heard of electromagnetic waves L’Or de Vie La Crème, $320 for 1.7 damaging their skin but they will now and they’ll see this product oz., and L’Or de Vie L’Extrait, $350 and they’ll think ‘I need to have that,’” he said. for 1 oz. The cream is packaged Expertise 3P comes in a light blue glass bottle, priced at $40 in in a block-shape glass jar topped the U.S. for 100 milliliters. with a gold cap; the serum’s pack- While executives declined to comment on sales forecasts, aging, a gold inner layer surround- industry sources estimate the product could generate fi rst-year retail ed by clear glass, was inspired by sales of between 15 million euros and 20 million euros, or between Chateau d’Yquem wine bottles, $18.8 million and $25 million at current exchange. said Hawkins. An advertising campaign is planned but details are yet to Due to L’Or de Vie’s narrow be confi rmed. A sampling drive is also scheduled, and Clarins distribution, national advertising will launch a mini Web site attached to its main Internet site to is not planned, although the new generate buzz. products will be heavily promoted Clarins sees the item, which can be used two to three times daily in Saks Fifth Avenue and Neiman on top of or underneath makeup, becoming part of healthy lifestyles. Marcus catalogues and through “It’s like a healthy drink you have in the morning,” said Pieper their direct-mail pieces to top Vogt. “Now you mist your face as well.” customers. Pieper Vogt noted the product rounds out Clarins’ skin protection None of the executives would portfolio. comment on projected sales, al- “Clarins has a long-standing commitment to protecting the skin, though industry sources estimated not only sun protection but anti-pollution protection in day creams L’Or de Vie would do about $5 mil- and foundations,” she said, adding Expertise 3P targets men and lion at retail in the U.S. in its fi rst women of all ages as well as children. “This is one more product in year on counter. a series of innovations.” Holt Renfrew in Canada will get “We wanted to focus on Clarins’ expertise,” said Veronique L’Or de Vie in March, while Europe Dumas, Clarins’ director of development, referring to the fi rm’s will begin selling it in September choice of a formula-like name for the product. 2007. — Ellen Groves — Julie Naughton WWD, FRIDAY, OCTOBER 20, 2006 5

WWD.COM Beauty’s Honor System Industry stars raise money for cancer research while scooping up awards.

he is one of beauty’s FRENCH GOVERNMENT HONORS CHANTAL ROOS Smost devoted philan- PARIS — Chantal Roos, president and chief executive offi cer of YSL Beauté, this thropists. For more than 10 week was awarded the Chevalier dans l’Orde National du Mérite, or Knight of the years, Evelyn Lauder, senior National Order of Merit, by the French government. corporate vice president of France’s foreign trade minister delegate Christine Lagarde presented the award the Estée Lauder Cos., has and lauded Roos’ talent, creativity and sense of humor. been raising funds for breast “Fragrances are talked about a great deal, and who better than Chantal Roos to cancer research through celebrate them,” she said. her brainchild, the Breast Roos thanked friends and family who attended the ceremony. Cancer Research Foundation “I have worked with passion and love for fragrance — to the tune of $146 million and cosmetics,” she said. “I want to thank all the people as of this week. who have been there professionally and who are friends. Since late September, We have really evolved and of course there have been she has been steadily tour- diffi cult moments.” ing North America raising Lagarde described Roos’ career: Roos was an airline awareness for the cause and hostess before entering the beauty industry as a market- promoting her new book, “In ing director at Coty. In 1976, she joined YSL Beauté as Michael Gould, Evelyn Lauder and Elizabeth Hurley Great Taste: Fresh, Simple a product manager and in the following two years she at Bloomingdale’s. Recipes for Eating and Living spearheaded the creation of the classic Opium scent Well” (Rodale, 2006), which has and a makeup line. Lagarde noted Kouros and Paris helped fuel funds for the BCRF this year. Book parties have been thrown by Hearst’s were among Roos’ high-profi le creations in that period. Ellen Levine, Bloomingdale’s chief Michael Gould and Holt Renfrew’s Shelley In 1990, Roos joined Shiseido-owned Beauté Prestige Rozenwald — all, fi ttingly, featuring the light gourmet fare prepared from Lauder’s International, where she was responsible for the cre- recipes. “When they were boys, [her sons] William and Gary would always say, ‘Mommy, ation of the blockbuster L’eau d’Issey scent by Issey you’re the best cooker,’ and my response was, ‘I’m not a pot!’” said Lauder with a laugh. Miyake, among other projects. Roos returned to take But making sure her family eats right has always been a priority for Lauder, who noted the helm of YSL Beauté in 2000 and has since headed that her book features family favorites — minus their fatty and salty ingredients. a number of new initiatives, among them the launch of Chantal That sounds great to Elizabeth Hurley, who made a number of appearances with Yves Saint Laurent scents Nu, M7 and Cinema, as well Roos Lauder, including a record-breaking signing in the newly revamped Holt Renfrew as fragrances by other brands within the group, includ- beauty department in Montreal where she and Lauder sold the book, as well as ing Stella McCartney and Alexander McQueen. namesake lipglosses and lipsticks whose profi ts benefi t the BCRF. “Before I had A number of beauty executives attended the ceremony, which was held at the Damian, for probably about a 10-year period, there was almost no food in my fridge,” French Finance Ministry. On hand were Groupe Clarins president and ceo Christian she said. “Literally. There were Stress-Relieving Eye Masks, my favorite Estée Courtin, Inter Parfums SA ceo Philippe Benacin and outgoing president of Thierry Lauder product, and water. We ate out, or didn’t eat, or grabbed something on the Mugler Parfums Vera Strubi. run, or just had a few pretzels and a glass of wine — not great eating! But now, since In a personal tribute, Strubi, one of Roos’ former colleagues at YSL, presented a I’ve had my son, suddenly I have to have food in the house. That’s when I realized scent developed specifi cally for Roos. I had to start eating more healthily, and it was perfect timing because Evelyn had “We have created a fragrance in your image,” said Strubi as she unveiled the the idea for this cookbook.” Goal number one, Hurley says, is to eliminate salt. “I’m scent, dubbed Le Parfum de Chantal. “It’s audacious, singular, tender, protective going to sneak it out of my diet,” she vowed. Hurley is also in the process of getting and seductive.” her farm in the U.K. certifi ed organic. “Part of it will be certifi ed this December, and The fragrance’s juice was concocted by Firmenich perfumer Jacques Cavallier the remainder next June,” she said. Could a BCRF food be on the agenda? “There and was presented in a Lalique bottle. are ideas in the pipeline,” Hurley promised. Roos, taken by surprise, clearly appreciated the gift. Earlier this week, Lauder held her annual symposium and awards luncheon “Wow, it’s a huge project,” she said. (which also featured fare from her book) at the Waldorf-Astoria Hotel in New York, “We joined YSL in the same year. We were young; we still are,” quipped Strubi. granting $24.3 million to scientists working to fi nd a cure for breast cancer. “We want “We refl ect together about the industry, our families, our respective pets.” to go out of business,” she said emphatically. Lauder also gained several new fans Strubi, who spearheaded the creation of Thierry Mugler’s perennial bestseller — most notably, Sheryl Crow, who was diagnosed with breast cancer in February Angel, also recounted just how much a driving force Roos has been within the in- [see sidebar]. Of Lauder’s efforts, Crow said, “With federal funding being cut, we dustry. depend on organizations like the BCRF to get these scientists the funds that they “You’ve been my most fi erce competitor,” she said. “Each time one of your new need to help us fi nd a cure.” And Crow, who presented the Humanitarian Award to creations hit the market, I had to fi ght back.” fellow breast cancer survivor Marisa Acocella Marchetto, is far from Lauder’s only — Ellen Groves fervent fan. “Evelyn is the patron saint of breast cancer,” said Marchetto. Be that as it may, Lauder’s not done yet. As the project grows every year, she’s al- GOTTLIEB INDUCTED INTO CIRCLE OF CHAMPIONS ready got two additional helpers in mind. “Next year, I think I’ll get Aerin [Lauder] he Fragrance Foundation’s annual Circle of Champions and Gwyneth [Paltrow] involved, too,” she said. Tdinner hit an unusual high note Tuesday evening when — Julie Naughton the honoree, Ann Gottlieb, turned the microphone over to one of her friends, opera star Renee Fleming, who topped off the night by singing a selection from Tosca. Afterward, SHERYL CROW, EVELYN LAUDER HEADLINE BCRF LUNCH Fleming remarked, “I just discovered that the singing is better when it’s for someone you love.” FOUR DAYS AFTER COMING OFF OF A THREE- That sentiment was widely shared among the capac- month, nearly 30-stop tour — and, more importantly, ity crowd of nearly 300 in the rooftop restaurant of the St. exactly two weeks after receiving “all clear” scan Regis Hotel in New York. Every major fragrance supplier results — Sheryl Crow joined Evelyn Lauder for her turned out to honor Gottlieb, who during her career as a annual Breast Cancer Research Foundation lunch at fragrance consultant and olfactive interpreter provided Ann Gottlieb the Waldorf-Astoria on Tuesday. the guidance for enough market winners to form her own “I was diagnosed on Feb. 22, and for me, it was mini industry. Patrick Firmenich, chief executive offi cer a showstopper,” said Crow before the lunch, adding of Firmenich, noted that the fragrances that Gottlieb has shepherded during her she is “singing the praises of getting an early mam- long career would add up to an annual volume of $1.5 billion. Her credits include mogram.” It certainly worked for her: Due to early a broad spectrum of scents from designer and celebrity fragrances to all the major detection, Crow — who does not have a family history Calvin Klein introductions and Unilever’s mega-hit, Axe. of the disease —was able to send her cancer into re- Rochelle Bloom, president of the Fragrance Foundation, began the event by mission with a lumpectomy and six and a half weeks noting, “Tonight we honor one of our own.” Donald J. Loftus, the chairman of the of radiation treatments. Fragrance Foundation and president and ceo of P&G Prestige Products Inc., de- The experience convinced Crow, already a philan- scribed Gottlieb as “one of the most-loved people in the industry.” Firmenich was Sheryl Crow thropist, to add her voice to Lauder’s in an effort to more poetic, comparing Gottlieb to the structure of one of the fragrances that she is effect change and forced her to reevaluate her life. so adept at designing: a top note of vibrant energy, a heart of gold and a drydown “of “I think that almost everyone I’ve talked to who has striking beauty that continues to astonish us with its long-lastingness.” had a breast cancer experience would talk about the metaphysical aspects — the Gottlieb, who paid an emotional tribute to her family, all of whom were there, breasts are emotionally connected to nourishment,” she said, dubbing the expe- expressed her gratitude to all the professionals who have helped her and delivered rience an opportunity for change. “For me, it began to represent how I was tak- an upbeat speech. Despite the turmoil in the fragrance market, she pointed out that ing care of myself — really counting myself as the most important person in my the majority of supply houses have been infused with fresh management. She also life. And that really informed how I’ll approach the rest of my life.” pointed out how working conditions have improved dramatically during her career. It’s changed her songwriting, as well. “Every experience in your life begins “It’s a great time to be a perfumer,” she said, noting that suppliers are now featur- to inform your art. I’m getting ready to make a new record, so,” she joked, “it’s ing their perfumers in a more democratic system than was true in the hierarchical going to be all about breasts.” There is no fi rm release date, however. “I’m at a old days. She also pointed out the new spirit, in which “there’s no longer any dif- point now in my life where I’m not going to force myself to do anything. I’m just ferentiation [between] perfumers who work on fi ne fragrance and those who work going to enjoy my life as it comes.” on personal care products.” As for herself, Gottlieb said, “I feel very strongly that I — J.N. have so much more to do, and I am looking forward to getting on with it.” — Pete Born GOULD AND GOTTLIEB PHOTOS BY JOHN CALABRESE; CROW BY TALAYA CENTENO GOULD AND GOTTLIEB JOHN CALABRESE; TALAYA CROW BY PHOTOS BY 6 WWD, FRIDAY, OCTOBER 20, 2006 The Beauty Report WWD.COM Great Expectations: Analysts’ 3Q and Year-end Forecasts By Molly Prior layoffs, are expected to contribute $50 million in Workers change the savings in its most recent quarter, which the fi - all Street will be paying close attention as awning at the former nancial fi rm assumes will be reinvested in media Wbeauty companies begin unveiling third-quar- Marshall Field’s and incentives for sales representatives. Avon con- ter earnings next week, looking for clues as to how in Chicago. tinues to recruit sales representatives in China, this year of seismic shocks will play out. which is the direct seller’s “bright spot,” accord- It has not been business as usual this fall. ing to Pecoriello. Federated Department Stores Inc. shook the pres- As part of its turnaround, Avon aims to fend tige beauty landscape by shuttering doors and off encroaching competition from mass market replacing the May Co. nameplates with Macy’s. players, including L’Oréal Paris and Procter & Revlon caused tremors in the mass market by oust- Gamble’s Olay. With Vital Radiance out of the mix, ing its top management team and axing its new- mass retailers are in the midst of reorganizing est brand, Vital Radiance, leaving its competitors their cosmetics displays. “I’m wondering if they’ve scrambling to grab its former retail space. made retailers gun shy about allocating their [dis- Now, Wall Street is focused on the holiday play] space,” said Chappell, referring to this year’s selling season, particularly in the context of a re- disappointing entries. Olay stirred up competition worked Federated. in the skin care aisle with Defi nity, a trio of prod- William Chappell, an analyst with SunTrust ucts at $27.99 each. A.G. Edwards & Sons analyst Robinson Humphrey Capital Markets, who follows Jason M. Gere, who follows P&G, said for Defi nity, Elizabeth Arden, said he’ll be watching to see if time is the primary message. “It’s still hope in a the fragrance fi rm’s newest entries, including With jar, but with quicker results,” he said, noting the Love Hilary Duff and Danielle by Danielle Steel, difference between Defi nity and the three-year- bolster Arden’s market share or cannibalize its old Olay Regenerist line. “So far, it’s done OK,” he existing sales. He added that Federated had been said, adding that consumers do not seem turned scaling back its inventory levels throughout the off by the high price, as they were with Gillette’s year, and “squeezing smaller suppliers” like Arden. Fusion razor. Now the retail behemoth is likely to turn that same P&G has stated the integration of Gillette is attention to its larger players, said Chappell. As “happening quickly and without disruption.” for the fallout from Revlon’s troubles in the mass Several analysts, including Gere and Pecoriello, market, Chappell said, “It’s tough to tell how Vital expect P&G to raise its cost savings target for Radiance damaged Revlon’s retail relationships. If Gillette. Pecoriello said he expected those sav- it has, it will be refl ected in Revlon’s shelf space.” ings to accelerate to $125 million in the fi rst quar- Federated, having morphed Macy’s into a ter of fi scal 2007 (the numbers are to be released coast-to-coast chain, assigned beauty brands a na- Tuesday, Oct. 31) and for P&G to reap $500 million tional date for their seasonal gift-with-purchase to $600 million in merger savings in fi scal 2007. promotions for the first Competition is also in full swing in the hair time. The Estée Lauder care aisle, where mass market brands work to Cos.’ fl agship brand, Estée prove their worth against the growing assort- Lauder, launched its fall ADDING UP BEAUTY ment of secondarily sourced professional goods. gift-with-purchase on the “There’s a lot more diverted product out there, heels of the Macy’s banner which makes me cringe a little bit,” said Gere, who rollout. In a research report released on Tuesday, also covers Alberto-Culver. “I think Alberto-Culver Morgan Stanley & Co. analyst William Pecoriello has its work cut out for it,” he said, adding that the said the Estée Lauder brand benefi ted modest- company would have to continue to increase the ly from increased spending and from Federated’s year], this would represent a marked deceleration in investment behind its Nexxus hair care brand over the stepped-up advertising support to broadcast the the Estée Lauder Cos.’ run-rate, despite the increase in next several years to be competitive. He expects that Macy’s nameplate change. spending.” He added that, in fairness, the anticipated by late November the company will have completed its “Based on the [2 percent] contraction in depart- benefi t of training beauty advisers and Clinique’s sam- plan to split its consumer products and Sally/Beauty ment stores for the fi rst quarter, we estimate that Estée pling efforts could simply be delayed in paying off. Systems Group distribution businesses into two sepa- Lauder Cos.’ North American sales are trending to be Outside the department store space, Morgan Stanley rate public companies. up 7 percent, which is at the high of guidance,” wrote is keeping tabs on the turnaround efforts in place at Of course, a number of analysts acknowledged that Pecoriello. “...Although 7 percent growth looks good Avon Products. In its third-quarter earnings preview, should 2007 prove as event-riddled as the past year, all on the surface, given very easy [comparisons to last Morgan Stanley wrote, Avon’s “delaying” efforts, or forecasts are bound to change.

Select items from Aveeno’s Aveeno Entering Antiaging Market Positively Ageless line. veeno is hopping on the anti-aging bandwagon next year with cause collagen breakdown. Both the serum and night cream Athe launch of Positively Ageless, a line of products using the contain a third mushroom, Mucor miehei, which was specifi - active benefits of shiitake mushrooms, which are said to enhance cally formulated to boost the Natural Shiitake Complex. This the skin’s vitality and slow the aging process. ingredient is said to adapt to your skin and optimize cellular “This is our entry into anti-aging, and the new line will bring an- renewal without irritating the skin. other active natural, [shiitake] mushrooms, to the Aveeno portfolio,” According to Information Resources Inc., Aveeno’s skin said Cathy Grayson-Roper, Aveeno’s product director. “This line is care sales increased 20 percent to approximately $68 mil- clinically proven to deliver healthy and younger-looking skin. There’s lion, in food, drug and mass stores — excluding Wal-Mart a long history and folklore associated with shiitake mushrooms. In — for the 52-week period ended Sept. 10. ancient times, they were recognized for their ability to make the skin “The complex blend of mushrooms included in all prod- fi rmer, smoother and reduce fi ne lines and wrinkles.” ucts was developed to deliver anti-aging benefi ts and spe- Since Aveeno entered the facial care market four years ago, cifi cally designed to accelerate the skin’s renewal process. It the company has introduced three lines offering consumers the [the complex] is also designed to adjust to the skin, giving it benefi ts of natural ingredients like soy, oatmeal and feverfew. an optimal amount of cell renewal but doing it in way that’s Positively Radiant, which uses soy, is designed to even out and less irritating than other traditional products that use AHA tone the skin, while Ultra Calming reduces redness and irrita- and retinol,” said Grayson-Roper, who added that research tion with the feverfew ingredient. Also made from soy, Clear showed that 73 percent of women who tried the products for Complexion was introduced to help clear up breakouts. a four-week period said it reduced fi ne lines and wrinkles. Aveeno executives wanted to meet consumers’ ever-growing “Research showed that the complex provided fi rmer, smooth- demands for antiaging products. According to Grayson-Roper, an er skin and reduced fi ne lines and wrinkles.” antiaging study Aveeno conducted this year showed that eight out Although company executives declined to give fi g- of 10 women are still concerned with aging despite the many prod- ures, industry sources estimated the four new prod- ucts on the market. She added that a National Marketing Institute ucts would bring in between $15 million and $18 mil- study backed up their fi ndings, showing that two-thirds of consum- lion in fi rst-year retail sales. ers are still looking for natural products to address their needs. According to Grayson-Roper, the company is Launching in February at food, drug and mass stores, exploring additional product opportunities in Positively Ageless will retail between $7.99 and $19.99 and in- the Positively Ageless line. clude a serum, night cream, daily SPF 30 moisturizer and daily Television ads and a print campaign in about exfoliating cleanser. Aveeno developed a new complex made a dozen beauty, fashion and lifestyle magazines from a blend of shiitake and reishi mushrooms, said to promote will coincide with the launch. In addition, one and accelerate the skin’s cellular regeneration. Used in all four million samples of the Positively Ageless prod- new products, the complex also is said to act as an anti-oxidant ucts will be distributed early next year. and to help block the production of harmful proteins that can — Michelle Edgar PHOTO BY ROBERT MITRA ROBERT PHOTO BY WWD, FRIDAY, OCTOBER 20, 2006 7 WWD.COM WWD.COM Spa Week’s New High Profi le Fountain of Youth By Crystal Martin NEW YORK — Spa Week has returned to assuage the stresses of the masses. And in a city like New York, where tension can saturate even the crisp fall air, Spa Week organizers Yields Sales Stream have added two big-name spas to give luxurious relief. From this past Monday through Sunday, a host of spas, including MASS MARKETERS COULDN’T ATTRACT newcomers Lancôme the Boutique and Elizabeth Arden Red Baby Boomers with Vital Radiance. And, Jessica Door Spas, are joining the two-year-old event, during which lines such as Caboodles didn’t build the Simpson during participating spas offer three or more of their treatments at a teen business that drug, food and mass Sweet Kisses’ discounted price of $50. retailers craved. Now chain retailers are launch event. At Lancôme the Boutique, the decision to participate in looking at the so-called Y Generation as Spa Week this season was about timing. The brand opened the next hope to boosting sales. its fi rst retail shop and spa here, at Columbus Avenue and There’s no strict defi nition of the ages 69th Street, last March, just a month before spring Spa Week. for Generation Y, but the broadest in- Lancôme director of operations, Bridget Johns, recalled, “We cludes Americans born from 1977 to 2002. received a lot of client inquiries wondering whether we were Most demographers estimate the group participating in spring Spa Week. We just weren’t ready at the totals more than 82 million people. time because we had just opened.” It isn’t just mass merchants hoping to Seven months later, Lancôme is ready and presenting cater to the tastes of these young women; three treatments, an Anti-Aging Facial, a Purity Perfecting Generation Y is the target of new retail Facial and Full Body Self Tanning, for customer indulgence. formats and edgy electronics. But in mass The services are regularly $75 to $195. The Anti-Aging Facial, beauty, shoppers falling within the 16- to designed to treat skin damaged by sun exposure, aging and 29-year-old age group are seen as the ticket hormonal fl uctuations, will be launched next week. “This to building sales volume. What’s interest- is the perfect opportunity to reach out to some new clien- ing about them is that they like cheap or tele and let them know that we have the antiaging facials as chic — they may visit Saks Fifth Avenue in well as our other the morning and Forever 21 at night. facials,” said Treatment in Johns. The strat- progress at egy appears to Lancôme the be working: The Boutique. Boutique is fully booked for Spa Week, with about 400 appointments and an extensive Some of these shoppers frequented mass waiting list. The stores in their youth only to veer to other Boutique usually channels. Others have never found fashion- operates at about forward merchandise at drug or discount stores before. Enter an array of new products that marketers 60 percent of ca- and retailers hope will fi nally convince these women that budget can be beautiful. pacity. Lancôme’s For more than 10 years, new mass market brands touted themselves as the “MAC of the mass.” Dallas, Texas and However, it is only recently that major players entered the mix such as L’Oréal’s HIP line and the Short Hills, N.J., new Max Factor. locations are also Last week, Coty Beauty started talking about its own new line from Rimmel created to fi ll a hole participating in in the market of women in their late teens and 20s. “This is designed for 16- to 29-year-olds who Spa Week. are not fi nding what they want in mass,” explained Rick Goldberg, vice president of cosmetics for Meanwhile, Coty Beauty. another Spa Called Rimmel Underground, the line will be launched into planograms in 2007 and is expected Week neophyte, to net some space once reserved for Vital Radiance. “The mistress gets the older wife’s space,” Elizabeth Arden joked one buyer. Red Door, attri- To hammer home the trendy London image, print and in-store marketing will be supplemented butes its partici- with online efforts that refl ect the way Gen Y researches items. pation to a desire As L’Oréal’s HIP fi nds its audience, retailers are starting to notice a growing following of Gen to give back to its Y shoppers who appear to be getting the intense colors. Retailers also mentioned Almay, Pantina loyal customers. Teresa McKee, senior vice president of op- and Physicians Formulas as lines with a positioning resonating with Gen Y consumers. Physicians erations at Red Door Spas, said, “This is our turn to thank Formula, buyers said, has been boosted by its TV advertising with an actress in that age range. the men and women who have supported Red Door over the Celebrity endorsements might not be the avenue for Gen Y. A few months ago a brand that years.” McKee explained that the fl agship at Fifth Avenue had established a strong following with young women — and teen girls — announced it would and 54th Street here has recently undergone major renova- cease production by yearend. Fusion tions. The 30,000-square-foot facility is a comprehensive des- Brands did not renew the contract tination for wellness and beauty, with pedicure and manicure for the entire Jessica Simpson collec- rooms, hair and makeup areas and 37 spa treatment rooms. tions, which included Dessert Beauty, “This has been a very exciting year for us,” said McKee. “It Dessert Treats and the Sweet Kisses just seemed like the right time.” Red Door patrons can visit collection sold originally in Wal-Mart. either the Fifth Avenue fl agship or the Saks Fifth Avenue Inventories are being cleaned out of location for Spa Week services, including, the Fifth Avenue stores and already the line is noted as Pedicure and the Arden Beauty Facial. The treatments usu- out of stock at Walgreens.com and dis- ally are $65 to $135. continued on eBay. Walgreens ran ads Executives at C&R Media, the organizers of Spa Week, are recently with all Jessica Simpson’s excited about this season’s event. What started in 2004 with 25 products priced at $5. Also, according spas here has rapidly expanded to 300 outlets in 14 cities, in- to sources, Wal-Mart was pleased with cluding Los Angeles, San Diego, Seattle, Dallas, Philadelphia the results of its Sweet Kisses and it and Washington, D.C. wasn’t the chain’s choice to discon- Cheryl Reid and Christina Castro, Spa Week co-founders, tinue the line. came up with the idea. “We are both native New Yorkers,” “We felt that it had run its course,” said Reid, “and we know that a lot of people don’t stop to said Jerry Seidl, vice president of relax.” For Reid, Spa Week is more than just high-end relax- sales for Fusion Brands. Instead, the ation at a discount. “The key thing about Spa Week is creat- company is focusing on its prestige ing a healthier America,” she said. “It’s all about wellness lines such as Lip Fusion and Clean the and opening up spas to the masses.” The event presents a fragrance as well as Scentology, which boon for spas, as well. “We have been told customer reten- will launch as an exclusive next spring tion is about 15 to 45 percent, depending on how good the spa in Target. Scentology is a totally new is,” said Reid. concept with fragrances created to in- Now that this Spa Week is nearing its end, all parties are spire moods or curtail cravings. looking to the future. Lancôme and Red Door executives ex- Retailers said that although they pect to return next year. “Based on the response from our are on the prowl for lines for Gen Y, clients, I can’t imagine that we wouldn’t participate,” said they won’t turn over huge areas of Lancôme’s Johns. Based on this year’s success, McKee said their stores to these shoppers. They Red Door “may want to roll the program out to its other loca- learned that lesson with teen depart- tions.” Reid offered another bit of good news, that Spa Week Select Rimmel items. ments as well as efforts to make space will expand to 10 new markets in 2007, though which ones for lines for mature shoppers. has not been decided. 8 WWD, FRIDAY, OCTOBER 20, 2006 WWD.COM The HBA Report WWD.COM Bobbi Brown Bathes West Coast Pelusi Sib Enters Hair Care By Kavita Daswani brancy of the color that was applied.” In New Fragrance He formulated the line to provide some- LOS ANGELES — For Marco Pelusi, getting thing for all haircare needs. These include obbi Brown is hoping to clean up this into the hair care business was almost a the Marco Color Health Shampoo with Bmonth with the launch of her fourth fra- given. His family owns a chain of more than Collagen Color Guard, which contains rose- grance, called Bath. It offers what parent 15 upscale salons on the East Coast, and he mary, clove and peppermint essential oils company Estée Lauder Cos. describes as a virtually grew up in the industry. that provide antiaging benefi ts. A Hydrate “fresh-out-of-the-shower” scent. Now Pelusi, who has a year-old salon on Conditioner has French lavender and apri- The new Brown wanted a simple but unconven- trendy Robertson Boulevard here, last week cot oils and aloe vera, while the Control Gel Bath tional fragrance that smells of “cleanliness” launched his fi rst product line, which com- helps lift and give defi nition using a combi- fragrance. but doesn’t contain any musk. bines his expertise as a colorist with colla- nation of rosemary, clove, peppermint and “I realized I’m a smell lover but not nec- gen, a fi rst for hair care. borage seed essential oils. There is also a essarily a perfume lover. I really like scents “I’ve always wanted to know more about hair spray, a smoothing gloss and an anti- based on smell and not classic fragrances,” the chemistry and science behind hair color,” frizz leave-in conditioner; the latter contains said Brown. “I wanted my fragrance to said Pelusi, who previously worked for Joico cetrimonium chloride derived from coconut.

smell like a bar of ivory soap. I’ve MITRA ROBERT PHOTO BY as national chemical trainer dealing always loved the way people smell with chemists and testing different Marco Pelusi’s new hair care line. when they get out of the bath. This color products on hair. fragrance is targeted for women who In compiling the six-stockkeep- don’t really love perfume but love ing-unit Marco Collagen Color Guard smells and love smelling good.” HairCare System, he called upon Formulated by Quest International, chemists whom he knew through his the Bath eau de toilette contains notes family, and specifi ed that he wanted to of water hyacinth, neroli, orange fl ow- concentrate on color-treated hair. er, white lily, aromatic sage and san- “I’m a colorist, and I wanted to dalwood with hints of patchouli. Bath, achieve the best possible ingredients which is priced at $40 for a 30-ml. for my clients. I wanted to come up with bottle, will be sold in about 550 doors something that would protect the hair worldwide, with 300 in the U.S. from fading, to treat it like silk, using col- “I always look for smells that lagen as a basis.” make me feel nostalgic and happy, He said there were a few isolated reminding me of when I was a kid,” collagen products on the market, such Brown said, who added that she as those by Sunsilk and Biotin, but not fi nds inspiration in “smells that take an entire range. you to another place.” “Everyone has one product in their According to company executives, line that’s good for color-treated hair, Bath is expected to become Brown’s best-selling fragrance. Although maybe using some extra sunscreen or an “I wanted the products to work on mul- the company does not break out projections, industry sources esti- extra ingredient that they throw in. But col- ticultural hair and to help with antiaging,” mate that the fragrance will bring in $5 million in fi rst-year retail lagen is the thing that really helps color from Pelusi said. sales globally. fading. It has to penetrate into the hair shaft The line is available in Pelusi’s salon and Brown hopes to expand her fragrance collection by introducing a rather than just being on the outside, and all online, as well as at Le Meridien Beverly new scent every year. Another one is scheduled to launch next year. the ingredients have to be in balance to cre- Hills Gift Shop. Pelusi said he was also tar- Brown views launching ancillary products as an opportunity to ate a healthy hair and scalp.” geting department stores and high-end beau- be “out-of-the-box creative.” She will introduce lotions, body washes According to Pelusi, coloring hair “makes ty specialty stores. and a bar of soap in time for the holidays. it like a road with potholes in it.” Next year, he plans to launch a product “I always like to fi nd new ways of introducing a fragrance in a new “And when you put collagen in, it goes for especially fi ne color-treated hair. form,” said Brown. “I love layering fragrances, so I like to come out in and temporarily fi lls those holes, closing The line ranges in price at retail from $18 for with fragrance conditioners and skin balm products that carry out the cuticles and allowing the color to shine the control gel to $35 for the leave-in condition- the fragrance and also offer moisturizing and hydrating benefi ts.” through. It constantly reinforces the true vi- er. There are also travel sizes from $7 to $10. — Michelle Edgar

silver (Rinse Charming) and a deep mauve (More Time for men’s skin care sales in U.S. department stores reached a Me). Priced at $7.50 each, the polishes are available at growth rate of 18 percent. As a whole, prestige skin care is professional salons. about a $2.07 billion category annually, with women’s skin care accounting for 97 percent of the market. SNIPPETS ZIMMERMAN TO TESS: Jean Hoehn Zimmerman, who departed Chanel Inc. as executive vice president of sales and FIFI REDESIGN: The Fragrance Foundation has selected six IFF REORGANIZATION: Fragrance supplier International marketing for fragrance and beauté in the U.S. in April 2005, fi nalists for the redesign of the FiFi Award trophy and will Flavors & Fragrances has created two new senior executive has joined the board at Teen Everyday Skincare System. The announce the winner next Thursday at Luxe Pack Monaco. positions aligned with the company’s core businesses teen beauty brand, aka Tess, was founded in September The fi nalists are Berard Associates’ principal and creative — and its name. IFF said Thursday Nicolas Mirzayantz has 2005 by California native Susan Shand and her daughter director Jerome Berard; QSLD Paris founder and designer been named group president of fragrances, while Hernan Ryan, 15. The skin care brand offers cleansers, toners, night Denis Boudard; HDM Design Lab’s founder and designer Vaisman has been named group president of fl avors. The cream, antiacne items and lip gloss priced from $14 to $48. Henry de Monclin; Raison Pure/Raison International changes take effect Jan. 1, and both executives will report Tess, which has raised about $1.8 million in two rounds of president Laurent Hainaut, and principal and founders to Robert A. Amen, chairman and chief executive offi cer fi nancing, is sold at Sephora and sephora.com. Frederic Jentgen, Gianni Rotta; Marc Rosen Associates of IFF. Mirzayantz, an 18-year veteran of IFF, will be chief executive offi cer Marc Rosen, and SRW Design responsible for both fi ne and functional fragrances globally BRITISH BENEFITS: Benefi t Cosmetics cut the ribbon on its Inc. president Susan Wacker. The FiFi Award trophy was in his new post. He most recently has worked as senior vice fi fth U.K. store last week with the opening of a space in previously designed by Pierre Dinand and produced by president of fi ne fragrances and beauty care and regional London’s Fouberts Place, just off hip haunt Carnaby Street. Pochet, the Fragrance Foundation noted, adding Pochet has manager of North America. Mirzayantz, 43, and Vaisman, The 1,250-square-foot boutique features Benefi t’s complete plans to produce the new trophy. 48, will each be responsible for strategy, commercial and product lineup as well as services in its treatment room. The creative execution and the profi t and loss of their respective store also features brow grooming stations and is the fi rst AN ICONIC BEAUTY: MAC Cosmetics has named actress global business units. Benefi t locale to offer men’s beauty services, including back Raquel Welch as the fourth star to headline its MAC Beauty and chest waxing. The San Francisco-based brand has 200 Icon series, annual effort. Welch, who follows past Icons LITE LOCKS: Jonathan Product is shedding pounds with retail counters in the U.K. and Ireland. Catherine Deneuve, Liza Minnelli and Diana Ross, will the addition of its latest product line, Weightless Smooth. create a limited-edition color cosmetics collection that Composed of all vegan ingredients, the line includes FRAGRANCE FACTOR: Could Simon Cowell be the latest will be available at MAC locations worldwide in February. shampoo (Zero-Frizz Cleansing Crème), conditioner (Zero- celebrity to ink a fragrance deal? According to a spokesman Like her fellow Icons, Welch will also be shot by Michael Frizz Crème Rinse) and hydrating styling balm. Each of the for the caustic “American Idol” judge, Cowell has been Thompson, under the vision of James Gager, senior vice products can be used on all hair types to tame fl yaways and approached to create a beauty line, which would include a president of creative services for MAC. prevent frizz. Prices for the products range from $20 to $26 scent. “He’s looking at it but I would be amazed if it comes and are available at Sephora, Barneys New York, Bath & off,” said his spokesman. “There’s a 5 percent chance it’ll JOINING FORCES: Borba and Tarte are joining forces to Body Works, Parisian, Victoria’s Secret, Pure Beauty, Ulta, happen.” British newspaper reports have suggested an cobrand a line of vitamin-infused nutraceutical lip glosses. C.O. Bigelow, QVC and Beauty.com. “American cosmetics giant” is courting Cowell, however, Launching exclusively at select Sephora stores in February, the spokesman declined to name the company. Cowell also Inside Out, a line of pomegranate-scented glosses, will WASH NO MORE: OPI users won’t be ruining their manicures presents the popular “X Factor” television talent show in be available in three colors — pale pink, hot pink and washing dirty dishes anymore. The brand’s creators have the U.K. shimmery nude. Each gloss, retailing at $21, will contain teamed up with Whirlpool Corporation to launch three new natural ingredients from Borba’s Age Defying, Replenishing colors in celebration of Whirlpool Gold with PowerScour MEN’S PRESTIGE COOLS: Sales of men’s prestige skin care and Clarifying lines. According to Maureen Kelly, president technology, a dishwasher with targeted jet sprays said to products reached $32 million during the fi rst half of 2006, and founder of Tarte, the average woman ingests two to clean dishes without having to wash them off fi rst. The a 3 percent increase compared with the same period a year four pounds of lip gloss a year. “That’s 708 tubes in your not-so-subtly named line, “I Don’t Do Dishes!,” offers ago. This represents a slowing trend, given that for full- stomach. I felt like if you’re going to be eating it anyway, colors such as rich red (I Don’t Do Dishes), a high-tech year 2005 the category expanded by 15 percent. In 2004, you might as well get some nutritional benefi ts out of it.” WWD, FRIDAY, OCTOBER 20, 2006 9 WWD.COM Reconfi gured Hilfi ger Takes Measured Pace

Continued from page one accessories and licensed products. in the U.S. gradually. Echoing Hilfi ger’s sentiment, he former stock market darling. After rapid growth in the Expansion in Europe, which accounts for about 35 said the company would shirk formulas as its new own- Nineties, the company ended up humbled by a sports- percent of the worldwide business, is rolling ahead. ers chart anew the global expansion program. wear-saturated U.S. retail scene that had maxed out on A Regent Street fl agship in London is slated to open Take runway shows, for example: “I can see us doing the brand. next month with another high-profi le event. “Here [in them from time to time. When you have a high-end fash- Gehring and Hilfi ger have now mapped out their plan Europe], we can still grow a lot, in wholesale and re- ion brand, I see the logic of it. We’re not. We’re a brand to reclaim the American brand’s energetic ethos, and to tail,” Gehring noted. of recognition and — to a degree — safety,” he said. carefully extend a premium positioning in markets like To be sure, Hilfi ger’s Paris presence brims with “Men’s is showing good signs of potential for the fu- Asia and Eastern Europe. confi dence. The company’s showroom in the 16th ar- ture. The real area of work for us is women’s wear in “I really believe I built this business as a result of rondissement, with marble fi re- the U.S.,” Gehring added. “Our breaking rules, pioneering new ground, thinking outside places, arched doorways and expectations are realistic.” the box,” said an upbeat Hilfi ger, dressed in a velvet moldings galore, exudes the With Andy Hilfi ger’s recent re- jacket, striped shirt and jeans. “After fi ve years of being permanence and richness of a turn to the fold as the company’s a public company, I felt compelled to do everything to foreign embassy. senior vice president of music please Wall Street every four months.…But sometimes, “I’d love to move in,” Hilfi ger and entertainment, the brand is those decisions aren’t the best for the long term.” said as he guided a visitor keen to fortify its historic ties to In an interview, Hilfi ger said he now spies an op- through one grand salon after those worlds, albeit with less pre- portunity “to rejuvenate, reinvent and put strength and another, the walls lined with dictable and more locally based power back into the brand — and it doesn’t have to be racks of his colorful designs. events, such as the showcase on a grand scale.…We just have to be great at what we And the blowout opening given to American photography do. It’s a new life, a new chapter. It’s exciting.” party, when the Beaux Arts at the Milan store. “I really want Gehring, an energetic and articulate executive, spoke venue was decked out with doz- to avoid looking back too much,” in similar terms, expressing fi st-thumping enthusiasm, ens of chandeliers and electric Gehring stressed. but tempered with a disciplined approach to business. guitars, was of a scale rarely However, one thing the ceo is For example, although Italy and France are now seen in the French capital. keen to reclaim is what he de- focus countries in Hilfiger’s European onslaught, Gehring said men’s sports- scribed as a positive, infectious Gehring acknowledged they are diffi cult markets for in- wear, Hilfi ger’s core business, Fred Gehring and entrepreneurial spirit that ternational brands to penetrate. remains its most vibrant division and Tommy thrived in the New York head- In the past year, the company has opened fl agships in Europe, recording the biggest Hilfi ger in the quarters at its peak. As part of in Milan and Florence, and Gehring said a location in increase in wholesale orders for fi rm’s Paris the company’s takeover and re- Rome, or possibly a second in Milan, is among immedi- spring 2007. “Women’s wear has showroom. organization last May, 230 jobs ate expansion priorities in the country. “In Italy, we’re al- been introduced later and is were cut in the U.S. and corpo- ready strongly on our way, with high double-digit growth catching up,” Gehring said. “We rate headquarters were moved to in wholesale,” he said. “France, particularly, is a tough can see in the next fi ve years it Amsterdam, leaving New York as nut to crack.…Eventually, we will succeed here, too.” will equal men’s wear.” a satellite unit. Gehring, who is celebrating a decade with Hilfi ger’s Hilfi ger Denim — a premi- Meanwhile, Hilfi ger was rel- European company, stressed the brand is well posi- um, grown-up sportswear and ishing his time in Paris, meeting tioned for further retail openings abroad. The company denim line for women and men with local editors and crossing had initially focused on the wholesale channel until it — is also a signifi cant business, paths with designer friends like had the “breadth of product” not only to fi ll freestand- accounting for about 33 percent Marc Jacobs. ing boutiques but to feed them continuously with fresh of revenues in Europe. Men’s Hilfi ger said he’s spent more styles. “Many brands make that mistake, opening [stores] sportswear represents about 30 time in Europe over the last too early,” he noted. percent; women’s sportswear, 20 nine months than in the previ- Hilfi ger already boasts some 600 company-owned percent; children’s wear, 15 per- ous three years. “As the face of or franchised freestanding stores, particularly in mar- cent, and activewear, 2 percent. A view of the the brand, it is my duty to go kets without suffi cient wholesale channels, including Gehring attributed Hilfi ger’s Paris fl agship on out to the markets and meet in Asia, South America, India and the Middle East. The strength in Europe to the “fun- Rue du Faubourg people. The way I’ve promoted business is already substantial in the Far East; Japan damental” decision many years Saint-Honore. the brand in the U.S., it’s now a generates some $130 million in retail sales, and China, ago to tweak and upgrade the global effort. $80 million. American product to suit what “What this team has done in Gehring said there is no suggestion of saturation in is a very fragmented market. Europe is unprecedented,” Hilfi ger added, praising the those markets, an error he readily acknowledged was But Gehring dismissed the suggestion that the brand retail network, licensing approach and a better mix of committed in the U.S. is in what’s considered a no-man’s land between the wholesale versus retail sales. “They kept the heritage “None of us thinks we’re going to regain the ground extremes of European luxury and mass. “We are at the of the brand and made it better.” we lost over the past fi ve years [in the U.S.],” he said. higher end of that middle area, and that’s where the Asked to characterize his growth potential abroad, “It was too big.” Instead, he said, the goal is to do the world is going,” he said. “I don’t want to say that we Hilfi ger noted the casual-dressing trend that quickly brand “justice, with a quality mind-set” as it rebuilds are luxury, but we defi nitely have a luxury component. drove his business in the U.S. is only now taking hold in in America. We’re premium.” many parts of the world. Hilfi ger’s volume and profi ts have eroded in the U.S. So far, best-selling items at the Paris fl agship on Rue “Now people are dressing more casually interna- as department stores cut back on their orders. The fi rm du Faubourg Saint- Honoré include a cashmere T-shirt tionally,” he said. “You can wear a pair of jeans with shuttered the H Hilfi ger retailing division, suspended with sequin details, at 170 euros, or $212.67 at current a blazer. It seems very normal to us, but to a lot of the junior Tommy Jeans line and stopped wholesaling exchange, and a slim-fi t Argyle sweater, at 100 euros, or people, it’s brand new. Having the right mix of denim, the children’s wear collection. It is now concentrated on $125.20 sportswear and dress-up casual has been part of the the core men’s and women’s sportswear businesses, plus Gehring stressed the brand would be moved upscale secret.” Stars Get Their Kicks at Tommy’s Paris Opening FORGET FASHION. A SOCCER working out her own style, hero practically stole the show transforming a Hilfi ger skirt at the opening of Tommy into a dress for the evening. Hilfi ger’s Parisian fl agship The actress is still bedazzled Wednesday night. by all things Parisian. “You can “My little brother would go fi nd the best pain au chocolat crazy,” said Lindsay Lohan as on every corner in Paris,” she she posed for a photograph said. “Now that’s luxury.” with French soccer sensation Hilfi ger, who sported a Thierry Henry. Lohan, Kate scintillating disco ball-like Bosworth, Kristin Scott jacket, set the tone for the after Thomas, Virginie Ledoyen, party. “Hop on a Harley,” he Dolores Chaplin and a handful commanded guests, pointing of French athletes feted the to a line of Harley- Davidsons American sportswear designer’s and their leathered-up, long- foray into the French capital. haired chauffeurs, ready to While the dashing Henry whisk guests away to the Beaux may have impressed Lohan, Arts. The designer transformed shopping apparently beats Virginie Ledoyen the historic French building soccer as her sporting outlet. and Thierry Henry with hints of Americana, such “I spent the day in the sports as spinning electric guitars, department of the YSL store Plexiglas towers fi lled with here. Does that count?” she asked. popcorn and Statues of Liberty. The climax, however, was Henry, meanwhile, let slip that he is teaming up with a private concert by American rocker Lenny Kravitz, who Hilfi ger for a fashion endeavor. “We’re working on a project performed “American Woman,” among other hits, while together,” said Henry. “It’s my own style.” Lohan showed off a few of her moves, later spinning tunes Lindsay Lohan Bosworth, who said she was heading to London to fi lm from turntables on an elevated platform. and Kate Bosworth “The Best of Our Lives” with Keira Knightley, was also — Emilie Marsh STEPHANE FEUGERE AND HENRY BY DOMINIQUE MAITRE; LOHAN HILFIGER PHOTOS BY 10 WWD, FRIDAY, OCTOBER 20, 2006 WWD.COM Marketing A Gilded Stage for Luxury Players By Nina Jones LONDON — Fashion and luxury compa- nies aren’t linking only with the art world in the drive to raise their brand profiles — literature, theater and architecture also are benefiting from their largesse. Smythson, Tiffany & Co., Montblanc and Krug are among the players aligning them- selves with high-brow events or institutions both to appeal to existing customers and to tap into a potential new audience. “We’re always looking for opportuni- ties to get our brand in front of a discern- ing, sophisticated audience,” said Paddy Byng, chief executive offi cer of the statio- nery and leather goods brand Smythson. Earlier this year, the company spon- sored a lecture by author Candida Lycett Green — daughter of England’s late poet laureate Sir John Betjeman — during the Althorp Literary Festival in Northampton, England. Instead of just putting its name to the lecture, as in a routine sponsorship, the company produced a one-off, leather- bound copy of poems by Betjeman, about whom Lycett Green was speaking. The book was then auctioned off during the festival in aid of the English branch of PEN, an international organi- zation that promotes the understanding of literature. “When sponsorship is just about saying ‘In association with,’ it’s a missed opportunity,” said Byng. “We wanted to do something distinctive and intelligent that would demonstrate what ADAMS; MECKSEPER’S BRYAN OF WORLD MONUMENTS FUND; JENKINS BY GEORGE’S PHOTO COURTESY ST. BERLIN AND ARNDT & PARTNER, NEW YORK, OF ELIZABETH DEE GALLERY, “REST IN PEACE” COURTESY the brand was capable of.” Left: Welsh opera singer Katherine Jenkins was recently named as brand ambassador for Montblanc. Right: Through its partnership with the World The primary sponsor of the Althorp Monuments Fund, Tiffany & Co. is associating its brand with the restoration of historic buildings like St. George’s Church in London. festival was Richemont-owned Montblanc, of the sea”) by the French author Jean platforms without alienating at least some tural events reinforces a brand’s status the writing instrument, jewelry and leath- Vercors. Actors — including Hugh Dancy of the audience, Suki Larson, chief execu- and prestige.” er goods brand. Visitors to the festival and Saffron Burroughs — read from the tive of Provenance, the luxury goods unit Up to a point. Over-branding an event were able to enter a prize drawing to win new play at the 2006 Hay Literary Festival of ad agency M&C Saatchi, said a balance could prove a turnoff, cautioned Fernanda a Montblanc pen, by naming their favorite in Wales in May, but no date has been set between the brands’ and festivals’ needs Kellogg, senior vice president of public re- writer in the company’s Writers Edition for the fi nal production. could be achieved as long as brands judged lations at Tiffany. “It’s about understand- series, which features pens named after “Our customers are intelligent and in- the events and their audiences accurately. ing the boundaries of what is appropriate,” authors such as Charles Dickens, Voltaire quisitive, and can make their own choic- One artist’s work displayed at the Krug- said Kellogg. “It works best when people and Edgar Allan Poe. These pens were on es,” said Isabella Macpherson, Krug’s sponsored “Video America” show features say, ‘Oh, but of course’ about the partner- display at the festival. arts and communications director, during clips of President Bush’s speeches spliced ship. It should feel organic and natural, In September, Welsh opera sing- and never forced.” er Katherine Jenkins was named as Tiffany, a brand long associated with Montblanc’s brand ambassador and she’s One of the many motivating factors to work with fi ne craftsmanship, chooses to support the appearing in the company’s advertising “ World Monuments Fund, which helps re- campaigns through 2007. charitable foundations is [attracting] new customers. store historic buildings around the world, French champagne house Krug has through both its Tiffany Foundation and entered the worlds of theater and video — Fernanda Kellogg, Tiffany & ”Co. its corporate giving activities. In London art. This month it sponsored a series of this month to celebrate WMF’s restoration video installations by young American art- a walk-through of the “Video America” with footage of terrorist attacks while a of St. George’s Church in Bloomsbury, the ists. Called “Video America,” the show was exhibition. “We want the brand activ- medley of disco music plays. Macpherson Tiffany team hosted a dinner for WMF do- held at The Hospital, a membership art ity [marketing] we do to be high quality said controversial pieces such as this rein- nors at the Royal Hospital in Chelsea. The club, during the week of London’s Frieze — but to keep it refreshing for both our force Krug’s core values of “individuality only visible sign of branding all evening art festival. Krug also has sponsored the core and new audiences.” and intelligence, and are targeted toward were blue Tiffany boxes on each guest’s writing of a new play based on the no- While it may be a challenge for luxury [people in] the art market. A brand like plate, each containing a silver pen. vella “Le silence de la mer” (“The silence brands to use such events as marketing Krug should be targeting different expe- In helping to save endangered architec- riences to different audiences.” ture around the world, though, the compa- Absent from the Krug show was any ob- ny also is thinking of its bottom line. “One vious branding from the champagne house of the many motivating factors to work — aside from the glasses of Krug being with charitable foundations is [attracting] passed around to guests. Macpherson and new customers,” Kellogg admitted. the show’s curator, Neville Wakefi eld, said it Indeed, consultant Larson sees cul- was a conscious decision to keep the brand- tural events like literary festivals, the ing minimal. “The difference with Krug is opera and arts events as ideal “hunting that they stayed in the background and were grounds” for future luxury customers. very hands-off,” said Wakefi eld. “I think in Still, Krug’s Macpherson and Byng of the end it’s in Krug’s interest. Provocative Smythson acknowledged they were not and experimental work like this attaches able to quantify consumers’ responses to the brand to another segment.” events sponsorship. Both said the events Linking with cultural events may not were about “connecting” with customers radically change the way people per- on a more subtle level, rather than creat- ceive a brand’s DNA, but observers said ing a targeted marketing drive. sponsoring cultural events could remind “It’s about keeping the name out consumers of its qualities. For example, there, to have people hearing and talking Larson said, Swarovski’s sponsorships about the brand,” said Macpherson. “It of the Council of Fashion Designers of mustn’t be too brash. The luxury market America awards and several fashion is incredibly glutted.” runway shows might remind consumers Byng would agree. “In a qualitative the brand is not only “about small crys- sense, people really did respond to the tal animals, but about craftsmanship and Althorp sponsorship,” he said. “People crystal-cutting techniques.” went away saying the book was fantastic. A brand’s presence in cultural circles We didn’t want to be too intrusive — we also can strike an emotional chord with had some marketing literature there, but consumers. “[Luxury goods companies] we really let the book and the engraving have to fl atter users of their brand,” said on it speak for themselves. Our brand is Krug reached out to a nontraditional audience with its sponsorship of “Video America,” a series Rita Clifton, ceo at branding consultan- seen as discreet and understated, so our of installations including controversial images. Here, Josephine Meckseper’s “Rest in Peace.” cy Interbrand. “Being involved with cul- brand behavior conforms to that.” “ ... ONE OF THE MOST INTOXICATING POP CULTURAL ARTIFACTS OF OUR AGE.” 12 WWD, FRIDAY, OCTOBER 20, 2006

Marketing Doing Good for

By Georgia Lee retched excess is out. Saving the world is in. W By tying a luxury brand to a noble cause, companies are mining a new cultur- al mind-set and giving consumers a chance to feel virtuous about an upscale product they purchase. A growing number of Americans, from teens to Baby Boomers — and especially the very wealthy — really want to do good, based on recent studies by American Express and youth and young adults marketing specialist Alloy Media + Marketing. And they like and buy brands that want to do good, as well. While marketing and causes are not exactly strange bedfellows, the current wave of cause-oriented campaigns refl ects a major cultural shift in the mind-set of Americans, especially Baby Boomers, maintained Tom Watson, chief strategic offi - cer for Changing Our World Inc., a consultant specializing in philanthropy and the publisher of online title onPhilanthropy. “You can’t turn around without seeing a big new campaign, a magazine cover, big media coverage or fi nancial sector ads targeting Boomers’ desires to do good,” he said. “We’re experiencing a moment in time where philanthropy is becoming an aspirational lifestyle choice.” A number of factors are spurring the current fascination. Famous Boomers, such as Bill Clinton, Bono, Richard Branson and Bill Gates, have launched high-profi le cam- paigns, setting an example for others of their generation at a time when many will re- ceive a transfer of wealth from their parents, Watson pointed out. In addition, a number of recent disasters — from Hurricane Katrina to the 2004 tsunami in Indonesia — drew big media coverage and prompted a widespread emotional and fi nancial response. As a result, style-driven companies are embracing various causes — in some cases, those of their customers or celebrity fans — and making them part of a brand’s identity. Once a quiet endeavor, philanthropy has become fashionable with celebrities, bringing star power to various causes, such as Bono for the American Express Red Card and Branson, who donated $750,000 to help form the Sara Blakely Foundation, a group dedicated to helping women around the world, starting with underprivileged women in Africa. “From a cynical point of view, this is good for business. It makes people feel good about the company,” Branson said at a party in Atlanta last week to launch the foun- dation formed by Blakely, founder of Spanx, a footless panty hose line with headquar- ters in Atlanta. “But when companies do it, it has to be from the heart because the consumer will know the difference.” “Luxury brands try to fi nd ways to wrap themselves in virtue,” said author-consul- tant Paco Underhill, chief executive offi cer of Envirosell, who cited Kiehl’s and ABC Carpet & Home as examples. “It’s a way to gain recognition without spending money on advertising, in the 20th-century ad model.” At least one observer said the upswing in brands’ support for charitable causes re- fl ects a backlash against the excess portrayed in the media, and could be an effective way to assuage consumer guilt. “It validates consumerism and makes people feel less guilty about spending lots of money,” observed Samantha Skey, senior vice president of strategic marketing at Alloy. Alloy’s research indicates 18- to 30-year-old college students see themselves as hav- ing less in common with Paris Hilton than Mother Teresa. Intent on doing good, they consciously seek out brands that embrace social responsibility. In addition, experts advised, today’s culture is one in which the prevalence of spoiled, rich teenagers, with The Candie’s Foundation was launched in response to fl ack the brand had received over its ads no cause more meaningful than acquiring the latest designer handbag, is more myth with sexy teens. Six teens with a cause are appearing in the Mudd Girls Move the World ads than reality, despite their portrayals on TV shows such as MTV’s “Laguna Beach,” appearing through next June. “The Hills” and “My Super Sweet 16,” and Fox’s “The O.C.” Keeping a Constant Aim Amid Fashion’s Quick Change

By Valerie Seckler Nietzsche in talking about various ways to anchor and he said in the interview. energize a business. Zara’s altruism, he noted, is refl ected in the brand’s hy does staying true to a purpose for its own sake In his book, published this month, the author asso- well-chronicled success in creating new, moderate-price Wmatter for businesses today? ciates the philosophy of Kierkegaard with the purpose fashion goods for consumers in just two weeks, via a de- “If you want to make it really big, it is important to of discovery, the philosophy of Aristotle with the aim of sign and manufacturing operation based almost entirely remember what you stand for,” counseled author-consul- excellence, the thinking of Hume with altruism and in Spain. About 85 percent of Zara’s fashion items are tant Nikos Mourkogiannis, whose new book, “Purpose: that of Nietzsche with heroism. He considers three purchased by consumers at full price in the brand’s 942 The Starting Point of Great Companies” (Palgrave of those purposes apt ones for 21st-century busi- stores, compared with the fashion sector’s average of 60 Macmillan: $27.95), draws on the works of nesses — excellence, which he believes is emblem- percent, Mourkogiannis said, citing fi gures published re- philosophers in citing four purposes he atic of such brands as Chanel, Charvet, Apple cently in BusinessWeek. contends would propel just about any and The Economist; altruism, symbolic of Zara, While Zara and Topshop are both built, in part, on fre- business to take action — including the Nordstrom and The Body Shop, and discovery, quent deliveries of fresh apparel, Mourkogiannis cited purpose of heroism, an aim traditionally which informs Topshop, Virgin and Sony. the British retailer’s devotion to setting trends, rather embodied in uniforms. One reason Mourkogiannis, a senior partner than following them, as signaling a different aim, that of “Both heroes and villains wear uniforms,” at business consultant Panthea, draws from the discovery. It is expressed in the 7,000 looks Topshop is Mourkogiannis observed, citing men and ideas of philosophers is his belief, as he states said to introduce each season, as well as in expressions women in the military, among other services, in his book, that “purpose in companies is of the brand like Topshop Express, which delivers prod- as well as prison inmates. “We used to have most effective when it draws on moral ideas ucts to the homes or offi ces of people too busy to pick many more uniforms in the world. The heroic, that have stood the test of time. To build a them up themselves. which was important for the industrial age, is re- business that lasts, one does well to draw Topshop may be straying from that purpose, though, in ceding” as everyday people are empowered in the on ideas that have lasted.” its deal with model Kate Moss to help create and design on information age, the author said in an interview. ing The moral basis for action that in- a collection for it, starting in spring 2007, Mourkogiannis raw have Such conditions are likely to breed a great- e: D hat .” forms the purpose of discovery, he said when asked to appraise the arrangement. pos s t ime Pur idea of t er openness to wearing different kinds of ap- ral est writes, is “I have freely chosen it;” for Acknowledging Topshop’s notion of Moss as someone who “mo he t parel among people worldwide, and subsequently, od t excellence, it is “It constitutes fulfi llment,” embodies the style of the chain’s customers, the author Mourkogiannis foresees “more opportunities for sto and for altruism, it is “It increases happiness.” still said he thinks the idea lacks credibility. “What in her fashion.” Two of Mourkogiannis’ favorite examples of fash- background makes her a fashion designer? Is she going to That said, the only way for fashion or any business ion marketers with a clarity of purpose are Zara, whose greet customers at the door [to put a stamp of] authentic- to win in today’s fast-moving, pragmatic world is by stick- purpose he perceives as altruism, and Topshop, whose ity on the apparel?” he asked in referring to the collec- ing to a purpose, advised Mourkogiannis, who loves a big purpose he sees as one of discovery. “Their purposes and tion, Kate Moss for Topshop, which will make its debut at concept and regularly draws from the philosophies of business models are very consistent; their purposes are the company’s 308 stores and online at topshop.com. Aristotle, David Hume, Søren Kierkegaard and Friedrich very well aligned with their strategy, systems, structure,” Although Topshop and Zara are fl ourishing as quick WWD, FRIDAY, OCTOBER 20, 2006 13 WWD.COM r the World – While Shopping

This mind-set has been making it easier for cause-connected brands With its Love Charity Bracelets, launched in June, to lure socially conscious youths. “Young people want to do good, but it’s Cartier updated its 30-year-old Love bracelet, an emo- superfi cial — they don’t dig deep,” Skey contended. “They don’t want to tionally charged item familiar to the luxury brand’s be candy stripers or get their hands dirty, so buying a product is a way to Boomer consumer. To appeal to a broader market, wear their commitment on their sleeves. The climate is defi nitely ripe for Cartier recruited eight celebrities, from Spike Lee brands to do the right thing.” to Scarlett Johansson to Sarah Jessica Parker. Each At MyCause, an online network for change, high school students can get selected a silk cord bracelet in a signature color and involved with six causes, ranging from animal rights to anti-poverty programs, applied it to their favorite cause, succeeding the older as well as shop and socialize with their peers via blogs and digital photos. Love piece, which was a gold bracelet with screws that Launched in August by Alloy, MyCause could be opened by a person’s partner. has links to roughly 40 e-tailers, includ- With its campaign, Cartier tried to touch several ing Amazon, Bluefl y and Target, each bases — philanthropy, personal expression, celebrity of which donates a percentage of sales and a multigenerational appeal. to the half-dozen social efforts backed People’s desire for philanthropic, cultural expe- by the online network. Donations riences also is creating an opportunity for luxury range from 0.6 percent to 12 percent travel and services to market new opportunities to of a transaction to benefi t government; wealthy families. anti-violence and anti-war projects, Luxury vacations, in villas or homes; destination peace and fi ghting terrorism. clubs offering time shares in lavish homes and re- Parents, especially the very sorts, and the transformation of private jets or yachts wealthy, say they value philan- from ownership to membership, will all be winners, thropic values over a lavish lifestyle forecasts Milton Pedraza, ceo of the Luxury Institute.

and frivolous spending. “Customers INFGOFF BY AP PHOTO/M SAJJAD; HILTON JOLIE PHOTO BY “The philanthropic trip, where people can go and are increasingly socially conscious build a home or help a child, rather than just write a and there’s a growing opportunity check, will become more important,” said Pedraza. “People want to be for customers to feel good about involved directly, personally,” he said of affl uent Americans, including brands,” said Simon Kahn, vice families who would engage in such activities together. president, Platinum Card product Mudd Jeans has recruited young consumers to the cause. In Mudd management, at American Express. Girls Move the World, a back-to-school campaign launched in June, In September, an American more than 2,000 teens responded to a nationwide call that included a Express survey of 1,170 consumers 200-word essay on any cause. Six girls were chosen from six cities, in- with average annual household in- cluding Albuquerque, N.M., Atlanta and New Orleans, where a survivor come of $472,000 revealed parents of Hurricane Katrina wanted to “rebuild her city.” The girls are appear- care deeply about ethics and values, College students see themselves as ing in Mudd’s online and print advertising and point-of-sale materials and enjoy travel and cultural experi- having less in common with Paris Hilton through next June. Mudd donated $5,000 to each girl’s cause. ences — and want to share them with than Mother Teresa — or celebrities The girls, while serious about their causes, were just as excit- their children. Over the past few who do good works, like Angelina Jolie, ed about becoming models, noted Catherine Sadler, president of years, American Express has stepped who has been a Goodwill Ambassador Catherine Sadler Group, the New York marketing agency that created up cause-related programs like the for the U.N. High Commissioner for the campaign. “Teens are teens,” Sadler said. “Their social concerns recently launched Red Card, spear- Refugees. Scarlett Johansson sports co-existed with their love of fashion, being pretty and dressing up.” headed by Bono in the U.K., which Cartier’s Love Charity Bracelet. Mudd’s owner, Neil Cole, is no stranger to the complexities of in- benefi ts AIDS charities, and begun corporating causes into brands. In 2000, he launched the Candie’s more joint programs with brands, such as Gap, which did a recent Red promotion that Foundation, which has raised over $10 million for teen pregnancy prevention, in re- included special offers related to social causes aimed at youths and parents alike. sponse to what he called fl ak over campaigns featuring teens in sexy ads for Candie’s, It’s not that luxury customers have stopped buying expensive things. But their buy- a brand also owned by Cole. Since then, the ads have been toned down somewhat, he ing decisions are shifting, increasingly infl uenced by their values, said Kahn. “Affl uent said, but he attributed the move more to market forces than moral pressure. customers are still buying luxury goods, but they have to believe that something has “I still believe that sex sells,” Cole said. “I’m not talking out of both sides of my value, and that can mean different things to different people,” he said. mouth. We can’t pretend sex doesn’t exist, but you can wear a short skirt and still be Thus, the “experience,” or the story behind a purchase, often is as important as the item smart and not ruin your life. itself. Brands that are a personal, individual expression, or convey a message about the “Most important when dealing with young people,” Cole added, “is you have to individual, often trump the need to possess an item refl ecting a “hot trend of the month.” keep it real.”

Wal-Mart has come under pressure in recent months on different fronts, among them, lawsuits alleging unfair treat- ment of employees and the unionization of the 66 Wal-Mart stores in China. Wal-Mart has long sought to keep unions from organizing at its original base of stores, in the U.S. Employees of Wal-Mart have been winning some recent challenges over working conditions they’ve complained are sub-standard, most recently in Pennsylvania, where a state court jury found the company had violated state labor laws. Simley said the company planned to appeal the verdict on more than one basis, but he did not specify. When asked whether he thought the ruling affected peo- ple’s perceptions of the company, the Wal-Mart spokes- man said he did not know. Though Mourkogiannis fi nds Talking the Walk: Wal-Mart’s current purpose un- clear, he believes the discount Prime Times to Convey Purpose giant is transforming itself into a business that could be marked ● As a new ceo takes over. by discovery, through such efforts ● As a new chairman is named. as injecting more fashion into ● The 20th anniversary of a the chain, adding pricier items, TOPSHOP PHOTO COURTESY OF SCOTT BARBOUR/GETTYTOPSHOP PHOTO COURTESY IMAGES company. opening in more urban locations In the eyes of author-consultant Nikos Mourkogiannis, Zara embodies the purpose of altruism while Topshop refl ects ● the purpose of discovery. In a yearly message like an and becoming more environmen- annual report. tally conscious, as evidenced by (fashion) change artists, the author-consultant cautioned Walton, growing up in the relatively im- ● In a seminal event such as the retailer’s request that its an approach built on speed to market is no guarantee of poverished region of rural Arkansas, that fashion week. suppliers use less packaging and success. “The world is not a simple place; not everything meant helping as many people as possible its goal to be supplied 100 per- moves fast. Just to go fast is not an advantage,” he con- raise their standard of living; giving them Ads can reinforce a company’s purpose cent by renewable energy. Such tended. “If that is all there is, there is only one kind of material goods in a homogenized but com- but are not the best place to state it. sustainability efforts, Simley company that will win — a low-cost producer.” forting atmosphere.” These are some venues that are. said, “started out as a matter of

These days, Mourkogiannis is less than impressed “It is diffi cult to create a sense of al- “PURPOSE” AUTHOR, MOURKOGIANNIS, NIKOS SOURCE: how we’re being perceived and with the sense of purpose he perceives at Wal-Mart, a truistic community when you are so big,” turned into a business issue — low-cost retailer he once considered a paragon of altru- Mourkogiannis said in the interview. “It is harder to be reducing waste and increasing effi ciency.” ism, based on founder Sam Walton’s determination to nice to an infi nite number of people.” In addition, he said To pull off this kind of change at Wal-Mart could take give the customer a good deal. This was refl ected, he Wal-Mart is suffering from “lost credibility,” and he thinks an investment of at least fi ve years’ time and $100 million, writes, in Walton’s “desire to create the greatest amount “they feel the same old stuff will not work,” an observation Mourkogiannis projected. “To do it with any less commit- of happiness for the largest number of people. For that was confi rmed by Wal-Mart spokesman John Simley. ment,” he added, “will result in complete confusion.”

16 WWD, FRIDAY, OCTOBER 20, 2006 WWD.COM Social Cycle As they say, there’s no rest for the weary. Just ask the social set after this week’s roundelay. Monday night, Chuck Close, Christo and Jeanne-Claude, David Bowie, and Aby and Samantha Rosen donned their black tie best for The National Arts Awards at Cipriani, which this year honored Jeff Koons, Aretha Franklin and Jake Gyllenhaal, who came with his parents and buddy Robert Downey Jr. Lance Armstrong. Robert Downey Jr. and Jake Gyllenhaal presented the award to Gyllenhaal, joking the honoree’s extended family had dressed up for the occasion: “None of us at table 23 are wearing any underwear. Yup, we’re free-balling it.” Charming. Things were less risqué at The Frick Caroline Collection’s annual Autumn Dinner, where Kennedy philanthropist Eugene Thaw was toasted by Schlossberg more than 300 guests, including Mica and and Stacy Ahmet Ertegun, Jamee and Peter Gregory, Goodman at Ulla Parker and Debbie Bancroft. “She’s City Center. the one who put me up to it,” Thaw said, motioning to Frick director Anne Poulet, at his side in the receiving line. “I’m Susan kind of in a fog.” Fales-Hill The next night, Giambattista Valli at City hosted a dinner at Bette for the likes of Center. Iman, Amy Sacco, Allison Sarofi m, Anh Duong, Stefani Greenfi eld and Zani Gugelmann, who had such a good time at the bar sipping Svedka martinis that it took them a while to realize it was a sit- down dinner. Earlier in the evening, Candy Pratts Price hosted a party for Valli at Bergdorf Goodman, where Margherita Missoni, Helen Schifter, Olivia Chantecaille and Lauren Davis Eleanor Ylvisaker sifted through the designer’s clothing and Byrdie Bell, Oluchi racks. “It’s always about the energy,” both in Calvin Klein in Calvin Valli said, scanning the New York scene. Collection. Klein Over at the Mandarin Oriental, Aileen Collection. Mehle, aka Suzy, was honored at the Casita Maria’s Annual “Fiesta.” “Aileen is a border Texan, loves Latinos and speaks a wonderful Texan Spanish. She’s as Latin as any Latino,” declared Jacqueline Weld Drake, the organization’s chairwoman. Helen Mirren Among the crowd were Dayssi Olarte de Kanavos, Blaine Trump at City Center. Giambattista and Carolina Herrera. Valli and The following evening, many of the same set headed to City André Leon Center for the American Ballet Theatre’s fall gala. The troupe Talley brought the crowd to its feet with a performance of everything from “Swan Lake” to a “Diana and Acteon” pas de deux. Meanwhile, downtown, the Puck Building played host to the Henry Street Settlement’s annual benefi t, this year called the Glitter Ball, where the honorees were MAC’s John Demsey and Credit Suisse’s Brady W. Dougan. Guests like Nina Griscom, Eleanor Ylvisaker, Oluchi, Roopal Patel and Olivia Palermo (who Helen earlier that evening co-hosted the Tibi boutique opening nearby) Schifter perused the silent auction items before heading in to dinner. in Chanel. CH/NYSOCIALSCENE.COM; DOWNEY JR. AND GYLLENHAAL BY MATT CARASELLA/PMC MATT AND GYLLENHAAL BY CH/NYSOCIALSCENE.COM; DOWNEY JR. Barbara Wilhelm, just back from an art trip to London, was a savvy bidder. “I just put down $800 for the $1,200 Bergdorf Goodman gift certifi cate,” she smiled. “You can’t go wrong with that.” L.A. wasn’t left out of the swirl: The night before opening her new Orange County store on Wednesday, Tory Burch hosted a cocktail party in the penthouse suite of Chateau Marmont, drawing the de rigueur Hollywood mix of celebs and socials, Lauren Davis in including Jamie Tisch, Emmy Rossum, Angie Harmon, Shiva Giambattista Valli. Rose and Crystal Lourd. “Her clothes are so classic,” said Rossum. “They’re very New York, but they work in L.A.” Tory Burch

Blaine Trump and Ahmet Carolina Herrera Ertegun with his wife Mica in Oscar de la Renta.

Ulla Parker in Pamela Dennis and Richard Tyler.

Dayssi Aileen Jamie Tisch in a Tory Olarte de Jamee Mehle Burch blouse and Valentino Kanavos Gregory in in Oscar cardigan with Angie in Carlos Oscar de de la Harmon in Tory Burch. Miele. la Renta. Renta. ABT AND FRICK PHOTOS BY STEVE EICHNER; VALLI AND HENRY STREET BY ZACK SECKLER; BURCH BY DONATO SARDELLA; CASITA MARIA BY ROB RI MARIA BY SARDELLA; CASITA DONATO BY ZACK SECKLER; BURCH AND HENRY STREET BY STEVE EICHNER; VALLI ABT AND FRICK PHOTOS BY WWD, FRIDAY, OCTOBER 20, 2006 17 WWD.COM Media/Advertising Allure Survives Early Blemishes and Turns 15

By Stephanie D. Smith and rethought how Allure shot stories. “For instance, if we were doing something NEW YORK — Allure editor in chief Linda Wells has a lot to smile about these days. about the beauty mistakes women made, we Against the odds, Allure is celebrating its 15th anniversary this year, having sur- would photograph the mistakes,” said Wells. vived a rocky start and lots of red ink to become an authority on beauty. Wells has “Nobody wants to look at the mistakes; they earned a reputation as a knowledgeable yet approachable industry advocate, as want to look at the way it should look!” evidenced by this month’s debut of her fi rst book, “Allure: Confessions of a Beauty Since then, Allure has developed a solid Editor,” a real-life handbook of essential beauty tips. And any woman who receives foundation. In the fi rst half of 2006, paid 30 beauty products a day to try must be happy — at least, happy enough to stay in the and verifi ed circulation grew 7.4 percent, same position for 15 years. to 1.1 million, according to the latest Audit In 1990, S.I. Newhouse Jr., chairman of Condé Nast (which owns WWD), and then- Bureau of Circulations fi gures. Ad pages editorial director Alexander Liberman recruited Wells to develop an idea they had have grown steadily since 2001 — Allure for a beauty title. “We felt that there was a need for a good beauty magazine and carried 1,156 pages that year, then grew to Alex had Linda in mind right from the start,” said Newhouse in an interview. At the 1,289 pages in 2003 and 1,429 in 2005. This time, Wells was a beauty editor and wrote a biweekly beauty column at The New York year, the magazine will close 8.7 percent Times, recruited to the paper by the late fashion grande above 2005, at 1,554 pages, according to dame Carrie Donovan. publisher’s estimates. Liberman came up with the name Allure came after Even more noteworthy is how circula- several unfl attering suggestions, including Eve, “which tion has grown steadily, despite the ups and would have been terrible; it sounded like a cigarette or a downs in advertising, from 200,000 to the feminine hygiene product,” laughed Wells. Another was current one million; there have been 13 rate Beauty Now, which Wells said sounded like a trade mag- base increases since the magazine’s inception. azine. But nailing a name was the least of her troubles. “She has really defi ned the genre. She The fi rst prototype was shredded two months before has gotten more and more confi dence and the issue was scheduled to be launched. After retool- brilliance every year,” added Newhouse. “She’s not an editor who is formu- ing everything from the creative team to the logo, Allure laic. She keeps evolving and changing the magazine.” made its debut in March 1991, the last new title during Several examples of Wells’ editorial fl exibility will come in the near fu- Liberman’s tenure. He died in 1999. ture. Next month, Allure will relaunch Allure.com with ambitious video and There were some challenges in the early years. The interactive additions. Allure rolled out a special Allure Brides last year as a magazine’s oversize format prevented it from fi tting into stand-alone issue, but this spring it will be an insert. Wells scrapped an insert slots at grocery store checkouts, and advertisers had to on men’s grooming, Allure Men, produced last December, but will produce a resize their ads or create new ones. (Allure’s fi fth issue special fragrance onsert in December that will be polybagged with the regu- had just 11 ad pages, Wells recalled.) After four issues, lar issue, and launch a new fragrance column in February as the boom in the Allure switched to a regular-size glossy format. When Linda Wells sector continues, thanks to a new celebrity licensee every minute. heroin chic was in vogue in the late Nineties, Allure “She’s involved in every idea, from television to the Web site [allure.com], traded its glossy, groomed appearance for one that re- to podcasts, to wireless,” said Condé Nast editorial director Tom Wallace. fl ected the dark trend of too-skinny, unkempt models in dank spaces. “She’s both the face of the magazine and its voice, with a presence felt not only in the “There was a moment where photographers, fashion stylists and designers were magazine but the entire beauty industry.” rejecting that whole hyped beauty of the supermodel — the makeup, heels and over- She’s down to earth, in appearance and personality. “She’s a natural beauty,” the-top quality of fashion,” said Wells. Allure did the same, creating a place where gushed Thompson. “She doesn’t come and worry about her hair being perfect and her advertisers were uncomfortable because it no longer felt consumer friendly. “We were personality exudes that beauty, too.” on that road and went down that road too far and too long,” mused Wells. The maga- What’s next for Wells? If anything, she and Condé Nast feel she’s right at home at zine sold over 1,300 ad pages in 1998; the next year, pages fell 16 percent, to 1,119. Allure. But could she be redirected elsewhere within Condé Nast — possibly to an- Soon after, Allure returned to its demure roots with the help of photographer Michael other launch? Perish the thought, said Newhouse. “We haven’t thought about moving Thompson and creative director Paul Cavaco, who created a consistent cover format her. She’s absolutely right for Allure.”

well, listening to bloggers. Glamour will implement a time for attendees to catch afternoon fl ights back to New 24-hour waiting period for posting photos, during which York. “The world moves faster now, so we’re adapting to MEMO PAD “sweepers” will evaluate the posting’s appropriateness. In what our members want. There are as many sessions as a few weeks, the site will unveil a technological innovation before, it’s just we cut out some of the recreation,” said a that slaps an anonymity-granting black bar over the eyes Magazine Publishers of America spokesman. SIGNS OF CONFUSION: The Hearst Tower’s housewarming of those eventually voted “Don’ts,” similar to what the But what would the conference be without some high earlier this month has spawned yet another tidbit. As magazine does in its pages. Good taste in the eyes of jinks — public or otherwise? Monday night’s dinner will reported by The Delaney Report, Victoria Hearst left a voters grants an unobscured face. Finally, in a public show feature chefs from Arizona’s top restaurants, including confusing message to partygoers on two long canvases of humility, the magazine has been soliciting the advice Beau McMillian, who recently beat celebrity chef Bobby at the entrance to the tower where guests signed their of its critics, including Coutorture blogger and former Flay on an episode of Food Network’s “Iron Chef.” Then, regards. “The [Hearst] company belongs to the God of Glamour intern Julie Fredrickson and The Huffi ngton Post’s TV Guide editor Ian Birch; Dana Fields, FHM president and Israel. We must bless others,” was a quote attributed to Rachel Sklar. “As a magazine that’s based on the idea of executive publisher; Urb publisher Raymond Roker; Jane her on the canvases. Hearst staffers are bewildered as to empowering women, it’s very important to us to make editor in chief Brandon Holley; Maxim group publisher Rob what exactly she meant by the statement. One called the sure that’s also happening online,” said Glamour editor Gregory, and Rodale chief executive offi cer Steve Murphy message “weird,” but many, including Jewish staffers, in chief Cindi Leive. Or, as her new informal consultant, will ramp things up by deejaying at an after party that will weren’t too put off by the comments. “I wasn’t offended Fredrickson, put it, the point is to prevent the site from be complete with a cigar and martini bar. While Ray is because I didn’t know what it meant,” said one insider. devolving into “rampant bitchery.” — Irin Carmon leaving the conference before the party and before cooking “We were just very puzzled.” As of Thursday, the banners up a 30-minute meal at Monday’s dinner, she did make a were still in the Hearst lobby, which the insider believed NEW HIRE: In Style has found a successor to outgoing long-distance request for Birch and crew: “Anything Tom refl ected most people’s ambivalent reaction: “If it were director of photography Bradley Young, who left the Jones will work.”— S.D.S. something that the company was really horrifi ed by, I think magazine last month. Alix Campbell, photography director they would have removed it.” of Marie Claire, will defect to In Style just three issues DANGEROUS APPETITES: Tired of cutesy, expensive deli A call and e-mail to Victoria Hearst went without a into Joanna Coles’ tenure as editor in chief of that title. food and overpriced ready meals, food writer Tom Parker response. A spokesman from Hearst also did not return Said Charla Lawhon, In Style’s managing editor: “It’s clear Bowles set out on an international culinary adventure calls as of press time. While the meaning of the comments to me that she understands the In Style reader, magazine where he ate everything from snakes to dog stew to may never be known, toilers in the building shrugged off and brand.” Campbell, who has held past photo positions water beetles. He lived to tell the tale, and his latest the incident as a sign of the Hearst clan’s eccentricities. at Glamour and Cosmopolitan, was director of photography book, “The Year of Eating Dangerously” (Ebury Press), “It’s unsurprising; you never know what you’re going to get at FHM magazine from August 2002 to April 2005 and is all about his travels to South Korea, Laos, New from some of the characters in the family,” said an insider. was photo director at Redbook. She joins In Style on Nov. Mexico and his own Gloucestershire, England, in search After all, its patriarch, William Randolph Hearst, once 6, “jumping in just in time for the spring issues,” said of new culinary highs. Friends and family — including built his very own castle and had giraffes roaming the hills Lawhon. — S.D.S. his mother, the Duchess of Cornwall; wife Sara Buys; sister of California. — Stephanie D. Smith Laura Parker Bowles Lopes; father Andrew Parker Bowles; TIME CRUNCH: The American Magazine Conference kicks Zac and Sheherezade Goldsmith; decorator David Collins; TRULY ANONYMOUS: Earlier this month, an editor at off Sunday night in Phoenix, but attendees will have author Santa Montefi ore, and cousin Ben Elliot — crowded Glamour described its Web site’s “Don’tspotting” feature, less pool and piña colada time this year thanks to a into London’s Kensington Place restaurant Oct. 12 to which invited readers to post and vote on the fashion jam-packed three-day itinerary. The festivities begin mark the event. “I was always the weird one, he was choices of random passersby, as an impetus for “a with Sunday night’s opening panel with People assistant normal — but then he clearly turned weird,” said Parker dialogue about fashion.” In other words, user-generated managing editor Jess Cagle and ubiquitous Food Network Bowles Lopes. Meanwhile, Sheherezade Goldsmith said content could be a cost-effi cient way to pump up page chef Rachael Ray, who launched “Every Day With Rachael it’s not easy cooking dinner for the likes of Tom. “You views and build site loyalty. But the mild uproar of a Ray” last November. Speakers and panel sessions will have to be very imaginative,” she said. Tom Parker handful of bloggers pointing out that the unregulated run all day Monday, featuring former Men’s Vogue cover Bowles said he actually didn’t mind eating snake nature of the site, among other things, could lend itself hunk Sen. Barack Obama (D., Ill.), Robert F. Kennedy Jr., — but liked Laotian food the best. “I’m missing the to “Mean Girls”-esque behavior has led to “phase two” celebrity publicist Ken Sunshine and a host of magazine spicy noodles and chicken,” he said in between signing of that dialogue (read: damage control), which includes, editors and publishers, and end Tuesday afternoon in books. — Samantha Conti 18 WWD, FRIDAY, OCTOBER 20, 2006 WWD.COM Dow Jones Closes Over 12,000 he Dow Jones Industrial Average shook off rising oil prices and worrisome economic Fashion Scoops Tdata Thursday to close above the 12,000 mark for the first time in the index’s 78-year history. HILARY DOLLED UP: Hilary Duff seems so Hilary Duff The Dow rose 0.2 percent to 12,011.73. Top gainers within the index included Coca-Cola perkily perfect that it’s easy to compare Co. and AT&T Inc., which went up 2.2 and 2.5 percent, respectively, to $44.91 and $33.77 a her with a doll. So it’s no surprise that in share. The Nasdaq also gained 0.2 percent, fi nishing the day at 2,340.94, while the broader January, the 19-year-old celebrity — who S&P 500 inched up 0.1 percent to 1,366.96. multitasks in music, fi lm and fashion with Retail shares were mixed. The S&P Retail Index shed 0.8 percent to close at 490.94. But her Stuff by Hilary Duff-branded clothes the retail index is up about 16 percent from a six-month low set in late July. for tweens — will become one, thanks to The Dow’s record close came amid optimism about earnings and signs of slowing infl a- Mattel Inc., which will release a Barbie that tion. The Federal Reserve Board is to meet next week on whether to leave interest rates resembles her. “I have Barbie heads in my unchanged. home that look like me,” Duff said. However, there were economic concerns. The Organization of Petroleum Exporting This isn’t the fi rst time Duff and Mattel Countries said it will cut output to halt a three-month drop in prices. In addition, the U.S. have played together. Two years ago, she leading economic indicators index climbed last month but was below forecast, according starred in an ad campaign for Barbie, and to the Conference Board, which compiles the index. this fall she designed denim miniskirts — Arthur Zaczkiewicz with leggings, pink tweed skirts and other items for the iconic doll. At a fashion show on Thursday at Smashbox Studios in Santa Monica, Calif., a troop of 9- and 10-year-old girls from Southern California strutted down a DVF Helps Belgian Designers ‘Blossom’ runway carrying Barbies they dressed from the wardrobe designed by Duff. Although nearly everyone, from the dolls and models to the caterers and Mattel designer Kim NEW YORK — In a nod to her roots, Culmone, wore pink, Duff took a walk on the dark side in a Sixties-inspired outfi t of a Belgian-born Diane von Furstenberg, along black turtleneck, black suede and leather d’Orsay peephole pumps from Cole Haan with the consul general of her home coun- and Tory Burch’s slim black velvet pants and charcoal gray cashmere sweater. Her try, hosted the Blossom Project Wednesday high ponytail made her Barbie’s doppelganger in profi le. Creating outfi ts for Barbie to honor fi ve young Belgian designers. is one sign Duff may be entering the designer big leagues. After all, she pointed out, “Belgium is a tiny little country and “one of the designers I admire is Anna Sui. She did a Barbie.” it has so many amazing designers,” von Furstenberg said. “This is giving them ex- MARRYING A MILLIONAIRE IN METRO 7: A millionaire’s fi ancée may be more inclined posure.” to shop at Gucci than Wal-Mart. But that’s not the case for actress Dayanara The one-night exhibit at the Chelsea Art Torres, whose character in an upcoming soap opera will wear clothes from Metro Museum introduced the work of Sandrina 7, Wal-Mart’s trend-driven contemporary line that presented a runway show in Fasoli, Cathy Pill, Ann Torfs, Nele Feyen and Culver City, Calif., earlier this week as part of Mercedes-Benz Fashion Week at Anthony Vaccarello to the New York fashion Smashbox Studios. Torres, a former Miss Universe and current spokesmodel for set in the form of avant-garde photos of their Metro 7, will don outfi ts from the world’s largest retailer on a soap opera titled designs. Vaccarello missed the event be- Sandrina Fasoli, Ann Torfs, “Watch Over Me,” about a love triangle between her and her shady businessman- cause he has just been hired by Fendi — not Nele Feyen and Cathy Pill. boyfriend and hunky bodyguard. a bad excuse. In the deal between News Corp.’s MyNetworkTV, the month-old network “We are always the least interviewed and least talked-about, because that will begin broadcasting “Watch Over Me” in December, and Wal-Mart, we are not in a fashion capital and yet we are not exotic,” said Torfs. “This MyNetworkTV will broadcast Metro 7 commercials starring Torres during “Watch is a great opportunity to get exposure.” Over Me.” Ads for Metro 7 also will be tagged with information about the TV show As a co-sponsor of the event, urban style magazine Trace is giving the and posted in approximately 1,500 Wal-Mart stores and published in copies of fi ve an eight-page spread in its “Styles Ahead” issue. “For me, Belgian Vogue and Lucky. In addition to Torres, Catherine Oxenberg and other actresses on designers rank with the Japanese as the most creative and innovative in the show also will sport Metro 7 threads. the world,” said Christine DeLassus, Trace’s fashion director. Also present at the presentation were MyNetworkTV executive vice president The country that produced Dries van Noten, Ann Demeulemeester Paul Franklin and Morgan Fairchild, who stars with Bo Derek in “Fashion House,” and Olivier Theyskens today boasts a style that this newest generation the network’s campy drama about dueling style divas. “My character doesn’t get to of designers described as eclectic and experimental. For them, von wear any of the collection on the show, but there were certainly quite a few things I Furstenberg is deifi ed as a trailblazer. “She’s an icon to us,” Feyen said. would wear personally,” Fairchild said. “I really liked the gray ruffl ed silk blouse.” “This is like meeting the king.” Diane von Furstenberg — Whitney Beckett CHRISTIAN GRATTAN PHOTOS BY TOUGH TICKET: Gold diggers, celebrity watchers and social climbers better start staking out the Whitney Museum of American Art now, for word is that all the tickets for the museum’s annual gala and after party Monday night sold out weeks in advance — from the $75,000 tables to the $195 post-fete stubs. Confi rmed guests who will help celebrate the current “Picasso and American Art” exhibit ‘Project Runway’ Winner Sebelia include Leonard and Evelyn Lauder, Frédéric Fekkai, Larry Gagosian, Susan Hess, Lorne Michaels, Jeff Koons, Heather Mnuchin, Susan Newhouse, Aby and Samantha Rosen, Aerin Lauder and Rufus Wainwright. Behnaz Sarafpour is cohosting the after To Expand His Own Collection party, where expected attendees Michelle Williams, Max Minghella and Emmy Rossum will get down to tunes spun by Sasha Lazard. NEW YORK — With money continue her work as a celeb- in his pocket and hype sur- rity stylist, but now will dress RENZO GOES WEST: At age 51, Diesel chief Renzo Rosso can give the Energizer Bunny rounding his name, “Project them in her own designs. a run for its money. After unveiling Diesel’s fi rst fl agship in Stockholm Friday night, Runway” winner Jeffrey Though known for her glam- Rosso jetted to Los Angeles to sign copies of his new book, “Fifty,” and receive Sebelia now plans to expand orous evening gowns, fi nalist the Fashion Visionary award at the third annual Hollywood Style Awards ceremony his Cosa Nostra line to a full Laura Bennett said her next on Sunday. Despite an overcast sky that chilled the Mondrian hotel’s outdoor deck collection. step would not be Bergdorf ’s where the book party was held, fans from companies such as We Are the Superlative Sebelia, 36, won the fi nale ready-to-wear fl oor, but rather Conspiracy and Blue Marlin, as well as GoldSign designer Adriano Goldschmied,

of the reality TV program on CHRISTIAN GRATTAN PHOTOS BY a moderate-priced line acces- Renzo’s former partner in Diesel, posed for photos and received signed copies of the Wednesday night and received sible to the average woman giant, velvet-fl ocked tome celebrating Rosso’s 50th birthday last year. a $100,000 check. He said he — perhaps even patterns or a Rosso said Diesel wants to expand its retail operations in the City of Angels. has not yet decided whether maternity collection. One industry source said a possible new store location for Diesel was Melrose he would accept the yearlong The fourth fi nalist, Mychael Place, where both Carolina Herrera and Marc Jacobs have set up shop, but the mentorship with Macy’s pri- Knight, who had been voted Italian entrepreneur was coy. “We already have an idea, but we want to keep it vate label, INC International crowd favorite, has been fl aunt- secret,” Rosso said. He said Diesel would move to a new space next year on the Concepts Design. ing his look with teeth braces seventh fl oor of the Beverly Center, where it currently has a 1,500-square-foot Cosa Nostra is sold at high- and on Thursday launched his shop on the same fl oor. The new spot will be double the size and near the front of end specialty stores such Web site mychaelknight.com. the mall, where there is more foot traffi c, he said. as Maxfi eld in Los Angeles, One doesn’t have to be Angelenos probably will see more of Rosso on the West Coast. His 20-year- Patch in Saint-Tropez, a finalist to reap “Project old daughter, Alessia, moved to Los Angeles in February and will start classes at France, and Harvey Nichols Runway” success. Attending Santa Monica College in January. “It’s very important to be here,” Rosso said. in London and Hong Kong. a party Wednesday night to “I had stores that told me watch the final episode and ALL LAUGHS: “It’s delicious. If it was a cake, I’d eat it constantly,” said Sigourney it would be career suicide crown the winner, contestant Weaver of “Ninotchka,” the Ernst Lubitsch fi lm which she introduced on Tuesday to go on ‘Project Runway,’” Alison Kelly said she is now as part of the Grand Classics series. The evening, presented by The Week at said Sebelia, who wore his designing an exclusive collec- Soho House, featured two showings of the 1939 fi lm, which stars Greta Garbo own sweater and pants with Jeffrey Sebelia tion for shopbop.com under the and Melvyn Douglas. ”It’s seamless. You don’t see any hands on it,” Weaver a Diesel shirt and tie to the label Dahl. Malan Breton, an- noted of Lubitsch’s fi zzy comic touch, the original poster of which proclaimed fi nale. “But the great thing other contestant voted off early, “Garbo laughs!” Partly because of Garbo’s great beauty, Weaver added: “I think about this show is it gives you so much ex- showed during New York Fashion Week and she’s a bit underrated as an actress.” Weaver, of course, is currently appearing posure. I have no regrets.” is opening an eponymous Manhattan store in “Infamous,” a new fi lm about Truman Capote in which she plays Babe Paley. Meanwhile, the other fi nalists — and in November. “I can’t even walk down the She noted that Paley’s life was far from possessing the perfection its surface even those who weren’t — are reaping re- street, it’s so crazy,” said Breton. “And that’s glossiness suggested, but said she would have liked to see what Babe would have wards from appearing on the program. just from being on two episodes.” done if she’d been born in a time when women had more choices other than Runner-up Uli Herzner said she plans to — W.B. marriage. “I think she’d still be chic,” Weaver said. WWD, FRIDAY, OCTOBER 20, 2006 19 NATIONAL MARKETPLACE

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