4 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH EDITOR IN CHIEF Edward Nardoza
EDITOR James Fallon The denim industry has shrugged off the recession 6 and is showing stronger growth and renewed vigor, MANAGING EDITOR with women’s sales increasing 6.2 percent in the last year. Richard Rosen
Guys are buying fewer jeans these days, but paying MANAGING EDITOR, FASHION/SPECIAL REPORTS 10 slightly more for them, keeping overall men’s denim Dianne M. Pogoda sales stable over the past year. SENIOR EDITOR Military motifs get some action this season — Arthur Friedman 12 from hearty parkas to cargo pants cut to fit a FASHION FEATURES EDITOR woman’s curves. Beth Kwon
The ultraskinny jean prevails for fall, showcasing SENIOR FASHION EDITOR, traditional dark denim, black, gray and the SPORTSWEAR 20 Kim Friday Eighties-inspired acid wash, allowing for the inner rocker to emerge. MEN’S FASHION EDITOR Alex Badia Demand for premium denim is returning as a fashion staple in Europe, spurred by DENIM AND TEXTILES 30 MARKET EDITOR price adjustments, focus on quality and new Ross Tucker styles, according to denim brands. SENIOR EDITOR, MEN’S The incorporation of stretch fibers in David Lipke denim has evolved from a relatively 32 CONTRIBUTING EDITORS minor consideration several years ago to a Liza Casabona, Katya Foreman, performance requirement this year. Jessica Iredale, Emilie Marsh, Khanh T.L. Tran, Luisa Zargani If the late Gap co-founder Donald BOOKINGS EDITOR 34 Fisher taught Lucky Brand chief Cinnamon St. John executive officer David DeMattei one thing, it’s that retail companies buy FASHION ASSISTANT inventory and sell inventory. Luis Campuzano COPY CHIEF China carved out a substantially Peter Sadera 36 larger share of the women’s denim market and continued to DEPUTY COPY CHIEF grow its piece of the men’s market Maureen Morrison last year. SENIOR COPY EDITOR Lisa Kelly International denim brands 38 have increasingly been COPY EDITORS supporting young artists and Adam Perkowsky, Ben Cake helped them gain visibility, GROUP ART DIRECTOR while a designer’s passion for Andrew Flynn the arts has become influential in the direction of a brand. ASSOCIATE ART DIRECTORS Sharon Ber, Amy LoMacchio
DESIGNER Courtney Mitchell
JUNIOR DESIGNER Eric Perry
ART ASSISTANT Tyler Resty
PHOTO EDITOR Carrie Provenzano
PHOTO COORDINATORS Ashley Linn Martin, Lexie Moreland sss VICE PRESIDENT, CHIEF REVENUE OFFICER Will Schenck
ADVERTISING DIRECTOR Melissa Mattiace
ADVERTISING DIRECTOR Steve Sottile
EXECUTIVE DIRECTOR, INNERWEAR/LEGWEAR/TEXTILES Joel Fertel
ACCOUNT MANAGER Hillary Graham
FASHION DIRECTOR Julia Hawkins
EXECUTIVE DIRECTOR Jennifer Marder
EXECUTIVE DIRECTOR, INTERNATIONAL FASHION Brett Mitchell
WEST COAST DIRECTOR Ron Troxell
ACCOUNT MANAGER, ITALY Olga Kouznetsova
ACCOUNT MANAGER, MILAN Giulia Squeri
ACCOUNT MANAGER, PARIS AG Adriano Goldschmied’s cotton denim Odile Eda-Pierre jeans and Gilded Age’s cotton jacket. Miansai necklace. PRODUCTION MANAGER Providence Rao PHOTO BY ELI SCHMIDT PHOTO BY BE STUPID Shop online at Diesel.com 6 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH By the Numbers: Women’s
By Ross Tucker THE DENIM INDUSTRY HAS SHRUGGED off the recession and is showing stronger growth and renewed vigor. Women proved throughout the economic downturn that they had come to view denim as a wardrobe staple, an item with higher perceived value due to its versatility and du- rability. They may have been willing to trade down on price, but they certainly weren’t willing to trade out. Sales of women’s jeans in the U.S. rose 6.2 percent to $8.52 billion for the 12 months through March 31 compared with sales of $8.02 billion, a 4.6 percent increase, during the same period in the prior year, according to data from market research firm The NPD Group. While the gains are notable, there’s still evidence that the impact of the financial cri- sis continues to linger. According to NPD, the average price for women’s jeans fell 1.3 per- cent to $23.18 from $23.49, marking the second straight year of declines. That trend offers some explanation of the presence of two new- comers to the rankings of the top 10 women’s brands this year. Angels, a junior line that sells at Kohl’s, and Just My Size, a plus-size line, claimed the ninth and 10th spots this year, re- spectively, with both lines retailing between $20 and $30. Pushed out of the top 10 were Lucky Brand Jeans and Liz Claiborne. Brands and denim specialty retail- ers are seeing clear signs of a rebound. Leah Eckelberger, owner of Boston’s Jean Therapy, offers her store to advertising agencies, magazines or financial institutions to host private shopping events for their cli- ents. Those events dried up 14 months ago, but have started to come back recently. “In the last three months, we’ve definitely seen the return of that and it’s been amazing,” said Eckelberger. “That, to me, is a sure sign that things are a lot better than they were.” Lady Fuller, owner of the Blues Jean Bar, a chain of seven stores in Chicago, Dallas, Denver, San Francisco and Santa Monica, Calif., described 2008 as “hideous” and the first half of 2009 as “rough.” However, the difficulties forced her to reexamine her business and adapt in order to survive. Fuller started carrying the major- ity of her stores’ 40 or so brands on consign- ment, a move she credits with helping keep the business afloat. She also made a con- certed effort to make sure her selection of brands didn’t look anything like the mix of- fered at local department stores. Fuller and many other denim boutiques were burned when those neighboring department stores slashed prices on leading premium labels in order to dump inventory, making their stores look prohibitively expensive. Continued on page 8 TOP 10 WOMEN’S JEANS BRANDS BY SALES 1. LEVI’S* 2. GLORIA VANDERBILT 3. LEE 4. RIDERS BY LEE 5. SEVEN FOR ALL MANKIND 6. CALVIN KLEIN 7. POLO/RALPH LAUREN 8. WRANGLER 9. ANGELS 10. JUST MY SIZE Replay’s revamped Milan store opened in April.
*INCLUDES ALL LEVI’S LABELS
8 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
Continued from page 6 “We went and found smaller vendors that were less known and more interesting to our customers,” said Fuller. Brands such as Fidelity and DL1961 caught the attention of customers CHANNEL SURFING and Fuller said her sales so far in 2010 are 20 to 30 percent above 2009. U.S. WOMEN’S JEANS SALES BY DOLLAR VOLUME Fuller also said customers have come out of the recession looking for more from their purchases. 2010 2009 % CHANGE “I think people are very conscious about where they spend their money and how they spend it,” she said. “If they feel someone can explain to them why this SPECIALTY STORES $3.3 BILLION $3.06 BILLION 7.9 product is different and value of it…they’re willing to spend the money there.” DEPARTMENT STORES $1.28 BILLION $1.23 BILLION 3.7 There’s been another indicator for Fuller that customers are loosening up and getting more interested in fashion. MASS MERCHANTS $1.22 BILLION $1.23 BILLION -1 “White jeans,” said Fuller, “which makes me think people are back to buy- ing not just the necessary jeans, but a bit more fashion-oriented jeans. We NATIONAL CHAINS $1.14 BILLION $1.14 BILLION 0 were not prepared for how many people were interested in the white jean.” OFF-PRICE RETAILERS $854.8 MILLION $680.8 MILLION 25.6 Sheryl Blit, owner and buyer for Havana Jeans, which has stores in Rye and Scarsdale, N.Y., and Stamford, Conn., echoed Fuller’s sentiments about MAIL/INTERNET $361.4 MILLION $347.2 MILLION 4.1 having to reexamine business practices and finding ways to reduce inven- tory risk. Her customers are feeling more comfortable to spend, but their OTHER $267.3 MILLION $228.9 MILLION 16.8 cautious attitude makes sales slightly less consistent. As a result, she’s still keeping a close eye on inventory and strong sellers. OUTLETS $98 MILLION $101.3 MILLION -3.3 “Last year, we had to figure it out,” said Blit. “Now, I think we’ve figured it out. We just have to stay on top of it and we’re working harder.” NOTE: DATA ARE FOR THE 12 MONTHS THROUGH MARCH 2010. SOURCE: THE NPD GROUP Frank Pizzurro, former vice president of retail for AG Adriano Goldschmied, opened his own denim boutique, Brooklyn Denim Co., just DL1961’s jeggings. over two months ago and is finding strength in distinct price segments. “We’re doing really well at the moderate price, like $130 to $140 and under, and then we’re doing really well at $250 and up,” he said. Pizzurro has been surprised to see more women coming into the shop looking for rigid denim, something he credits to putting his store in one of the city’s hippest and most fashion-forward neighborhoods. “Brooklyn’s a little ahead of the curve, especially in Williamsburg, so we really get some good feedback,” he said. Brand executives are seeing store buyers start to come out of their shells a bit more, as well. “It’s evident that [buyers] are starting to get comfortable to spend money again,” said Michael Press, who joined Vintage Revolution as president in January. “We’re starting to get customers that are selling again.” Press added that after relying on proven sellers to get them through the recession, buyers now have a “massive” appetite for new labels. The chal- lenge of placing a newer label remains steep. Press estimated that retail- ers have cut inventory levels by 25 to 40 percent and are only moderately expanding those levels. “I think [buyers] are definitely looking to expand their orders margin- ally,” said Ray Tolles, vice president of sales for the 1921 premium label, which is owned by the maker of Silver Jeans. THE JEGGING STEPS FORWARD The denim legging, or jegging, has been the clear winner in the women’s denim category over the last year. Advancements in use of stretch fibers at the fabric level resulted in a product that hit all the right notes for consum- ers (see related story, page 32). It’s comfortable, fashionable and, above all, cheaper. For brands and retailers, the denim legging carried them through the darkest days of the downturn. “The jegging has been our low-rise, boot-cut jean of the late Nineties,” said Eckelberger. Eckelberger said the popularity of the style helped energize customers and also helped change the way people think about denim. “Interest in a skinny jean and a jegging definitely got people in the door and refreshed what we think about, too,” she said. Fuller said since denim leggings tended to be made of lighter-weight fab- rics, they appealed to customers who viewed them as a year-round item. “The jegging did hit at a good time to keep the business afloat, abso- lutely,” said Blit. “It definitely took some of your [traditional] denim sales away because this became such an item.” Predictably, brands have flooded the market with their version of the legging and it appears the style has staying power. “The denim legging category is so strong that it’s just one of those ele- ments that’s been added to everybody’s jeans line,” said Tolles. “That’s not a transitional kind of thing like the boyfriend. That had a specific look for a specific time. The denim legging is just such a comfort factor that it’s now being incorporated into several different looks.” FOLLOWING THE MONEY The denim industry’s appeal is capturing the attention of the financial and investment community, particularly in the premium segment. Many smaller premium labels were forced out of the market by the recession, but those that had a solid footing beneath them heading into the storm have become even more appealing coming out of it. In March 2009, former Reebok chief executive officer Paul Fireman partnered his Fireman Capital Partners private equity firm with Webster Capital to invest in Hudson Jeans. The size of the investment was report- edly upward of $30 million and resulted in the installation of a board re- U.S. WOMEN’S MARKET sponsible for helping develop the brand into a global lifestyle label. The latest investment came in February when Star Avenue Capital LLC 2010 2009 % CHANGE acquired a majority interested in Los Angeles-based J Brand in a deal said to be valued in excess of $50 million. Star Avenue was established in SPORTSWEAR $65.55 BILLION $66.16 BILLION -0.9 early 2009 as a three-way partnership between Star’s management, private equity firm Irving Place Capital — a key investor in operations such as JEANS $8.52 BILLION $8.02 BILLION 6.2 Aéropostale, Seven For All Mankind, Stuart Weitzman and The Vitamin SPORTSWEAR (UNITS) 4.23 BILLION 4.31 BILLION -1.9 Shoppe — and entertainment powerhouse Creative Artists Agency. As part of the deal, J Brand welcomed former Jones Apparel Group Inc. JEANS (UNITS) 367.7 MILLION 341.5 MILLION 7.7 ceo Peter Boneparth as its chairman. “It’s a segment of the market I think has some real staying power and some AVERAGE JEANS PRICE $23.18 MILLION $23.49 MILLION -1.3 upside potential, as well,” Boneparth said of the premium denim segment. jbrandjeans.com 10 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH By the Numbers: Men’s
By David Lipke “This is an extension of our Body jean that we’ve had great success with. It’s profile-enhancing, and it really enhances the shape and form of the wearer,” said GUYS ARE BUYING FEWER JEANS THESE DAYS BUT PAYING SLIGHTLY Kevin Carrigan, global creative director for Calvin Klein Jeans. more for them, keeping overall men’s denim sales stable over the past year. The men’s X Jeans have a skinny 13-inch leg opening, with some styles incorpo- For the 12 months ended in March, total sales were $5.4 billion, up slightly rating up to 28 percent T400 Lycra spandex for high levels of stretch and comfort. from $5.39 billion the previous year, according to NPD Group data. Unit sales “It makes the denim ultrasoft,” Carrigan said. “It’s a very simple, clean jean, dipped 3.3 percent to 227.3 million pairs of jeans, but the average price increased so it’s really about the fit and comfort. The high Lycra count means there’s no bag- to $23.74, up from $22.91. ging at the knees and the jean really keeps its shape.” Men’s denim has proven resilient, even as total men’s sportswear sales de- Carrigan added that Calvin Klein is pushing the head-to-toe denim look with clined 2.4 percent to $34.29 billion for the year ended in March. shirts and jackets for fall, as well. The brand showcased the look on its runway For the 12 months ended in March, men’s denim sales grew in specialty stores, extravaganza in Shanghai last month. For spring 2011, Calvin Klein will introduce off-pricers and direct mail/e-commerce pure plays, while department stores, na- new denim fabrics that blend in Tencel for additional softness and drape. tional chains, mass merchants and factory outlets lost some ground. Calvin Klein will introduce a new replenishment program for its Body jean As the economy improves, men are shelling out more green for their indigo. Men’s this fall, which retails for $59.50 compared to $39.50 for its basic models. jeans priced under $25 declined in overall volume by 7.9 percent to $2.38 billion, as “We’re putting that on quick response for this fall,” said David Cunningham, those priced from $25 to $49.99 grew by 8.5 percent to $2.26 billion. Denim priced president of the Calvin Klein Jeans business at Warnaco. “We’ve had a nice bump over $50 expanded by 5.3 percent to $754.8 million. in sales from Body last fall and it’s a sign that if you offer the right design and At VF Corp.’s jeanswear coalition, which houses Wrangler and Lee, sales de- quality, the consumer is willing to pay for it.” clined 4 percent in 2009, on top of an 8 percent drop in 2008, but the company be- At Seven For All Mankind, another VF Corp.-owned brand, the men’s business lieves it continues to grow market share, as competitors suffered larger declines is up double digits for the first quarter, according to Susan Kellogg, president of in the challenging retail environment. VF Corp.’s contemporary sportswear coalition. Boot fits are strong sellers at Wrangler, which includes two mass sublabels, “Men’s is outpacing our overall business,” she said. “Things really started to Wrangler Five Star and Wrangler Jeans Co., that are sold at Wal-Mart, Kmart, turn around in the fourth quarter of 2009. The customer started to shop again.” Target and regional chains like Shopko, Myer and Pamida. This fall, the company The brand suffered an extended slide last year, with overall brand sales will grow distribution of its Comfort falling 8 percent, due to difficult Solution series of jeans with stretch conditions in upscale department waistbands that expand up to two and specialty stores. However, inches. The $20 jeans were introduced Kellogg noted that even during last year and will be available at more U.S. MEN’S MARKET that decline, men’s remained points of sale this coming season, said strong for the brand. Jenni Broyles, senior marketing com- 2010 2009 % CHANGE “Men’s is more price resistant munications manager at Wrangler. than women,” she said. “I’m really Calvin Klein and licensee Warnaco SPORTSWEAR $34.29 BILLION $35.15 BILLION -2.4 behind the men’s business, and I will introduce a higher-priced denim think it’s a high-growth area for us.” style this fall called Calvin Klein X JEANS $5.4 BILLION $5.39 BILLION 0.2 Its own retail chain remains Jeans that will retail for $99 and feature SPORTSWEAR (UNITS) 2.01 BILLION 2.06 BILLION -2.4 a central initiative for the com- a stretch waistband and novelty seaming pany, and its direct-to-consumer and darts that contour the jeans to the JEANS (UNITS) 227.3 MILLION 235.1 MILLION -3.3 sales more than tripled last year. body. There’s even a dart on the lower Seven For All Mankind operates leg meant to accentuate the calf muscle. NOTE: DATA ARE FOR THE 12 MONTHS THROUGH MARCH 2010. SOURCE: THE NPD GROUP 31 stores in the U.S. and plans to add another 8 doors by yearend. Calvin Klein Jeans’ Kevin Carrigan with models in the new X Jeans. Internationally, there are 44 owned and licensed stores, with plans to TOP 10 MEN’S add another 36 this year, which JEANS BRANDS BY SALES will bring the total worldwide store count to 119 by December. 1. LEVI’S* At Hudson Jeans, the company 2. WRANGLER has kept its prices stable and re- sisted price pressure from retail- 3. LEE ers, said president and chief ex- 4. CALVIN KLEIN ecutive officer Peter Kim. 5. SOUTHPOLE “Stores are always asking for lower prices, but we’ve stayed 6. DICKIES true to our pricing structure,” Kim 7. RUSTLER said. “We use the best mills in Italy 8. ROCAWEAR and Japan and make everything in L.A., and we don’t want to compro- 9. POLO/RALPH LAUREN mise on that quality.” 10. SEAN JOHN Hudson men’s denim retails for $170 to $260, with the bulk in the $180 to $190 range. *INCLUDES ALL LEVI’S LABELS The Hudson men’s business is on track to comprise 10 to 15 per- cent of sales this year, up from less than five percent in 2009. “It’s tracking extremely well,” Kim said. “Our current pace is to triple our men’s business this year. We’ve made a conscious decision to take the men’s busi- ness a lot more seriously.” The Los Angeles-based brand got a major cash infusion from investment firms Fireman Capital Partners and Webster Capital last year. Its men’s denim is now available in Neiman Marcus, Saks Fifth Avenue, Nordstrom, Bloomingdale’s and Bergdorf Goodman, as well as more than 250 independent specialty store accounts like American Rag, E Street Denim and Mario’s. The company has partnered with several of its retailers in recent months to create promotional parties with DJs and cocktails, including events with Barneys New York and National Jeans Co. “We understand times are tough and we want to help our stores as much as possible, whether that’s events or negotiating about terms and payments,” Kim said. “The key is communication and getting through these challenging times together.” Stretch offerings are a big component of Hudson’s men’s line, with 70 to 80 percent of sales in stretch styles. While skinny fits tend to get the most editorial attention these days, straight legs are still the best-selling style at Hudson, fol- lowed by a boot fit. “It depends on geography and channel,” Kim added. “In department stores, there’s a balance between a relaxed boot and the straight leg. In specialty stores, you see more straight leg. The skinny is a much smaller piece of our business for the fashion consumer.” PHOTO BY GREG KESSLER PHOTO BY
12 WWD, THURSDAY, MAY 20, 2010 SECTION II
WWD DENIM IN DEPTH
MILITARY MOTIFS GET SOME ACTION THIS SEASON — FROM HEARTY PARKAS TO CARGO PANTS CUT TO FIT A WOMAN’S CURVES. STYLED BY KIM FRIDAY PHOTOS BY GEORGE CHINSEE
Ever’s silk blouse with Not Your Daughter’s Jeans’ cotton and spandex denim jeans. Metropark hat; Rock & Republic Eyewear; LowLuv by Erin Wasson necklace; Sam Edelman boots. WWD, THURSDAY, MAY 20, 2010 13 WWD.COM
Agave Nectar’s leather bomber jacket over Prps’ cotton denim jumpsuit. Pamela Love jewelry; Deréon boots.
Mustang Jeans’ cotton canvas parka, Diesel’s cotton denim jacket and shorts and Surface to Air’s silk blouse. Wolford hosiery.
Levi’s cotton top over Evisu’s cashmere sweater, The Shirt by Joe’s Jeans’ cotton and spandex shirt (tied at waist) and J Brand’s cotton and spandex cargo pants. John Varvatos Eyewear; LowLuv by Erin Wasson bracelets; Frye boots. 14 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH Miss Sixty’s wool and polyester coat worn with Hudson’s MicroModal tank top and G-Star Originals’ cotton twill pants. Donna Karan Eyewear; King Baby dog tags; Ra-re foxtail; D&G brogues.
MODEL: VANESSA CRUZ/IMG; HAIR BY SIEJI AT THE WALL GROUP; MAKEUP BY MISUZU MIYAKE FOR NARS COSMETICS.
16 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
S YMI PREMIUM S MIKE LANE’S S TRUE RELIGION BRAND JEANS BELLE DE JOUR FLARE AND BELL-STYLE JEANS HAVE A GREAT RING TO THEM. — KIM FRIDAY
S GUESS PREMIUM S FIDELITY DENIM S MATIAS DENIM PHOTOS BY JOHN AQUINO PHOTOS BY
18 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
S UNION BAY S DENIMOCRACY S CITIZENS OF HUMANITY
SLIMTHERE’S ANYTHING BUT WHEN IT COMES TO SKINNYPICKINS JEANS AND JEGGINGS. — KIM FRIDAY
S GENETIC S SEVEN FOR ALL MANKIND S HUDSON PHOTOS BY JOHN AQUINO AND ROBERT MITRA JOHN AQUINO AND ROBERT PHOTOS BY Style: A|X183/S 20 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
The ultraskinny jean prevails for fall, showcasing traditional dark denim, black, gray and the Eighties-inspired acid wash, allowing for the inner rocker to emerge.
STYLED BY ALEX BADIA PHOTOS BY ELI SCHMIDT
Union’s cotton denim jeans, Sitbon Laundry’s cotton and leather jacket and LnA’s cotton tank top. Miansai necklace; Diesel belt; Dr. Martens boots.
22 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH Perry Ellis’ cotton denim jeans, Levi’s cotton shirt and Shipley & Halmos’ leather vest. Stylist’s own bandanna.
24 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH Kill City’s cotton and spandex denim jeans. Rogan’s leather jacket and William Rast’s wool coat. Dr. Martens boots. ABRACADABRA!
nydj.com 26 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH Acne’s cotton and spandex denim jeans and A.P.C.’s cotton shirt. Seven For All Mankind suspenders; Dr. Martens boots. ATHER EVITTS AND SIMON SIRIXAY ATHER MODEL: BERTHOLD R./FUSION; HAIR AND MAKEUP BY ANNA BERNABE FOR CLINIQUE; FASHION ASSISTANT: LUIS CAMPUZANO; FASHION INTERNS: HE CAMPUZANO; FASHION LUIS ASSISTANT: ANNA BERNABE FOR CLINIQUE; FASHION HAIR AND MAKEUP BY R./FUSION; MODEL: BERTHOLD
28 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
Clockwise from top: Rock & Republic studded suede bootie; G-Star Raw denim bag; Guess PVC fanny pack; Joe’s Jeans metal and leather belt; Seven For All Mankind suede boot; Silver Jeans studded leather belt; Guess sunglasses.
Beyond the Blues
SOMETIMES IT’S NOT ALL IN THE JEANS, EVEN FOR DENIM LABELS. While not usually an immediate moneymaker, most firms feel the potential Accessories appear to be the new frontier for a spate of denim lines eager to in- accessories growth is worth the wait. Parasuco expects accessories to account for crease their exposure and capitalize on brand awareness through such products as 50 percent of its business in the next five years. shoes, bags, watches and eyewear. G-Star, Joe’s Jeans, Parasuco, Rock & Republic, Joe’s Jeans first entered accessories in 2007 with handbags, seven years after True Religion, Silver and Seven For All Mankind are among the companies ex- starting out with premium denim. Belts and shoes followed this spring. panding their accessories repertoire, most of which is produced by licensees. “It’s not the most important thing we’re doing financially,” said Marc Crossman, “Consumers were asking for more from us — so it made sense,” said Susan chief executive officer of Joe’s. “It will take some time before it becomes mean- Kellogg, president of the Contemporary Brands Coalition at VF Corp., of Seven For ingful to our bottom line. But as we’re rolling out our retail stores and trying to All Mankind’s recent footwear (fall 2009) and eyewear (spring 2010) launches. grow the brand name in general, it’s really important.” But as much as branching out is a logical response to customer needs — “We’re Not everyone is new at this. Guess was ahead of the curve on the accessories jean-centric,” said Michael Silver, president of Silver Jeans. “And probably well front, launching watches in 1984, at a time when, as Paul Marciano, ceo and vice over 50 percent of those people who are wearing jeans have a belt on” — it’s also chairman of the firm, pointed out, the only fashion watches on the market were integral to longevity in such a competitive market. Swatch. Flash forward 25 years and Guess has handbags, eyewear, jewelry, belts, Things have changed quite a bit since Parasuco launched 35 years ago. shoes, a high-end watch collection called Gc and freestanding accessories stores “At one time we could do our whole business on one item all year round,” that opened in 2005 and now total 200 worldwide. said Salvatore Parasuco, founder of Parasuco, which introduced men’s and Marciano estimates retail sales for accessories alone to be over $2 billion. women’s belts in 2008, and will launch a new high-end handbag collection under They key, he said, is finding reliable partners in licensees. the label Salvatore Parasuco for fall. “Now, because of globalization, the speed “We didn’t know how to make watches, so we went to the best,” he said. “To of technology and what’s available, the way to differentiate ourselves from other make a shoe and to make a pair of jeans is two different worlds.” people is branding.” — Jessica Iredale PHOTO BY GEORGE CHINSEE; STYLED BY SHOSHANNA FISCHHOFF GEORGE CHINSEE; STYLED BY PHOTO BY
30 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
A fall Notify Jeans A men’s Notify look for women. Jeans style for fall.
April77
Levi’s new Regent Street flagship. European Evolution YVES MOURTADA APRIL77 PHOTO BY
By Katya Foreman and Emilie Marsh which was added at the end of last year, are also showing big-volume sales. “We’ve seen certain brands lower prices, such as Seven For All Mankind for PARIS — Finally, an end to the premium denim blues. their basics, but for those brands wanting to differentiate, there’s not really a Demand is returning as a fashion staple in Europe, spurred by price adjust- limit,” said Deswelle. ments and a focus on quality and innovation, according to denim brands. Levi’s Broger said, “Europe is the most competitive jeans market in the world,” “Wouldn’t you feel pretty foolish if you were to spend $400 on a pair of jeans adding the market was more “polarized and fragmented” than ever before, caus- now?” asked Ed Burstell, buying director at Liberty in London. “We’re extremely ing confusion among consumers. bullish on the category for the second half of the year. There was a rethinking, or “Our strength is that we have a number of ranges and jeans fits and finishes a readjustment down, with regard to pricing that has sparked renewed interest that address a variety of connoisseurs, from the most fashion-involved consumer, in the category.” who wants elevated products such as our new Levi’s Made & Crafted or Levi’s Bestsellers at Liberty include Acne, Nudie Jean, J Brand, Seven Jeans, James Vintage Clothing range, through to customers who buy products from our Levi’s Jeans, Current/Elliott, Superfine, Craft and R13. To meet the uptick in demand, Red tab range,” Broger said. the department store will add a “destination denim room” to its men’s depart- For fall, Levi’s is focusing on the women’s collection, elevated premium offer- ment in August, with Levi’s and RRL as anchors. It also will swell its women’s ings and the launch of its yet-unnamed brand in Asia. offering by 20 percent for fall. Levi’s said it plans to accelerate growth through its own store network, opening “I think if anything, at this moment in time, our jeans business is more healthy “recrafted” flagships. The first example of the new concept opened on London’s than it has ever been,” said Brix Smith-Start, who owns Start, a ready-to-wear and Regent Street in March. denim boutique in East London. “The store is part of our strategy to have a significant retail presence in the Smith-Start also noted a shift toward affordability. “I think that brands are much key fashion capitals around the world,” Broger said. more price conscious and possibly less greedy than they were two years ago, but our The credit crisis did cause a few casualties in Europe. Lee Cooper, which is owned customers will pay whatever it costs for a good, decent pair of jeans,” she said. by Sun Capital Partners Inc., filed for bankruptcy protection in France in March. French department store buyers agreed that denim, regarded by consumers as a Meanwhile, French denim and sportswear brand April77, which was placed in hot fashion staple that continues to reinvent itself, remains an important category with administration, the French equivalent of Chapter 11, in March, has since recen- legs. Denim’s prevalence on the fall runways only served to further spur demand. tered its business to focus on its music label and core denim offer. “There’s this American sportswear attitude that’s back,” said Tancrède de The firm plans to move its logistics site back to Grenoble, France, and focus Lalun, general merchandising manager for men’s and women’s apparel at Paris’ distribution in its home market and neighboring countries in Europe. Eleven em- Printemps Haussmann. ployees have been laid off. De Lalun cited Chloé, Ralph Lauren, Dolce & Gabbana and Alexander Wang “Today, the consumer knows what it costs to make a pair of jeans,” said Brice among brands spurring demand for denim. Partouche, April77 founder. “It’s been democratized by the television and maga- While skinny jeans continue to hog the must-have throne, trends set to gain zines. They know the price they should pay.” prominence over the coming months include the “jegging,” an uberstretch jean- Several brands cited lowering fall prices as a key strategy. To that end, legging hybrid, as well as iconic heritage denim labels. Wrangler France, which is owned by VF Corp., has delocalized its manufacturing “The business climate in Europe continues to be challenging, but we believe to a plant in Mauritius recently acquired by the company. there is a healthy market for brands rooted with a strong heritage,” said Armin Martial Birembaux, the firm’s commercial director, said in order to remain competi- Broger, president of Levi Strauss & Co. Europe, Middle East and North Africa. tive while allowing for retailer margins, the aim was to lower the brand’s price posi- Denim shirts and jackets are also due for a major comeback, retailers predict, tioning by around 20 percent, to the 75 euro to 85 euro, or $95 to $110, bracket. Anything thanks to the total denim-look trend that is in the air. De Lalun said creative, priced above that will have a hard time shifting, according to Birembaux, who observed fashion-forward denim is in demand, especially from female customers who enjoy Europe’s denim market is coming back to the prices seen eight or nine years ago. sniffing out new trends and labels. In contrast, Notify Jeans owner Maurice Ohayon said he increased prices by The store’s strategy is based on offering a wide-ranging palette of prices and 30 percent for fall. styles, spanning emerging labels to established heritage brands. Big-bucks “pre- “We knew we had to elevate ourselves above the pack, so we used more intri- mium premium” jeans are not part of Printemps’ offer, he said. De Lalun, cited cate washes and premium fabrics, which are all made in Italy,” said Ohayon, add- Joe’s Jeans and Current/Elliott among the hot new niche additions. Levi’s and ing fall orders were also up 30 percent. “Honesty is paramount. If you want to sell Diesel remain the store’s bestsellers, he said. something for 40 euros that’s worth 40 euros or something for 200 euros which is For Mony Deswelle, a denim buyer for tony Paris department store Le Bon Marché, worth 200 euros, there’s no problem, but if you sell jeans for 200 euros that are which revamped its denim space last year and carries a premium-focused denim worth 20 euros, it’s normal consumers [who] will call the police.” offer, there’s no real ceiling on price, providing the style merits a hefty price tag. Notify, which is introducing a military-inspired footwear collection, as well The design aspect of Notify’s five-pocket fall leather pants, for instance, could jus- as Notify: My Very First denim collection for kids next fall, said sales last year tify its 600 euro, or $755 at current exchange, ticket, Deswelle suggested. She added increased by around 12 percent to 20 million euros, or $24.77 million. that 300 euro, or $375, slim cargo jeans by J Brand that entered the store late last Ohayon attributes the line’s success to the focus on high quality and innovation month were gobbled up by customers in a week due to their high-fashion factor. as well as a lean structure. Average spending on jeans in the store falls in the 200 euro to 250 euro, or “We never overproduce,” he said. “The market is inundated with stock and $250 to $315, range. Notify and Seven For All Mankind count among the store’s brands wind up losing their exclusivity. I try to educate the customer to eat bestsellers, while brands such as Acne, Citizens of Humanity and Current/Elliott, what they can.”
32 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH Stretch Jeans Expand Appeal
By Ross Tucker The 17/21 Group, a company owned by L.E.I. founder Mel Geliebter, launched Sold Design Lab for spring with the aim of introducing stretch jeans that perform THE STORY OF THE DENIM INDUSTRY OVER THE LAST YEAR HAS BEEN well enough to eliminate traditional sizing altogether. Michael Geliebter, Mel’s one dominated less by style or wash or even celebrity endorsement, but by fabric, son and chief executive officer of 17/21 Group, said the goal from the outset with specifically types with a single performance characteristic: stretch. Sold was to introduce pull-on jeans available in extra small, small, medium and The incorporation of stretch fibers in denim has evolved from a relatively minor large. Achieving that performance relied entirely on the fabric. consideration several years ago to a performance requirement this year, spurring “We needed something that was superelastic, that didn’t bag, that had good an all-out scramble among brands to stake their claim on having the best-per- recovery and that could be developed and retail,” said Geliebter. forming jeans in the market. The result for The process of developing a fabric with store buyers has been the proliferation enough stretch and recovery took more of buzzwords among brands hawking than four months. denim crafted of seemingly miracle “To be innovative and to have some fibers with names like hyper stretch, type of novel approach out there with our virtual stretch, super stretch and product we needed to offer something on power stretch. the further extreme,” said Geliebter. Hyperbole in marketing aside, Sold Design Lab’s fate hangs almost several years of innovation at the entirely on whether the novelty of a mill level has taken stretch content pull-on jean with more moderate re- in denim from around 2 percent two tail prices ranging from $98 to $128 will to three years ago to upward of 35 per- speak to consumers. So far, Geliebter cent today. The industry took advantage said they’ve garnered a strong re- of the increased versatility with the in- sponse from buyers. troduction of ever-skinnier silhouettes, “It’s understood that there’s a lot of eventually making the progression to stretch in the marketplace,” he said. “I the denim legging, or jegging. think what’s new and what we continue The combination of a new style, to push is that level of stretch that’s in comfort and lower price point made excess of what’s been traditional in the the denim legging an almost immedi- garment for the last several years. That’s ate success, and helped brands and the new stretch in the marketplace.” retailers weather a difficult market. Store owners and buyers have their Stretch performance is now becoming own issues when it comes to stretch. a nearly mandatory topic of discus- Some are skeptical after the poor per- sion for brands and buyers, but trans- formance of stretchy jeans in years lating the message of performance to past. Others believe their customers customers remains a challenge. understand they may want the feel Jean Hegedus, global market- of a stretchy jean, but they’re never ing director of denim and bot- going to understand a branded toms at Invista, said so-called stretch technology. Some have superstretch fabrics seen sales reps for have been driving the brands struggle to stretch category. explain the stretch “I think jeggings and the performance proper- whole skinny trend is really ties themselves, eventually helping to drive superstretch,” dropping the approach. said Hegedus. “We’re also seeing the use of Lady Fuller, owner of the Blues Jean Bar, a lot of lightweight fabrics.” a chain of seven stores in Chicago, Dallas, Hegedus believes female consumers in Denver, San Francisco and Santa Monica, particular have accepted the added com- Calif., said she’s sticking with some of the fort of stretch garments, but when it comes early brands that introduced stretch-specif- to denim the product has to prove that it ic products, including DL1961, Serfontaine will recover its shape after repeated use and a skinny jean from James Jeans. and won’t shrink in the laundry. The added “There is a value as having been first to level of technical difficulty required to hit market with stretch material,” said Fuller. all three of those performance characteris- Educating consumers about stretch is an- tics will be what determines a winner. other challenge Fuller believes most retail-
Invista introduced its stretch product, a TYLER BY ILLUSTRATION RESTY ers, even denim specialists, aren’t necessar- four-way stretch fiber dubbed XFit, in 2006 ily willing to take on. and targeted the premium denim segment. “We’re able to talk about stretch as a sell- The company later updated XFit by combin- ing point and I think it’s not a selling point ing it with its T400 fiber. Hegedus believes the in 99 percent of denim stores because it’s just too stretch craze is beginning to trickle down to the much information,” she said. moderate and mainstream markets. Evidence of just how difficult it is to successful- “We’re starting to see brands in the upper-mod- ly market a branded stretch product in the apparel erate echelon beginning to use XFit technology,” she market was seen this month when Dow announced said. “Ultimately, I think as more and more people ex- it would be shutting its “fiber solutions” segment, perience it, we believe it will continue to expand.” which consisted of the Dow XLA stretch fiber. The Several brands are banking substantial portions company introduced Dow XLA in 2002, specifically of their brand identity on the quality of their stretch. I think jeggings and the whole targeting the denim market. The stretch fiber was DL1961 began shipping in September 2008 and uses “ later expanded into dress shirts, swimwear and XFit exclusively. The label touts the XFit and four- skinny trend is really helping to lingerie. A spokeswoman for Dow said production way stretch message overtly on hang tags and inside of XLA would cease within six to 18 months. the waistband in an effort to convey to consumers its drive superstretch. “This decision is consistent with our effort to advanced technology. ” streamline and focus the company’s portfolio of Will Redgate, the label’s director of sales, has — Jean Hegedus, Invista businesses,” said the spokeswoman. “After a thor- watched as competitors move in on DL1961’s mes- ough review, Dow determined that Dow Fiber sage, but is confident that the fabric’s performance wins out. Solutions was unable to compete with other Dow Performance Businesses for “I have yet to find another type of denim that performs exactly the same as XFit, further investment and expansion.” so it’s my feeling that if you’re not using XFit you haven’t caught up,” said Redgate. Those in the denim industry who worked with XLA felt the fiber performed well. However, he acknowledges that with most brands marketing their own ver- “I think [Dow XLA] is a fantastic product and I’m really sorry that it’s gone,” sions of stretch, it will fall on buyers to sort out the legitimate players. It’s also said Andrew Olah, ceo of Olah Inc., a U.S. agent for foreign contract manufactur- difficult to gauge how successful the branding of something like XFit can be at a ers and textile and hardware vendors targeting denim designers. consumer level. XLA was putting itself up against generic and branded spandex products, he said. “I definitely think that with the overuse of the term stretch, [store owners] will “They wanted to be in a higher bracket of a market…so they were hoping to have to do some homework as to what’s a valid product,” he said. offer a product that was superior to Lycra and more expensive,” Olah added.
34 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH New Lucky Brand CEO Seeks Sharper Focus
By Khanh T.L. Tran VERNON, Calif. — If the late Gap co-founder Donald Fisher taught Lucky Brand chief executive officer David DeMattei one thing, it’s that retail companies buy inventory and sell inventory. On a visit to Lucky’s San Francisco store last fall before offi cially taking the job at Lucky in January, DeMattei noticed the fundamental tenet of retailing was being ignored. He couldn’t fi nd jeans in certain sizes and the organization of the store was confusing. “It’s hard to shop,” he told his future boss, Liz Claiborne Inc. ceo William McComb, and Lucky co-founders Barry Perlman and Gene Montesano, who all fl ew to San Francisco to meet with him. Four months after joining Lucky, DeMattei is applying his 25 years of retail experience gained at Williams-Sonoma, J. Crew, Gap and Banana Republic to turn Lucky around. His fi rst order of business is to entice shoppers with snazzy dis- play windows that show off jeans selling for less than $119. Second, he plans to do more direct marketing to the 500,000 customers in Lucky’s database with e-mail blasts and catalogues. Third, all Lucky stores will begin using a new computerized replenishment system that will help them restock popular styles more quickly. Last, and perhaps most important, he plans to focus intensely on product and merchandise management. DeMattei is reducing the number of graphic T-shirts, increasing the number of women’s styles by 30 percent and expanding offerings for woven tops, sweaters, dresses, skirts and jackets. Lucky Brand renovated its fl agship on San Francisco’s Grant Street.
“It’s disciplined merchandising,” DeMattei said at his offi ce in SARDELLA DONATO BY AND DEMATTEI WADE Lucky’s headquarters here outside of Los Angeles. “You have to be strong, effi cient and more focused.” DeMattei is undertaking this ambitious project as the retail industry recovers DeMattei will be narrowing his focus at Lucky even more in the coming from the Great Recession. months. Ordered by McComb to grow the brand, he is seeking to strengthen the “Traffi c trends remain subdued across channels, particularly in mall locations,” denim business, which makes up half of Lucky’s sales, with novel items such as said McComb in a recent conference call with analysts regarding the company’s fi rst- skinny jeans accessorized with railroad-stripe suspenders. As part of the focus quarter earnings. “The consumer is not back in force. Those that are shopping want on denim, he aims to elevate Lucky Legend, the premium denim subbrand that to buy….But I would say there are many that have still not returned to the stores.” launched in 2007 with retail prices starting at $119, by opening a freestanding Lucky became part of the Liz Claiborne family in June 1999, when it sold concept store as soon as next year. a majority stake to the New York-based conglomerate for $113.5 million. Liz DeMattei also hopes to capitalize on emerging trends such as khakis. He’s ready- Claiborne continued to buy the remaining shares over the next decade. In total, ing the introduction of Surplus Collection, which will give a vintage twist to khakis, Liz Claiborne paid more than $216.9 million for Lucky. Montesano and Perlman as seen in olive green military jackets that zip on the side and safari-style dresses. are in the fi nal year of a three-year contract that stipulates they step back from “[Lucky] wasn’t as sharply focused as it needs to be in this competitive market,” day-to-day responsibilities and take nonoperating creative consultancy roles. DeMattei said. “Sometimes brands become their worst enemies. In 2007, McComb designated Lucky, Juicy Couture and Kate Spade as Liz The customer is always looking for what’s next in retail.” Claiborne’s “power brands,” placing high hopes on the trio while shedding Liz DeMattei, 53, has seen retail change a lot over the decades. Claiborne’s portfolio of smaller brands. The power brands make up 40 percent He began his apparel career in 1983 at Gap, where he was chief of Liz Claiborne’s sales. fi nancial offi cer and also president of the Banana Republic In the fi rst quarter ended April 3, Liz Claiborne narrowed its net loss to unit. He subsequently became president at J. Crew, $71.8 million from $91.4 million by reducing expenses, while sales fell 22 Coach’s North American business and the Williams- percent to $608.5 million from $775.3 million. For the rest of the year, Liz Sonoma group that encompassed Williams-Sonoma, Claiborne said it expects sales to fall between 10 and 15 percent. Williams-Sonoma Home and West Elm. At Williams- First-quarter sales for Lucky de- Sonoma, he created the retail concept for West Elm. Patrick Wade and creased 5.5 percent to $92 million. Patrick Wade stands by DeMattei’s side as Lucky’s David DeMattei Lucky’s comparable-store sales de- new executive vice president and creative director, creased 10 percent, with sales per overseeing marketing and visual merchandising. square foot totaling $420. Lucky Wade, 52, who has been DeMattei’s life partner for ended the quarter with 180 stores in 25 years, followed a similar career track. Holding se- the U.S. and 12 in Canada. It oper- nior positions at Coach, J. Crew, Nature Co. and Gap, ated 46 outlet stores in the U.S. he supervised store design and visual merchandising. “There’s room for growth,” said Prior to starting at Lucky on the same day as DeMattei, DeMattei, although declining to re- he was senior vice president of creative services and veal locations and a timeline for visual merchandising for West Elm, Williams-Sonoma future store openings. “A premium Home, Hold Everything and Pottery Barn. brand [like Lucky] could have 300 “We are trained retail people, as opposed to being stores in the marketplace.” trained wholesale people,” DeMattei said. “It’s about In the meantime, Wade is directing fl ow and how things sit together and color palette [in the renovations of 10 fl agships, includ- the store].” ing the unit on San Francisco’s Grant DeMattei insisted he isn’t turning his back on the Street and the NorthPark Center shop wholesale business, which makes up half of Lucky’s in Dallas. His goal is to make the store sales through retailers including Macy’s, Belk, experience “more exciting, easy to Bloomingdale’s and Nordstrom. shop and more relevant,” he said. “Right now, I’m focusing on what’s driving the busi- In addition to blue and white ness,” he said. vases, he’s giving a fresh, textured So far, DeMattei is on the right track, said Jennifer look to the stores with brown woven Black, ceo of a namesake research and analysis fi rm trunks, vintage leather suitcases, raf- in Lake Oswego, Ore. S Looks from Lucky fi a trim and light blue wallpaper printed with stripes or paisley patterns. He’s “I don’t think the consumer today wants a zillion Brand’s fall collection. also collecting scrap metal from factories that were used to build World War II choices,” she said. “I like a very focused assortment. J. bomber planes, refashioning them as tables and shelves to display the rugged, Crew is very focused. Ann Taylor is very focused. The Gap is very focused….You masculine clothing in the men’s line. For the women’s section, zinc, greige wood don’t have a bunch of dead weight. It’s a better way to run the business.” and whitewash picture frames will enhance the feminine, romantic feeling of the Moreover, DeMattei and Wade have a knack for style and presentation, which coming fall collection. He’s also ordering more bust forms so that the stores can they will need to put to good use as they set about sprucing up Lucky. Their homes display complete outfi ts. in San Francisco and Napa Valley have been prominently featured in House “You can walk into the store now and make an outfi t,” said Lisa Lowman, Beautiful magazine. José Picayo, the lensman who snapped the tasteful photos Lucky’s vice president of design, who is particularly enamored with what she dubs for House Beautiful, was hired to photograph Lucky’s new marketing campaign in “the third piece,” which could be a chambray workmen’s jacket or a denim blazer. Malibu, Calif., with a crew of freshly scrubbed, sun-kissed models. Moreover, their “It’s an outfi t completer,” she said. “It’s all about layering.” personal collection of antique blue and white porcelain inspired the similarly Nicolas Peyrache, Lucky’s director of denim, is picking up the trend of sewing hued vases that add a touch of chinoiserie to the renovated stores. patches on jeans, which are staying clean without too many tatters. He’s also look- “They’re artistic and I think that’s what it takes,” said Black, adding that she ing beyond traditional fi ve-pocket jeans to drawstring pants cut from chambray hopes their fl air will translate well to the store windows. “The windows are so weighing as little as six ounces. important because that’s what draws people in. They need to step it up a notch Next year, DeMattei will turn his focus to Asia, where, he said, “denim and the and tell a story by the windows.” American brands do well.” BEST BRANDS. BEST BUYERS. BEST BUSINESS.
WWW.BREADANDBUTTER.COM 36 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH China Extends Grip on Global Denim Production
By Liza Casabona 41.9 percent. China was the second top supplier, “Everyone else is really a wannabe,” Hughes said. with 16.4 percent of the market. China’s growth in “Everyone else is striving, but China really owns [the WASHINGTON — Americans were true-blue to their 2009, however, was steeper in men’s than women’s, denim] business now.” jeans during the recession, and China reaped the re- with shipments rising 86.3 percent. Despite the increase in Asian sourcing, mounting wards of their loyalty. The biggest losses for women’s jeans were incurred macroeconomic pressures are likely to leave room for China carved out a substantially larger share of by Cambodia, Egypt and Pakistan, where market share more than one country to serve the industry’s needs. the women’s denim market and continued to grow its fell 32.6, 27.6 and 24.7 percent, respectively. China in particular has seen the cost of labor, freight piece of the men’s market last year in the midst of the Most other top supplier countries saw shipments of and raw materials rise. Cotton prices have increased global economic downturn that took its toll on sales men’s jeans to the U.S. decline, with the exception of significantly since last year, rising to around 73 cents in most apparel categories. Bangladesh, Nicaragua and Cambodia. Denim imports per pound at the end of April, compared with 40 Overall imports of denim jeans to the U.S. rose 1 from Nicaragua jumped 64 percent to claim a 3.1 percent cents a year earlier. percent in 2009 compared with 2008, according to the market share. Bangladesh shipped 18.9 percent more “There’s a lot of nervousness about China,” Commerce Department’s Office of Textiles & Apparel. jeans in 2009 than the previous year, accounting for 11 Hughes said. Traditional drivers of sourcing decisions like cost, on- percent of the market. Cambodia increased its imports Cost concerns are pushing more companies to- time delivery and on-trend fashion and fit were even ward diversified sourcing strategies, she said. more important during the recession, experts said. “Even the people that were initially comfortable “The economic downturn certainly impacted sourc- Everyone else is striving, but with a large percentage [in China] are rethinking that ing,” said Kim Kitchings, senior director of corporate “ right now,” she added. strategic planning and program metrics for Cotton China really owns [the denim] Jeff Rosenstock, vice president of General Sportswear, Incorporated. “People were going to stay safe to some de- which manufactures private label jeans for major retail- gree, where they had dependable and reliable vendors.” business now. ers, said his Western Hemisphere-based business has China benefited from its well-established infra- ” benefitted from some of the concern over concentrating structure and higher capacity, while Mexico held on — Julia Hughes, USA-ITA too much production in China and its neighbors, many of to some of its more basic, commodity-based men’s 8.5 percent to claim a 2.7 percent market share. which are impacted by similar forces. denim. China’s share of the women’s denim market For men’s suppliers, the largest import declines “We’re having opportunities we didn’t have be- soared 84.9 percent in the 12 months ended Feb. 28, were in Lesotho, Colombia and Vietnam. Shipments fore,” Rosenstock said. “Retailers are coming to us compared with a year earlier, to claim 46.5 percent from Lesotho fell 32.1 percent, imports from with orders they can’t place in Asia.” of the total market, according to import figures com- Colombia decreased 31.4 percent and Vietnam’s The average cost per unit of women’s jeans for piled by International Development Systems Inc. denim shipments were down 13.8 percent. the year through February was $7.02. The cost of Mexico, the second-largest supplier of women’s jeans, Most of the losses incurred last year could women’s jeans from all of the top suppliers except saw its market share drop to 11.2 percent. Imports from be recouped this year as demand recovers, said Mexico were either flat or declined in price. Denim most top suppliers declined in 2009, with the exception Julia Hughes, president of the U.S. Association of jeans from China during the same period cost $7.04, of China, Vietnam and Bangladesh. Shipments from Importers of Textiles & Apparel. Already the import from Bangladesh they were $5.12 and those shipped Vietnam rose 33.6 percent to 6.5 percent of the market, figures from the early months of 2010 show a rebound from Vietnam averaged $5.63. Jeans from Mexico cost while imports from Bangladesh increased 27.4 percent compared to the 12-month statistics, she said. $9.79, a 4 percent increase over the previous year and to account for a 4.9 percent market share. Regardless of future import levels, China has the most expensive of the top suppliers. Mexico held onto its slot as the top men’s jeans emerged as the powerhouse of denim sourcing, as it The cost per unit for men’s jeans on average was supplier by increasing its share by 5.6 percent to has in many apparel categories. $6.90 for the year through February.
full length sleeve insert cuff place on fold place on fold collar facing insert into cb neck
front bodice with waist dart
front side panel DENIM. BORN IN iSKO
The most creative and reliable partner for brands and designers
Find out more about us iSKO™ is a trademark of SANKO TEKSTIL and our fabrics at www.isko.com.tr 38 WWD, THURSDAY, MAY 20, 2010
SECTION II WWD.COM
WWD DENIM IN DEPTH
A La Rinascente Replay’s art project. denim-covered animal.
Denim hugs a tree from the “A Box of Dreams” project. Brands Blend With the Art World
By Luisa Zargani This spring, Italy’s main department store, La Rinascente, asked Italian graph- ic artist Salvatore Benintende, known as Tvboy, to create cartoonlike works for MILAN — After gaining popularity with the rebellious youth culture of the Sixties its windows, playing with the classic iconography of cities such as New York, and becoming a staple of rock-star wardrobes, denim has rarely been associated London, Paris, Tokyo and Rio de Janeiro, and characters wearing denim jeans. with arts and culture. The store also supported the “New Denim Species” project in collaboration with Now things have changed. International denim brands have increasingly been the Institute of European Design. Students created several imaginary animals supporting young artists and helping them gain visibility, while a designer’s pas- through the innovative use of the denim fabric, which were displayed in a num- sion for the arts has become influential in the direction of a brand. ber of La Rinascente windows around Italy. Miss Sixty founder Wichy Hassan, who collects works by artists ranging from “We wanted to add a more artistic element to our yearly denim season,” said Keith Haring, Mark Kostabi and David Gerstein to Jean-Michel Basquiat and Tiziana Cardini, fashion director at La Rinascente. “Art is fascinating in terms of com- Deborah Hirsch in his sprawling, terraced apartment in central Rome, said the munication and is a language we encourage at the store.” brand originally stemmed from his passion for Pop Art as a “mix of fantasy, colors Cardini said she chose denim as the material that could best present a “con- and graphics.” An aspiring painter in his youth, Hassan eventually turned to fash- temporary interpretation” and an artistic quality. ion for a livelihood while continuing to believe the worlds of art and In March, Levi’s reopened its renovated London flagship on Regent fashion are “not that different.” Between 1994 and 1997, Hassan Street and dedicated an 864-square-foot space in the store to the staged ArtEnergie exhibitions, where artists experimented work of 18 contemporary artists, the Levi’s Craftworkers. After with denim to create works of art. this exhibition that marked the inauguration, the space has “It was an innovative experience, and we still keep become a corner “dedicated to the celebration of talent,” all the works [at our headquarters] from artists such as said the company. In May, director, designer and illus- Pierre et Gilles, Sandro Chia, Roy Lichtenstein and trator Alex Turvey created large mirrored sculptures Aldo Mondino, to name a few,” said Hassan. for the store and its windows, inspired by tradition- In February, the company opened its first Sixty al circus mirrors. Café in Shanghai, with an area dedicated to art Levi’s has tied its name to art before. Two years exhibitions. ago, the brand teamed up with Diesel, J Brand, For the past four years, the Venice-based Seven For All Mankind and British pop artist Fondazione Claudio Buziol, dedicated to the late Stuart Semple for an art show at Selfridges. founder of the Replay brand, has been supporting Levi’s also collaborated with Damien Hirst young artists, developing their talents and provid- two years ago and created three art works of ing visibility and professional opportunities. spin-painted 501 styles and a limited edition “The love of art and the city of Venice are Damien Hirst x Levi’s Collection. values deeply rooted in our family, a passion In a reverse take, Hirst designed a series that we’ve always cultivated and which we have of spin paintings inspired by the Fake London transferred to our company,” said Buziol’s wife, brand, founded by his friend Desiree Mejer. Paola Dametto Buziol. To celebrate the relaunch of the label this fall, Among the foundation’s projects, the fourth after a four-year hiatus, Hirst allowed Mejer use edition of the yearly international contest “A Box of the images — and the paintings were on dis- of Dreams,” which spans from art to fashion and de- Damien Hirst’s play at the brand’s Paris showroom in March. Fake sign, was launched on May 12. Fake London London returned to business in a licensing partner- The denim brand and the Fondazione have also spin painting. ship with the Italian manufacturing and distribution been promoting the “Replay Loves Arts” project, con- firm Italservices SpA, which controls the Met and Cycle verting billboards covering the scaffolding for the restora- denim brands. tion of Ca’ Rezzonico, a prime museum on the Grand Canal in Claudio Grotto, chairman and founder of Italian denim Venice located in an 18th-century palazzo, into a contemporary label GAS, offered a 25-day residency to 15 artists, ranging from art gallery. Replay’s parent company helped finance the recovery of international illustrators and designers to photographers and blog- Ca’ Rezzonico, which was completed in March. gers, at its Chiuppano, Italy, headquarters at the end of last year. The goal was The drapes over the construction works helped promote the work of young to reread the history of the brand and publish a book to mark the 25th anniver- artists by staging open-air exhibitions on a monthly basis and were later used to sary of GAS. The book was launched in April this year at Milan’s international create handbags made by former convicts and volunteers, adding a social content furniture and design exhibition, the Salone del Mobile, together with a video pre- to the project. The shoppers are available at the Replay store in Venice and pro- senting the residency. ceeds from the sale help finance the activities of the foundation. “I believed in this project because I think that any change stems from the cour- Replay and the foundation also provide a number of selected artists with a age to tackle innovation — and from a deep awareness of one’s roots,” said Grotto. three-month residency through the “Artists in Residence” project. Ryts Monet and He emphasized the importance of finding new ways to communicate and ex- Valentina Sanna are the latest guests in the period, ranging from April 19 to July 30. periment with creative minds and selected the Salone del Mobile because of its “It is all very consistent,” said Replay chief executive officer Matteo Sinigaglia. strong element of creativity. “GAS25Days,” published by Happy Books, is avail- “This is a brand based on creativity, and it’s only fitting to be present in the world able at bookstores and concept stores and will be presented internationally in of arts and support young talent.” Barcelona, Berlin, Prague, Budapest, Shanghai and Sydney. ADVERTISEMENT
Comfort DENIM and Cool, Supima Cotton DREAM Has It All
SERFONTAINE hat do premium jeans have in common with a great meal? In W the view of Jeff Shafer, designer and owner of Agave Denim, the answer is obvious: Both are “only as good as what goes into them.” When he cooks, he chooses the freshest ingredients and when he creates his collections, he chooses Supima cotton. Shafer describes himself as “a textile-driven designer. Before I can create anything I have to find the right materials. Agave is a luxury lifestyle brand so I have to begin with the best and that’s Supima.” Shafer’s view is widely held among premium denim designers and among consumers, who know the fabric’s qualities if not exactly the reasons behind them. So what’s so great about Supima and what is it exactly? FROM INDUSTRY TO LUXURY In demand today for both luxury fashion and home furnishings, Supima cotton was developed as an industrial fiber and commercialized by the Goodyear Tire Co. when World War I cut off access to high- quality Egyptian cotton. Grown only in the Western Unites States, Supima is a distinct variety of cotton with a staple length that’s 35 percent longer than regular cottons. The longer length yields a “cleaner” surface that feels silky and has a natural luster. Adriano Goldschmied, designer for Goldsign and Citizens of Humanity, says Supima’s “long AGAVE fiber cotton makes for a luxury hand feeling CITIZENS OF HUMANITY that makes all the difference. The garment AG ADRIANO is super soft.” Goldschmied believes that GOLDSCHMIED consumers base their purchase decision on “fit and feeling. They’re looking for a ‘wow’ and Supima gives us a 'wow.’” For Ku, this combination of strength and softness is reflects the quality of the wash. There’s no substitute. It’s “Whether someone puts on cashmere or Supima, the what enables him “to take more than just one stance on just a better canvas.” first thing they notice is how great it feels on their body and denim.” He considers this a good business strategy since Supima also does a superb job of absorbing and that can help make the sale – even at $180 a pair,” says people wear jeans for nearly every occasion today, but retaining color. “When you dye the garment,” says Adriano Agave’s Shafer. “what you wear to go out to a nice dinner with friends is Goldschmied, “the color has a rich, deep intensity – very Andrew Olah, president of Olah Inc., a textile agency different from what you wear on the weekend. Our goal is different and much better than regular cotton.” and marketing company, has a different perspective, but offering all the jeans people need and, with Supima, we Clearly, denim designers understand what sets Supima the same opinion. “Garments made from Supima feel like can do that.” cotton apart and consumers can appreciate the benefits, nothing else people have ever owned. They want it and Supima’s strength also gives designers an opportunity to but do consumers know the name Supima? “Seven or eight they’ll save up for it.” explore finishes and treatments that normal cotton couldn’t years ago, consumers didn’t know Supima cotton,” says withstand. Take distressing, for example. As its name Samuel Ku. “But the Supima organization is changing that – DOING MORE WITH LESS implies, the treatment can decrease a fabric’s performance. in print, online and at point of purchase. Today, consumers “You wouldn’t think something so soft would actually be But Supima can stand up to such rough treatments and still know the name and understand the benefits.” stronger,” says Samuel Ku, design director of AG Adriano look and feel great. That’s crucial given the price of premium denim. “The Goldschmied, “but it is.” Ultimately, it’s Supima’s strength Washes are also “a huge factor in premium jeans,” term ‘premium’ has really been slung around a lot lately,” that enables mills to weave the much lighter-weight fabric says Mik Serfontaine, co-founder and head designer at says Mik Serfontaine. “But Supima really makes it mean – 8 ounces versus 11 or 12 ounces – that makes premium Serfontaine. “We spend a lot of money on our washes something. People can see and feel the substance. That’s denim possible. because we want to make every wash look unique. Supima why we use it. That and because it’s a joy to work with.”