GAP SUED IN EUROPE/4 SOURCING HORIZONS/SEC. II Global Edition WWDWomen’s Wear Daily • The Retailers’TUESDAY Daily Newspaper • September 18, 2007 • $2.00 Ready-to-Wear/Textiles Ruffle Times LONDON — In his spring show on Monday, Christopher Kane mixed seemingly unappealing materials such as shredded denim and reptile prints into looks that had masses of charm. This dress illustrates his magic: an updated version of ruffl es à la Stevie Nicks, worn with a snakeskin vest. For more on the presentations, see pages 8 and 9.
Taking It to the Limit: Dior Goes Ultraluxe In Revamped Flagship
By Miles Socha PARIS — Christian Dior wants to take luxe to a new level on the retail floor. The fashion house on Monday unveiled a dazzling bespoke makeover of its landmark flagship here, complete with silk carpets handwoven in Tibet that resemble pools of molten silver, fitting rooms wallpapered in embossed metallic leather and enough artworks and custom furnishings to rival a royal apartment. “The objective was really to make it even more luxurious,” Dior president Sidney Toledano said during See Dior, Page 12 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY
4 WWD/GLOBAL, SEPTEMBER 2007 WWD.COM Gap Sued by French Brand By Emilie Marsh Wekstein, Zadig’s attorney. WWDTUESDAY Dubbed the Tunisien, the style was launched in Ready-to-Wear/Textiles PARIS — French contemporary label Zadig & 2002 and boasts a curving neckline with fi ve deco- Voltaire is taking Gap Inc. and Gap France to rative buttons. Zadig sells around 70,000 pieces a court, alleging the fashion giant knocked off its year for 79 euros, or $109.65 at current exchange, FASHION best-selling T-shirt. at retail. Gap’s T-shirt sells for 29 euros, or $40.25. The ghostly and the Gothic mixed with the sweet on the spring runways, The label, a stylish staple for Parisians, fi led Zadig is seeking to have the counterfeit recog- 8 as the London collections marched on. a claim against Gap early this year with a French nized in France, the U.K. and the U.S., Wekstein commercial court for counterfeiting and unfair added. The court has set a date of Oct. 25 for Gap GENERAL competition. “We believe that the T-shirt has to respond to the claim. Christian Dior reopened its landmark Paris fl agship on Monday, unveiling been copied. It bears a strong resemblance and A spokeswoman for Gap Europe declined a dazzling bespoke makeover that takes luxe to the next level. many of its features are similar,” said Isabelle comment Monday. 1 French contemporary label Zadig & Voltaire is taking Gap Inc. and Gap 4 France to court, alleging the retailer knocked off its best-selling T-shirt. After renewing her deal as the face of Kinerase, Courteney Cox’s third Nordstrom Considering Park Avenue Site 11 ad campaign for the skin care line was shot last week. A number of online retailers are embracing customization, user reviews, 11 blogs and other cutting-edge Web trends, an NRF study found. ordstrom Inc. has been imminent. There are other al- opened very close to Bergdorf Nsearching Manhattan’s East ternatives in the Manhattan Goodman, Bloomingdale’s or Side, West Side, uptown and market to consider, and there Saks Fifth Avenue, it might be EYE downtown for a fl agship site and is more work to be done on the hard to secure certain lines and Emmy mania kept going strong after the awards, with a host of parties, the latest property of interest potential deal/economics of the designer labels with established 6 including the TV Guide and Entertainment Tonight/People bashes. appears to be the former Drake Drake site.” relationships with those stores. Sourcing Horizons is included as a Section II in this issue. Hotel on Park Avenue, accord- The source added: “It’s not im- One scenario would be to re- ing to published reports. It’s minent or inevitable at this time.” confi gure space in an existing Classifi ed Advertisements...... 14-15 being redeveloped by Macklowe Nordstrom has been scout- building, though there could be Partners, which is said to be ing Manhattan for years, but re- ground-up development oppor- To e-mail reporters and editors at WWD, the address is fi rstname. planning condominiums for the cently intensifi ed its search. The tunities as well. building, located on the north- company has examined build- In May, Nordstrom hired [email protected], using the individual’s name. west corner of Park and 56th ings around Columbus Circle; the Madison Retail Group, a WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Street. Penn Station; lower Manhattan; retail real estate consulting ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. The immediate vicinity isn’t Madison Avenue in the 50s, and brokerage firm, to expe- VOLUME 194, NO. 60. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and November, two additional issues in March, May, June, August and December, and three exactly a fashion retail mecca, specifically the Pennsylvania dite the search. The retailer additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance with Mercedes-Benz on the Hotel near Penn Station; Trump has received numerous propos- Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by southwest corner, Staples on Tower, as well as the Lord & als from landlords and brokers Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human the southeast corner and T. 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Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit ury retail abounds. and Madison Avenue, and the cated real estate decision ever, www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new In any case, the fast-growing corner of 42nd Street at Sixth for a number of factors,” Pete subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, and aggressive Seattle-based Avenue. Nordstrom, president of mer- please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Nordstrom is not near to secur- One issue is space. chandising, told WWD in May. Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list ing a site in Manhattan. As one Nordstrom is seeking roughly He cited costs, but also noted 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, please advise us at P.O. Box 15008, North Hollywood, CA source close to the chain said: 200,000 square feet over just a the volume potential and brand 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, “The Drake is a real project few levels, which is hard to come exposure a Manhattan presence OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, that has a lot of appeal. But I by. Another issue is proxim- would provide. BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR think it’s premature to say it’s ity to competitors. If Nordstrom — David Moin CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Trade Show Pitti Uomo Adding Women’s Space MILAN — Florentine men’s wear trade show outfit Pitti Uomo will launch a women’s pre-collection In Brief space at January’s edition. Pitti W Woman Precollection is expected to show 40 international brands integrated into the exhibi- ● BUYING BACK: Gottschalks Inc.’s board approved a share tion, which is scheduled for Jan. 9 to 12 at the Fortezza da Basso in Florence. buyback of up to 2 million shares of its common stock, the re- Among the labels presenting will be 6267, the fashion line designed by Tommaso Aquilano and tailer said Monday. “The company will fi nance the purchase of Roberto Rimondi. Organizers for the show said other brands were yet to be confi rmed. the shares through cash and borrowings upon the completion In response to claims by members of the Italian press that Pitti Immagine was trying to heighten of its newly amended credit agreement with GE Financing,” fashion competition between the cities of Milan and Florence, Raffaello Napoleone, Pitti Immagine’s the fi rm said in a statement, adding the buyback is part of the general manager, said the addition was an experiment. retailer’s previously announced “value improvement program” “This is about a pure service to the buyers and not a way to be competitive. We have studied the way and that James Famalette, chairman and chief executive of- the fashion world works and today brands have up to 10 collections a year. We looked into doing this fi cer, “is a key component of our overall efforts” to improve in Milan, but this was the best solution. Frankly if we didn’t wake up and do something different, other shareholder value. countries will go ahead and do it and walk all over us,” said Napoleone. Napoleone added that while Pitti Donna had held fashion shows in the past — the last being ● RICHEMONT BUY: In a move to increase its in-house man- Ferragamo’s women’s collection in 1984 — for the time being Pitti W Woman Precollection wouldn’t ufacturing capacity, Compagnie Financière Richemont said include runway shows. it acquired the component production facility of the Geneva- Pitti’s announcement immediately solicited a hint of indignation from Italy’s Camera della Moda. based watch brand, Roger Dubuis. “We anticipate using that Italian fashion’s organizing body said in a statement that it had studied a similiar initiative two years capacity to provide materials for our own house brands,” said ago but scrapped plans due to insuffi cient interest. It glibly wished Pitti luck although it questioned the Alan Grieve, director of corporate affairs for Richemont, which viability of yet another trade event for press and buyers. counts the likes of Jaeger-LeCoultre, Piaget, IWC, Baume & — Stephanie Epiro and Courtney Colavita Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne in its portfolio. The distribution rights for Roger Dubuis timepieces in key markets such as the U.S. and the Middle East Fund Forms for Apparel Investments is also part of the deal.
ictor Rousso and King Lun USA Fund (I) LP Apparel organizations to grow through acquisi- Vhave partnered to create Prism LP to make tions of additional apparel brands, as well as ex- Corrections equity investments in Rousso Apparel Group, pansion of their marketing and sales resources,” Belk reported second-quarter net income of $7.5 million com- Garfi eld & Marks and Santa Fe Apparel, the the companies said in the statement. pared with $26.3 million in the year-ago period. Net income for companies said in a statement Monday. In December 2006, King Lun formed a part- the fi rst six months was $17 million, versus $45.8 million a year Terms of the deal were not disclosed. King nership with Victor Rousso to buy the assets ago, and net income excluding noncomparable items was $21.7 Lun USA Fund is the private equity partnership and trademarks of Garfi eldMarks LLC. “The million compared with $45.2 million. This was incorrect in a story of Victor and William Fung, the chairman and formation of Prism expands the partnership on page 18, Sept. 12. group managing director, respectively, of Li & between the parties to include the other oper- ● ● ● Fung Ltd. ating companies that Victor Rousso owns and The shirt pictured on page 14 of Coterie, Section II, Wednesday, is “The Prism investment will enable the runs as [chief executive offi cer],” the compa- by Henri Abitan. In the same section, the necklace on page 8 is by Rousso Apparel, Garfi eld & Marks and Santa Fe nies said. Twinkle. The resources were incorrect in the captions. MOL Delivers Expanded China Coverage, Increasing Cargo Control and Supply Chain Reliability • Experience 130 Years in China Trade • Balance 27 Local MOL (China) Ltd. Offices • Choice 14 Weekly Services to/from China and U.S.
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Atlanta 678-855-7700 • Chicago 630-592-7300 • Long Beach 562-983-6200 Edison 732-512-5200 • Seattle 206-444-6900 • 1(800) OK GATOR 6 WWD/GLOBAL, SEPTEMBER 2007 WWD.COM Screen Savers Emmy weekend came to a crescendo Sunday night, but it started off prim and proper at the BAFTA Tea Party on Saturday afternoon. There, Saffron Burrows clinked tea cups with fellow Brits Joely Richardson and Cat Deeley, who also attended a luncheon for Zandra Rhodes at the British consulate general’s residence the day before. Entertainment Weekly’s party late Saturday night at Opera and Crimson was loud and boisterous from the start, due mostly to an overzealous DJ who drove guests out onto the patio, where Kate Walsh was gushing about her dress: “I lo-o-ove Marchesa. It makes me feel sexy and I love showing the leg.” Rumer Willis, in a cutout Versace, SARDELLA DONATO OTHERS BY KEVIN PARRY/WIREIMAGE; BY ambled around solo. Her plans for Sunday? “Sleeping.” She was about the only one in Hayden town. Most stars kept going strong Panettiere Sunday at a string of parties after in Marc the awards ceremony, including Bouwer at stops at the TV Guide and HBO. Entertainment Tonight/People magazine bashes, where Kanye West and Felicity Huffman in Duran Duran performed, respectively. David Meister with Over at the Fox soiree at Spago, winners William H. Macy James Spader and Jaime Pressly kept their at ET/People. statuettes within reach. Despite all the congratulations and hugs, there were Malin a few grumbles about the cavalcade of events preceding the Emmys. “I had a good time Akerman tonight,” said past winner Patricia Heaton. “It is a long day, though. But I don’t want to in complain too much. How pathetic do you sound if you are exhausted from the hair and Temperley makeup process?” at HBO. At HBO’s fete at Pacifi c Design Center, “The Sopranos” cast, including James Gandolfi ni, Jamie-Lynn Sigler and Aida Turturro, toasted their Best Drama win. “What a way to go out,” Sigler said with excitement. Other trophy toters at the affair — which Ellen Pompeo oddly had a Thai theme — included Sally Field, Helen Mirren and an on-the-prowl Jeremy in Michael Kors Piven. Ginnifer Goodwin found herself starstruck after Lily Tomlin came up and gave her a with Ali Larter hug. “That made my year! She must think I’m someone else,” she said. in Reem Acra By the end of the night, a yawning America Ferrera left the heavy lifting to her at ET/People. boyfriend, who held her trophy as they exited the party. Kevin Connolly explained, “The night is very long. You know you’re getting old Sally Field in when you can’t wait to go home and kick your Valentino. shoes off.” But Mirren wasted no time. The actress left the party in fl ip-fl ops, waving her sky-high silver stilettos in the air.
Justin Chambers
with GAYHEART JEFF KRAVITZ/FILMMAGIC; FIELD BY MICHAEL CAULFIELD/WIREIMAGE; HUFFMAN BY JEFF VESPA/WIREIMAGE; MESSING BY GES; LARTER, Rebecca Gayheart in Carlos Miele at TV Guide.
Saffron Burrows in Catherine Malandrino and Joely Richardson.
David Shaw with Cat Glenn Close in Giorgio Debra Messing in Donna Karan Deeley in Armani at Fox. at Entertainment Weekly. Temperley. PANETTIERE, AKERMAN PHOTOS BY TODD WILLIAMSON/WIREIMAGE; BURROWS BY ALEX BERLINER/BEIMAGES; CLOSE BY MARSAILI MCGRATH/GETTY IMA MARSAILI MCGRATH/GETTY BY ALEX BERLINER/BEIMAGES; CLOSE TODD WILLIAMSON/WIREIMAGE; BURROWS BY AKERMAN PHOTOS BY PANETTIERE,
8 WWD/GLOBAL, SEPTEMBER 2007
Tales by theThe ghostly and GothicThames mix with the sweet on London’s runways.
Julien Macdonald
Julien Macdonald
Christopher Kane Luella
Julien Macdonald: Restrained, There were rock ’n’ roll jersey T-shirts, too, with colored Swarovski classic, simple. Julien Macdonald spirograph-like designs. Kane works with a deft hand, and this show dumped the vamps, the sexy Miss might well be his best possible CV for a future job at Ungaro. Marples, and the Russian trophy wives this season and moved on to the Luella: Sugar and spice and everything subversive: That’s what fresh-faced socialite. The collection had an inno- Luella Bartley’s gals are made of. This youthful, playful collection cence rarely seen on Macdonald’s glittering runway. His was packed with fl ower prints, tropical punch colors, and sweet latest girl wears sweet, crocheted dresses with matching green plaids. Bartley paired them with black plastic collars, chunky jackets; crocheted tops paired with swingy minis, and zip- zipper details, and come-hither glimpses of tulle peeking from under front color-block cardigans over fl uid A-line dresses. For hemlines. Bartley, who moved her show to London this season to evening, Macdonald upped the glitter factor with short, celebrate the opening of her fi rst boutique, dressed her ladies in LONDON tiered sequin dresses in Harlequin colors and patterns, dainty, fl ower-print dresses and blouses with plastic corset belts or and sparkle-studded fl apper dresses with marabou edging. collars; pleated, tiered pouf dresses with zipper teeth edging; and spring ’08 But the show was too long, and by the end Macdonald had yellow T-shirts with cartoonish black bat prints. lost his way. His strappy dresses — with or without buckles “She’s a geeky girl who’s still feminine and sexy,” said Bartley, who on the shoulder strap — resembled old Versace, and his plunked oversized, black-framed eyeglasses on models, and pulled bejeweled and fringed fl apper dresses smacked of old Alice their hair into goofy buns and pigtails. “She’s into cartoon books and Temperley. her heroine is Thora Birch from ‘Ghost World.’” Even when Luella travels to the spooky side, she never stays for very long. As the show Christopher Kane: Kane’s raw materials this season weren’t rolled on, the fl ower dresses lost their plastic bits and picked up promising: Bon Jovi shredded denim, reptile prints sparkly red, black and blue stripes, and the fi nale was an explosion reminiscent of Roberto Cavalli and boho fl ounces à la of red plastic sequins the size of silver dollars on a strapless mini. Stevie Nicks. But somehow, out of the darkness, Kane’s girl Finished off, of course, with a Batgirl mask. emerged looking like a goddess. She wore faded denim that Christopher Kane was shredded or artfully sliced into ruffl ed skirts, jackets Gareth Pugh: Pugh’s reign as London’s Prince of Darkness remains and skinny jeans. Her python- and lizard-print frills and undisputed. The designer’s formidable lineup for spring — if seasons fl ounces — which spilled over dresses, skirts and cowboy count in the underworld — featured a stole crafted entirely from shirts — were subtle and came in shades of gray, peach and what looked like stuffed white mice, a dress made from ribbons of taupe. Some were even edged in delicate strips of python. leather and a dazzling black, fringed Swarovski dress. The model’s WWD/GLOBAL, SEPTEMBER 2007 9 WWD.COM
the damage. “John Galliano would probably kill me.” Sumner was showing off Sunday night at the party Fashion Scoops to celebrate Moët & Chandon’s 10th year sponsoring London Fashion Week. The party, in the Holland LUELLA’S LONDON: Park Opera House, drew guests including Alexander Luella Bartley came McQueen, Agyness Deyn, Peaches Geldof, Stuart Vevers, home in style Maria Grachvogel, Giles Deacon, Claudia Schiffer, Monday night, Naomi Campbell, Jasmine Guinness, Alice Temperley inaugurating her and Sadie Frost. fi rst stand-alone store on Brook DIDDY’S SPACE: Never let it be said Sean “Diddy” Combs Street in Mayfair, doesn’t push the envelope — or in this case, the mouse with a cider and and Webcam. In what is believed to be a fragrance- Champagne party. launch fi rst, the rapper will broadcast the party for his “I’m so glad she’s new Unforgivable for Women scent live on YouTube. in London,” said The party, set for Wednesday night at a townhouse on Net-a-porter’s Natalie New York’s Upper East Side, will feature red-carpet Massenet before arrivals — Aretha Franklin and Usher are expected spying the glass — and random moments from the party (cameras will bowls of English be set up on each fl oor of the townhouse to catch all boiled sweets. “Now that’s unforgivable). I’m going to hit the candy.” The 1,400- Luella Bartley NO PLACE LIKE HOME: Gianni Versace SpA’s new square-foot store interiors Web site goes live today, offering a high- captures Bartley’s tech twist on the world of home furnishings. The cheeky take on fashion: Polished, dark wood fl oors and site, versacehome.it, allows style-conscious surfers to distressed wood paneling jostle with neon green clothes download catalogues of Versace’s full product range rails. She’s slapped stickers — with her trademark of home items, from glass goblets to quilted leather pirate, smiley face and horse logos — onto the pristine couches. Architects and interior designers can also glass cabinets and the smooth leather counter. “It’s download 2-D and 3-D images of each item in the amazing to be here, it’s home,” said Bartley, who is Versace home collection to work into their blueprints. based in London but shows her collection in New York. “We think we are the fi rst player in the luxury design And to make the space even more welcoming, Bartley fi eld to offer a service of this type,” said a company Peter Jensen has carved out a basement hangout for her friends and spokesman, adding that home collection sales grew clients. It’s covered with fl oral wallpaper, and one wall to 62 million euros, or $78.1 million, in 2006. “In is painted over with a giant horse mural. the true spirit of Gianni Versace, we want to bring a bit of innovation into home design.” While PLAY IT AGAIN, KYLIE: Kylie Minogue glittered e-commerce won’t be immediately available Luella like a diamond at the Hoxton Square Bar on the site, Versace plans to start online sales & Kitchen Sunday night — but it wasn’t of select home items as of next year, the all down to her silvery Swarovski-encrusted spokesman said. leggings. The pint-size diva, wearing a Gareth Pugh leather fringed minidress, was showing CHARGE IT: For retailers and editors, fashion off at a BoomBox party to celebrate her friend weeks are a job. But for the celebs on the Gareth Pugh’s latest collection. She boogied scene, such a week is just another chance up and down the bar pulling members of to shop. Victoria Beckham, for one, eyed the the glitter-, neon- and Lycra-clad crowd up surrealist dresses at Marc Jacobs last week, to dance with her, and even took over as DJ, perhaps coming up with a wish list to give her spinning a set of girl-power pop numbers from husband, David. “I buy him clothes, he buys artists including Britney Spears and Madonna. me clothes, we help each other out,” she said. Henry Holland, Danielle Scutt and Agyness Deyn And famed shopper Beckham didn’t miss her boogied along with the club kids. Fuschia Kate chance while in Manhattan — she browsed Sumner Bergdorf Goodman, stopping at BG for lunch SHORT ’N’ SWEET: Fuschia Kate Sumner, also and then hours later for coffee with her pals known as Sting’s eldest daughter, certainly and security detail. Beckham, who also knows how to make a wardrobe work for her. “I attended the Oscar de la Renta show, fl ew back to Los shortened my Dior,” said Sumner, pulling up the Angeles after meeting with retailers and manufacturers hemline of her white silk embroidered dress to show about her own fashion line, DVB. SUMNER PHOTO BY JON BRADLEY; BARTLEY BY TIM JENKINS BY BARTLEY JON BRADLEY; SUMNER PHOTO BY
For full coverage of fashion week, including reviews, complete collection visuals, Fashion Scoops and news, log on to wwd.com or wwd.com/fashionweek.
Gareth Pugh Marios Schwab
PHOTOS BY GIOVANNI GIANNONI GIOVANNI PHOTOS BY more from the shows Todd Lynn: Lynn played with the proportions head was obscured by a box in the same material. But Pugh’s and textures of his look seemed a little more glam than usual, and he cited Michael signature tuxedo Jackson’s Eighties fi lm “Moonwalker” as a reference. And the jackets for spring, collection may be getting a little more commercial, too: Peel away shrinking them into the edgy styling — horse-tail headdresses, buckles and chains razor-sharp boleros — and there are pieces that could work on the shop fl oor. Take the and crafting biker beautifully cut, textured leather trench, a body-conscious, black jackets from heavy Swarovski minidress and a knife-pleated circle skirt. OK, so it’s not stretch cotton. everyday wear, but it wouldn’t be out of place on the red carpet. COS: The design Peter Jensen: In Jensen’s world — which revolved around John message was simple, Waters’ kitschy fi lms this season — rebel rockabillies wearing echoing Nineties skintight, black denim bustier dresses rubbed shoulders with Jil Sander with Fifties housewives in blouses covered in sweet desert-island prints. clean lines, playful The Fifties, in fact, were everywhere, from candy-colored poufy use of volume and cocktail dresses to tight strapless gowns with trains. But all the blocked muted tones twists and knots in the dress fabrics gave the collection a modern accompanied by — rather than a costume party — feel. occasional bursts of color. Marios Schwab: It was body conscious, and then some. Schwab’s stick-to-the-ribs ensembles featured prints inspired Unconditional: by human cells, muscles and nerves. But the result was a gentle Unconventional kaleidoscope of color and texture, rather than the stuff of fi rst- formalwear bogged year medical school classes. Playing on the dissection theme, down a lively fabric was often peeled back to reveal layers of print beneath. The collection, which was collection wasn’t just inspired by lovely bones; there were sporty at its best focusing touches, too — some dresses featured oversize plastic zippers on quirky blends of swiped from wetsuits, while others boasted harnesses crafted Todd Lynnstreetwear and off-the- COS Unconditional from plastic tubes or pearls. wall items. 10 WWD/GLOBAL, SEPTEMBER 2007 WWD.COM Ready-to-Wear Report Paris Seeing Long and Lean Looks
By Emilie Marsh manager of women’s fashion at Printemps. Zoë Tee’s, its budding T-shirt and dress label made Charbit said he placed orders at American Vintage from ultrafi ne jerseys for around 35 euros, or $48.60, at PARIS — Next summer’s ingenue is smartening up with for T-shirts, knitwear at BA&SH, dresses at April, May, wholesale. Pariente said he would add organic cotton more sophisticated looks, including slimmer fits, longer as well as Diabless, Iro and Paul & Joe Sister. T-shirts to the Zoë Tee’s line. hemlines and more elegant tailoring. Retailers applauded efforts by contemporary Pariente also unveiled a denim label, dubbed My At least that was the main fashion message at the brands to fi ght off fi erce competition from fast-fashion Lovely Jean. The denim line, which retails for 150 Prêt à Porter and Who’s Next apparel trade shows, chains by increasing their use of fabrics such as euros, or $208, boasts a selection of high-waist, wide-leg which ended their four-day runs at the Porte de cottons and linens. denim with a Woodstock feel. “We believe timely fashion Versailles here on Sept. 9. “Today brands are focusing on an easy-to-wear style denim, such as wide-leg jeans, is crucial to a collection, “Styles are not as naïve, which is a welcome change that is approximately 40 percent more expensive than but women are replacing the basic denim styles with as customers were getting tired of it,” said Yaël Zara, adding more quality, personality and cachet in dresses and pants,” he said. Kouprianoff, owner and buyer of Biba, a contemporary an attempt to build brand awareness,” Charbit added. At Copenhagen-based Munthe Plus Simonsen, fashion boutique in the heart of Paris’ Saint Germain. He noted that loose T-shirts, some very short, worn over summer dresses in soft tones for 96 euros, or $133.25, at “There is much less of the baby-doll look, which is wide-leg, Jane Birkin-like jeans; lengthy bohemian wholesale dominated the collection with punctuations of a good thing,” agreed Ludivine Grégoire, whose store dresses; blazers, and T-shirt dresses would be next vivid greens and feminine prints. “The dress, especially in New York’s West Village specializes in the latest summer’s look du jour. white, with a slightly elongated silhouette is becoming a Parisian styles. Grégoire, who placed orders with Les While not as voluminous as previous seasons, standard and proving to be a good alternative to classic Prairies de Paris, Noro, Forte_Forte loose-fitting dresses as denim styles,” said Anoushka Gresvig Mac-Crohon, co- and Paspourtous, among others, said well as lightweight pants owner of Paris-based D Collection Showroom, an agent she expects subdued color palettes Styles and jodhpurs were also for the brand in France. with occasional punctuations of from Les surfacing as an alternative “Feminine Liberty print dresses have been a great bright yellow and dusty orange to be Prairies to denim for the summer, success,” said budding designer Diane Hanouna, whose musts next summer. de Paris according to retailers. swimwear-inspired ready-to-wear brand, Naelie, was a While Grégoire fl ew to Paris for and Meanwhile, exhibit- hit among Japanese clients at the show. the shows specifi cally, she noted a American ors reported good At the Prêt à Porter, French actress Lou Doillon general lack of retailers from North Retro. business overall, presented her fashion and denim collection for Lee America. despite a low turnout Cooper, while for its 60th anniversary, Repetto unveiled “Manufacturers are doing more of Americans. its exhibition of tutus designed by Doillon’s sister, with Russian clients than retailers “There are hardly Charlotte Gainsbourg, as well as Comme des Garçons, from North America,” agreed Darren any Americans,” said Audrey Marnay and Jean Paul Gaultier, to name a few. Mason, president of Andrew’s, a Laetitia Ivanez, who The exhibit will travel to other international venues. 12,000-square-foot high-end women’s designs the French While contemporary brands continue to fl ood trade fashion and accessories store in contemporary Les shows, organizers maintain efforts to boost fl edging Toronto. Mason noted a “complete Prairies de Paris line, designers. absence of color” with beige, white which she presented At the Prêt, Turkish designer Deniz Yegin presented and gray dominating color palettes at Who’s Next. her Yegi Nim collection of youthful white dresses, with here. “Sizes are very small for the Ivanez disclosed intricate folds and portraits of close family and friends North American market; it is a she would make her embroidered into dress linings. “The collection is about challenge for us to fi nd the right fi t,” Paris runway debut in letters,” said Yegin, whose styles wholesale for around Mason added. October 2008 and noted 150 to 250 euros, or $208.20 to $347. Despite the lack of North an online shopping site The Prêt’s So Ethic section continues to expand and American retailers, order writing was also in the works. in March will stage a separate luxury ethical show for was strong, with buyers searching Also at Who’s Next, higher-end brands, said the section’s sales director, for feminine — albeit increasingly Paris-based American Matthew Allen. Eco-friendly stalwarts with higher price seasonless — styles. Increasing Retro continued to points including Stewart+Brown, Katharine Hamnett spending for next season by as much expand its reach, and Del Forte will be presented there during March rtw as 20 percent, retailers said they adding more fashion shows. Buyers lauded the increased fashion focus of the were saving portions of their budget categories to its offering salon’s So Ethic section. for immediate orders. such as “Cocktail Hour” “There’s more style than before, the cuts are “Due to the weather, I hoped to for dresses and “Garden more stylish and materials more refi ned,” said Peggy see late-winter delivery in order Party” for sporty-chic Silberling, a buyer at Galeries Lafayette. She cited to begin the season with fresh but styles. “We increased our Bluebretzel, Sobiotiful and Katharine Hamnett as appropriate merchandise. It was all sales over last year,” said standout collections. “The eco-fashion movement is very summer-oriented,” said Cedric David Pariente, president moving away from the organic, yoga look.”
Charbit, general merchandise DOMINIQUE MAITRE PHOTOS BY of American Retro and — With contributions by Ellen Groves
The Maggie Norris corset Nelson Shanks is Shanks Gives Norris a Stroke of Artistry using in Keira NEW YORK — Trends are inherently transient, for an In Style photo shoot and has been used in a benefi t fashion show for Darfur. Chaplin’s but Maggie Norris has found a way to immortal- Bette Midler bought a version of the corset a few years back, Norris said. portrait. ize a red corset she has designed. In what is no Reached at Shanks’ Andalusia, Pa., estate Monday, where the documentary doubt one of the more unlikely collaborations taping was under way, the artistically minded Norris said she initially envisioned in recent months, Norris is loaning her design having an artist do John Singer Sargent-type portraits of her society clients in her to artist Nelson Shanks, who will paint a por- designs. When she found out about Shanks, she looked into his work and loved his trait of Charlie Chaplin’s granddaughter Keira highly detailed paintings. He felt the same way about her $18,000 corset and they Chaplin wearing it. agreed to team up. Adding another dimension to the project is Shanks plans to name the painting “Maggie’s Red Corset,” and it will be dis- the fact that Shanks, who is best known for his played at the Smithsonian, the National Portrait Gallery in Washington or the one portraits of Princess Diana, Bill Clinton and in London. The painting will also be featured in a forthcoming book about Shanks’ Pope John Paul II, will be the subject of a docu- work to be published next year by Rizzoli. mentary being produced by Smithsonian TV, a The documentary featuring Shanks will air sometime next year, but an exact new network made possible by the Smithsonian date has not yet been set. and Showtime. The designer doesn’t think the item’s journey is quite done. Norris, meanwhile, has her own tale to tell “It is interesting to imagine where the corset will be in fi ve, 10 or even 100 years, about the Ekaterina corset. For starters, it is and to wonder if people looking at the painting by Shanks will speculate about its named after Empress Ekaterina, who in 1763 past,” she said. took over the role of governing Russia and Chaplin said she will have to sit for the artist for seven eight-hour days, but went on to enjoy a 34-year reign. In Norris’ Shanks expects to spend two weeks painting the corset. eyes, the corset symbolizes what noblesse “It’s a lot easier than I thought it would be. We chat the whole time. We’re having used to mean and what couture still is — “an a good laugh,” she said. expression of enduring quality and the use of The pair has plenty to talk about. Chaplin is busy with the fi nal rewrite for the best materials.” “Vega,” a dark comedy-mystery about the fashion world. Chaplin, who has walked Handmade in Paris, Norris’ corset has cov- the runway for Roberto Cavalli, posed for the Pirelli calendar, modeled for top pho- ered some ground. It debuted at a presentation tographers and seen her share of fashion shows from the front row, said the fi ction of her Russian-inspired pieces at the Russian is based on her own experiences. consulate in the U.S. in fall 2003, was later She is also getting ready to go on location in Rome for “The Chamber Piece,” a shown in Bergdorf Goodman’s Fifth Avenue fi lm written by Tommaso Rossellini, who will also direct and star in it. windows, was once worn by Reese Witherspoon — Rosemary Feitelberg WWD/GLOBAL, SEPTEMBER 2007 11 WWD.COM Courteney Cox Reups With Kinerase By Rachel Brown who has worked with Cox since her sells for $59. The prototypical Kinerase Courteney “Friends” days, shied away from slicked- customer is a 39-year-old woman who BEVERLY HILLS — Courteney Cox is a Cox back dos rampant in skin care ads and earns more than $75,000 a year. loyal friend to Kinerase. chose instead to highlight Cox’s long Cox, who will soon start shooting the After agreeing to remain the face of waves. Genevieve handled the makeup. second season of FX drama “Dirt,” de- Kinerase for another year, the 43-year-old Sonia Russomanno, senior director of clared Kinerase products perfect for the actress’ third print ad campaign for the up- marketing for Kinerase, explained that television set. “I wear so much makeup scale skin care line, owned by Aliso Viejo, one problem with previous Cox-centered on the show,” she said. “On ‘Friends,’ we Calif.-based Valeant Pharmaceuticals, was Kinerase advertising was that she wasn’t wore makeup on Fridays when we came shot here Thursday. Terms of the contract immediately recognizable. “The concept in front of the audience, but this is every- extension were not disclosed, but industry for the photo shoot is to leverage who day for 12, 14, 16 hours a day and that is sources estimate Kinerase pays Cox up- Courteney Cox is and put her in an envi- why Kinerase has been fantastic. That ward of $1 million annually. ronment that allows her to have more of a cleanser gets off the thickest makeup.” “Over the years [with Cox], we believe personality,” she said. “[She is] in a Beverly Being a regular user of Kinerase has that we have taken this from a boutique Hills home where she is entertaining and helped Cox contribute to product im- product to a product resonating in the re- perhaps going to go out that evening.” provements and introductions. Following tail space,” said Wes Wheeler, Valeant’s The new ads will be tested as Kinerase her advice, Kinerase will add a scent president, North America and global aims to secure its position in a growing made from natural ingredients to a yet- commercial development. “Even though list of retailers. The brand is sold domesti- to-be-released product. we don’t have 100 percent awareness, we cally in 165 Sephora doors, 67 Nordstrom Another addition next year will be have a much higher level of awareness doors and 202 Ulta doors, where it a color product, although Wheeler and now. People who know Kinerase think was launched in March. Additionally, Russomanno kept the details close to it’s Courteney’s brand.” SARDELLA DONATO PHOTO BY Kinerase kicked off two years of appear- their vests. Whatever transpires, Cox is Cox’s advertising role has been ex- ances on QVC last June and is available sure to be part of the marketing efforts in panded to include Australia, North in about 2,800 dermatologists’ offices, the near future. “I am a one-company girl America and Western Europe, as well as which also carry Kinerase’s professional right now,” she said. television, the Internet and print, accord- BEAUTY BEAT Pro + Therapy line that was unveiled in ing to Wheeler. In the fi rst or second quar- the fourth quarter of last year. ter of next year, Kinerase is planning to product lineup is the addition of a $140 Wheeler, who wouldn’t divulge the ad- Burberry, L’Artisan in Pact initiate TV commercials either on cable kit of two brightening items — a serum vertising budget for Kinerase, said reve- or with direct-response spots running in and click pen — which the print ads will nues are averaging a 17 percent increase PARIS — Burberry Group plc last week large urban markets such as Los Angeles, promote in December publications of this year. Last year, the brand notched signed a worldwide home fragrance li- Chicago, New York and San Francisco. Elle, In Style and Allure. The brighten- $28.9 million in revenues, up from $22.3 cense with L’Artisan Parfumeur. “I would stay with them for as long as ing kit contains seven active ingredients, million in 2005, the year Cox was fea- The fi rst product from the venture will be they would want me to stay. They are fan- with Flamenco Pearl and Kinerase’s sig- tured in her fi rst Kinerase ad campaign, a candle, called Hearth, due out next month, tastic to work with,” said Cox, who donned nature Kinetin among them, to combat and $15.6 million in 2004. said Remi Clero, president and chief ex- a sparkling knee-length white Valentino hyperpigmentation. Kinerase’s bestsellers are the 1.4-oz. ecutive offi cer of L’Artisan Parfumeur. The dress for the ad campaign. “[Valeant] is Kinerase will select the magazine im- namesake cream for $72 and 1-oz. C6 candle is to be priced in Europe at around not a stale company. It is something that ages from two glamorous looks and two Peptide Intensive Treatment for $96. 40 euros, or $55.50 at current exchange, and is always changing, and I love that.” natural looks captured by photographer However, Sephora’s top Kinerase prod- sold through L’Artisan Parfumeur’s retail An upcoming change to the Kinerase James White. Hairstylist Chris McMillan, uct is a 0.7-oz Intensive Eye Cream that it distribution and Burberry stores. Online Retailers Go Cutting-Edge By Cate T. Corcoran surprising number of online retailers are embracing custom- Aization, user reviews, blogs and other cutting-edge Web trends typically known as “Web 2.0,” according to a National Retail Federation report. The study, which is to be released today, surveyed plans of online merchants for the next 12 months. As e-commerce takes over a great- er share of all retail, the sector is becoming more competitive, and online shops must continuously rise to the challenge even as Web sales are forecast to grow by 18 percent this year, the report said. The fi ndings were based on responses from 150 online retailers out of several thousand invited to participate. The survey was con- ducted in June. Top e-commerce retailers such as Neiman Marcus and David Yurman last year signifi cantly changed the look and feel of on- line shopping with better product detail as well as more lifestyle photography to set a mood. Retailers surveyed by the NRF said they plan to emulate that strategy. Eighty percent said they will add alternative images, and 72 percent said they plan to introduce lifestyle photographs. A rising number of retailers are adding user-generated content. Sixty-three percent of retailers said they consider adding customer ratings and reviews a priority. Not far behind was the “top-rated products” feature, with 59 percent of retailers reporting they consid- er it a spending priority, and wish lists, with 56 percent. A smaller group, 48 percent, said they plan to let customers tag, or categorize, product detail pages so they can be searched by other customers. Twenty-fi ve percent said they plan to let customers share video. The survey also found that merchants’ priority online has changed from acquiring new customers to retaining existing customers. “They recognize that the number of brand-new customers online is beginning to slow down,” said Scott Silverman, executive director of NRF’s Shop.org group. “If you want to keep sales increasing at the same nice pace, you really need to focus on customer retention and improving the experience you’re delivering on the Web site.” Retailers continue to put most of their marketing dollars into e-mail and search, but 42 percent said they plan to spend more on marketing and advertising on blogs and message boards, and 39 percent said they plan to do the same on social networks. Forty-nine percent said they offer custom products now. A third of all retailers said customization is very effective, and almost half said they consider customization a spending priority in the next 12 months. 12 WWD/GLOBAL, SEPTEMBER 2007 WWD.COM Dior Takes Luxury to Next Level Continued from page one a walk-through of the 13,000-square-foot flagship. “The customer is looking for ever-more sophisticated products in ready-to-wear and accessories. The whole mix is going up.” Dior expects its new “haute” decor to bump up sales of its most productive unit in the world, which market sources estimate generates annual revenues of more than $60 million. On Monday night, Sharon Stone, Elton John, Juliette Binoche and Monica Bellucci were among the stars who stepped onto the gleaming marble fl oors — etched in Dior’s signature caning pattern — for a gala evening to fete the new boutique and cap off the fashion house’s 60th anniversary celebrations. “I just bought two bags — purple and black,” said Elton John, explaining his color choice by adding, “I just saw Prince — purple and black.” “Brutal,” said Sharon Stone. She was describing her towering shoes from the July couture runway, not the store. As for that, she described it, “Beautiful, great, so tasteful.” With couture-quality silk rendered into rococo swirls as a backdrop to hand- bags retailing from 5,000 euros, or $6,800, and up, and a curtained VIP shoe salon showcasing fantasy styles from John Galliano’s couture catwalk, the store shows off high-quality craftsmanship at every turn. Indeed, architect Peter Marino, re- sponsible for the fl agship’s latest makeover and the previous one a decade ago, A Bernard Buffet employed 56 shades of gray throughout the boutique, including a hand-painted portrait of Christian fresco of clouds on the ceiling in shades reminiscent of a Gerhard Richter land- Dior above the fi replace scape. “I wanted Dior to just own gray,” he joked (even the gray and soggy weather gives a residential feel for the opening party cooperated). to the boutique. But the store is hardly grim, and Marino added myriad fantasy touches, from giant blown-glass script on the walls by New York art- ist Rob Wynne imploring “Look Good” or “J’adore” to Peter whimsical goat-legged stools in the fi tting rooms. Marino “We fi nd so many of the stores today are so dry and Sidney and so business,” Marino said. “We wanted the cus- Toledano tomer to be transported.” The journey starts from the moment shoppers enter the boutique’s giant oval-shaped atrium, its 23- foot ceilings doubled by a border of mirrors that re- fl ect a ring of plasma screens set in French windows. These broadcast a video montage by Israeli artist Oyorama. Above a 360-degree showcase of handbags and small leather goods, fantastic images unfurl: a pair of giant scissors cuts open a designer’s sketch pad to reveal a blooming garden, across which mod- els in Dior couture creations glide. Works by artists are a new element in the Avenue Montaigne fl agship, including an oval-shaped settee com- posed of giant silver ginkgo leaves by Claude Lalanne and DOMINIQUE MAITRE PHOTOS BY a hulking, sculptural cast-aluminum table by Ado Chale. The architect said he sought a “residential” feel That the custom-made pieces are all “the real for the store, interspersed with nods to Dior’s brand McCoy” is no coincidence, Marino said. heritage, including the late founding designer’s pas- “I think the customer knows the difference be- sion for gardens: here a misty, backlit view of André cause this is what they put in their homes,” he said. Le Nôtre’s grand, formal style in front of racks of rtw; “It adds culture.” there sepia-tone leaves behind displays of sunglasses. Certain historical architectural elements were main- tained, including the beauty and fragrance salon with More space was its crackled-mirror, jewel-box ambience, and the Louis allotted to footwear. XVI moldings and medallion armchairs favored by Dior himself. A gift department, selling everything from ta- bleware to scented candles, is unique to the location. Views Dior annexed some storage and offi ce space to give of the more fl oor space to fast-growing categories, including central leather goods, footwear and watches, some of which atrium, sell for 25,000 euros, or $34,700, or more. with Toledano cited strong sales of its new Samurai bags plasma for fall and sustained momentum for the iconic Lady screens Dior, now rendered in exotic skins. Rtw was also given showing more room to breathe in three expansive salons, each a video with a different atmosphere. They include one with montage. anthracite lacquer walls and another with couches set face-to-face in front of a fi replace, upon whose mantle rests a Bernard Buffet portrait of Christian Dior himself. “In this store, we’re doubling sales of ready-to-wear versus a year ago,” Toledano said. “The fall-winter collection is doing excellent and we achieved that in spite of the renovations.” The store remained open throughout fi ve months of works, and temporary walls and fi xtures were installed to mask the luxurious new decor behind. It opens its doors to the public Thursday after two days of by-invitation shop- ping for its best customers. The Dior boutique is believed to be one of the most frequented on Avenue Montaigne, a tony shopping street that boasts such nameplates as Chanel, Louis Vuitton, Valentino, Harry Winston, Akris and Dolce & Gabbana. Roberto Cavalli and Blumarine are among the most recent arrivals, with Ralph Lauren coming soon. Toledano said Marino’s ultraluxe design concept would remain unique to the historic address, where a then-unknown Christian Dior revolutionized the postwar fashion world with his extravagant, fan-skirted New Look. “This is the founder’s house. It had to be really special,” Toledano said. However, the boutique’s art-studded, bespoke character is “in line with what we want to do in the future,” he noted. Powered by the theatrical designs of Galliano, Dior has rapidly expand- ed its retail network, which today numbers 220 locations. A third Beijing location will open its doors week, to be followed by a slate of new loca- tions in the Middle East, among them stores in Dubai, Jeddah, Riyadh, Bahrain and Qatar. The three rooms devoted to men’s wear, with a minimalist decor by for- mer Dior Homme designer Hedi Slimane, were not part of the renovation. A salon in anthracite gray is devoted to cocktail fashions. Dior also operates boutiques on Avenue Montaigne for fi ne jewelry and Baby Dior children’s wear. WWD magazines
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For more information on advertising in WWD Magazines, contact Christine Guilfoyle, publisher, at 212-630-4737. 14 WWD, TUESDAY, SEPTEMBER 18, 2007 WWD.COM/CLASSIFIEDS
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Designer Jr. Sportswear Co. looking for tal- Cash For Retail Stock & Closeouts. ented designers who love fashion No Lot Too Big or Too Small. Call CLOTHES-OUT: and are creative, organized, detail- (937) 898-2975 Top end wholesaler that sells to ASSOCIATE DESIGNER oriented. Seeking energetic individ- Dept. Stores, and 500 of the best Men’s Outerwear uals who have ability to multi-task Specialty Stores seeks great NY Pastry Brand is a rising star in the fashion world for the fun-loving young Outerwear Mfr. seeks a creative, and meet deadlines. Responsible Sales Reps, P.R. and Marketing detail oriented Associate Designer from concept thru production. Pro- female. (pastrykicks.com) Vida Shoes International, Inc. ( vidagroup.com) Assistants for both USA and ficiency in Illustrator & Photoshop a leader in brand names footwear industry is seeking: International business to work closely with Head Designer. Must have at least 3 years experi- required to make detailed sample Merchandising Manager 5-7 years experience in wholesale ence in Outerwear design, with the tech packs for overseas factories. •Develop and implement merchandising plan footwear sales, Strong financial skills ability to create from initial concept E-mail to: [email protected] or Fax to: 212-768-7261 •Manage sourcing and production Ability to strategize and quickly to final sales sample. Proficient •Research fashion trend, competitions, and markets Showrooms & Lofts react; execute while managing knowledge of fabric, garment con- •Develop effective systems, procedures and organizations business independently BWAY 7TH AVE SIDE STREETS struction, and sketching req’d. Great ’New’ Office Space Avail •Approve the product line of the various licensees Self motivated with strong com- ADAMS & CO. 212-679-5500 munication skills Candidate needs to have excellent Brand Manager taste level & communication skills GRAPHIC DESIGNER •Develop and implement marketing plan Forward updated resume and and also be skilled in Photoshop & A multi-tiered Hosiery & Accessories •Assist division General Mgr. in business performance review & development salary history and expectations Illustrator. Please Fax resumes to: company located in midtown Manhattan •Work with designs, merchandising and sales to: [email protected] seeks a Creative Graphic Designer 212-921-3338 who is skilled in both Photoshop & •Communicate with retail partners Please include position interest in Illustrator & is MAC proficient. We are Broadway Garment Center Retail Development Coordinator subject line. looking for a TEAM PLAYER who can contribute fresh ideas, work on cads to NICE OFFICE + SHOWROOM •Work with Retailers on planning seasonal visual layout in-stores help design our various product lines AVAILABLE TO SHARE Sales Assistant and communicate w/ the factories. Please Call Joan @ 917-907-1667 •Work with vendors for fixture display programs •Develop training programs to increase brand awareness Kidrobot (creator/retailer ltd edition Multi-tasking skills are a must! PRODUCTION COORDINATOR toys/apparel) seeks sales asst to sup- Please send resume to: •Create employee Spiffs/contest port whls accnt exec. 2-3 yrs exp, [email protected] GENERAL REQUIREMENTS: Magaschoni Apparel Group strong Excel skills a must. Seeking candidates with min 5 years Email cover letter & resume to •Bachelor degree in Business, Marketing or related field. MBA preferred [email protected] •For Merchandising and Brand Manager, 5-7 Years of Brand management experience in sweater production. experience in footwear/apparel/accessories industry. Excellent follow up skills required. Titanium Marketing Inc. •For Retail development Corodinator, 3-5 years of experience Must be very familiar with overseas For our newly acquired Ron Chereskin production, organized and computer Showroom Coordinator watch license, we are seeking: •Solid analytical skill and must be able to present data and conclusion in JPR is seeking a F/T highly energetic literate especially with AS400. •Experienced Salesperson FACTORIES an organized manner individual to join our NY team. Duties PLEASE FAX OR EMAIL RESUME TO: and Responsibilities: Answer phones, •Sales Assistant: To support Salesper- Major Woman’s Dress manufacturer We offer a competitive salary in commensurate with experience and track maintain showroom and provide sales son in accessory business. Must be in- looking for domestic & overseas factories record and comprehensive benefits package including health care, 401 509-757-7814 or support for our Sales Team. Must be dependent, know EDI + exp, meticu- with official & current certification for match, and annual incentive bonus. The position is located in Manhattan, [email protected] able to multi task and posses computer lous & detail oriented for good follow- Sears, Chicos, Talbots, WRAP & Ethical skills. Fax resumes to: 212-398-2827 or up. Busy showroom office. Process Audit. To inquire, please contact: New York. Relocation assistance will be for qualified individuals. E-mail to: E-mail: [email protected] minimum 50 orders a week. [email protected] [email protected] PATTERN MAKERS •EDI Data Entry Clerk: Must be dili- 1st Prod’n Runway Couture Dsgnr $150-200K gent & detailed to handle EDI orders Cstm Work w/ Socialites & Movie Stars SR. IMPORT COORD $50K & invoicing. Must type accurately & AT LAST SPORTSWEAR Design 1st Prod’n Couture -Dress $100-150K quickly, 45-60 wpm. Exp necessary. 1st Prod’n Dsgnr Jackets/Dresses $100-125K Letters of Credit. Excel. Will not train. Qualified persons only. Accessory Designer 1st Prod’n-Dresses $85-95K [email protected] 212-947-3400 Fax resume to: 212-889-8863 or DESIGN ASSISTANT Established women’s accessory / appa- 1st Prod’n-Swmwr/Lingerie/Actvwr $75-80K email: [email protected] PATTERN/SAMPLES Established womens wear import rel Co. seeks designer for full time po- [email protected] 212-947-3400 Reliable. High quality. Low cost. Fast company seeks Design Assistant. sition. TD Director/Head Pat Mkr $150K++ work. Small/ Lrg production 212-629-4808 Must be self-starter with good commu- Candidate must have minimum 3-5 nication & organizational skills . Du- Product Development Run Multiple Divisions. Dom/Int’l years experience in womens sports- ties include first concept, trend Major tailored clothing co. seeks energetic [email protected] 212-947-3400 boards, fabric /trim research & follow dedicated professional who is creative, VP of SALES $250-300K Patterns/Samples/Production wear. Must have experience with up with HK office. organized, and a team player. Tailoring Bridge, Better Market. Full Service, Fine Fast Work. Walmart, Kohl’s and JCP approval Photoshop / Illustrator req’d. and/or technical experience a plus. 2-3 Hang with French Connection & INC. Any Styles. process. Must be a team player Please send resume w salary require- years experience in woven product req’d. TECH DESIGNER [email protected] 212-947-3400 Phone: 212-560-8998 / 212-560-8999 and highly organized with experience ments to: Strong computer & communication skills Fast paced women’s apparel importer [email protected] a must. Please E-mail all resumes to: w/great benefits seeks experienced, PATTERNS, SAMPLES, in Illustrator and Photoshop. Email [email protected] responsible candidates. excel experts. PRODUCTIONS or fax resumes to (attn: Maggie): Design Assistant PRODUCTION COORD $40-45K Must work well under pressure w/sense YOUNIQUE Major Sportswear Mfr, T&A, of urgency. patt making exp., grading, All lines, Any styles. Fine Fast Service. [email protected] or 212-382-1469 Large private label outerwear and suit strong communication skill in fit correc- Call Sherry 212-719-0622. mfr seeks a technical design asst. with Work with International Factories CAD Artist / Graphic [email protected] 212-947-3400 tions and technical sketches. Private min. 2 years exp. Must have strong label experience a plus. PLEASE FAX Textile & Technical PATTERNS, SAMPLES, skills in Illustrator, an ability to create *Production or Product* OR EMAIL RESUME TO: 212-302-3872 Accts. Receivable/Collections tech packages, and oversee fabric Assistants-Coordinators-Managers or [email protected] Designers PRODUCTIONS library. Should be well organized and Full service shop to the trade. Seeking detail oriented, computer literate Many Jobs-Excellent Salaries We have openings for creative, talented detail oriented. Overseas travel may be Call B. Murphy(212)643-8090; fax 643-8127 Fine fast work. 212-869-2699. individual w/min. 5 years experience & required. Great opportunity. Please & self motivated individuals for our Jr. knowledge of charge-backs. Fax resume Fax your resume: 212-643-0593 Sportswear division. & salary requirements to: 212-944-9254 RECEPTIONIST TECHNICAL DESIGNER Seeking a CAD Artist / Graphic Textile Dress company looking for exp’d Major better womens sportswear mfr designer with knowledge of print repeats receptionist. The ideal candidate will seeks seasoned TD with min 3 yrs exp & sketching; Photoshop & illustrator a Admin Since 1967 DESIGNERS in establishing fit, spec & construction *Design Director-Bridge Mkt $175-250K have a pleasant voice & demeanor who must. Min of 5 yrs exp. W-I-N-S-T-O-N works well under pressure. Duties will guidelines, working with retail clients *Designer-Better Contemp Mkt $80-100K & oversea factories, managing all tech Opening for a Technical Designer for *Sr Designer-Mens Denim/Twills $98K include answering phones, greeting our sweater, cut / sew knits division. APPAREL STAFFING customers, handling incoming/ outgoing issues & fit approvals. Must have Investing Partner Wanted DESIGN * SALES * MERCH *Designer-Better Young Contemporary $60K private label exp, excellent communi- Will be responsible for tech packs, Due Maternity #1 ranked online maternity ADMIN * TECH * PRODUCTION *Graphic Des-Adv Mat, Packaging $50K packages, ordering supplies; Computer sketching & specs. Photoshop, Excel skills and MS-Office a must. Email cation & computer skills. Knowledge website seeks strategic investor. (212)557-5000 F: (212) 986-8437 [email protected] 212-947-3400 of pattern making a plus. Please email & illustrator a must. Min of 5 yrs exp. 415-310-1637 / Al@DueMaternity .com resumes and salary requirements in confidence to: resume & salary history to: Email resumes to: FABRIC ASSISTANT $40-45K [email protected] [email protected] [email protected] ASSISTANT DESIGNER Work w/ Int’l Mills, Set Up Prod’n Established, fast-paced private label company [email protected] 212-947-3400 is looking for an Assistant level Designer w/ a degree in Fashion Design. Must be GRAPHIC ARTIST ...... $50-55K able to work independently, possess great Kids Sleepwear, Prints DESIGNER SALE follow through skills and have the ability Jennifer Glenn SRI Search 212-465-8300 to flat sketch & illustrate. The ideal Sarah Arizona Sample & Seconds Sale [email protected] candidate will have experience in both www.srisearch.com $10 Coupon wovens and knits, with focus on sweaters, skirts, dresses print/embroidery development. Proficiency in Illustrator and Photoshop required. Merchandiser Monday-Friday, Sept. 24-28th, 10am-6pm Fax Resume Attn: JN (212) 302-1856 Senior merchandiser with min. 5 years Cash,visa, mastercard, sales final experience needed for private label No try ons mfg. Oversee merchandising from design devel. to shipping. Ability to 39 West 28th Street, 11th fl, NYC comm with design team, retail buyers, (Between Broadway & 6th Ave) and overseas office. Strong fabric and Parking next door, Subway N, R, F garment construction knowl. Domestic and overseas travel required. Great salary and growth potential. Please Fax your resume: 212-643-0593 ASSISTANT DESIGNER Operations Coordinator Hot junior denim brand seeking assistant Rapidly expanding casual sportswear Perfect Opportunity! designer. Qualified candidates have a co line seeks an individual to manage minimum of 2 years exp, are skilled in & grow its back-office functions: Hand painted yarn company for sale. Illustrator and Mac proficient. Must be Well established with more than 1,000 Duties include overseeing: Production/ organized and detail oriented. E-mail Logistics & Finance. The ideal candi- wholesale accounts. Strong financial resume to: [email protected] performance. Please call: date should be detail-oriented & have 800-710-0102, ext. 4124 previous experience working with INDIA. Rewarding salary, tremendous Bookkeeper-Full Charge growth & benefits! Email your resume: Midtown Ladies sportswear mfgr/ im- [email protected] porter. Must be computer literate, LC experience and well versed in dealing with chargebacks. Lucrative opportu- Patternmaker nity. Fax in confidence attn Nicholas: 1st thru Production 212-921-8369 Downtown Los Angeles based. Must have min. 6 years exp. w/better contemporary #1 Fashion Resume Expert dresses & tops, and be able to work in Staff Thru Executive-Wholesale/Retail CAD DESIGNER fast paced environment. 5 years exp. in Free Evaluation - Lifetime Updates Min 3 yrs exp in Jr. sportswear. Able to production fitting required. All paper GILBERT CAREER RESUMES coord styles & colors for next season. patterns - no software. Please list salary (800)967-3846 amex/mc/visa Photoshop & Illustrator a must!Call history in cover page. Fax or E-mail to: fashionresumes.com Bobby 212-869-4500/E:[email protected] 213-239-8875 / [email protected] WWD/GLOBAL, SEPTEMBER 2007 15 WWD.COM
observers and New York generally don’t Israeli immigrant who prides himself on helmets.” One can only hope that it isn’t read them as closely. “I bet if you did any his vertical operation in owning diamond too late. — Amy Wicks research, the media and paparazzi would mines in addition to polishing and cutting MEMO PAD be much more aware of the editor’s letter stones, his philanthropy (he aspires to ANOTHER COMPETITOR FOR THOSE LUXURY than someone in Detroit or Texas,” said the likes of Bill and Melinda Gates) and his AD DOLLARS: ForbesLife Executive Woman, NO WORDS: The third issue of Portfolio Martin S. Walker, a magazine consultant. diverse and thriving businesses, from gas a new lifestyle magazine that arrived in will arrive on newsstands later this week “Their ‘celebritude’ is much more within stations to 7-Eleven franchises. Leviev is homes on Saturday (polybagged with with one thing missing — an editor’s the industry, and certainly within the due to open a store for his ultraexpensive Forbes), was created for the female hedge letter from Joanne Lipman. Though Lipman fashion industry.” jewelry brand on Madison Avenue next fund manager, high-powered lawyer or penned letters in the fi rst two issues of Not every business magazine runs an month. senior-level executive who is looking the Condé Nast business title, she’s opted editor’s letter. Fortune’s managing editor, But the six-page Times feature omitted for a “different kind of luxury lifestyle not to include one for the foreseeable Andy Serwer, has run one more frequently a key fact about Leviev. The tycoon, who magazine,” said editor in chief Catherine future. “The fi rst two letters were to than in years past since he took over last has close ties to the Russian government Sabino. For its fi rst issue, 125,000 copies introduce the magazine,” said a Portfolio October. BusinessWeek’s Stephen Adler and started in the diamond industry as were sent out, and next year, it will spokeswoman. “For now, there will not runs them on occasion; The Economist a teenager, has tinkered with diamond publish quarterly. “It’s about a success be an editor’s letter.” However, the does not. But, though Portfolio’s jewelry before. He had an investment level, not an age range,” she added. The spokeswoman insisted, the option is open competitors are inconsistent with letters, in Vivid Collection, a diamond brand cover features Mary Callahan Erdoes, the to bring it back. most Condé Nast editors take the time to with a selection not unlike Leviev’s chief executive offi cer of J.P. Morgan pen at least a few graphs to readers — — such as an 83.9-carat white and pink Private Bank, and inside, there are pieces Graydon Carter, Vanity Fair editor in chief, diamond necklace and an average price on Thia Breen, the president of Estée sometimes takes three pages. of $400,000. Vivid was dissolved after it Lauder Worldwide, as well as a look at the Still, outside observers thought was accused of bribing diamond graders challenges of making partner, and also Lipman’s decision wasn’t that surprising. from the Gemological Institute of America. having a life, inside Goldman Sachs. On “The ed’s note is generally the most poorly The case is in the hands of authorities, the ad side, a spokeswoman said Paul read page in the magazine. It should be. If according to a spokeswoman from the GIA, Stuart and Brioni, which formerly only you’re doing something else that’s getting and some of Vivid’s inventory has even placed ads aimed at men in ForbesLife, less attention than the magazine, that page been incorporated into the Leviev lot. have placed ads targeted at women in the has to go. Somebody’s got to bat ninth. In an e-mail to WWD last month, fi rst issue. — A.W. The editor’s note is that position,” said Leviev described his interest in Vivid Perrine. — Stephanie D. Smith as “negligible,” and said that, to his GIVING BACK: Seventeen vice president- knowledge, the cased is closed. Those publisher Jayne Jamison went public with SHORT STINT: Bauer Publishing on Monday affi liated with the debacle aren’t legally news of her battle against breast cancer said In Touch editor Richard Spencer has permitted to discuss it, and one of Vivid’s in last year’s Vows column of The New been given additional oversight to edit principals is said to be in hiding. York Times. Since then, Jamison has gone sister publication Life & Style, whose — Sophia Chabbott into remission, and joined the cancer current editor, Mark Pasetsky, will become a organization Look Good…Feel Better, consultant to Bauer. Pasetsky in November TO THE RESCUE: The well-coiffed Denis which provides seminars on makeup and was transferred into the editor in chief Leary criticizes everyone and everything as appearance so women can look their best. position from a business side role within the star of the FX drama series “Rescue Next month, her magazine will give back the company and had a tough transition Me,” but he might get some of his own to the cause — Seventeen will include during his tenure. Though circulation for back after the October issue of GQ hits a makeover of a mother with breast Life & Style grew 6.8 percent in the fi rst newsstands. The sharp-tongued comedian, cancer and her daughter done by makeup Some who received early copies of the half of this year, to 753,092, Pasetsky along with actors Michael Lombardi and artist Sonia Kashuk, who is also a breast October issue thought it strange Lipman was said to have a rocky relationship Steven Pasquale, appears in a special cancer survivor. Today, the magazine will opted not to include a letter, especially with staffers. Meanwhile, In Touch under section inside the magazine for Matrix launch breast cancer charity e-cards at since she’s a highly visible branding tool Spencer has grown into a 1.2 million- Men that tells readers how men can save seventeen.com/breastcancer. The cards for the magazine. And for a new title, circulation competitor to more established themselves from bad hair days. These, a will carry different messages, from the the letter is where an editor can deepen celebrity titles Us Weekly and People: GQ spokesman offered without a hint of importance of self-breast examinations to his or her relationship with a growing Through June, In Touch’s circulation has irony, can be “just as tough as a bad day remembering loved ones affected by the audience. “An ed’s note really helps a grown 10.2 percent. — S.D.S. in the fi rehouse.” Alongside a perfectly disease. Seventeen will make a donation to young magazine to establish the tone coiffed photo of Leary, the ad reads: “Now, Look Good…Feel Better for each card sent. and the sensibility that the magazine is REWRITING HISTORY: The New York Times wrapping up the season and preparing for Meanwhile, Jamison talks about her cancer presenting,” said Stephen Perrine, editor in Magazine on Sunday ran an ultrafl attering fall, they’ve called on Matrix Men celebrity treatment, her wedding and working with chief of Best Life. profi le of billionaire diamond-magnate stylist Diana Schmidtke to rescue their Look Good…Feel Better in a blog on the That said, consumers outside of media Lev Leviev, a 51-year-old Uzbekistan-born hairstyles from hours under fi refi ghters’ group’s Web site. — S.D.S.
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Cotton Incorporated: Cary, NC • New York • Mexico City • Los Angeles • Osaka • Shanghai • Singapore PHOTO BY REUTERS/JASON REED/LANDOV WWD TRADE TENSIONS TRADE currency policy, productsafety andthetradedeficit. suchas Asia-Pacific EconomicCooperation summitthismonth,theleadersdiscussedsensitive issues at the vital textileandapparelindustries. WhenPresidentBushmetwithChinese HuJintao China foritstradepractices, andincountriessuchasPakistanTurkey, turmoil hasaffectedthe Political volatilityhasturnedglobalsourcingintoahigh-risk endeavor. TheU.S.isthreateningtopunish SOURCING HORIZONS SECTION IISECTION 2 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II WWD.COM
SOURCING HORIZONS China’s Exports Come Under Fire
By Kristi Ellis ters to President Bush, U.S. Trade Representative Susan Schwab and executives in the private sector who have been the focus of product recalls. WASHINGTON — Lawmakers are ratcheting up the pressure to pass legislation “In light of the recent recalls of lead-contaminated toys manufactured in cracking down on China’s undervalued currency and contaminated products China, it is incumbent upon our government and our business to do everything this fall, leaving a large swath of the fashion industry on guard over punitive possible to protect our children from dangerous products,” said Obama in his legislation. letter to Bush. Congress returned from summer recess at the beginning of the month amid a The issue spilled over into the apparel area when Sen. Susan Collins new round of product recalls of lead-tainted toys by Mattel and facing unfi nished (R., Maine), the ranking Republican on the Senate Homeland Security & business on punishing China’s undervalued currency. Governmental Affairs Committee, announced in August that the panel had Trade veterans are still trying to determine whether Congress will have launched an investigation into the “effectiveness” of federal safety standards for enough time left on the legislative calendar to craft and pass product safety legis- children’s toys and clothing. lation and a separate bill targeting undervalued currencies, notably from China, Apparel importers, who bring in $21.6 billion worth of Chinese-made apparel with punitive tariffs. annually, are concerned the Congressional debate could There is a growing consensus inside the Beltway that lead to stricter product safety regulations and requirements Congress will take up product safety legislation before it for all apparel, more scrutiny of cargo containers at ports considers a currency bill, in light of the recent scare and and the imposition of user fees on companies that import recalls over contaminated products from China. products from China. Apparel importers must already meet Tainted toys and food resonate with constituents and strict CPSC standards on fl ammability and drawstrings. voters, making legislation aimed at overhauling regulatory “The general trade climate on the Hill seems to be get- agencies, beefi ng up import enforcement and increasing ting frosty,” said Mark Jaeger, senior vice president and gen- fi nes against repeat offenders popular among lawmakers eral counsel at Jockey International. “It is a concern, par- from both sides of the aisle. ticularly as we’re looking at the fi nal year and a half of the “I see a product safety legislation moving most quickly THEW/EPA/CORBIS SHAWN PHOTO BY [apparel and textile] quotas [on Chinese imports] that run because product safety is an issue that members view as out at the end of 2008.” constituent-driven,” said Brenda Jacobs, counsel for the Jaeger said the concern over currency undervaluation U.S. Association of Importers of Textiles & Apparel. ”I think and product safety was valid, but he said lawmakers “seem things like currency are far more abstract. It is not a con- to like any opportunity to champion new legislation and that sumer issue in the same way that product safety appears is diffi cult for the business sector.” to be.” “It is diffi cult for business to plan long-term with that Jacobs said she does not believe Democratic leaders will kind of cloud hanging over it,” said Jaeger. abandon their efforts to pass a currency bill tied to U.S. Erin Ennis, vice president for the U.S.-China Business trade remedies, but she said it could potentially be put off Council, said she doesn’t believe Congress will act on a cur- until next year. rency bill or a product safety bill this month due to overrid- “Congress is not going to walk away from [currency] leg- ing issues such as the war in Iraq and a string of spending islation, but they haven’t drafted all of the bills yet and they Toy recalls have added to bills that need to be considered. have a lot of issues to reconcile before they move forward,” the trade tensions between As for the long-term prospects of legislation in both Jacobs added. the U.S. and China. areas, Ennis said she doesn’t expect one issue to eclipse the The controversy over imports of contaminated Chinese other. consumer products has sparked an outcry on Capitol Hill and led to hearings, “They are moving on parallel tracks and addressing different concerns,” Ennis investigations, legislation and an interagency task force created by the Bush ad- said. ministration. Congress has set legislative measures in motion that could set punitive tariffs President Bush raised the dual topics of currency imbalances and the recent on Chinese imports if the country doesn’t revalue its currency. rash of recalls of contaminated and defective Chinese imports with Chinese Trade experts are unsure what the Democrats, who have solid support from President Hu Jintao in a meeting on Sept. 6 in Sydney. The two leaders were at- many Republicans on the China currency issue, will try to get enacted into law tending the Asia-Pacifi c Economic Cooperation forum. this year. Jurisdictional disputes over legislation targeting currency manipulation Bush, who has chosen to pursue a “strategic economic dialogue” with China to and other trade matters and the looming presidential election process make it prod the country into letting the value of the yuan appreciate against the dollar, diffi cult to predict what course legislation will take. has drawn fi re from lawmakers who want to take a stronger approach. Two Senate panels recently passed competing bills. One proposal would offset “We still have a huge trade defi cit with China, which then causes us to want to currency undervaluation in antidumping duty calculations and both would re- work with them to adjust — to let their currency fl oat,” Bush said. “We think that quire World Trade Organization consultations with a country that is found to be would be helpful in terms of adjusting trade balances.” manipulating its currency, which could ultimately lead to sanctions. On the topic of product safety, which has become a fi restorm on Capitol Hill On the House side, Rep. Sander Levin (D., Mich.) is said to be working on a this fall, Bush would said that Hu was “quite articulate about the product safety currency bill that he could unveil sometime this month, according to trade ex- and I appreciated his comments,” but he did not elaborate. perts. In Beijing, China’s top safety and quality offi cials have scrambled to explain “On the currency bill, my guess is there will still probably be a bill on the recent recalls of China-made products exported to President’s desk by the end of the year,” said Gary the U.S. and elsewhere. The safety scares have fu- Chinese Hufbauer, senior fellow at the Peterson Institute for eled the growing potential for a Sino-U.S. trade war, exports to International Economics. as Chinese inspectors stall and refuse American- the U.S. Hufbauer said he thinks the bill will have two made goods in ports in what U.S. manufacturers are under key features: an extended time frame for China or have said are retaliatory actions. scrutiny for any other country found to be manipulating its cur- The Chinese government has looked to interna- a variety of rency to address the problem before tariffs are trig- tional public relations fi rms for advice on the crises reasons. gered, and authority for the president to waive any and has instituted incremental policy measures to recommended remedies due to national security or address food and product safety concerns. But it has economic concerns. not issued any broad apology to consumers for its JUSTIN GUARIGLIA/CORBIS PHOTO BY Auggie Tantillo, executive director of the failures to detect the problems before they went to American Manufacturing Trade Action Coalition, market. which is pressing for more relief against underval- On Aug. 31, the government’s quality watchdog ued Chinese imports, was not as bullish on passage announced it would implement its fi rst nationwide of a currency bill. product recall system. The system requires produc- “On the currency issue, I’m not convinced the ers and vendors to alert retailers and consumers Democratic leadership has bought into it suffi - when a problem is detected, or face heavy fi nes and possible closures. ciently enough to put together the effort necessary to override an almost certain “Our regulations make it very clear that producers must take prior and major veto [by the president],” said Tantillo. “I think what I’ve seen [in Congress] is a responsibility for preventing and eliminating unsafe products,” Li Zhaobin, poli- movement in response to the outcry but not a sincere level of focus and energy to cy and legislation director for the General Administration of Quality Supervision, really bringing about a solution.” Inspection & Quarantine, told a news conference. On product safety, Tantillo said there is a perception on Capitol Hill of a Li Chang’an, a researcher in Beijing’s China Labor Studies Center, said ques- “greater degree of legitimacy.” tions over safety have not begun to affect business or bilateral trade overall. The He said it would be hard for lawmakers in both parties to vote against a bill real quality and safety problems with China-made food and goods are with those that included more funding and required more testing and inspections, and dif- sold to Chinese consumers, and there is little spillover into exports. fi cult for the president to veto it. “The best products are still exported to Western countries,” Li said. “I would say there is a better chance for a product safety bill than a cur- The heated issue has also surfaced in the presidential debates, as the primary rency bill,” Tantillo said. “It is stunning that you have a situation such as cur- season kicks into high gear. rency issue where everyone acknowledges it is a massive problem and neither Sen. Barack Obama (D., Ill.), who earlier this year reintroduced the Lead Free Congress nor the executive branch has moved forcefully to deal with it over the Toys Act of 2007 that would give the Consumer Product Safety Commission the past fi ve years.” authority to ban contaminated children’s toys, recently raised his concerns in let- — With contributions from Kathleen E. McLaughlin, Beijing
4 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II WWD.COM
SOURCING HORIZONS Free Trade Agreements Taking Stock of Vietnam Taking Different Paths By Evan Clark By Kristi Ellis WASHINGTON — Sourcing execu- WASHINGTON — A Senate committee took a step tives with orders in Vietnam are forward in considering a free trade agreement with waiting to see if their shipments are Peru last week, but the fate of three other pending going to become more expensive. pacts with Panama, Colombia and South Korea re- The answer should come later this main uncertain. month or next when the Commerce While Peru is on a faster track for Congressional Department wraps up its fi rst bian- consideration, the trade deal with South Korea ap- nual review of trouser, shirt, under- pears completely off the table this year and the trade wear, swimwear and sweater imports agreement with Colombia faces many hurdles. from the country. Sen. Chuck Grassley (R., Iowa), ranking The review, which began last Republican on the Senate Finance Committee, who week, will determine if the U.S., at USA-ITA’s Laura Jones and held a pro-trade rally with business groups last least until the next review, is going Liz Claiborne’s Gary Ross week, said his priorities include moving the three to self-initiate an antidumping and Frank Kelly press the Latin American FTAs forward, but placing “on hold” case on some of the imports from Commerce Department’s implementation of the deal with South Korea. Vietnam. Such a case, if it success- David Spooner (second from “Our agreement with South Korea is impor- fully works its way through the U.S. right) at a public hearing on tant, too, but implementation is on hold until the International Trade Commission, Vietnam monitoring. [South] Korean government fully conforms with its would lead to higher duties. The SAMPERTON KYLE PHOTO BY regulation of trade in beef products to internation- idea is to offset the impact of im- ally recognized standards,” Grassley told the busi- ports that are priced unfairly low due to government subsidies or currency policies. ness groups. “The focus for the foreseeable future There is no telling how steep or broad any antidumping duties might be and importers have complained is on our trade agreements with Latin America.” that the Bush administration has not given them enough information to be able to predict what goods are The Senate Finance Committee held a hearing most likely to be impacted. on the agreement with Peru last Tuesday, which it “People are going to be watching very carefully to see what they’re saying, how they say it, when they say plans to follow up on quickly with markups and a it,” said Brenda Jacobs, counsel for the U.S. Association of Importers of Textiles and Apparel. “It’s all going committee vote. to matter because no sourcing decision is set so long as this program is in place.” Sen. Max Baucus (D., Mont.), committee chairman, Some companies, such as Liz Claiborne, began months ago to limit their exposure to sudden price in- told reporters the committee is “going to move expe- creases by contracting with multinational producers in Vietnam who can shift production to other countries ditiously” on the Peru agreement, adding he expected as needed. it to “pass without diffi culty,” at least in committee. It is diffi cult to determine from the import statistics the government has published if any antidumping Many trade veterans said that while the Peru cases will be initiated. For instance, Vietnamese imports of women’s and girls’ cotton trousers were priced at agreement appears to have the most bipartisan sup- $58.40 a dozen in February and fell for two months before rising again to $60.23 in July. Meanwhile, the total port in Congress and the best chance for passage, its number of pairs shipped has risen and fallen over the last six months. prospects are clouded somewhat because of deep Dumping is determined, however, through a process that takes into account prices in the Vietnamese or divisions within the Democratic party over trade. similar markets. Should the review fi nd that goods are being dumped, it must be determined if a U.S. pro- Echoing the sentiments of many colleagues, Sen. ducer of similar product is being injured. Debbie Stabenow (D., Mich.) said: “The Peru free trade “If [Commerce] fi nds that an injury analysis is warranted, the department will examine a variety of in- agreement is a really tough one for me. In fact, any free dicators pertaining to the domestic industry, including but not limited to price trends, levels of production, trade agreement right now in Michigan is really tough. capacity utilization, net sales, market share, profi tability, lost sales, employment and bankruptcy that may Stabenow said the American public has lost denote injury,” said a Commerce spokeswoman. confi dence in trade policy because hundreds of The department’s Import Administration, under the direction of assistant secretary David Spooner, is thousands of people have lost their jobs as com- conducting the review, which is expected to take several weeks. panies move offshore and workers do not receive Gary Ross, corporate vice president of global manufacturing and sourcing for Liz Claiborne, said it ap- enough federal assistance in the aftermath. pears that the import information will not warrant an antidumping case at this review. “It’s [the Peru deal] an important step forward, “It’s a highly political issue and anything can happen,” said Ross. “We will still be living under a cloud but right now it’s words on paper and having the right of uncertainty.” words on paper is not enough when people are losing As Claiborne has capped its growth in Vietnam for now, a host of other countries has picked up business, their jobs,” said Stabenow. “My position is that before including Indonesia, Sri Lanka and India, he said. we go any further, we’ve got to get our trade policy Overall, Vietnam captured 4.7 percent of the U.S. apparel market for the 12 months ended July 31, with 1.1 right. We can no longer say ‘Pass this trade agreement. billion square meter equivalents, and has been picking up its growth only slightly this year. We’ll fi x it. We’ll enforce it. We’ll deal with it later.’” Though smaller in every way compared with its neighbor to the north — Vietnam is home to 85 million Stabenow said Congress must fi rst pass three people, while China is the world’s most populous nation with 1.3 billion inhabitants — the countries raise bills: an expansion of the Trade Adjustment similar concerns among U.S. producers. Assistance program that helps workers displaced by Both countries have nonmarket economies that they trade; a bill targeting undervalued currencies, no- say afford producers there unfair advantages, including a tably China’s, with punitive tariffs, and legislation variety of governmental supports. In particular, Vietnam strengthening enforcement of existing trade deals. has certain native benefi ts that make it a danger to pro- House Ways & Means chairman Charles Rangel ducers in the Western Hemisphere, such as a ready work- (D., N.Y.) said in August he would make consider- force and proximity to materials made in China. ation of Peru a top priority after receiving commit- “Vietnam has a large pool of very low-cost labor that ments from Peruvian President Alan Garcia that certainly has not been tapped to the degree that it could there will be changes in the country’s labor and be,” said a spokesman for the American Manufacturing environmental laws. Trade Action Coalition. “That’s nothing illegal, but it cer- Importers, who brought in $873 million worth of tainly is a competitive issue for everybody else out there. apparel from Peru for the year ended July 31, re- The industry would be remiss if we didn’t give as much ceive a duty free advantage when making apparel in scrutiny to Vietnam [as possible].” Peru, Ecuador, Bolivia and Colombia under a cur- The monitoring program might have made Vietnam rent U.S. trade preference program, but Congress a less-inviting prospect, but not everyone has been must vote to periodically renew it. The FTA would deterred. make the benefi ts permanent and give U.S. compa- In June, fi nancier Wilbur Ross Jr. said he would pump nies reciprocity when exporting to Peru. an additional $100 million into International Textile There is widespread opposition on Capitol Group’s apparel and textile facilities in the country. Hill, as well as by organized labor, to the Colombia Ross said some companies have limited their orders to trade deal because of the assassinations of labor Vietnam, but maintained that the orders just went to the leaders in that country and paramilitary actions. next lowest-cost country and wouldn’t bring jobs back to “Our priorities will be strong opposition to the the U.S. [South] Korean and Colombian agreements,” Thea “We remain happy with our ever-increasing commit- Lee, policy director of the AFL-CIO, told senators ment to Vietnam and regard it as a sad commentary on at the hearing last week. American politics that this monitoring program was Lee acknowledged that the Peru trade deal “rep- begun without enabling legislation by either Congress or resented signifi cant progress” in labor and environ- the World Trade Organization,” Ross wrote in an e-mail. mental standards, but said the union would not “advo- “We have been expanding our investments in Vietnam cate for passage” because it fell short in several areas, A factory and intend to continue to do so because the ministers are such as procurement and the outsourcing of jobs. worker in Hanoi.
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SECTION II
SOURCING HORIZONS Pakistan’s Textile Industry in Eye of the Storm
By Mahlia S. Lone “There is a spillover of Chinese orders,” he said. “Orders that are hard to place in China due to price or delivery are also fi nding their way here. When we are LAHORE, Pakistan — The most detrimental fallout of this year’s increased politi- visiting U.S. importers, sometimes Pakistan is referred to being Al Qaeda-centric cal instability in Pakistan for its textile industry is the reluctance of foreign buy- during meetings and we can only cringe at that. The July Red Mosque story tak- ers to visit mills in the country. ing precedence on news channels globally certainly affected new buyers. J. Crew There have been an alarming number of suicide attacks and bomb blasts in backed out of placing orders here immediately afterward. Twenty-fi ve percent of Pakistan this year as a repercussion of July’s Red Mosque incident in which our time is spent on new buyers and it becomes diffi cult to get a large corporation the military government violently came down on Islamic militants that had to change sourcing patterns. Operationally, though, we were not affected at all. barricaded themselves in a mosque in the erstwhile peaceful capital city of There has been no general unrest and Karachi routinely has about two strikes a Islamabad. Earlier in May, a judicial crisis, since resolved, had prompted dem- month for which we automatically make provision.” onstrations in the country and a three-day strike in Karachi, bringing all activity Najeeb Malik, managing director of Master Textile Mills Ltd., said: “U.S. im- in the port city to a halt. porters are more worried about travel advisories than Europeans. Travel insur- Adil Mehmood, chairman of the All Pakistan Textile Association, said since ance becomes diffi cult.” foreign buyers are reluctant to visit Pakistan because of the deteriorating law Master Textiles, a vertically integrated mill in Lahore that was established in and order situation, it would hinder 2007 and 2008 exports. Pakistan textile August 2006, is already supplying to Calvin Klein, urban brand Mecca and Red Snap. exports in July were $1.7 billion as against the target fi gure of $1.86 billion, “It is not political instability that has affected our business, but Chinese pric- according to the Pakistan Export ing of their goods,” Malik said. Promotion Bureau. This poses a Tiwana, who is responsible serious challenge for a develop- Master Textiles’ factory. for Levi’s operations in India, ing country that has 67 percent of Bangladesh, Sri Lanka, Bahrain, its total exports consisting of tex- Jordan, Egypt and Kenya, said the tile products. Pakistani textile mills are geared However, Samir Saigol, chair- toward the U.S. market and are man of the All Pakistan Textile especially suited to producing Mills Association, said: “We have cotton bottoms. learned to function through dis- “There was a 44 percent year- ruptions caused by political tur- to-date jump in the country’s cot- moil. Entrepreneurs have the ton bottoms export to the U.S. in necessary tools in their kit to deal May 2007,” he said. “Levi’s sourc- with this. We continue to enjoy ing is highest from Pakistan from linkages with buyers despite the the region. Pakistan mills, like hiccups.” Artistic Milliners, Siddiqsons Levi Strauss & Co.’s senior and Indigo in Karachi, and CBL director of sourcing South Hub, Nishat, Kohinoor and Sapphire Khalid Tiwana, who is responsi- in Lahore, have good denim fab- ble for procurement and sourcing ric capability. Pakistan has more of $100 million of textile products vertically integrated mills than annually out of Pakistan and is the Far East, so lead times are based in Lahore, said: “Foreign shorter and there is more produc- buyers that were beginning to tion control.” show interest in visiting were Speaking of 2008, Tiwana said, prevented during the May-June “The (Reconstruction Opportunity seasonal buying period due to the Zone) bill will transform the violence in Karachi on May 12. Pakistan apparel industry.” Again, during October-November The bill has been proposed by when buyers will be placing or- President Bush as a way to create ders for 2008, the situation in zones of economic opportunity to Pakistan will be tense due to the RINA KHAN PHOTO BY replace zones of instability. Duty upcoming November general elec- free access into the U.S. market tions. Orders will defi nitely show declining trends as they are inherently depen- will be provided for certain goods produced in stipulated areas for a period of dent on buyers visiting to inspect the mills and to touch and feel the products to 15 years, creating signifi cant employment opportunities there and preventing gain confi dence.” these areas from becoming a breeding ground for insurgents, terrorists and drug Nadeem Saigol, vice president of operations at Matrix Sourcing, based in production. The areas that will be a part of the zone under the current bill are Lahore, said, “Travel advisories have always been there. Companies that are the tribal areas that neighbor Afghanistan and the provinces of NWFP, Jammu more corporate are more sensitive to these. However, companies engaged in im- and Kashmir, where the devastating earthquake of 2005 occurred, and parts of porting from Pakistan for more than fi ve years have buyers who come here re- Baluchistan. peatedly or have opened offi ces here with local staff. In fact, U.S. importers are Only one-step value addition needs to be carried out in any of these areas to returning to Pakistan after a two-year low now that Chinese and Indian prices enjoy duty free access to the U.S. have started increasing due to higher value of their currencies and increased do- “Levi’s is pushing the list of products to include 100 percent cotton bottoms in mestic consumption. Though China still makes 70 percent of the world’s apparel, the list of items to enjoy duty free status,” said Tiwana. “To take an example, the there is a small shift toward Pakistan.” Jordanian apparel industry that got ROZ grew from only $53 million in 1993 when Saigol said Nike Inc.’s buying from Pakistan is growing as is home textile fi rm it got duty free status to $1 billion in 2007. Quotas and duties are artifi cial barri- West Point Stevens. He noted that Canadian company Gildan Activewear is buy- ers to the market. On Jan. 1, 2009, Chinese quotas to the U.S. will go and Pakistan ing one million garments annually from Pakistan and is looking for joint ventures needs to have an artifi cial advantage over China and that should be duty free ac- with local mills. cess to the U.S. market.” WWD, TUESDAY, SEPTEMBER 18, 2007 7
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Bush Proposes Production Plan for Afghan Border Region By Evan Clark “It certainly seems to be far too narrowly de- fi ned,” said Julia Hughes, senior vice president WASHINGTON — Apparel and textile producers of international trade at the U.S. Association of are used to venturing deep into the Third World Importers of Textiles and Apparel. “While it may looking for lower prices, but it remains to be seen represent an opportunity for some manufacturers if the industry is ready to take to the border re- who are already doing business in Pakistan, the gions of Afghanistan and Pakistan, even for looser security issues in the Pakistan and Afghanistan trade restrictions. border regions mean it’s not likely to attract a Reconstruction opportunity zones, however, fi t huge business.” with President Bush’s larger vision for the region, Despite myriad security concerns and a gen- and the administration is putting eral reluctance among Western the fi nishing touches on its pro- sourcing executives to go to the posal to Congress that would lower We see enormous country, Pakistan is the sec- duties for goods made there. “ ond-largest apparel and textile “We’re cooperating to potential for importer to the U.S., with ship- strengthen our economies,” said ments of 3.3 billion square meter Bush at a March 2006 press con- transshipment and equivalents, or 6.2 percent of the ference with Pakistan President total market, at a value of $3.2 Pervez Musharraf. illegal activity. billion. Bush said the idea of special ” While careful to acknowl- trade zones was backed by “the — Auggie Tantillo, AMTAC edge the plight of the region, theory that economic vitality Auggie Tantillo, executive direc- and economic prosperity for people in the remote tor of the American Manufacturing Trade Action regions of Pakistan will help defeat the terrorists Coalition, said he pushed for the scope of the ben- and their hateful ideology.” efi ts to be narrowed and questioned whether the The exact details are not known, but the under- zones were practical. standing in the industry is that to qualify for spe- “In the short term, legitimate production and cial treatment, apparel made in the region would trade from the areas they’ll designate a ROZ is have to conform to a single transformation rule probably going to be small,” said Tantillo. “The of origin. That means, for instance, that foreign- problem comes in under the enforcement issue. made materials could be assembled into apparel Are we going to be sending customs agents to in the zone and still qualify. Tora Bora to fi gure out how they actually made Goods covered under the quota agreement with the garments and the towels and the sheets? We China, such as cotton trousers and cotton knit shirts, see enormous potential for transshipment and il- are also expected to be excluded in the proposal. legal activity.” Pakistan President Pervez Musharraf and President Bush. PHOTO BY REUTERS/JIM YOUNG/LANDOV PHOTO BY 8 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II
SOURCING HORIZONS Turkey Rebounds From Turmoil
By Suna Erdem ed in August, putting a lid on the summer of turmoil. However, the lingering uncertainty has soured the ISTANBUL — A four-month crisis over the election business climate. of Turkey’s next president kept political and eco- “People don’t react as dramatically as before, but nomic issues as heated as the record summer tem- there has been a noticeable drop in orders as people SARIBAS/LANDOV REUTERS/FAITH PHOTO BY peratures here. refrained from taking a position while the picture The turmoil has touched all aspects of Turkey’s econ- was unclear,’ said Banu Payasli, public relations omy, the apparel sector included, as domestic custom- manager at Altinyildiz Textiles, which has a profi le ers took the lead in reduced spending over lack of confi - of domestic and international clients. “Now there is dence in the government. a tentative return to nor- The government, mality, but people are which had been doing The thorn for the past period taking very slow steps well economically, had just to make sure we are to call early elections to was“ the presidential election not plunging back into thwart stymieing tactics uncertainty again.” from the military and and we have survived this period This was particularly judiciary political oppo- true of the domestic sition suspicious of the without much real damage. sector, where the atmo- presidential candidate ” sphere and remote fears for his disavowed politi- — Cem Boyner, Boyner Holding that the military might cal Islamist past. attempt to dislodge its The stock market wob- fifth government since bled, the Turkish lira occasionally teetered and inter- 1960 were felt the most. The political crisis, although est rates rose slightly, but it is a testimony to Turkey’s couched in the terms of Islamism versus state secular- improving economy that the fallout was so little in a ism, had become a battleground over the right to run country where just six years ago the incident of the the country. president hurling a copy of the constitution at the Cem Boyner, head of Boyner Holding, which includes prime minister sparked a severe economic crisis. the upscale department store Beymen and the more mod- In July, the incumbent party won a landslide elec- erate-priced Boyner chain, said the psychological effect tion, showing the public faith in strong numbers and of the crisis had affected his businesses, if temporarily. a steady hand rather than likely unfounded scare sto- “The people’s morale is very closely linked to our ries about rising Islamic infl uence. Its presidential business,” Boyner said. “There was an earthquake [in President Abdullah Gül candidate, Foreign Minister Abdullah Gül, was elect- 1999] and sales only fell by 25 percent that month. [In WWD_0918_CoolVisions.eps 09/14/2007 11:17:01 AM WWD, TUESDAY, SEPTEMBER 18, 2007 9
WWD.COM
2003], HSBC bank was bombed — that month sales just including Soktas, Yünsa, Altinyildiz, Levi Strauss & fell by 25 percent. In 2001, there was an economic cri- Co., and luxury goods house Vakko. A last-minute deal sis and sales only fell by 25 percent again. In the past involving raises of up to 6 percent and bonuses avert- couple of months not that much actually really hap- ed a walkout just hours before the Sept. 11 deadline. pened, but sales still fell by 25 percent. The presiden- Financial analysts predict that the election of a tial election, military warnings, debates, they upset KEREM UZEL PHOTO BY stable government with a strong mandate and a re- people — there does not need to be a big crisis.” cord for economic improvement will bring better per- The latest figures released for August by the formances now that the political crisis is over. Turkish State Statistics Board show a 0.02 percent “It’s not just retail, there have been reactions rise in consumer prices. The consumer price index across the board,” said Selim Kunter of Express for apparel and footwear fell by 7.13 percent in just Invest. “But the ending of political uncertainty has one month. Consumer spending for the second quar- had a positive effect and macroeconomic develop- ter of 2007 fell by 0.3 percent. ments are ensuring economic growth over and above The consumer confi dence index showed a drop in the effects of the political situation.” June for the period that followed a fi rst, abortive pres- Boyner said: “The thorn for the past period was idential election process and rose again by 1.4 per- the presidential election and we have survived this cent in July, election month, but still remains below The Altinyildiz Textiles factory. period without much real damage. I am extremely the levels indicating a positive consumer attitude. hopeful of this government in the next fi ve years.” On a more general scale, Turkey’s gross national product, which has been growing relent- lessly for 22 quarters, recorded one of its smallest rises, at 3.9 percent, in the second quarter of 2007, compared with 6.8 in the fi rst quarter and 9.3 percent in the second quarter last year. But in the textile manufac- turing sector, those companies working with a more internation- ally weighted clientele benefi ted from the foreign business view that the crisis was always going to be a tempest in a teapot. “About 85 percent of our product is exported and most of our clients are world leader companies. I haven’t sensed that they have had any par- ticular concerns,” said Seyhan Aktemur, marketing and product development manager at Soktas Textiles, a high-end mill based in the western Turkish town of Soke that supplies brands such as Dolce & Gabbana and Gucci. ® Suleyman Orakcioglu, head of clothing group Orka Holding and active in the Istanbul Apparel & Textile Exporters’ Union, also known as ITKIB, pointed to the export fi gures as proof that the industry has been resilient throughout. “There are over 200 coun- tries in the world, they all have elections and crises, but the world of business keeps going,” Orakcioglu said. “The perfor- mance of Turkish ready-to-wear Color Publications for accurate color. PANTONE Consult current standards. Colors may not match PANTONE-identified d. PANTONE and textile exports for 2007 is very good, so far. All our efforts toward training, design, brand- ing have been bearing fruit. If a country can survive a critical year like 2005 [when export quo- tas were lifted and lower-price China became a dominant fac- tor], then it can certainly weath- er this summer’s storm.” Quoting ITKIB figures, he said for the fi rst eight months of 2007 rtw and textile exports had risen by 16 percent. The combined export value of both sectors last year had been $19.5 billion, while the target for this year was $22.5 billion. One factor preventing even better fi gures was the strength of The bigger, better PANTONE loose-format cotton swatch system. the Turkish lira against the dollar, When reconfiguring the new PANTONE loose-format cotton swatches, proving the renewed robustness of an economy where previous we developed a system that’s simply SMART: Sensible, Manageable, political crises could reduce the Accessible, Relevant and Tough. Features that make our new system currency to peanuts overnight. work even harder for you. A new partnership with Clariant International Ltd. “The lira is overvalued, but matches our color expertise with the technical excellence of a leading global we expect that to change, too,” dye stuff producer. Our larger, loose-format swatches combined with techni- he said. “All the factors will fi nd cally sound recipes using globally available dyes and time-saving digital color their own level with time.” The textile industry has also data means your product goes from inspiration to production faster than ever narrowly avoided the headache imagined. of a workers’ strike that would © Pantone, Inc., 2007. All rights reserved. have cost an estimated $3 billion Pantone and Clariant are commited to providing environmentally-sound trademark of Clariant Lt of Pantone, Inc. Clariant is a registered the property and other Pantone, Inc. trademarks are PANTONE® as it spread across 17 companies, processes and products. pantone.com/smartcolor 10 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II WWD.COM
SOURCING HORIZONS Dollar Decline Felt in Italian Mills By Amanda Kaiser a major textile resource. The industry has languished over the last few years on increased competition from MILAN — A strong euro-to-dollar exchange rate is bit- China and other countries, currency woes and the ris- ing into Italian exports and making it more expensive ing costs of raw materials. Although there are signs for a fashion company to craft a handbag out of Tuscan that Italian textile sales are picking up, thanks to in- leather or weave Biellese wool into a suit. creased demand in Europe and emerging markets, ex- Unfavorable exchange rates are hardly a new ecutives are cautious about the future. problem for Italian companies that have learned to “The numbers for our industry have been positive, cope by limiting their price increases to stay compet- but they could be much more positive [without the cur- itive and focusing on high-end luxury products out- rency effect],” said Paolo Zegna, president of Milano side the expertise of low-cost countries like China. Unica. “Companies don’t want to lose market share, That said, the euro’s continued strength to the dol- so they are sacrifi cing their profi t margins, a situation lar is becoming a point of increasing concern in the which can’t go on forever.” longer term. The euro is currently trading at about In the fi rst four months of the year, Italian textile $1.38. exports grew 2.3 percent to 1.65 billion euros, or $2.28 “I am very worried. I’m afraid of losing business billion, according to data from trade association SMI- because there will be clients who can’t pay higher ATI. Knits, wool and silk were the best performers, Leather exports to the U.S. are down.
prices,” said Giacomo Festa Bianchet, vice president while demand slipped for cotton and linen. Overall, ANDREA GUOLO PHOTO BY of Italian yarn spinner Loro Festa, who added that the business with clients in countries such as Germany, euro-dollar exchange rate and the rising costs of raw France, Tunisia and China made up for a 6.9 percent traditionally used for clothing like jackets or gloves, materials such as Australian wool and Chinese cash- drop in exports to the U.S. but now, for cost reasons, it is also being used for shoes mere have forced him to increase the prices of his The leather industry is facing similar problems and even handbags.” yarn between 25 and 30 percent since last year. with exchange rates. Salvatore Mercogliano, direc- Executives, regardless of their industries, reiter- While Italian exports are still expected to grow tor of trade organization UNIC, said Italian tanner- ated the importance of retaining clients with original, this year, they are slowing down. In June, the Camera ies have been forced to mark up the prices of their quality products and customer service. Nazionale della Moda Italiana said the euro-dollar im- leather by an average of 10 percent this year. In the To wit, Festa Bianchet of Loro Festa said he works pact, combined with a worldwide rise in interest rates, fi rst four months of the year, Italian exports of fi nished with one of his top clients, J. Crew Inc., to develop ex- would make 2007 a less-than-brilliant year. Exports leather to the U.S. lost 20.2 percent, according to data clusive fi bers such as a wool and cashmere blend. of textiles, clothing, leather, shoes and leather acces- from UNIC. “I’m trying to collaborate with my clients in a part- sories will rise 3.7 percent to 42.17 billion euros, or “[Faced with such an increase], customers usually nership rather than just act as a supplier,” he said. $58.15 billion, this year, the Camera forecast. Exports slow down and reduce the size of their orders and see Zegna also stressed the importance of striving of those items grew 4.6 percent in 2006. how the situation evolves or they change the items for quality. Last week, buyers and manufactures descended on they buy,” Mercogliano said, noting that an increasing “When we say we want to be excellent, we need to trade show Milano Unica to view swatches of the high- number of foreign buyers are opting to replace calf- follow through,” he said. “The customer can’t fi nd any quality cashmere, silk and wool that have made Italy skin with sheepskin when possible. “Sheepskin was fault with an Italian product.”
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SECTION II WWD.COM
SOURCING HORIZONS
In Sydney, Bush said the U.S. “has both the will and the fl exibility to help conclude a successful Doha Round.” But he added, “No single country can make Doha a success, but it is possible for a handful of A Doha Deal Remains Elusive countries that are unwilling to make the necessary By John Zarocostas Christopher Wenk, senior director for internation- contributions to bring Doha to a halt.” al policy at the U.S. Chamber of Commerce, said U.S. U.S. Trade Representative Susan Schwab pointed GENEVA — Boosted by support from Asia-Pacific business has conveyed to the White House that it is the fi nger at Brazil, India and Argentina for taking an leaders, negotiators from key nations in the troubled not giving up on Doha. obstinate stance in the talks this summer, and indicat- Doha global trade talks have resumed efforts to bro- “Time is getting away from us — TPA expired and ed the biggest question was whether these economies ker a draft package deal by the end of this year. the only way to get extension of TPA is to get a break- will come back at the table in Geneva and show fl ex- But trade diplomats said the chances of a deal com- through in Doha,” Wenk said. “If the talks come up in ibility. But Schwab said the key measure for the U.S. ing together this fall are tenuous and rest on a group the next four to six weeks with some WTO framework of a successful outcome in Doha is one that generates of developed and emerging economies resolving their satisfactory to the U.S., India and Brazil, there will “new market access leading to new trade fl ows.” differences over how to proceed in lowering subsidies still be an opportunity to extend TPA.” EU Trade Commissioner Peter Mandelson said last and tariffs in agriculture, and duties for industrial He said for a deal to be meaningful for American week: “If there is no agreement on modalities this au- goods, including textiles and apparel. This core group companies, there needs to be “new market access” by tumn, any early conclusion of the Doha…as called for includes the U.S., European Union, Japan, Australia, developing countries and lower or removal of tariffs by the APEC leaders, will become very unlikely. The Brazil, India, Argentina, South Africa and Indonesia. on some industrial goods. He noted a good deal in U.S. presidential campaign will pick up speed and the “A successful conclusion to the Doha Round remains commercial services was also vital for the U.S. round will head for an indefi nite freeze.” our primary trade priority,” declared 21 leaders, including President Bush, at the Asia- Pacifi c Economic Cooperation summit in Sydney. Pascal Lamy, director- general of the World Trade Organization, which is spon- KXb`e^:fjkjFlkf]k_\Jlggcp:_X`e soring the talks, said: “The deal is doable, but we need a fi nal push to conclude the c\m\iX^\ÔeXeZ`Xcjki\e^k_kfjlggfikk_\ k`kc\Xe[]XZkfi`ek`d\mXcl\f]dfe\p# round. We will not conclude Õfnf]^ff[j%9lp\ijXi\cffb`e^]fi Ylp\ijXe[j\cc\ijZXec\m\iX^\k_\ this round without political `ek\^iXk\[jfclk`fejkfdXeX^\k_\ YXebËj\o`jk`e^fg\iXk`fejXe[ engagement and energy.” g_pj`ZXcÕfnf]^ff[jXe[`em\ekfip le[\ijkXe[`e^f]k_\kiX[\Õfnj%8jX Since the round was Zfjkj#Xe[k_\p\og\Zkk_\`iYXebjkf i\jlck#gXpd\ek`jdX[\jffe\i launched in Doha, Qatar, in gifm`[\Zfdg\k`k`m\ÔeXeZ`e^Xe[i`jb Y\e\Ôk`e^k_\jlggc`\i #n_`c\k_\Ylp\i November 2001, the talks d`k`^Xk`fekffcj% \ok\e[j`kjXZklXcgXpd\ekk\idjfi;GF% have been derailed on a K_\gfk\ek`XcY\e\Ôk`jd`cc`fej`eZXj_ number of occasions, most Õfn^X`e% recently in June after trade =ifdC:kfF8 ministerial talks between the U.S., EU, Brazil and India Fe\nXpk_XkYXebjXi\Xejn\i`e^k_\ I\[lZ`e^`em\ekfipZfjkj — known as the G4 — im- ZXcc`jm`XXj`^e`ÔZXekkiXej`k`fe%C\kk\ij IfY\ik;pZbdXe f]:i\[`k C:j #k_\cfe^jkXe[`e^gi`dXip K_\j_Xig\e\[]fZljfe^cfYXcjlggcp ploded in Potsdam, Germany. ;`i\Zkfi#Efik_8d\i`ZXKiX[\JXc\j In a bid to salvage the talks, `ek\ieXk`feXckiX[\m\_`Zc\#Xi\Y\`e^ Z_X`ejXm`e^jZXeXcjfi\[lZ\k_\Zfjkf] i\gcXZ\[Ypc\jjZfjkcpFg\e8ZZflek ZXiip`e^`em\ekfip%9p\ok\e[`e^gi\$ waiting for the G4 to broker =XZk1@ek\ieXk`feXckiX[\_Xj[flYc\[`e jkilZkli\jk_Xkd\\kk_\ZfjkXe[i`jb j_`gd\ekÔeXeZ`e^kfZfm\ik_\`e$kiXej`k outlines of a deal were aban- k_\cXjk[\ZX[\%K_`ji\dXibXYc\^ifnk_ doned and the negotiations fYa\Zk`m\jf]Yfk_Ylp\ijXe[j\cc\ij%K_\ g\i`f[#Ylp\ijZXeb\\gXele\Zfefd`Z _XjY\\e[i`m\eYpjkife^Zfejld\i resumed in July in full mul- b\pjkfdXb`e^k_`j_Xgg\eXi\k_\ Xjj\kf]]k_\`iYffbj]fiXcfe^\ig\i`f[ [\dXe[#i\[`jki`Ylk`fef]>;Gn\Xck_# tilateral mode at the WTO. @ek\ie\k#]fi\oZ_Xe^\f]`e]fidXk`fe# f]k`d\% Z_Xe^\j`ek_\^\fgfc`k`ZXccXe[jZXg\ This led to the chairmen Xe[XZZ\jjkf\o`jk`e^[XkXÕfnjc`b\ Xe[k_\n`[\cpglYc`Z`q\[dfm\kf 8efk_\ifgk`fe`jkf`[\ek`]pXk_`i[gXikp of the Agriculture and Non- GliZ_Xj\Fi[\iXe[@emf`Z\[\kX`cj% Agricultural Market Access, or flkjfliZ`e^`ekfXi\Xjf]cfn\i$Zfjk kfkXb\k`kc\kfk_\`em\ekfip[li`e^k_\ NAMA, talks, putting forward gif[lZk`fe% 9XebjXi\c\m\iX^`e^mXc`[Xk\[GF j_`gg`e^g\i`f[%K_\b\p_\i\`j]fik_Xk draft blueprints on lowering `e]fidXk`fekfgifm`[\jlggc`\ijn`k_ k_`i[gXikpkf[\dfejkiXk\i\XcX[[\[ 8efk_\i\p\Yifn$iX`j\i1Dfi\k_Xe+' subsidies and tariffs on farm Zi`k`ZXcgi\$j_`gd\ekÔeXeZ`e^%@edXep mXcl\kfk_\jlggcpZ_X`egifZ\jj% g\iZ\ekf]ZfdgXe`\jnfic[n`[\efn products and industrial goods. ZXj\j#k_\pËi\lk`c`q`e^k_\Ylp\iËj`emf`Z\ kiX[\`e\`^_kfidfi\^\f^iXg_`\jÇ The fi rst blueprints were XggifmXcgifZ\jjkf[`jZfleki\Z\`mXYc\j dXepn`k__le[i\[jf]`e[`m`[lXc I`^_kjlggc`\ij#i`^_k considered lopsided by XkiXk\jcfn\ik_Xejlggc`\ijZXe^\kfe major developing countries, jlggc`\ij%K_`jg_\efd\efe_Xjefkfecp k_\`ifne% Zfleki`\j#i`^_kk`d\ including India, Brazil and \ogXe[\[jlggcpZ_X`ej#Ylk`kËjXcjfglk 8k:`k`#n\Y\c`\m\k_Xkk_\jlggcpZ_X`e Argentina, for demanding too ki\d\e[fljgi\jjli\feYlp\ijkfb\\g K_\e\kÔeXeZ`e^ZfjkjXm`e^j#`eZcl[`e^ ki\e[j[\jZi`Y\[XYfm\f]]\iki\d\e[flj much from emerging coun- Zfjkj[fne% C:]\\j#ZXeY\XjdlZ_Xj.''feXe fggfikle`kp]fiYlp\ijn_f[f^cfYXc tries in lowering of industri- fi[\if](''#'''%KiXejcXk\k_`jkfX K_XkËjhl`k\X[\gXikli\]ifdk_\ Ylj`e\jj%K_\ZfjkjXm`e^jXe[ZXj_Õfn al tariffs, while the segment :fjkf]>ff[jJfc[jXm`e^jfm\iXe on agriculture demanded _`jkfi`ZXcjlggcpZ_X`e^fXcf]glj_`e^ Y\e\ÔkjZXeY\_l^\% XeelXcÕfnf],''d`cc`fe#Xe[`kZflc[ smaller concessions by rich Zfjkj\cj\n_\i\%Kf[Xp#kiX[`e^gXike\ij d\Xe*%,d`cc`fei\jkfi\[kfk_\Yfkkfd K_\nXkZ_nfi[`jgXk`\eZ\#Xji\jlckjXi\ nations on farm subsidies. Xi\cffb`e^]finXpjkfdlklXccpY\e\Ôk c`e\% efkj\\efm\ie`^_k%@edfjkZXj\j#Yfk_ On industrial goods, the ]ifdj_Xi\[jXm`e^j% initial formula blueprint Ylp\ijXe[j\cc\ijdljkY\\[lZXk\[Xj envisaged maximum tariffs GXpd\ekgifZ\jj[`jZ`gc`e\ kfk_\i\XcY\e\Ôkjf]X]lccp`ek\^iXk\[ being lowered to around 8 Klie`e^kfYXebj gif^iXd%8e[XjkiXk\^pdljkY\Yl`ck K_\dfm\kfFg\e8ZZflekjkilZkli\j`j to 9 percent for rich nations 8jYlj`e\jj\jZfek`el\kf[i`m\Zfjkjflk Y\_`e[k_\`dgc\d\ekXk`fe#jfk_Xkk_\ Yi`e^`e^dfi\[`jZ`gc`e\kfk_\gXpd\ek and between 19 and 23 per- f]k_\`i^cfYXcjlggcpZ_X`e#k_\p\og\Zk i`^_kjlggc`\ij`ek_\i`^_kZfleki`\jXk cent for the key emerging gifZ\jj%:fdgXe`\jk_XkkXb\X[mXekX^\ k_\`iÔeXeZ`Xcj\im`Z\jgifm`[\ijkfb\\g k_\i`^_kk`d\Xi\kXi^\k\[%Gif^i\jjZXe developing economies. f]k_\`iYXebËjZfi\ZXgXY`c`k`\jZXejk`cc gXZ\%K\ep\XijX^f#cXi^\L%J%Ylp\ij Y\jcfn#Ylkn\Xk:`k`Y\c`\m\k_XkÈjcfn The U.S. and EU had been dXb\lj\f][fZld\ekgi\gXiXk`feXe[ nflc[dXe[Xk\q\if]\\#fi\m\eX Xe[jk\X[pn`ejk_\iXZ\%É looking for a formula that \oXd`eXk`fe\og\ik`j\#n_`Z_Xjj`jk`e i\m\el\j_Xi\#]ifdYXebjgXik`Z`gXk`e^ would result in a maximum dXb`e^dfi\`e]fid\[Xe[\og\[`k\[ `ek_\`iC\kk\if]:i\[`kGif^iXdj% tariff of 10 for rich nations gXpd\ek[\Z`j`fej% and 15 for emerging countries. Jlggc`\ijnflc[XYjfiYk_\ZfjkXe[Ôck\i Revised blueprints are expect- `kYXZbk_ifl^_`eZi\Xj\[Zfjkf]^ff[j% J`eZ\/' fidfi\f][fZld\ekj ed to emerge sometime around gi\j\ek\[le[\iC\kk\ijf]:i\[`kn\i\ K_XknXjk_\e%K_`j`jefn%Kf[XpËj mid-October and refl ect the [`jZi\gXek#X[[\[ZfjkjXe[j\kkc\d\ek Ylp\ijXi\Xjb`e^#È?fnZXen\i\[lZ\ outcomes of intensive negotia- [\cXpjn\i\XlkfdXk`ZXccpYl`ck`ekfk_\ k_\fm\iXccZfjkf]k_\jlggcpZ_X`ejf tions under way on agriculture, gifZ\jj%8Yj\ekXi\hl`i\[[fZld\ek followed by top-level talks on k_Xk\m\ipfe\n`ej6ÉK_\i\jlck1 i\m`\ngifZ\jj#Ylkle[\ijkXe[`e^n_Xk NAMA early next month. `eZi\Xj\[m`j`Y`c`kp`ekfk_\g_pj`ZXc `je\Z\jjXipkfZc\Xi^ff[j#\oZ_Xe^\ How the revised blueprints jlggcpZ_X`eXe[Xn`cc`e^e\jjkf are received could be decisive in whether a package deal emerges this year, or not, and >cfYXcKiXejXZk`feJ\im`Z\j more importantly whether the nnn%kiXejXZk`fej\im`Z\j%Z`k`^iflg%Zfd Bush administration will seek )''.:`k`YXeb#E%8%8cci`^_kji\j\im\[%:`k`Xe[8iZ;\j`^e`jXj\im`Z\dXibf]:`k`^iflg@eZ%#lj\[Xe[i\^`jk\i\[ a renewal of the expired trade k_ifl^_flkk_\nfic[% promotion authority. 12 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II
SOURCING HORIZONS
Wal-Mart is concerned about Retailers Concerned Over new trucking regulations. New Trucking Rules
By Kristi Ellis public health and safety should always come fi rst, and must be the highest priority of federal transportation offi cials.” WASHINGTON — A U.S. Court of Appeals decision Public Citizen noted in a press release that 5,000 people that reduces the number of hours a day a commercial truck are killed annually and more than 110,000 are injured in large driver can be on the road to 10 hours from 11 hours has some truck crashes, with truck driver fatigue being a major factor in the supply chain concerned about its impact on getting in the crashes. goods to the stores during the critical holiday season. The court’s ruling prompted the ATA, a trade group that rep- The Appeals Court for the District of Colombia partially resents primarily commercial trucking fl eets, as well as some overturned a Federal Motor Carrier Safety Administration rule private fl eets including Wal-Mart Transportation, to fi le a mo- limiting the number of hours a truck driver can be on the road, tion for a stay with the appeals court. The ATA cited a potential as well as the 34-hour restart provision that allowed drivers for “serious disruption to trucking operations” in its motion. to restart their weekly count of hours after they have taken a There are more than 700,000 registered interstate motor break of 34 hours. The decision, handed down July 24, vacated carriers operating 26 million trucks in the U.S., according to two of the rules, citing various procedural issues identifi ed dur- the ATA. The industry employs more than 3.4 million truck ing the rule-making process, but “did not say those rules were drivers, who log more than 220 billion miles annually and gen- unsafe,” according to the American Trucking Association. erate more than $600 billion in gross revenue. The court’s decision stemmed from a lawsuit fi led by Ralph The Federal Motor Carrier Safety Administration said in a Nader’s Public Citizen watchdog group and other safety or- statement, “We are analyzing the decision…to understand the ganizations that argued that fatalities by long-haul truckers court’s fi ndings as well as determine the agency’s next steps to were on the rise under a two-and-a-half year-old federal rule prevent driver fatigue, ensure safe and effi cient motor carrier that bumped up the number of hours a commercial trucker operations and save lives.” could drive. For retailers like Wal-Mart Stores Inc., which owns one of “The court has once again sided with public safety and the largest private truck fl eets in the country and has one of rejected the FMCS’s illogical proposition that driving longer the most extensive logistics and supply chain networks, a re- hours and working longer days will somehow solve truck driver duction in hours could lead to signifi cant increases in trans- fatigue,” Judith Stone, president of Advocates for Highway & portation costs and cut into the bottom line, according to sup- Auto Safety, said in a statement. “The ruling reassures us that ply chain experts. WWD, TUESDAY, SEPTEMBER 18, 2007 13
WWD.COM
Tim Yatsko, senior vice president of transportation at tain delivery times. Wal-Mart, told a House panel hearing last year that Wal- “To maintain the level of deliveries and the volume of Mart moves 1.3 million loads on its truck fl eet inbound to its cargo under the old rules that have just been overridden by distribution centers annually. The company had at the time the court in key part will mean either companies…are not 117 distribution centers, ranging from 800,000 square feet going to meet the expectations of the past or they will have to 4 million square feet. Of that total, the company had 39 to add capacity by some means to meet the same level they general merchandise distribution centers, including seven realized before,” said Petty. “If they don’t add to the capac- centers that handled the company’s fashion shipments ex- ity, it will slow the whole process down and take products clusively. In all, Wal-Mart’s distribution centers shipped longer to reach their destination.” about 1.6 billion cartons a year. For retailers that are dependent on quick inventory PHOTO BY CHRIS HONDROS/GETTYPHOTO BY IMAGES This has caught the attention of retailers. It could potentially drive up “trucking costs and inventory costs and slow down the entire supply chain. — Erik Autor, ”NRF
Fewer hours for truckers could put enormous pressure turns, delays could hurt the bottom line. on retailers’ supply chains and increase costs, according to “It could mean spottiness in terms of inventory selection Erik Autor, vice president and international trade counsel and shortages of apparel lines,” Petty said. “Maybe customers at the National Retail Federation. will have to come back two or three times to get the selection “This has caught the attention of retailers,” said Autor. because of breaches in the supply chain or companies will “It could potentially drive up trucking costs and inventory have to pay more to make sure [the selection is available], costs and slow down the entire supply chain.” which will cut into their margins. That is the dilemma.” Autor gave an example of a retailer with distribution The ATA argues that the safety groups that fi led the lawsuit centers in Southern California that has a high concentra- focused on just one element of a rule change that went into ef- tion of distribution centers, and needs the truck driver to fect in 2005 that increased on-the-road hours by one hour but load the container on the truck, get out of the port and navi- also reduced the total number of hours a driver could work on gate through highly congested freeways to a distribution a daily basis from 15 hours to 14. The federal rule that went center. Some companies only have one distribution center into effect in 2005 also increased the number of hours of rest nationally and many others have centers that service a par- for drivers from eight hours to 10 hours, he said. ticular region. “What we found with a lot of companies was they needed Gary Petty, president and chief executive offi cer for the an extra hour to deal with congestion where drivers had to National Private Truck Council, which has members such sit in traffi c,” the ATA spokesman said. “It was a package as Wal-Mart Transportation, VF Jeanswear Inc., Milliken & deal. One extra hour of driving was a trade off for the one Co. and Target Corp., said a change in the rule would be hour less of total work and two hours more of rest.” costly for trucking companies. He said it was a good trade-off for trucking companies He noted that one hour less a day translates into 20 and drivers, and the safety record bore that out, pointing hours less a month, meaning trucking companies may be to a 4.7 percent decrease in large truck accident deaths in forced to hire new drivers and buy new equipment to main- 2006, the largest drop in fatalities in 14 years. 14 WWD, TUESDAY, SEPTEMBER 18, 2007
SECTION II
SOURCING HORIZONS Import Prices: Now
By Ross Tucker NEW YORK — China’s rise as the world’s leader of low-cost manufacturing has been largely a result of its size, style of government and immense population. While sourcing executives and economists have taken comfort in the belief that other develop- ing countries have historically sprouted up to fi ll the world’s manufacturing needs, there are few, if any, contenders approaching China’s weight class. Now, only a little more than two years after World Trade Organization countries dropped quotas on textiles and apparel, prices may have nowhere to go but up. “A lot of the easy price decline has already happened,” said Mark Messura, executive vice presi- dent of global product supply chain at Cotton Inc. “I think what’s going to happen now is there will be a search for the good companies in these low-cost countries and not everybody can do that. The low-hanging fruit has been picked.” China has played an increasing role in the apparel, footwear and accessories industries for de- cades. But it was anticipated that the removal of quota would change the landscape of global manu- facturing and China’s position in the world almost overnight. In 2004, the fi nal year of the quota system, speculation on the impact of the removal of quota was rampant. Some in the industry predicted apparel prices would plummet as much as 50 percent as a wave of Chinese-made goods fl ooded the shelves of domestic retailers. Ocean carriers and import- ers had visions of container ships bobbing outside Chinese ports on New Year’s Eve waiting to pick up the fi rst quota-free deliveries. This would be followed weeks later by equally large waiting lines for ships to get into West Coast port facilities. Like the fears surrounding the transition from 1999 to 2000, the reality was less dramatic. Prices certainly have fallen, but the end of quotas failed to spur a widespread plunge. Instead, it helped continue a long-term trend. According to the U.S. Bureau of Labor Statistics, women’s ap- parel prices have been falling since 1993. The consumer price index for women’s apparel was 130.1 for 1993. By 2005, the CPI for women’s apparel had fallen 17.1 percent to 111.1. Over the last year, however, prices have been inching up. The CPI for women’s apparel rose 0.9 percent to 112.1 in 2006. So far this year, the CPI for women’s apparel has risen fi ve out of the seven months through July. Messura said retail prices for apparel fell by as much as 2.5 percent a year between 2000 and 2004. During that same time, the cost of imported apparel fell as much as 3 percent a year. Today, Messura said, data indicates that the retail price declines are starting to fl atten out along with the average price of imported clothing. “If there’s a bottom to the market, we may have hit it or we’re pretty close,” said Messura. He believes many manufacturers, particularly mass merchant retailers, have extracted all the margin they can from the supply chain. Mass merchants have been the driving force behind offering factories larger volumes in exchange for lower costs. “You can only do that so long, it has a practical limit,” said Messura. Reaching that limit will involve making decisions between quality and quantity. Nate Herman, director of international trade at the American Apparel & Footwear Association, is hearing similar sentiments from manufacturers. “There’s general agreement that there’s nowhere else to go, we’ve gone as low cost as we could,” said Herman. The focus now will shift to achieving smaller effi ciencies, such as utilizing radio frequency iden- tifi cation technology. Herman said the industry is expecting, or hoping, that prices will stabilize or slightly increase. The amount of competition in the industry leaves little room for price increases. Keeping prices low will be even more crucial should there be a signifi cant downturn in the economy. WWD, TUESDAY, SEPTEMBER 18, 2007 15
WWD.COM where to Go but Up
The Port of Shanghai. PHOTO BY JURGEN EFFNER/DPA/CORBIS PHOTO BY “It’s going to get harder to operate at the same margins that you have with sourcing in China,” said Herman. “There’s a lot of cost pressure coming from China right now that’s going to make it harder to maintain the same price levels.” The rising cost of energy and raw materials may also force increases. Messura noted that global demand for cotton has begun to outpace the supply. “The world wants cotton and it wants it at a level that cotton farmers haven’t supplied in the last three years,” said Messura. According to data from the U.S. Department of Agriculture, world cotton production in 2005 was estimated at 25.2 million metric tons, while cotton consumption was estimated at 25.3 million metric tons. For 2006, world cotton production came in at 26 million metric tons and consumption rose to 26.7 million metric tons. Demand is expected to exceed supply this year as well, with global produc- tion expected to be approximately 25.2 million metric tons and consumption to come in at 27.8 mil- lion metric tons. Higher-end materials are also seeing increases. Wool, for example, has seen prices jump. According to The Woolmark Co., one pound of wool cost $3 at the end of 2006. By June 1, the price had increased 27.7 percent to reach a high for the year of $3.83 a pound. Prices in August retreated to $3.41 a pound, but this still represents a more than 30 percent jump compared with the $2.57 a pound reported in August 2006. Donald Rosenfi eld, a senior lecturer at MIT Sloan School of Management and an expert in global manufacturing, logistics and the Chinese economy, is less pessimistic about the threat of rising costs. Rosenfi eld contends that there are signifi cant amounts of untapped potential left in China, particu- larly in the country’s inland territories. “I think the dynamic will take a while to play out in China because it has a huge population and there’s a huge population in the interior,” said Rosenfi eld. He is also a believer in the idea that other countries will develop the necessary manufacturing capabilities to maintain stability. “If you look at the history of economic development, there’s always a new place,” he said. “First it was Japan, then [South] Korea, Singapore and now China.” Those in the apparel industry are less confident that a country with the size and scale advantages of China exists on the horizon. Countries like Pakistan, India, Bangladesh and Vietnam regularly come up as likely to experience apparel-related growth. That said, each one has significant impediments to becoming a serious challenge to China. The political situ- ation in Pakistan is increasingly tenuous and the monitoring program of Vietnam has already convinced several apparel manufacturers to take their business elsewhere. India has the size and population to compete, but is plagued with infrastructure problems and a heavily bureau- cratic government. “China has become the most important source, but still one of many sources,” said Herman. “If anything, people are pursuing that kind of strategy even more than they used to, making sure they have a multicountry strategy.” Gary Ross, vice president of global manufacturing and sourcing at Liz Claiborne Inc., agrees the pressures that led to lower prices have been reduced. The apparel industry must now enter a transi- tion period. “We’re now going to enter a cycle of effi ciency,” said Ross. Becoming more effi cient will require examining each step of product development to eliminate waste and redundancies. The industry will need to do things such as optimizing fabric utilization, reducing the number of garments being reworked, improving packaging techniques and ordering only the required number of goods needed. For example, Ross noted it’s an accepted practice of the industry to order around 5 percent more trim than is needed. “We can’t pay for it and the consumer can’t pay for it,” said Ross. “Our industry, in general, has not necessarily subscribed to sophisticated management techniques because it was relatively cheap. It’s not relatively cheap anymore.” Ross also believes there is room for growth in China. The country’s manufacturing industry is currently shifting within the country. It’s similar to the movement that occurred in the U.S., with manufacturing moving from the Northeast to the South and eventually overseas. In China, manufac- turing has begun to shift from southern China to northern China. Ross said the Chinese government has invested heavily in infrastructure to open up western China, as well. This should keep prices stable. However, China moves quickly in its development. “It will happen faster than most will realize,” said Ross. Is Iowa the new fashion mecca? It’s possible, now that DuPont has created a renewably sourced Paris. polymer for fabric with corn, DuPont™ Sorona®. It’s exactly what manufacturers, designers and buyers look for in a premiere fabric. Rich, vibrant colors. True blacks and whites. Comfort Milan. stretch and recovery. Fade resistance. Easy care. It also has something unexpected—it’s smart for the environment. That’s because it’s the only high-performance polymer made with a renewable New York. resource. So not only will Sorona® make consumers feel good in their activewear, swimwear or even lingerie, they’ll feel great about your brand. Be the fi rst in your fi eld to be glamorously Des Moines. green. 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