The Knit-Xtyle Fashion Review Get Involved - Identify, Highlight and Investigate

Mission Statement Sell information. Talk about people who make it all happen, the movers and shakers. Speak out on key issues. The Knit-xtyle Fashion Review Get involved - Identify, highlight and investigate. Impartial, balanced, factual June 1998 and responsible reporting. Stand up Issue 4 for freedom of speech, human rights, fairness and truth. Establish TKFR as Pakistan’s first industrial, trade newsletter for the professionals (with special emphasis on Knitwear, Textiles & Fashion industries) by the year 2000. Inform, involve and influence.

TKFR Sanctions – the real impact? th Lahore June 17 1998: Pakistan recession very soon. aid has been stopped is in the throes of a giant would It’s not a matter of if basically. The projects The Knit-xtyle Fashion Review be recession. There are no jobs. but when. Life styles based on private Middle class will probably die have already started sector investment will Editor-in-chief: Fareeha Qayoom. out for the next couple of years taking a major hit. So Art Director: Anila Q Agha continue business- as- MIS Director: Adnan Q. Qayyum with lower income groups and Pakistan economy has usual. The flow of Director Marketing: Fazal A. Agha upper income groups thriving in committed suiside or dollars will also Sales : Muhammad Asif this environment. As they say, what? Will we come continue. The only Cover : Anila Q. Agha the gap between the have’s and out? TKFR intended to limitation is on the Centerfold layout: Anila Q. Agha have-not’s will widen. Domestic find out. We selected developmental investment in real estate, cars, two relatively new kids projects- as far as the Writers: Aamir Abbasi, Splendor luxry items will decline. Many on the block (Style common man is Clark Kent, items on the shelves will be a Textiles and Splendor) and one Fareeha Qayoom, concerned, he’s not going to Mr. M.I. Khurram hardsell. Sales, promotions and old hand (Angora Textiles). We suffer much. The reason is the Mystique, advertisements will be on the asked them how they are coping aid didn’t reach him in the first Rashid H. Mehr, rise. People will try to increase and what do they think the future place and lack of it will not make their savings, decrease their will bring since we know now the much of a difference. He was spending. Life styles will become exact nature of sanctions, the poor and he will remain poor. poorer. budget and the economy. Every budget brings fresh taxes TKFR predicted that the utilities Aamir Abbasi, the Manager anyway and he has learnt to live bills will sky-rocket and inflation Merchadising at Splendor with it. Life will go on.” will hit a new high note in the Knitwear (a stitching unit of Discussing the impact of next 6 to 8 months. Little did we Eastern Garments) believes that sanctions on Pak economy, know, it will happen so soon. there are two kinds of financial remarks Mr. Avais Mazhar Inside this issue: Now these things are facts, no handouts and sanctions in Hussain- Angora Textiles’, longer predictions. Pakistan is question. “ Development and (Continued on page 12) moving towards a period of humanitarian. The development Comfort Knitwear – vendor profile 3

Eye on fashion, an update from 4 world’s fashion capitals

AOQC-Moody, putting quality in 7 What management style for you? your hands, cover story To be or not to be - centralized? The Face – Irfan Cheema 8 Lahore –As we approach the sion, provides direction, offers the degree to which decision- twenty-first century, we realize support, elicits commitment to making authority is centralized. Azfar Hassan speaks out on the 10 that in modern society most peo- the task, and creates an environ- In general, if decision-making latest trends ple accomplish things not as ment, in which subordinates can authority is concentrated at the individuals, but as members of participate in the decision mak- top, the company is centralized. TKFR Career 11 organizations. We tend to call ing, while ensuring the task is If the decision-making is left to only outstanding managers’ accomplished. Two major di- line managers, the firm is decen- “leaders”. Leadership is an ex- mensions of organizational struc- tralized. Retail news 14 pected attribute of a manager. A ture are the numbers of levels in Ahmed Irfan (Managing Direc- leader inspires people with vi- the organizational hierarchy and (Continued on page 13) Page 2 The Knit-xtyle Fashion Review

His personal top 5 • Lead-times. • Sarah Textiles Top 5 • Shahkam Industries • Eastern Garments The list of possible contend- • Style Enterprises • Klass Textiles ers were: • Style Textiles • Chenab Fabrics (in alphabetical order.) • Qais Textiles • • Style Textiles Ammar Textiles • Quality Knits • Leisure Textiles • Angora Textiles • Zainal Textiles • Chenab Fabrics • Comfort Knitwear Dear Readers, His criteria • Eastern Garments You probably must have noticed Eastern Garment s • Quality ( fabric quality • Fatima Fazal Textiles by now, that Leisure Textiles is a brand new number one ! the only vendor which has been primarily & garment quality • Irfan Textiles an additional major area of in all buyers top 5 rating so far. I • Highnoon Textiles don’t know how they do it. This is concern.) • • Klass Textiles a fourth buying house! Let’s see On-time delivery • if they are still there in the next • Leisure Textiles Product development • issue. Editor. (-; • Needlepoint Merchandising department’s • speed of response Nina Textiles • Naveena Textiles

Editor’s note... July 6th ‘98 know many people enjoyed it, coz issue. Instead of improving he Hi there! they told me not to do it. So I am rapidly went downhill. Result, I This issue is full of people, all of letting you guys decide. If I don’t had to fire him. There are no them movers and shakers. But do hear from you on the subject by second chances in this life. A lot you know? I am bored. I can’t July 30th, I’ll take it that the was riding on his keep on interviewing the same majority of readers agree with professionalism. A buyer would people over and over again. So I me. And I can safely throw it out. even pay a little extra for his am thinking it’s time to start on My sources sometimes do not supplier’s professionalism, the less known elements of this research the news thoroughly quality, leadtime and delivery. industry. I plan to start with before tipping me off. Take two You don’t know what a shortfall Ferozpur Road, as a buyer I examples, (thank God there are in any of these items will do to I am thinking of worked with only a couple of only two!!) Mehgan’s name and his pocketbook. If the loss is too vendors there. Style and Irfan. Adnan Latif’s exact wedding huge, chances are , he will never throwing out the And I bet most of the buyers date! So what do you say…hmm? even speak to you before “entertainment, probably have done the same, Ok, another thing I would like to disappearing into the sunset with for adults only” with maybe Mubarek and talk about. Quality. It’s very a new supplier! Get my drift? Combined thrown in. The next important. Especially if you are Bottom line, you can’t afford to gossip feature...I stop is Kotlakpat. Infact I have launching a new brand or a mess up, period. Do it or lose it. don’t take this already started. I checked out product. And most especially if By the way, this is the theme of feature seriously Splendor and Style Textiles this you pay good money for it. I this month’s issue. Thank you time. It was quite interesting. I know I have been there – Azfar and Mr. Avais for your myself! I know hope you find it equally remember, a lot of my customers insight. I think the rest of the many people absorbing. were complaining about the readers will appreciate it too. I enjoyed it, coz they Speaking of interesting news, I paper quality of TKFR in the first am sorry I couldn’t get better am thinking of throwing out the two issues? The first time, I photo’s of our celebrities. Some told me not to do “entertainment, for adults only” tackled my supplier, he said it even refuse to give them. They it. So I am letting gossip feature. It’s mostly based won’t happen again. As his are a bit shy. Just kidding. you guys decide... on rumors and latest talk of the customer, I thought I owed him town. It just doesn’t go with our one chance to smarten up. You Have Fun, (-; So what do you mission statement. I can’t put all know what he did? He ruined the Fareeha Qayoom, say…hmm? my resources on confirming the image of TKFR further by Editor-in-chief facts, especially as I don’t take shortchanging me on paper and this feature seriously myself! I printing quality for the April Page 3 Vendor profile

Comfort knitwear Pvt. Ltd. – a force to be reckoned with… from the desk of the chief executive by Mr. M.I. Khurram (CEO Comfort Knitwear). About Comfort Knitwear : Hilfiger, Tommy jeans, Nike, The management expects to Comfort Knitwear (Pvt) Ltd is a Chaps Ralph Lauren, remain one of the leading trend leading manufacturer of high Timberland, Levi’s, Casual Male, setters. We plan to maintain the quality knitwear apparel. We Gear For Sports, Antigua are few existing annual growth rate enjoy an excellent reputation in of them. We specialise in all sorts during the coming five years. We the global market place. We of items…tops, bottoms, intend to double the production strongly believe in consistency menswear, womenswear, and level already attained to meet the and customer satisfaction. Our childrenswear. About 60% is figure of half a million dozen by ceaseless efforts to keep our shipped to the USA, while 40% the year 2003. customers satisfied gives us a goes to EEC and Japan. prominent place in the interantional arena. To assure Our recent achievements: quality of our products, Comfort Our plans: We are a fair and progressive has a well-knit and integrated Comfort knitwear has gone into management who believe in a system, which is reviewed major expansion program – we systematic approach in personnel Mr. M.I. Khurram, periodically to ensure continued plan to hit Rs. One billion by the development and motivation to CEO Comfort Knitwear. improvements.The company was year 2000. We are projecting on achieve corporate principals and set up in 1987, with the share shipping about 240’000 dozens goals. Validation of this lies in capital of Rs. 6.5 millions which this year. We attribute this the award received from Nike, Comfort knitwear has has more than trippled over in the impressive growth both in assets (our prime customer for the year last ten years, amounting to Rs. and sales to the active 1997), we were chosen from gone into major 65 millions ( more than 200%) participation and hard work of amongst 23 vendors spread all expansion program – by 1997 year end. Comfort has our staff starting from the front over Asia as the best supplier. also fetched the highest FOB lines to the senior management. I Another land mark we plan to hit Rs. One value/Dozens for the USA consider our employees to be our accomplishment is to have billion by the year 2000. market, which is US $ 90/DZ. major assets. The company achieved ISO-9002 certification discourages the hiring of child in March this year. We are projecting on What we do: labor and exploitation in any shipping about 240’000 Comfort knitwear is mainly form. Humane considerations are engaged in the manufacture of an important element of dozens this year. high quality brands. Tommy comfort’s human resource policy.

Vital Statistics

Company name: Comfort Knitwear Year of establishment: 1987 = 25’000 dozen, 28-EU= 20’000 Waste water is monitored everyday Pvt. Ltd. Yarn/fabric/material Used: local dozen. and effluent water checked by lab in Address: 45-industrial estate, Registeration numbers: Export – Bankers: Union Bank Ltd. 39- charge for any hazardous chemicals. township KotLakhpat, Lahore, W124101, import –W 200594 Empress Rd., Lahore, Pakistan, BOD level at discharge is Pakistan. Items offered: t-shirt, rugby, polo, Telephone: 92-42-6368310-5,fax; maintained at 80. Telephone: 92-42-5114901-4, henley, sweat shirt, jogging shirt 92-42-6368078 Leave : 32 days per anum 111000045. Total export value for 1997 (fiscal Child labor: No child under the age Health and safety: First aid Fax: 92-42-5118545, 5114907 year): 24.25 million of 16 years is allowed to work in the supplies are available in factory all Email: [email protected] Monthly capacity: 22’000 dozen factory. supervisors & security personnels Leadtime: L/C must be opened 3 Overtime: Workers are provided are trained in first aid. All machines Quanity export : 186,000 Dz. months before the shipment.Export transport & overtime as per law. critical motion parts are covered Executives: M.I. Khurram (CEO), market: USA, UK, Canada They have right to refuse over time. and fire prevention equipment M. Asher Khurram (director Minimums : 1000 dozen/style Overtime max. limit= 12 hrs/week. provided. All entry and exit points operations). Customers: Nike, Tommy Hilfiger, Contract workers: Only in are required with fire fighting Staff: Functional staff = 68, Timberland, Levi’s, Chaps, Antigua, stitching department. equipment and also exits in case of production staff= 900, ratio 70% Gears, Tommy Jeans, Lee, Calvin Bonus: Bonus equivalent to one emergency are clearly marked. men, 30% women, Klien. month salary on completion of one Proper ventilation, cleanliness and knitting dptt= 40, Wages: Pak Rs. 4300/month for 8 year service. light level is maintained. dyeing= 85, hrs/day, wages are paid in cash on- Environment: Effluent waste water stitching= 705, time, twice a month.Quota status: is dumped in the govt. sewage qlty, inspection=175, management= 338 – USA=120,000 dozen,USA= pipeline. All water dumped out of 20, adminstration= 50, 25’000 dozen, 8A Can=10’000 factory being treated in a manner total = 1143 dozen, 4-EU = 20’000 dozen, 5-EU that it contains no acids and alkalis. Page 4 The Knit-xtyle Fashion Review

Focus on Fashion, an update from world’s fashion capitals... Wednesday, July 1, 1998: "More for "gambling, mapping Milla Jovovich (who can now than a career move, it's like a strategies and doing good safely swap professions from dream come true for me," business." Despite rumors actress to model quicker than I proclaimed Alber Elbaz, the evaporating overtime on the can sign a Visa statement) looked man with the name just about as seams and shareholders to her own closet for inspiration. distinctive as Yves Saint discussion, the word is that Prada Stepping out in a Prada skirt Laurent, who has been as a company is simply interested and Helmut Lang top, "I got confirmed to be taking over the in working together in areas such some clothes sent to me for this design direction of Saint as distribution and real estate fabulous occasion. I didn't like Laurent's Rive Gauche line. rather than actually taking anything so I ended up wearing Elbaz will be the new ready-to- ownership of Gucci. Just as my own things," she said. But wear reference for the label while Chanel, Louis Vuitton and then again, we don't have Yves concentrates on haute Hermes blend their business wardrobes quite like this little couture. Set to be a spectacle and locating real estate for their lady, do we? a half in March 1999 - when his stores outside of France, Bertelli No, it's not a modern-day Mills & premiere collection debuts - his feels a cooperation in this aspect Boon, but a Galliano invite. Marc Jacobs final season's work for Guy would be ideal for Italian brands. Capable of fetching up to who Laroche will be presented on Speaking of Vuitton, as Paris knows how much during pret-a- October 15th this year. gets set to drool over male porter collections, Christian Craving couture on a models towards the end of the Dior's casanova took VIPs on a Wednesday, two new names are week for its men's wear secret journey for the launch of Marc Jacobs has destined to be causing a stir later presentation, Marc Jacobs has his fur presentation earlier this in the month after being invited found himself a new buddy. On a month. "It all starts with the found himself a new by the prestigious Chambre recent culture saturation in New invite," proclaimed the buddy. On a recent Syndicale to present their York, Balenciaga boy Nicolas moustached muskateer, "I've culture saturation in creations. Both Christophe Ghesquiere did the museum trip included a little ring. It's an New York, Rouxel and Ocimar Versolato and Bar visits with Jacobs. His engagement ring, along with a will join the ranks of Jean Paul impressions? "It was so little love note from Casanova. Balenciaga boy Gaultier, Thierry Mugler and interesting. Now I've really seen It's an invitation to his house, Nicolas Ghesquiere Dominique Sirop among others. New York, I love the energy and did the museum trip Versolato, a Brazilian couture I'm coming back." natural, will show at his new Move over Antonio, your days and Bar visits with headquarters located at 10-12 are over Mark, Justin Chambers Jacobs. His Place Vendome. Christophe is the new name to remember for impressions? "It was Rouxel remains undecided on the many Calvin Klein men's so interesting. Now where to have his 90 models wear followers. Formerly living parading his wears, although the the life of Nick Terry, a modern- I've really seen New 33-year-old, who began his day mademoiselle magnet in York, I love the business in 1992 based on ready- "Another World," this new good- energy and I'm to-wear, will be sure to have his looker is due to appear in not coming back." existing French and American one, but three of Calvin's clientele present. campaigns during 1998. Both Tuesday, June 30, 1998: Nylon CK Jeans and Contradiction for backbacks, Glen Luchford and Men will feature Chambers in the Calvin Klein Amber Valletta ad campaigns upcoming advertising expected to and mountain wear are things of be released around September. the past for Prada. After recently Klein's signature men's where you will see him in various rocking the world of fashion and collection will focus around the guises, with each of his lovers." finance, Patrizio Bertelli smouldering good looks of him Oui, c'est vrai! Deliveries were (Miuccia's husband) caused a also making its debut during carried in claret red satin pouches commotion with his business Spring. intact with written memoirs decision to purchase a 5 per cent Thursday, June 25, 1998: detailing "Carry me off into the stake in Gucci. Citing the move Making the grade this year at the blue skies of tender loves, wrap as a "financial gesture," Bertelli MTV Movie Awards were an me in dark clouds, trample me is known as one of the riskiest assortment of charismatic with thunder. Love is ours businessmen working within the beauties, like Heather Graham, forever." Who needs Judith ragtrade. "I'm not like a lot of for instance, covered in a baby Krantz and Barbara Cartland people in the industry whose blue Dolce & Gabbana number. when we've got our boy John? mentality is 'if you lose, I win,'" "I thought it was a cool dress. It's Sticking to advertising imagery John Galliano he said after admitting his love furry and fun," she commented. for the day, Veronique Leroy Page 5 TKFR Haute Couture news

Focus on Fashion, an update from world’s fashion capitals... may not be a household name, and interior decorator for hotels accomplishments but when it comes to design and the American Hospital in in life. Following talent and originality, the woman Neuilly-Sur-Seine, the Parisian her rocky road to has her name in lights. Bringing suburb where she was raised. inauguration at back studded leather seams on Monday, June 22, 1998: If you Chloe in April fishnet singlet, Inez Van were making a quick trip into '97, succeeding Lambsweerde and Vinoodh space to save the world from a Karl Lagerfeld, Matadin perfectly portray comet what would you wear? she has since model-sensation, Sunniva, in Blahniks and Berardi? Or established the Leroy's new campaign. Looking perhaps Margiela and some look of the label like a modern-day Mona Lisa, Commes would be more your intact with strawberry blonde locks style? Whatever the combination, ruffled tailoring, intertwine between a metal fence Bruce Willis and Ben Affleck sweeter-than- revealing a canary yellow leather certainly won't be having a sweet shoe-string belt and electric blue problem deciding what to wear, embroidery and a Jemima Khan and husband, Imran Khan. leather wrist bands. they'll be dressed in DKNY's feminine Tuesday, June 23, 1998: As orange spacesuit - and they won't direction like no temperature continues to rise, be the only ones. Destined to be other. As for the girl's social who can even think of Fur the hottest thing since Michael status, her friendships with without breaking into a sweat? Jackson's 36-zip red leather Naomi and the gang have hardly Jemima Goldsmith Apologies in advance here, but jacket, the DKNY garment will hurt her image, while the famous the Galliano meeting this month also enjoy exposure outside of editorial venture for "W" wasn't a British belle with PETA representative, Dan the Willis/Affleck predicted magazine back in November last in a smoking suit all Mathews, is news we thought blockbuster "Armageddon," year, posing with pals Lucie de you couldn't bear to miss. when Steven Tyler and his la Falaise, Marianne Faithful those years for Mathews, the man who took Aerosmith entourage feature 100 and Kate Moss for Bruce nothing. Educating responsibility for delivering a of the suits in an upcoming video Weber, revealed the designer's dead racoon to the dining table of clip "I Don't Want to Miss a down to earth nature. Sales are her way into the American Vogue's Anna Wintour Thing." Currently making its booming and Chloe world of intricate several seasons ago, met with way around for the Jeans representatives couldn't be John Galliano just days before campaign featuring an emaciated happier. With plans in the embroidery and an the designer's fur presentation in and extremely undernourished pipeline for not only flagship Imran Khan lifestyle New York this month. "He flew looking Esther Canadas, the suit stores, but an intimate apparel in to talk with me and we is tied at the waist revealing a line, a fragrance and a casual (that means 11 discussed educating children on cotton singlet and jeans for the sportswear collection due for countries in 18 animal rights," said Galliano brand. release next year, buyers are still regarding the rendezvous. All the Jemima Goldsmith wasn't a bragging about sales from the months), this little same, Galliano's decadent British belle in a smoking suit all label. Stella surely is one of the lady has just collection went ahead to receive those years for nothing. most talented women in fashion. rave reviews and no racoons Educating her way into the world Onto other announcements, now launched a collection were involved in the event. of intricate embroidery and an that Vogue's larger than life icon, of silk dresses under A pullover is a pullover. A Imran Khan lifestyle (that Andre Leon Talley, has jumper's a jumper and a sweater means 11 countries in 18 officially declared Maxwell as the label Jemima is, well, take a guess...but not months), this little lady has just one of the music industry's finest Khan. according to Sonia Rykiel. "The launched a collection of silk dressed performers, it's only a sweater is respiration. It's life. It's dresses under the label Jemima matter of time before the singer modernity: It can be a T-shirt, a Khan. Made in England, the becomes an editorial favorite. tunic, all the variations. I have designs have been hand- Praising Kate Bush as "the done more than 8,000 designs, embroidered in Pakistan and will bomb" during the live recording which are never the same." The be sold along London shores for of his '97 album "Unplugged," raven-haired Madam of French around $900. And don't go his latest album titled "Embrya" fashion sketched her very first thinking her son, Sulaiman, will comes complete with a cover design over 35 years ago and sold be inheriting the profits either, photographed underwater by them in her husband's boutique, Imran's hospital in Lahore, Mario Sorrenti. According to Laura. But don't go thinking that Pakistan will use the money Andre Leon, "he's the new cool sweater-life is the only thing that toward cancer patients. Happy Marvin Gaye" after wearing keeps this designer inspired. families, don't you just love 'em. ensembles courtesy of Gucci, Rykiel claims her fame as a Friday, June 19, 1998: At just Prada and Helmut Lang. Donna Karan and her daughter published author, a member on twenty-five, Stella McCartney Thursday, June 18, 1998: When the jury of classical ballet in Paris must surely be content with her (Continued on page 6) Page 6 The Knit-xtyle Fashion Review

Focus on Fashion, an update from world’s fashion capitals... (Continued from page 5) Givenchy gown to the Golden Barneys shelves by the end of the Donatella Versace wants an Globes. So when a signature red month. electric blue eyeshadow with a tint Halston number draped across the At ease boys. Let's face it, there of glitter she gets it, but only after curves belonging to the actress at aren't too many designers doing consulting makeup artist, Renato this years Oscars presentation, men's wear these days who can Bernardi. Following the ad who wouldn't have thought of look equally as good in their campaign featuring Kirsten Owen featuring her in the label's fall ad creations as the models do on the appearing as though she's selling campaign? Set to become the talk runway. But step aside Tom Ford, sea-shadows by the sea shore, of tinseltown for fashion folk, John Bartlett is taking a break Santo Versace recently Miss Minnie will be photographed from the Byblos reigns and commented on the reality of the as the new Halston gal' by becoming a cover-sensation for the brand's latest cosmetic venture: "A Michael Thompson. newly revamped "OUT" metal mesh dress from the couture Wednesday, June 17, 1998: magazine. Destined to create a stir, collection - not every woman is Barneys and its world famous the July issue includes Bartlett Donatella Versace going to be able to buy it. It's bankruptcy dilemma has finally posing as the American hero easier to buy into 'the dream' with come to a halt. Operating from dressed in military attire in full the perfumes, the jeans, the three generations of the Pressman salute. Inside the edition, a candid eyewear." Too true! In other family since 1923, the New York interview conducted by Malcolm Following the ad Versace news, retrospectives based department retailer (stocking McLaren reveals Bartlett's campaign featuring continue to keep on launching some of the finest brands in the feelings on sexuality and the Kirsten Owen appearing thanks to the well-kept archives of business) is celebrating its survival fashion industry confessing "I the Versace clan, evening gown by exclusively welcoming Martin don't want to be known as just a as though she's selling exhibitions are also coming into Margiela's Hermes line within gay designer." The eight-page sea-shadows by the sea fruition as well as a museum the walls of the store's Madison piece also features the designer shore...Santo Versace opening about to happen in Avenue flagship. Barneys, which swapping silhouettes and Gianni's honour courtesy of the has carried the Hermes range for lifestyles, portraying himself as a recently commented on mayor of Como in Italy. Sticking over 15 years now, will begin a cowboy, a rebel and a sportsman. the reality of the brand's to Versace for a moment, Minnie string of promotional events for Driver made waves with her front committed clientele just as, in true latest cosmetic venture: row appearance at Donatella's Margiela style, a clinic will be "A metal mesh dress presentation in New York last introduced for sales associates to from the couture season, just as she established understand the ins and outs of the herself as a papparazzi favorite ready-to-wear fall collection which collection - not every after wearing a spearmint green shall be sitting pretty upon woman is going to be able to buy it. It's easier to buy into 'the dream' Announcing “ classified “ section on TKFR ! with the perfumes, the jeans, the eyewear." A Directory of suppliers with price of entry, Rs. 500 per month only ! The categories are as follows: Button suppliers Neck tape makers Carton suppliers Poly bag suppliers Embroidery patches Labels Hang tag printers Zipper suppliers Waist band cords suppliers Commercial embroidery units Commercial knitting suppliers – collars, fabrications

Tom Ford THE DEADLINE : JULY 25th ‘98. Fax or mail us at TKFR with the following information: Category, Name of the business, Phone #, fax#, address, contact name. Mode of payment: Cash or money order. Page 7 TKFR Cover story– Advertisement feature

AOQC Moody International, putting quality in your hands!

By: Rashid H. Mehr, Operation independent and international individual fields. Each team is Manager For Far East And S.E. service for the accredited carefully selected to encompass Asia AOQC-Moody nternational. certification for the accredited quality system expertise and certification of quality relevant technical competence. management systems. Important in the fast moving AOQC-Moody is a multi- world of business today, AOQC accredited certification body, is sympathetic to the sensitivities accredited by UKAS of United of the client, and will conduct a Kingdom accredition service, non-bureacratic audit with a TGA/DAR Tragergemeinschaft minimum disruption to your fur Akkreditierung GmbHthe routines and working practices. Lahore: The fact that you are German accrediting At every stage of the certification reading this, is a clear indication authority. ANSI- process, AOQC is prepared to that you are experiencing the RAB for united discuss and advise on the audit need to be part of the great states recognition, process; fulfilling a partnership quality assurance movement that SCC of Canada, role to reinforce your company’s is sweeping the world. Today the COFrac of France, quest for quality assurance. Rashid Hameed Mehr demand is not simply for KBA, VDA 6.1, and How to go about it? externally percieved quality in with MAC for Stage 1: Contact AOQC to products or services, but also for Middle East/Gulf establish a cost indication for the reliable evidence of an effective recognition, and Sincert of Italy certification and surveillance management system the very in progress. Of special activities. “Today the fabric of your company. significance to welding Stage 2: after sending in your demand is not For your business and your fabicators, AOQC can also offer application and your quality workforce: it means increased EN 729/ ISO 3834 certification. system documentation, we will simply for profitablity through an open AOQC was originally formed by conduct a review and provide externally management structure built five of the leading engineering feedback on your system status percieved quality around the principal of doing inspection and your readiness to proceed to in products or things right the first time, companies; Bristish the next stage. identifying problems, eliminating Engine Insurance Stage 3: when you are ready, you services, but also waste and increasing productivity Ltd, Eagle Star can contact AOQC to arrange for for reliable through improved planning and insurance, National the initial certification audit. evidence of an control. vulcan engineering Stage 4: following the initial effective For your insurance group ltd., audit and verification of the management customers: Plant safety limited corrective actions, your it means and RCG Moody international, management system will be system the very confidence whose parent and/or associated registered to the applicable fabric of your in your companies include such major standard and a certificate will be company,” says ability to names as B.A.T. industries, issued. Rashid. produce the Commercial Union Insurance plc, Stage 5: your registeration is right Sun Alliance group plc and maintained through regular products or Reliance inc. This association surveillance visits. You can services ensures a depth of resources and choose 6-monthly evergreen consistently on time and to experience eminently suited to surveillance or annual specification. the needs of modern quality surveillance with reaudit in the For your competitors: it means assurance, not only for the 3rd year. having to challenge the manufacturing industries but also performance of a company which for service providers. Our aim is has demonstrated the operational to assist you in the effective integrity of its systems and its application of your quality organization through indpendent management system inorder to audit against internationally ensure you are at the forefront of recognized quality standards. your industry sector. Certification setting the Rapid response and short standard: leadtimes are key factors in our Today the organizations require services, whether we are dealing evidence of quality systems with a small family business or a through a program of audit and major multinational. AOQC’s Rashid H. Mehr, certification. AOQC offers personnel are leaders in their own speaking on ISO-9000 the world. utilize natu The Face need of the avenues to Irfan Cheema, friendly.” Talking abo Marching to a immediate bleak. If th different beat... will not be Irfan Cheema is a student of not needed the Pakistan school of fashion design for design. He started his hard goin professional studies by joining conservativ the Navy. He did stick around don’t want for two and half years before churn out v giving it up. He had finally all students realized that he needed to be their own involved in a creative career . find. Many So he left the Navy, did his career in sta graduation from Punjab There is a r University in Fine Arts and the way for Journalism. This was still not bigger dom Irfan Cheema enough for him. “ I know this the bridal sounds a bit extreme, from the Highly ov armed forces to this,” says Irfan with a laugh. “ It was my prized thou decision to switch careers. I picked the school myself. western cut NCA was not the place for me.” There are c “ Fashion is a form of expression,” he explains. “ The Irfan feels course is very comprehensive. No major’s or current fash specialization. After I am done here, I plan to research. I quakes are find it interesting. There are no documented references of There are p traditional craftsmanship. Right now, our industry is in traditional f it’s infancy phase. We are not ready to tackle the export into a mor oriented western fashion in practicle terms. Our domestic done it. Fo scene is pretty conservative. For example, only fabric but m traditional forms of dyeing and printing and it’s basically they have n a well kept secret. We are not ready to show our stuff to contribute m star is more role.” On some o school, he s go “ who’s at least, the problem is even under long time. difference – though our modern and not much d collections school, we are encoura creativity. student’s k in the fiel conservativ you are gi would reall

The I plan to show the people how to ural dyes – eco-friendly dyes are the e future. We need to explore all the o make our products enviromental out the future, he is a little sad, “The future of the designers is probably hey join the textiles industries, they e paid much. Fashion designers are d. If they go on their own and try to the domestic market, even then it’s ng. The customers are very ve and not very demanding, they much from the designers except to variations of the same theme, plus not s will have that kind of cash to launch labels. Ideal Jobs will be harder to y graduates will have to settle for a agnation.” ray of hope, he feels which can pave r a brighter future, “ Karachi has a mestic market. There is some scope in clothes and embroidered stuff. verdone materials are remarkably ugh. Waseem tried to put in some ts in his ready to wear collections. craftsman, we have rich fabrics.” that not a lot can be said for the hion activity in Pakistan. “ Mostly designing for the domestic market. people who want to research on the forms, discover and incorporate them re modern design. Rizwan Beg has or example, “ Iqqat” is a beautiful many people don’t even know that – no awareness. Media and films do not much to promote fashion. Face of the e important. Clothes play a secondary of the stuff that is coming out of the says “People look at our designs and going to wear that?” my reaction is ese things can be done here. Another that there are no tailors! They don’t rstand our terminology. It will take a The satellite dish has made a slight – people have become more aware, society is not ready to accept a more d radical kind of fashion. There is design involved in the Ready to wear I see in the boutiques. In this are free to create what we want. We aged to experiment and explore our Expression is important. All know when they graduate and go out ld they will have to design for a ve customer but at least in the school iven a chance to design what you ly want to do and see people wear.”

Layout and design selection: Anila Q. Agha, Designer: Irfan Cheema, Class of ‘99 Interview: Fareeha Qayoom. Pakistan School of Fashion Design. Page 10 The Knit-xtyle Fashion Review

AZFAR HASSAN SPEAKS OUT ON THE LATEST TRENDS end up compromising on efficiently. The big vertical Azfar Hassan needs no standards – quality assurance factorys may turn to fancier and introduction. He is an ex-country starts from inputs. You know, if higher brands. For the manger of Levi’s and the head of some vendors tried to sell their opportunity orders, they may turn Nabila-ABS group Lahore. fabric in open market, nobody to their alliances. The alliances Editor. would accept it! This is all balony. won’t have enough orders on their “ There are some amazing trends There is no accountablity. We own. Basic orders have more or – let’s talk about the price trends continue to produce bad quality as less moved out of this market first, ” says Azfar at the start a nation. Quality assurance is like already. Complicated styles are earnestly. “ For the basic items a funnel. The funnel has a wide the only option – the vendors have we do, the prices are going down crown and a tight neck. However, to make do or fade out. I know globally. Costs are consistently the wide top is not steep, it’s it’s hard. Flexibility is the key. improving and going down, the gradually slanting into a tight They are losing out by not resources are cheaper. For neck. The defective merchandise watching out for the trends. example the fabric is cheaper out should be funneled out, there is Buyers are smarter. Information is of bigger or larger units all over - nothing sudden – there are two freely avaiable. The buyers do not Azfar Hassan Far eastern crisis has actually ways. Identification and need to do much research to know driven this trend harder. Yarn prvention.” this market. There are fewer prices have crashed in the global Azfar strongly believes in the buyers and they are more market. In Pakistan, there is no Darwin’s theory, “ Remember, knowledgeble. There are more talk of lower costs. The core runs it’s the survival of the fittest. challenging markets out there.” have disappeared. Prices are too Pakistan has to improve price, Azfar places a great emphasis on high. Vendors are not ready to quality and delivery. We need to research and development, “The move on to bigger and better,” elevate our systems. This must be vendors need to do research, they remarks a very disappointed clear to all. We have got to need to have a vision, goals. They Azfar. For the basic items improve our service if we want to need collective think tanks. They “Then there is another trend go after top of the tree brands need to create a competitive we do, the prices are which is gaining huge importance (value addition). These orders are buying envionment with going down globally. for us and the vendors. Quality. trickier, shorter runs and smaller minimum of hassles for their Costs are consistently Everybody is trying to do better, quantities. Vertical integration customers. They are even make fabrics better. We plan to go improving and going should be a strength. Leadtimes is competing with the domestic US on AQL 2.5 soon. There is a very playing a key role in the global industry. The buyers are buying down, the resources small percentage of vendors who scenrio. The vendors have to closer to seasons, they are not are cheaper. For take preventive measures – ISO- make the transistion – low end building inventories. Even they example the fabric is 9000 mostly is a marketing customers are mostly in Karachi. don’t know what sells long term cheaper out of bigger gimmick or mere lip service,” Government’s value addition so they’d rather reorder when they says Azfar with a smile. or larger units all quota policy is sensible in the know what is selling. Pakistan has Azfar is very serious about high long term. Short and medium a built in limitation. It takes over - Far eastern quality standards. “ This won’t term, it has some bad implications couple of months to ETA so crisis has actually work on a long-term basis. for the vendors. However, if they leadtimes is playing a big role in driven this trend Systems need to be developed, plan to remain in business, this is buyer’s buying decisions.” common sense systems…how harder. Yarn prices the only route.” “Another reason for this is that many vendors actually implement Talking about the future, he says, vendors do not invest in their have crashed in the systems? ISO-9000 is important “I see the future as non-vertical. human resources,” says Azfar. global market. In for EEC – it doesn’t make a lot of Vendors will need to form There are no professionals in this Pakistan, there is no difference to our American alliances with fabric suppliers. field. Cat 339 is virtually talk of lower costs. customers. This is generating a Being vertical means more unexplored because Pakistan lot of paperwork, but no concrete overheads. Vendors have 20 tons stitching units do not have action. The systems have to be capacity per day for dyeing for professionals who can do the cuts. doable. There has to be awareness example – they hardly use it for There is no concept. They need a of the inputs, raw materials. themselves. Therefore, their good support structure. Vendors need to audit their raw dyeing units are not running on Investment is needed in basic materials. This is the first step. optimum capacity. This is in very common sense things like testing The buyers inspect based on their evolutionary phase. We need to labs, quality thread suppliers, then own systems…why can’t the encourage smaller units with a spinners can do so much in vendors? They are buying from speciality. Ten years from now, heathers….small details matter, their suppliers too. There is no few people will have surivived. especially if we want to move into strict standard.” We need professionals – fabric value addition, going after the real He conceded that poor planning is mills, spinners, stitching units hot brands. There has to be a a major reason for bad quality, “ may emerge with a very few collective consenus. I think joint To some extent, there is poor vertical units. My advice, if you ventures is the future. If Nabila- planning – some vendors have to want to be big, produce (Continued on page 11) Page 11

The Knit-xtyle Fashion Review (Continued from page 10) ABS can show concern, why can’t they? We tried to help the ou have a reservoir of information. How much is reaching your customer and how fast? If your vendors. I put in good money after customer only knew you offer a product he wants. If your customer only knew you offer a ser- bad. A lot of people want to do vice she needs. If your customer only knew what you know. And fast. Because what your cus- better but they don’t know how – tomer doesn’t know leaves revenue generating potential untapped. TKFR helps you communi- preventive quality control is the cate with your customer, by extending information where a customer decides to do business with you – or first step. Take Sri Lanka, they not. And where your single most important influence over that decision maybe information. Advertising in invest in their people. They will TKFR brings you the following major benefits: It can help you sell additional products and services to your hire grads from MIT, Harvard, current customers. It can inform, persuade and influence the customers’ buying decisions. It can raise your they are not stingy, they pay these area of influence within your business circle - peers, contemporaries and buyers. It can open doors to new people, they build loyality. accounts. It can be used to reintroduce you to the prospects that need more than they are getting from this Pakistani vendors so far have not succeeded in providing a culture market. It can help you promote your product, service or ideas. Who reads TKFR? The readers are all pro- where professionals can stick fessionals and usually are career- oriented people. Anybody who is a somebody. Our readers are : Retail- around.” ers – USA, Discount stores – USA, Apparel giants – USA, Fashion boutiques, Textile associations, Buyers, Vendors, Sub-contractors and suppliers, Fashion and business students, Bankers, Freight forwarders, Avari guests, Lahore. Differentiating “TKFR “ from the competition: TKFR is recognized as the leader in the Knitwear and Textiles publishing. TKFR is the only newsletter of its kind in operation...It’s the most well- read newsletter in the field and has the most reach and influence. It has a unique format, which is com- pletely different from the competition! Reasonable advertising rates. Best deals on offer. It has a website on the World Wide Web, thereby, providing unique opportunity for you to advertise on the web. TKFR – the window to your changing world.

WWW.TKFR.COM TKFR CAREER Murphy’s Law Complete 15 steps to lower stress All the reasons why everything The following suggestions daily. Make thankfulness a goes wrong by Arthur Bloch probably sound very familiar – habit. maybe even stale- to the point Say nice things when you Chisholm’s second Law: that we don’t take them very talk to yourself. When things are going well, seriously. Let’s be honest with Simplify. ourselves. Bottomline, we want Forgive. Grudges are too something will go wrong. the stress to go away, but we heavy to carry around. don’t want to have to work at it, Set personal goals. Give Corollaries: we just don’t want to go through yourself a sense of purpose. • When things can’t get any the drill. Taking personal Practice optimism and worse, they will. responsibility for stress reduction positive expectancy. Hope • will simplify our life no end if we is a muscle – develop it. Anytime things appear to just conscioulsy decide to take be going better, you have A crisis is when you can’t say, charge. So rather than carry on overlooked something. “let’s forget the whole thing”. about how others are failing to lower our stress level, let’s just Murphy’s law of Thermody- Motivational quotes from the make sure we’re doing what we namics: ourselves can do. Half this game office, Compiled by Anila Q. Agha is 90% mental. Things get worse under pres- Quote from a meeting: sure. Invest thirty minutes in “ We are going to continue hav- vigorous physical exercise, three to five times per ing these meetings, everyday, Half this week.Work up a sweat. until I find out why no work is Learn relaxation techniques. getting done.” game is Cut down on caffeine. Eat right. Quote from the boss… 90% Develop better time “I didn’t say it was your fault. I management habits. said I was going to blame it on Play. Have fun. Recharge. you.” mental. Get plenty of sleep. Smile more. Laugh. Use A motivational sign at work: humor to lighten your “The beatings will continue until emotional load. morale improves.” Count your blessings – Murphy’s Law of Thermodynamics Page 12 The Knit-xtyle Fashion Review

Sanctions – the real impact?

(Continued from page 1) Leadtimes are shorter. There is helps by pitching in. “ If 20 “These are not trade related more decoration on the garments. entrepreneurs can get together sanctions, no restrictions on More and more testing is and do this, only then it will Muhammad Naeem, trade and investment. Overall involved. There is actually very work. I am ready to sponsor Style Textiles economic outlook is adversely little time left for product students provided there is a effected. Based on the freeze on development. Sourcing of school! I am even willing to pitch the dollar accounts, the exporters accessories is a big headache!” in financially. I have a stake in are losing money. Infact, the Mr. Avais agrees with Naeem. “ this business. We are suffering importers are only getting their If you look at the industry, from an ostrich syndrome. We “The basic problem is money’s worth against the dollar. textiles exports are going down. are not progressive on collective The market value of a dollar is I personally feel the biggest basis. Vocational training is the the balance of payments Rs. 50 ( it was at the time of the factor is our inability to handle key, even for the short term – there are two ways we interview), the exporter is getting our business. The other reason is impact. Pakistan’s main industry Rs. 44 against a dollar. Importer lack of qualified and well trained is textiles. We produce world’s can overcome this. One, gets straight away an advantage people. In the three areas of 10% cotton, we make about $ 5 increase our exports, of 13.63% . The basic problem is Knitting, dyeing and cutting, we billions on that 10%, with a 140 the balance of payments – there are terribly deficient. We need million population. There is a $ and two, reduce imports. are two ways we can overcome some polytecnics and vocational 200 billion trade going on Over a billion dollar this. One, increase our exports, training schools. There are two globally. Main reason is that they and two, reduce imports. Over a things, general education and have invested in specific eduction imports is based on three billion dollar imports is based on vocational training. Some of the for their technicians. Take items alone – wheat, three items alone – wheat, edible people are not educated but they Turkey, they have 340 vocational oil and oil. Inorder to increase do have an inborn common textiles’ training schools. The edible oil and oil,” says and encourage growth of these sense. People are so keen to industry can’t survive if we keep Mr. Avais Mazhar. itmes, we need to create a learn and improve provided on going this way. To get out of surplus, ” comments Mr. Avais they’re given a chance.” this economic mess, textiles is Mazhar Hussain- Angora Elaborating his point further, Mr. the only silver linning. Some Textiles. Avais continued, “We need to effort is required – best way is Style Textiles’s manager create a pool of people, either the textiles, do we have to go merchandising Mohammad association or the government through the learning curve? A Naeem also basically feels the has to foot the bill to begin with. wise man learns from other’s same thing, with one basic The language barrier can be mistakes, only foolish people variation, he is looking at it from overcome by demonstration – make their own. Value addition is the textiles’ industry’s viewpoint. why do we have to reinvent the the only way. We are bogged “We are ok for the time being. wheel? We as a market have down at the low range of price - $ The market was quoting and suffered millions and millions of 55-65 per dozen, we will be getting some exaggerated prices. rupees on wastages – we need to wiped out very soon. If we want Now we will compete on realistic concentrate on upgrading our to increase exports, we have to prices. The big question is, how human resource element. My invest in our Human many units will surivive with contention is that the industry as Resources.” these low prices? I think it can be a whole is not delivering – with done, we need to manage our four to five top performing wastages, do a bit of realistic factories, it can’t work.” planning, I am sure the prices can At this point, TKFR suggested be met for the bulk orders. I also that if all these entrepreneurs feel feel that the human resources are the need for trained technicians, not managed properly. Cost they can take their own initiative effective production is possible. and do something about the The problem is that people don’t problem. There are couple of learn from their mistakes. We easy solutions which may not need some professionals. Some require a lot of investment. One, Cartoon factories are stable but knits open up their own training school by: Aamir business overall is on the decline like LUMS, or two, they can get Abbasi – core items and runs are not the government to open up workable. Fashion items are hot. textiles departments in existing Is this the end, is this my only friendly You need to deliver high quality. facilities like NCA, Punjab end? Another couple of years, we will University. Mr. Avais feels this all have to work differently. plan is doable, if the government Page 13

What management style for you? To be or not to be - centralized?

(Continued from page 1) ego-trip on the part of the top to recognize that they are not problem of ineffective middle man- tor- Irfan Textiles) considers management to claim that they capable managers and they need agers by providing training and centralized management the only are looking after everything. professional help. They have setting up a new Product develop- effective way to manage, “I was However, I am not saying that ment department. Explains Ahmed a strong advocate of decentraliza- the middle management performs Irfan, “ We have become stricter in tion a year ago, but now I know a first rate job every time. That our hiring policy. We ensure that better. People do not take their depends on the quality of leader- we select the right people. We also responsibilities seriously. Either ship at the top though. There is a have implemented a plan to train they are too weak in their follow- bit of pass-the–buck syndrome in our people; we have a highly quali- up or they do not have any com- some factories. However, in my fied H.R. (a Ph.D.) director heading mon sense! You burn your fin- factory, we can trace the origin of this program. People are resistant gers if you delegate important all decisions at all times. There is to change. They will not try to decisions to your sub-ordinates. a definite chain of command. ” learn a better way to do things. In fact, I will go as far as to say, Mr. Azhar Iqbal, CEO Lesiure This is not generally good for the there is no middle management at Textiles is also convinced industry. We do not have a mindset all. You hire a MBA, you train decentralized hierarchy works of pre-empting problems. ” him, you delegate some responsi- best . “ As an individual you Nadeem Rizvi, GM Zainal Tex- bility; and nothing. Top manage- can’t keep tabs on each and tiles believes in moderation. “ ment has to work on the big pic- everything. It’s physically Taken to extremes, both manage- ture, we end up doing our middle impossible. If you do everything Mr. Azhar Iqbal, ment styles can fail. In some de- management’s jobs as well as our yourself, you are not doing a CEO Leisure Textiles. partments, centralization works and own! It should not be our prob- good job. The merchandiser for in others, only decentralization lem that the yarn was not ordered example is in a much better works. It depends on the functions on time. We have middle man- position to make an informed milked as much as they can from and responsibilities. You have to agement for all this. At the elev- decision for his merchandising this industry – in ‘93-‘94; mar- delegate whole important jobs, that enth hour, it becomes our prob- department than I ever could be. gins were there – we have not means that if you delegate, you had lem.” Sometimes, there are mistakes, moved with the times as an in- better delegate the decision-making Mohammed Murtaza (GM the management tries to ensure dustry. We still have not learnt too. You can only understand your Style Enterprises) heatedly re- that mistakes are never repeated. how to recoup losses in the dye- people’s capabilities if you load futed that there is no “real” mid- Our philosphy is to learn and ing area for example. Prices are them with some responsibility. dle management in the knitwear move on. We will not penalize way out. What we need to do You have to give your people a free sector. “I totally disagree. Style or target a person.” now is work on running the fac- hand. All you have to do is make it Enterprises is working on totally Ahmed Jamal (Senior Mer- tories professionally.” Nadeem clear that they have to meet their decentralized system. In fact, all chandiser Zainal Textiles) con- Rizvi, the GM at Zainal, also deadlines in the normal course of vendors are working under a siders that in this industry inde- agrees with Jamal, “ work. At Zainal we work like a totally decentralized manage- pendent, good managers can’t be Management is not an easy job. team, we do not encourage politics ment. Any deviation from the developed. “ Generally… The CEO can’t do everything, and leg pulling. This is what ruins a system actually causes more Operations/ production managers and he shouldn’t try – especially, successful factory. Middle manage- problems than it solves. You are discouraged on taking deci- if he doesn’t have the IQ. You ment is necessary to implement and can’t work without the middle sions on their own – so if the have to have a built in ability and control the plans the top manage- management – in reality, if the director has to do everything, it a capacity to do this job. It should ment comes up with. In some top management steps in and means an ineffective manage- be left to the professionals.” cases, like operations, it is best to makes decisions for their middle- ment. In general, many estab- Ahmed Irfan also stressed the leave the planning to them too. At management, they will mess up lished factories have not been need for good middle managers Zainal, I look after the operations the total process controls in able to produce independent, in this industry for the business to from pricing onwards. You have to place. There is simply no justifi- effective managers. Money is not grow. “We need to develop a bring your team to the same wave- cation to say that centralized the only issue, it is important for responsible effective set of man- length. It also ensures minimum management is the only way in the middle managers to have agers who can ensure customer turnover and provides a congenial our industry. It’s not the top respect and some authority in satisfaction. The way things are, environment for people to work in - management who takes care of their own sphere of work. The Pakistan is losing business be- productively.” What do you think? the administration of routine problem is that small financiers cause of these minor upheavals. I Which way is better?. To be or not processes - ordering of the yarn, invested in this industry in the feel we have to watch out for to be? sundries, knitting, dyeing, stitch- 80’s and early 90’s thinking they Africa – contrary to popular being. A middle management is could make a quick buck! They lief, it’ not South America, the looking after these processes. have had no training in running danger of losing business to The only thing the top manage- vertical set-ups. So they tend to newer markets is much closer to ment should be looking into is think small; in addition, they home.” the financial aspect. It is a huge have big egos. They may refuse Irfan Textiles has solved the Page 14 The Knit-xtyle Fashion Review

Tommy Hilfiger Corporation Reports Fourth Quarter and Fiscal 1998 Results HONG KONG, June 5 - Tommy Hilfiger Corporation today reported Bond Street is scheduled to be completed in fiscal 1999. results for the fourth quarter and fiscal year ended March 31, 1998. For As part of its global expansion plans, during the year the Company the fourth quarter of fiscal 1998, net revenue rose 18.9 percent to launched men's sportswear in both Europe and the Asia-Pacific region $202.7 million from $170.5 through licensing agreements with Pepe Jeans London Corporation million for the fourth quarter last year. Net income rose 22.9 percent to and KSDP International, respectively. In addition, ``tommy girl'', the $27.4 million from $22.3 million in the same period a year ago. Diluted Company's licensed women's fragrance, debuted in over 30 countries. earnings per share were $0.73, an increase of 23.7 percent from $0.59 ``Our existing licensed products performed very well both in the comparable period last year. Tommy Hilfiger Corporation had domestically and internationally, increasing global recognition of the 37.8 million shares and share equivalents outstanding on a weighted Tommy Hilfiger brand,'' said Mr. Horowitz. ``By broadening our average basis during the fourth quarter versus 38.0 million during the distribution and product offerings both in-house and through licensing same quarter last year. agreements, we are able to further penetrate our existing consumer For the fiscal year ended March 31, 1998, net revenue rose 28.0 percent base, attract additional to $847.1 million from $661.7 million in fiscal 1997. Net income customers and enter new increased 31.0 percent to $113.2 million from $86.4 million last year. territories and product Diluted earnings per share increased 31.1 percent to $2.99 from $2.28 categories.'' in fiscal 1997. The Company had 37.9 million shares and share During the fiscal year, the equivalents outstanding on a weighted average basis during both fiscal Company launched boys' 1998 and fiscal 1997. footwear licensed to The Joel J. Horowitz, Chief Executive Officer, commented, ``We are very Stride Rite Corporation, pleased with out financial results for the fourth quarter and fiscal 1998 men's sunglasses licensed to which we believe reflect the strength of the brand and the Company's Lantis Eyewear Corporation diversified earnings base. Each of our business categories experienced and formal accessories with healthy increases with our childrenswear and our licensing divisions Marks & Berry. The exceeding our expectations.'' Company also signed During fiscal 1998, the Company segmented men's sportswear into two licensing agreements with distinct merchandising concepts which build off its trademarked flag Revman Industries to produce and crest logos. Also during the year, the Company launched an and market a line of linens, activewear line, Hilfiger Athletics(R), in 260 department store doors. bedding and bath accessories, The line is marketed with the Company's licensed athletic footwear The Stride Rite Corporation business with The Stride Rite Corporation, which debuted last fiscal for women's footwear and year, and a new athletic fragrance produced under a license agreement Russell-Newman for women's with the Aramis Division of Estee Lauder, which launched in the first robes and sleepwear. quarter of fiscal 1999. In the In May 1998, subsequent to the close of fiscal 1998, the Company childrenswear division, the Company introduced an infant and toddler acquired its licensed jeanswear, womenswear and Canadian line in 550 doors. ``The excellent results from our new infant and businesses. The women's and jeans' businesses develop, source and toddler collection and the heightened demand for our boys' sizes 4 to 20 market Tommy Hilfiger(R) womenswear and Tommy Jeans(R), merchandise contributed to the childrenswear division's outstanding respectively, in the United States. The Canadian business distributes a performance,'' stated Mr. Horowitz. wide range of the Company's products throughout Canada. The ``A major milestone for the Company and our retail division was the operating results of these businesses will be included in the opening of our first flagship store on Rodeo Drive in Beverly Hills. consolidated results of the Company from the date of the acquisition. Flagships, as showcases for all of our product lines, help to heighten ``The acquisition of our women's, jeans' and Canadian businesses awareness and the image of the brand,'' provides new avenues to accelerate our revenue and earnings growth continued Mr. Horowitz. ``While the rates,'' concluded Mr. Horowitz. ``These businesses offer outstanding flagship is primarily a marketing tool, potential and, when combined with our existing divisions, provide our outlet store program, fueled by new powerful growth platforms to carry us into the next millennium.'' store openings and increased real estate, Tommy Hilfiger Corporation, through its subsidiaries, designs, continued to drive the growth of our sources and markets men's and women's sportswear, jeanswear and retail division.'' childrenswear under the Tommy Hilfiger(R) trademarks. Through a In fiscal 1998, the Company opened nine range of strategic licensing agreements, the Company is expanding its new outlet stores for a total of 56 outlet product lines to offer a broader array of apparel, accessories, footwear, stores. In addition, select Company fragrance and home furnishings. The Company's products can be outlet stores began carrying women's found in leading department and specialty stores throughout the casualwear. Also during the year, the United States, Canada, Mexico, Central and South America, Europe, Company opened a specialty store on Japan, Hong Kong and other countries in the Far East. Source: London's Sloane Street, featuring the Tommy Hilfiger men's sportswear collection. The Company's flagship on London's New Page 15

Company Press Release Federated Comp Sales Up 1.8% in May Company Press Release Gucci Group N.V. CINCINNATI-June 4, 1998--Federated Department Stores, Inc. today reported total sales of $1,156 million for Makes Announcement the four weeks ended May 30, 1998, an increase of 0.8 AMSTERDAM, Holland- June 16, percent over total sales of $1,147 million for the same 1998-Gucci Group N.V. today period last year. On a comparable-store basis, sales announced that Gucci has received a increased 1.8 percent in May. For the first 17 weeks of copy of the Schedule 13D filing 1998, Federated's sales totaled $4,612 million, compared made by Prapar B.V., a Prada to total sales of $4,556 million in the same year-to-date affiliate, with the U.S. Securities & period last year. On a comparable-store basis, Federated's Exchange Commission regarding year-to-date sales increased 2.2 percent. Prada's acquisition of 9.5% of Federated, with corporate offices in Cincinnati and New Gucci's stock. Gucci's President and York, is one of the nation's leading department store CEO, Domenico De Sole, said ``As retailers, with annual sales of more than $15.6 billion. previously announced, Gucci has not Federated currently operates approximately 400 had discussions with Prada and we department stores and 160 specialty stores in 36 states. have no information other than what Federated's department stores operate nationally under the appears in Prada's public statements names Bloomingdale's, The Bon Marche, Burdines, and filings.'' Goldsmith's, Lazarus, Macy's, Rich's and Stern's.

Nike seeks dismissal of suit over Company Press Release Asian factories Banner Welcome for Eddie

SAN FRANCISCO, June 29 - stubs for about 500,000 workers Bauer at Renovated Shattuck Nike Inc. on Monday moved to dating back more than seven dismiss a California lawsuit years, he said. A lawyer for Nike Avenue Store charging that company said in a statement that the BERKELEY, Calif., June 16 - Eddie Bauer, the prominent national executives lied about the company would produce ``any clothing retailer, will open its Downtown Berkeley store this ``sweatshop'' conditions of Asian and all relevant documents once Autumn. Welcoming the retailer's arrival is a banner which wraps workers who make its popular its First Amendment and around the building at the comer of Shattuck Avenue and Allston athletic shoes. The Beaverton, document-request challenges are Way. Dan Craig, Executive Director of the Downtown Berkeley Ore.-based footwear and apparel resolved.' Nike also filed a Association says, ``We are very pleased by the cooperation between company said it filed a motion in lengthy formal response to the the ownership and the City of Berkeley to make this happen for California Superior Court, charges in the lawsuit, Downtown. Eddie Bauer is an asset, both as a popular new retailer, requesting that the case be put on contending that the case was a and as a symbol of Berkeley's brighter future.'' The new Downtown hold until its argument for ``misuse'' of the California Berkeley Eddie Bauer store will occupy approximately 6,900 dismissal can be heard. Vada consumer laws under which it square-feet, and will serve as an anchor tenant for the ongoing retail Manager, a spokesman for Nike, was brought. The company has revival in downtown Berkeley. The city's Office of Economic on Monday said the company been under fire for the low wages Development estimates that the vacancy rate in downtown Berkeley hoped to have the case dismissed and poor working conditions in had dropped to a five year low of 5 percent as of last year. Berkeley- before it is required to begin its factories, and company based architect Marcy Li Wong who developed the plans for the producing documents requested Chairman Phil Knight recently project says the renovation ``preserves the period building and by the lawyers and activists who announced a new initiative to accentuates important and appealing features of the building's filed the lawsuit in April. The improve conditions. design.'' Real estate broker John Gordon of Gordon Commercial lawsuit claims Nike used Real Estate Services approached the popular outdoor clothing and deceptive business practices by gear manufacturer because of the appropriate business fit with failing to tell California Downtown. Additionally, Eddie Bauer style is consistent with the consumers the truth about Berkeley way of life. Their products are already extremely popular working conditions in its Asian with Berkeley residents, demonstrated by high catalog sales in the factories. area. Founded in 1920, Eddie Bauer has more than 450 stores in the ``The request by the plaintiff is to U.S., Canada, Japan and Germany. Offering several distinctive and produce at the minimum about 46 popular merchandise lines, the company's annual sales total more million documents, which we than $1.5 billion. Over 75 years ago, Eddie Bauer pioneered its find somewhat onerous,'' ``unconditional guarantee'' concept which it still upholds today. Manager said. Among the SOURCE: Eddie Bauer documents requested are pay Music for adults only Junoon – Azadi I don’t know what’s the media hype all about – except for “Siyoni“, there hould I start with Arif Noor hiring, she takes all the interviews are only two other songs just about or what? Hmm…I know, I now. One wonders if she has enough Arrivals and departures bearable. I think the video had a lot know, I keep picking on this clout to make any major changes? Fortunately, this month we are to do with its album’s success. S guy. No, I don’t have a That’s not all. Irfan Textiles has reporting only a couple of moves. MTV TOP 10 ASIA vendetta against him. Contrary to become really progressive. They took Sohail Mehmood, last seen in Ricky Martin, La Copa De La popular belief, I respect him a lot. No all their people to a movie. Irfan has moved. Don’t know the Vida kidding! But you must see how it is, Waterworld. They wanted them to details. He was moving to S.R.S. Boyzone, All That I Need can’t let the tradition down. He’s have a complete rest, as in a siesta. It but at the last minute, he changed The Wall Flowers, Heroes been making the headlines right from figures since they took them to the his mind. Naeem (Haleema) is Madonna, Ray Of Light the word go on this newsletter, most boring movie imaginable. No joining S.R.S instead. Naila Butt Natalie Imbruglia, Big Mistake besides, it would be sacrilage if we there is one worse. The Postman. Is (Cres Knit) has joined Flora. Chumbawamba, Top Of The forgot him at this point in our that on the cards too? Don’t feel so Rehan (MFW) has been chosen as World, success! On top of it, he keeps bad, like they always say if you get the regional manager Lahore from Garbage, Push It making the news. So here goes, once the most boring present on your all the would-be– candidates. Tsk, Simply Red, Say You Love Me again. Let’s start with A. birthday, It’s the thought that counts. tsk. Is it just my feeling or is it true 911, All I Want Is You Arif Noor walked away with a Megan (Merchandising Manager at that percentage of turnover has Gloria Estefan, Heaven's What trophy. No, strange as it seems, it Nabila-ABS) has left temporarily for gone down this month? Maybe, I I Feel wasn’t a girl. I told you he’s turned the U.S…..due to the “X” factor. The don’t know every thing afterall. respectable! The occasion was a official story is that the climate was I think this one is the last one I am lavish dinner held in Islamabad back getting too hot for the American to going to write ...so let me tell you From The Book Shelf in May. The place was Marriot. They handle…you know, the political guys how much I enjoyed getting Murphy’s law com- were there at the invitation of Knit situation. Off the record, it’s just a your emails, & phone calls, plete by ArthurBloch Textiles, helping them celebrate their long list of maybe’s. Maybe the work updating me on all the latest! You The Mcgraw-Hill fifth anniversary. All his colleagues was too much to handle…maybe the are the best. handbook of business from the unmentionable buying drinking water was too This is Mystique, signing off… letters for Roy W. Poe. house were there. ( I can’t mention contaminated..One just wonders what See ya around. (-; Everything is negotiable, how their name, they mind you know.) ABS is going to come up with next?! to negotiate and win by Minus the boss. He was in USA Speaking of the political situation, P.S Don’t miss me, Ok...‘coz I Gavin Kennedy doing God knows what. Talk about what happened to good ol’ won’t be back. Powder and Patch by the lifestyles of the busy and the Timberland? No idea. There are as Goergette Heyer (Fiction) infamous! They are an important many stories as there are mouths (as Hondo by Louise L’Amour customer for Knit Textiles, booking they say in Urdu, jitney mooh, utni (fiction) 80% of their space each season. So it baten!) Whatever the official or figures. Everyone was all prettied up, unoffical story, they are not working “suited booted”. Who else was there? in Pakistan through Nabila-ABS Industrialists, politicians and four anymore. Are they through? Don’t people from Nabila-ABS. What’s know yet. Rumor has it that Movies up? Timberland will be serviced in For the weekend of June 26 to June 28, 1998, (Final A new buying house in town? Yup… Pakistan by Warnaco. So far, this has Figures) it’s called Flora and is set in the not checked out to be a fact. Keep Weekend Summary: LOS ANGELES - Eddie Murphy hit a floral setting of Johar Town. Must be digging, Mr. Source for further double jackpot at the box office. "Dr. Dolittle" made its debut in first place at big. Why else would they be looking information on this rumor! the North American box office, while "Mulan," in which he's the voice of a for thirteen people in Merchandising Now VF…what happened to Baby wisecracking dragon, was No. 2. “Dr. Dolittle," which stars Murphy taking over the character played by Rex and quality? Pardo? So are you guys opening an Harrison in the 1967 version, earned an estimated $29 million in ticket sales Furrukh Hussain, Linmark office or what? Rumor has it that VF during its opening weekend, according to industry estimates Sunday. International (Karachi) is expected is shutting down their operations and In the latest release, computer-generated special effects allow the animals' in Lahore Mid-July. Business is good moving to Bangladesh. Hmm. What a mouths to move as they talk. The film's opening surpassed Murphy's "The in Karachi, he tells me. He was loss to all those potential candidates. Nutty Professor," the actor's last comedy. “We're happy that we achieved such recently promoted to the position of They don’t need your resumes. Why a broad audience," said "Dr. Dolittle" producer. John Davis. "We've got older divisional merchendise manager at don’t you try Warnaco? people, younger people, teen-agers loving it. It's gratifying because this was Linmark Pakistan office. Life is Warnaco was intent on hiring some supposed to be a broadly appealing movie." "Mulan" earned $17.3 million for the No. 2 spot for the second week, according to Exhibitor Relations Co. Inc. pretty hectic for him, what with more people it seems. You know The film is based on an ancient Chinese story about a girl who dresses up like a taking interviews for new assistant about Shazia already but did you man to take her ailing father's place to fight invading Huns. "Mulan" fell only merchendisers and merchendisers, know, they almost hired Nadia 24 percent from its opening weekend, surpassing Disney's usual decrease of then travelling to Bangkok to attend Shehzad from Fibre Dyeing? She between 30 and 40 percent, said Phil Barlow, president of Buena Vista Linmark managment meeting & then didn’t go for it. What happened? Pictures Distribution. "The Lion King" fell 31 percent during its second week- coming to Lahore on top of it, later. Work load? Pay? Keep on guessing it end. "I think the country is falling in love with this movie," Barlow said. Two Things couldn’t be better for him even beats me! other Disney films remained in the Top 10: "Six Days Seven Nights" was No. though. So vendors, get ready to do 6 and "The Horse Whisperer" held No. 10. some hard work when he gets here. Matrimonial "The X-Files," the movie spin-off of the popular TV show, fell to No. 3 this weekend with $13.6 million after leading the box office in its opening last Irfan Textiles’ top management Arif Noor has set a tentative date for weekend. "Out of Sight" opened with $12.9 million and holds the No. 4 spot genuinely cares about their human a November wedding. Adnan Latif is in the box office. The sexy action comedy stars George Clooney as a bank resources it seems. They have hired a on his Honeymoon these days. robber and Jennifer Lopez as a federal marshal. The film is the latest test of Madam Paul for their H.R. dptt. She Bangkok. By the way, Adnan got whether Clooney's "ER" charm can translate to the big screen. "Godzilla" fell has been interviewing everybody, married on the 21st of June. We had off the Top 10 list, to the No.12 spot. Overall, the expected $103.97 million checking on any problems they might sort of married him off earlier than gross for the weekend's Top 10 films was up 11 percent over the same weekend have. She is even responsible for the his wedding date! last year.