AMERICAN ANTHEM MADE IN THE USA IS SEEING A RESURGENCE AND IT’S A KEY POLITICAL ISSUE. SECTION II MALE MAKEOVER BERGDORF GOODMAN UNVEILS A REMODELED MEN’S DEPARTMENT. PAGE 3

LUXURY LAWSUITS Hermès Sues LVMH, LVMH Sues Hermès

By JOELLE DIDERICH

PARIS — Let the hostilities resume. Hermès International and LVMH Moët Hennessy said Tuesday they were heading to court over their ongoing dispute regarding LVMH’s WEDNESDAY, SEPTEMBER 5, 2012 ■ $3.00 ■ WOMEN’S WEAR D acquisition of a 22.3 percent stake in the maker of Birkin bags and silk scarves. WWD Hermès confi rmed that on July 10, it lodged a com- plaint with a Paris court against LVMH, which sur- prised markets by revealing in October 2010 that it had amassed a 17.1 percent stake in Hermès via cash- settled equity swaps that allowed it to circumvent the usual market rules requiring fi rms to declare share Grin and purchases. The world’s biggest luxury group has since steadily increased its stake, a move seen by Hermès offi cials as an attempt at a creeping takeover, despite reassur- Bear It ances from LVMH chairman and chief executive offi - cer Bernard Arnault that he is not seeking full control. With more than 50 “This complaint concerns the terms of LVMH’s ac- quisition of stock in Hermès International,” Hermès collections under her low- said in a two-line statement. It is accusing LVMH of slung belt, Donna Karan, insider trading, collusion and manipulating stock shown here in her studio, prices, according to a source familiar with the issue, who declined to be named for confi dentiality reasons. should have the preshow A spokeswoman for the Paris prosecutor’s offi ce process down pat. While said the court was examining the complaint and had she does by now have a referred the matter for opinion to the stock market regulator AMF, which in November 2010 launched an bit of a routine — start investigation to determine if LVMH respected market prepping three months rules. That inquiry is still open. LVMH shot back Tuesday by revealing it would fi le out; maintain the yoga, a suit against Hermès for “slander, blackmail and un- aromatherapy and fair competition.” massages — Karan “By fi ling its complaint, Hermès seeks to bypass the appropriate AMF channels without waiting for still gets the jitters. “It the result of the offi cial enquiry [sic] and without de- amazes me how I am a termining the extent of the AMF’s fi ndings to date. mess that morning of In addition, the fi ling carries serious and unfounded it,” she says. “I think SEE PAGE 2 it’s an old emotion that pops up. It’s like going to the Zegna’s Pilati Plan dentist — you By MILES SOCHA and LUISA ZARGANI will never like it.” For more PARIS — The Ermenegildo Zegna Group is banking week on the design prowess of Stefano Pilati to lift its for- tunes in men’s wear — and Agnona women’s wear —to confessions, see a new summit. pages 6 and 7. “We are appreciated for our quality, fabrics and style. We wanted to add a twist of fashion and this was the right moment,” said Gildo Zegna, chief executive offi cer of the Italian fi rm, which last year surpassed the 1 billion euro revenue threshold. “This will also help us to work with less mature clients, and catch opportunities in emerging markets where there are younger and wealthier customers.” On Tuesday, Zegna revealed the arrival of Pilati, the former creative director of Yves Saint Laurent, confi rming a report in WWD. He starts Jan. 1 as creative director of Agnona, and head of design at Ermenegildo Zegna, with responsi- bility for that brand’s as well as for the Ermenegildo Zegna Couture collection, the latter built on sartorial, hand-stitched suits in precious fabrics. (Zegna noted that Pilati would not oversee Z Zegna, designed by Paul Surridge, which he defi ned as a “young and fashion” line.) The appointment of Pilati signals that Zegna is pumping up its fashion credentials with a well-known and seasoned talent, known for his suave personal style, press appeal and infl uential silhouettes. It comes amid heightened competition among Europe’s big luxury groups for men’s wear domi- nance. Last November, parent PPR acquired PHOTO BY KYLE ERICKSEN SEE PAGE 8 2 WWD WEDNESDAY, SEPTEMBER 5, 2012

Dems Take Balanced Trade Stance the Briefing Box The fashion industry, which By KRISTI ELLIS imported $101.5 billion in goods in Today’s WWd in the year ended June 30, $40.9 CHARLOTTE, N.C. — Democrats billion from China, and U.S. tex- took a pragmatic approach to tile producers that have lost tens trade in their party platform of thousands of jobs over the Clara Settje that was set to be adopted on years have a lot at stake in trade talks to WWD. Tuesday night, balancing free- policy toward China. For im- trade principles with a commit- porters, getting tough on China ment to enforcement and favor- would be a major headache s

ing diplomacy over punitive since that is where they source a T rO a

measures with China. significant portion of their prod- d

The overall platform set to ucts. For domestic manufactur- ary m

be adopted by delegates at the ers, the stance would be a wel- anagemen m by Democratic National Convention come boost for the growing Made here in the Time Warner Cable in America movement to revital- Michelle Obama del PHOTO mO

Arena Tuesday night upheld ize U.S. manufacturing. P some of President Obama’s posi- Critics of China’s monetary The Democratic platform calls Trum f

tions, calling for higher taxes on policies claim the country keeps for support for the Trans-Pacific O the wealthy and lower taxes on its currency artificially low, Partnership negotiations be- esy the middle class. which in turn makes Chinese tween the U.S. and 10 other coun- T ur The sharpest contrast be- imports cheaper and puts U.S. tries, expanding trade with Latin O tween the two parties on trade manufacturers at a competitive America and the Caribbean,

came on policy toward China. disadvantage. meeting the goal of doubling ex- PHOTO C “Both publicly and privately, “While the Obama administra- ports by the end of 2014 and sup- the President has made clear to tion has filed more cases against porting permanent normal trade Hermès International and LVMH Moët Hennessy Louis the Chinese government that it China at the WTO than previous relations with Russia, which Vuitton were heading to court over LVMH’s acquisition of needs to take steps to appreci- administrations, we would have joined the WTO last month. a 22.3 percent stake of Hermès. PAGE 1 ate its currency so that America liked to have seen a stronger “I’m glad to see [Democrats] is competing on a level playing stance on currency manipula- are also talking about the value of The ermenegildo Zegna Group is banking on the design field,” the Democratic platform tion in the platform,” said Cass trade,” said Stephanie Lester, vice prowess of Stefano Pilati to lift its fortunes in men’s wear said. “This administration has Johnson, president at the National president of international trade and Agnona women’s wear to a new summit. PAGE 1 doubled the rate of trade cases Council of Textile Organizations. at the Industry Leaders By JOELLE DIDERICH brought against China by the last “There is a disappointment Association. “I think they tried to Bergdorf Goodman Men has raised the bar for luxury administration and created a new that neither Republican nor add more language about protec- men’s retailing in New York. PAGE 3 PARIS — Let the hostilities resume. government-wide Interagency Democratic [administrations] tions at the risk of upsetting the Hermès International and LVMH Moët Hennessy Trade Enforcement Center.” have really been willing to take bipartisan balance and support a photo taken at a bus accident on Aug. 26 might end up Louis Vuitton said Tuesday they were heading to The Obama administration China on in an effective manner for trade. New trade initiatives causing a decline of luxury watch sales in China in the court over their ongoing dispute regarding LVMH’s has filed several unfair trade regarding unfair trade practices. can be controversial for unions, next quarter. PAGE 3 acquisition of a 22.3 percent stake in the maker of cases against China at the World We’ve seen a lot of textile jobs and and we haven’t seen much of a Birkin bags and silk scarves. Trade Organization for tires, over a million manufacturing jobs proactive agenda [under Obama] British designers hope to harness some of the Olympic/ Hermès confirmed that on July 10, it lodged a com- credit card companies and shipped overseas over the last 10 as we should have on trade.” Diamond Jubilee buzz to to help fuel London Fashion plaint with a Paris court against LVMH, which sur- chemicals. But the administra- years to China. I guess the ques- Kevin Burke, president and Week. PAGE 4 prised markets by revealing in October 2010 that it tion, understanding the politi- tion is, when will that change and chief executive officer of the had amassed a 17.1 percent stake in Hermès via cash- cal sensitivity of relations with is it going to change?” American Apparel & Footwear Gucci kept a busy social schedule at the Venice Film settled equity swaps that allowed it to circumvent the China, has repeatedly declined David Spooner, a trade attor- Association, said both parties Festival, hosting a trio of events including an awards usual market rules requiring firms to declare share to name China a currency manip- ney with Squire Sanders and for- “want to increase exports…but dinner honoring women in film. PAGE 9 purchases. ulator. Former President George mer special textile negotiator in they haven’t looked at the other The world’s biggest luxury group has since steadi- W. Bush also declined to brand the U.S. Trade Representative’s side of the fiscal equation at how Joanna Coles, formerly of Marie Claire, on Tuesday was ly increased its stake, a move seen by Hermès offi- China with that label. office during the Bush adminis- imports affect our economy posi- named editor in chief of Cosmopolitan. PAGE 9 cials as an attempt at a creeping takeover, despite This was in contrast to the tration, said, “It is notable that tively.” Burke said Democrats reassurances from LVMH chairman and chief execu- GOP’s hard line on China in the the Democratic platform is per- seem to overemphasize Made in Ten designers and celebrities will receive awards tive officer Bernard Arnault that he is not seeking platform approved at its conven- haps more measured on curren- America at the expense of prod- tonight at the ninth annual Style Awards at The Stage at full control. tion last week, in which the party cy than the Republican platform. ucts being made abroad by our Lincoln Center. PAGE 11 “This complaint concerns the terms of LVMH’s ac- pledged to have “full parity in We have seen in the past two to trading partners with whom we quisition of stock in Hermès International,” Hermès trade with China” and warned it three elections that the party of have spent a lot of time negoti- said in a two-line statement. It is accusing LVMH of will impose countervailing duties power has lots of fun bashing ating free trade agreements that on WWD.CoM insider trading, collusion and manipulating stock if China fails to amend its cur- China on currency only to back- provide consumers the goods prices, according to a source familiar with the issue, rency policies. track when they are in office.” they need at a reasonable price.” Model Call: Ballerina-turned-Trump model Clara Settje who declined to be named for confidentiality rea- recently sat down with WWD between castings to talk sons. , Christian high schools and chicken crepes. A spokeswoman for the Paris prosecutor’s office For more photos, see WWd.com/eye. said the court was examining the complaint and had referred the matter for opinion to the stock market Hermès, LVMH Dispute Going to Court regulator AMF, which in November 2010 launched an investigation to determine if LVMH respected market {Continued from page one} shares in Hermès International, joint ceo alongside Patrick Thomas CorreCtion rules. That inquiry is still open. accusations about market fail- a limited partnership structure in June 2013 under a gradual suc- Due to misinformation from H&M, a Fashion Scoop that LVMH shot back Tuesday by revealing it would file ings,” LVMH said. that guarantees they keep control cession plan, said he planned to ran on page 11, Tuesday, incorrectly stated that Mert Alas a suit against Hermès for “slander, blackmail and un- The luxury conglomerate of management. uphold the family’s hostile stance and Marcus Piggott directed a music video featuring Anna fair competition.” said it awaited the results of The H51 holding company, toward LVMH and Arnault. Dello Russo to mark her collaboration with the retailer. The “By filing its complaint, Hermès seeks to bypass the probe “with complete peace completed in December, groups “Our policy will remain un- video was directed by Alex Turvey. Alas and Piggott shot the the appropriate AMF channels without waiting for of mind” and was confident the 50.2 percent of the company’s changed,” he told reporters on the accompanying print campaign. the result of the official inquiry and without deter- AMF would find it did no wrong. capital and has priority purchas- sidelines of the annual meeting. mining the extent of the AMF’s findings to date. In “LVMH has no doubt that the ing rights on the remaining shares But in recent months, Hermès addition, the filing carries serious and unfounded inquiry will determine that the held by the family members par- officials have fallen silent about the To e-mail reporTers and ediTors aT WWd, The address is Hermès allegations are false and ticipating in the initiative — some spat, making Tuesday’s announce- [email protected], using The individual’s name. serve no other purpose than to 12.6 percent of capital. ment all the more unexpected. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. slander and unlawfully under- A notable holdout was The case is likely to remain at VOLUME 204, NO. 48. WEDNESDAY, SEPTEMBER 5, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, mine another firm in the same Nicolas Puech, the single-larg- a standstill until the AMF pub- Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine industry,” it said. est family shareholder, who has lishes the results of its probe into Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: The war of words between so far withheld his 5.8 percent the LVMH acquisition of Hermès S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at Hermès and LVMH, which of the capital from the holding shares, at an as-yet-undeter- New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian reached a paroxysm in the company. But in a symbolic move mined date. Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses The stock market regulator to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S months following Arnault’s ini- signaling family unity, share- WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, tial move, appeared to have holders gathered at the firm’s said in June it had launched a ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, died down in the last 12 months annual general meeting in May public consultation on plans to call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, as Hermès battened down the approved his nomination to the change its rules so that cash- option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless hatches with a series of mea- supervisory board. settled equity swaps would in we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on sures designed to lock out any At the same meeting, they the future be taken into account all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all unwanted shareholders. green-lighted a change in stat- when declaring share purchases editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints Last year, the Court of Appeal utes requiring holders of more that cross given thresholds. of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at in Paris handed Hermès a major than 0.5 percent of shares to reg- Officials at AMF were not avail- www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that victory by authorizing it to group ister them to their name — an- able at press time Tuesday to con- we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at family-owned shares into a non- other move apparently designed firm when the results of the con- P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED listed holding company. to prevent any stealthy acquisi- sultation, which ran until Aug. 6, ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER The Dumas, Puech and tions by LVMH. would be made public, and wheth- UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR Guerrand families collectively Hermès chief operating officer er they would affect the comple- DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A own more than 70 percent of the Axel Dumas, who will be named tion of its probe into LVMH. SELF-ADDRESSED STAMPED ENVELOPE.

w05a002c;12.indd 1 9/4/12 8:03 PM 09042012200442 WWD wednesday, september 5, 2012 3 WWD.COM

The pieces on the floor were chosen to feel like they were “collected, not re- cently acquired,” she added. Leather- Bergdorf’s Wraps Men’s Revamp bound books are used to create dividers, and a french tapestry of a huntsman an- Before the revamp, fargo said the Bottega Veneta and . chors one of the walls. By JEAN E. PALMIERI floor was a “rabbit’s wren of shops,” all of “The shops were all customized by the fargo noted that the women’s which were separated by glass barriers. vendors for us and by us,” fargo said. salon across the street was redone eight BERGdORf GOOdMAN Men has raised They have been removed, allowing for The other side of the floor is the years ago and expanded last fall to take the bar for luxury men’s retailing in customers to move more easily among the Heritage Lab for international sports- advantage of the explosion of that busi- New York. brands on the floor. “The glass made you wear, which features Visvim, Raif ness, and the company is expecting simi- Just in time for fashion week, the re- feel as if you were either in or out. Now Adelberg, Junya Watanabe, Kitsune, lar results at the men’s shoe library. tailer has completed a year-long reno- the flow is much better. And we unified Michael Bastian, Band of Outsiders, “If you look at the overall luxury busi- vation of its third-floor contemporary all the shops,” she said. “Everyone shares Paul Smith, Todd Snyder, dsquared, ness, the fastest-growing areas are shoes designer department and created a shoe the same European oak floor in a classic Rag & Bone, Barbour Beacon and T and men’s,” Schulman said. “So our in- library on its main floor that triples the pattern. The palette is warm, tactile and by Alexander Wang. New additions in- vestment in the library is indicative of space devoted to the red-hot category. inviting. It speaks to tradition but is also clude Billy Reid Heirloom, Boglioli, 3x1, the trends. Men are shopping differently “Men’s has always had an important modern. It’s luxurious in a quiet way.” Hamilton Shirts x Nick Wooster, Gitman now and paying attention to having ward- role at Bergdorf Goodman,” said Joshua On one side of the floor is the Bros. and London. robes that take them from the workplace Schulman, president. And There is also a large to the weekend. And it complements our with men’s wear among the loft room for denim-based advanced designer area.” “fastest-growing categories brands including J Brand, He said he isn’t surprised by the pop- of business industrywide, AG, Levi’s Made & Crafted, ularity of the shoe business and expects it was the appropriate time Levi’s Vintage Collection, a good response to Bergdorf ’s offering, to make the investment SBU, Jean Shop, Simon despite the renewed emphasis from com- and statement.” Miller, Gilded Age, Prps, petitors ranging from Schulman declined to Acne, 3sixteen and Seven and Saks fifth Avenue to Macy’s, all of provide a figure on the for All Mankind. The area which have recently revamped and ex- cost of the renovation or features vintage indus- panded their shoe offerings. what the company hopes trial shelving and custom “We have beautiful classic shoes from to recoup as a result, but casework. John Lobb and Church’s, designer shoes said he believes Bergdorf One significant physi- from and Rick Owens, and an is the “ultimate desti- cal change is that fargo extensive private label collection. We’re nation for men’s luxury uncovered 275 feet of showing real product authority and have sportswear, clothing and windows on the floor, al- the only main-floor shoe department in New York,” he said. furnishings in New York george chinsee lowing light to flood in. and the only one with a She then obscured the Tom ford, Prada, Gucci, Salvatore stand-alone building. We A look at the redesigned men’s area. windows with a bronze ferragamo, Lanvin, Magnanni, believe it can be a real photo by mesh screen so custom- Bontoni, Esquivel, Lidfort, Rick gentleman’s environ- ers can focus on shopping Owens and Jimmy Choo have all been ment.” He stressed, however, that there’s Modernist Lab for advanced European and not be “dazzled by light.” retained, and are joined by Tod’s, more work to be done. “Next year, we collections with Jil Sander, Rick Owens, Ginny Hershey-Lambert, execu- Giorgio Armani, Alexander McQueen, will completely address the rest of the McQueen, Margiela, Burberry Prorsum, tive vice president of merchandising, , Yves Saint Laurent, ground and second floors,” he said. Moncler Gamme Bleu, Givenchy and said, “We have allocated our space to florsheim by duckie Brown, fratelli for the time being, the focus is on the . New brands include Belstaff provide the best possible usage for Rossetti, Louis Leeman, Maison Martin third and main floors. This marks the and Seraphin, which will be located in growth.” The design concept of 20 years Margiela and Hadleigh’s. first comprehensive renovation of the the expanded area for accessories along ago was fine, but the renovation allows Hershey-Lambert said the entire third floor since the store opened in 1990. with the newly added Loewe collec- for “more effective selling space.” The renovation project has been in the As part of the project, the windows to the tion and Want Les Essentiels de la Vie. basement, an area that at one point works for about three years, and as the street have been exposed, allowing natu- Jewelry has also been blown out, and housed the men’s merchandising team, men’s business strengthened, it was ex- ral light into the store for the first time, soft accessories such as scarves and ties is now being used for storage, allowing panded in scope. and the boxlike delineations between are carried in more depth, according to for the addition of 700 square feet of “We were putting plans together boutiques have been eliminated, making Mimi fukuyoshi, vice president and di- selling space on the third floor, and the for a partial remodel, but as the men’s the floor easier to shop. The project was visional merchandise manager of men’s expansion of the shoe area. business began to blossom, we took a spearheaded by Linda fargo, Bergdorf ’s sportswear and shoes. The shoe library is designed to rep- step back and dug more deeply,” she senior vice president of the fashion office The center of the floor features in- licate the Villa Necchi in and said. “That’s how the idea of the shoe and store presentation. ternational designer shops, including features an ocher and olive palette. “It library came about. We thought the “We do all our design work in-house the first in-store men’s shops in America was a gut renovation,” fargo said. “We guy taking his shoe walk could see all instead of using outside design firms,” for dries Van Noten, Lanvin and Yves expanded the square footage by three the other things we have to offer while she said during a walkthrough. “We know Saint Laurent, as well as Thom Browne’s times.” The design here too is “warm he’s here.” our clients the best and we have an inte- newest shop installation. Other shops and rich,” she said, echoing the “ethos The completion of the renovation is grated team, so we can build the store to with custom detailing include dolce & of the company. It was inspired by the tied to Bergdorf ’s 111th anniversary, support their needs.” Gabbana, Gucci, Etro, Chrome Hearts, 1960s and has a Philip Johnson feel.” which the company is celebrating this fall.

ChinaFile ChinaFile was wearing five different luxury income. One was a gift from his watches. Not only were the in- wife for his birthday. dividual brands of the watches A few hours after Mr. Yang identified but also the retail price declared his innocence of any in China — a significant notch wrongdoing, another posting Watch Out! above a government official’s pay came out on Weibo with photos of BEIJING — On Aug. 26, a long Inspection Bureau. At first, peo- grade. There were two Omegas him wearing more luxury watch- distance bus crashed into a tank- ple were outraged by his smiling spotted, a Rado, a Constantine es than the original five. Mr. Yang er on a Western Chinese high- expression, which demonstrated and, of course, a Rolex. has since remained silent. way; 36 were reported dead. a clear lack of concern for the The watch news was released This sudden, unwelcome And this incident might result victims of the accident. People on Weibo, the Chinese social spotlight on luxury watches is in a decline of luxury watch sales immediately identified him as a network site. It went viral im- now serious and no doubt will in China in the next quarter. government official and, shortly mediately. An official, smiling at have an effect on the sales of a traffic accident which killed luxury in general in China, and, by Huang Hung 36 people, wearing expensive in particular, watches. Gifting watches, in different photo- has been an important contribu- The fact that a local quality control graphs, on numerous occasions. tor to the high sales growth of mous anchor about Mr. Yang’s A similar incident happened luxury watches here. watches. This is a clear sign that inspector has so many expensive about a year ago when a Nanking The fact that a local quality the central government is no lon- police chief was identified with control inspector has so many ex- ger willing to help in the cover- watches is not a surprise to the an expensive wristwatch. That pensive watches is not a surprise up of wrongdoing among low- one ended with the police chief ’s to the average Chinese. With food ranking officials. It will no longer resignation. This time, due to his safety issues, drug safety issues, ban media stories about such average Chinese. fancy wristwatches, Mr. Yang is construction safety issues, the officials, and that will definitely now under investigation of the level of corruption in various have an adverse effect on sales. Here is what happened: after, dozens of photos of Mr. Anti-Corruption Commission. government inspection agencies As one TV reporter noted on As the tragedy developed, Yang showed up on the Internet. In order to clear himself, Mr. is an open secret here. The dif- his Weibo, “As my camera rolled the Chinese public focused on There was Mr. Yang at a meet- Yang actually started a Weibo ference in Mr. Yang’s case is that towards the man in the front a particular photo of the crash ing; Mr. Yang accompanying a big account and apologized for his this time the State-owned media row of the ceremony, we caught site that included in the frame a boss from Beijing for inspections, smile and confessed his love for got involved in questioning his him discreetly pulling his shirt smiling, pot-bellied man. etc. A clever watch-savvy person watches. He claimed that all five integrity as well. The massively sleeves to cover his watch.” Now The man is a Mr. Yang, di- focused on all these various pho- watches are owned by him and influential CCTV broadcast a the question is: If you cannot rector of Provincial Quality tos and discovered that Mr. Yang they were acquired by “proper” 10-minute commentary by a fa- flaunt it, will people still want it?

w05a003c;11.indd 1 9/4/12 8:02 PM 09042012200241 4 WWD wednesday, september 5, 2012 WWD.COM LONDON PREVIEW LONDON SCENE Enjoy some downtime between the shows. Hoping to Harness the Buzz By Lorelei Marfil

“Retailers’ hopes that the olympics stages for the events, British culture, A Bubbledogs HAUTE DOGS: For By NiNa JoNes would inspire a pickup in spending creativity and excellence have been at specialty. Bubbledogs, a were dashed as shoppers stayed away the very heart of [the olympics],” said new restaurant in iT’s No seCReT that the London from the high street and enjoyed the Robins. “i think we’ll see a continued re- London’s Fitzrovia olympic and Paralympic Games initial- spectacle from their armchairs,” said assertion by brands of their British heri- neighborhood, ly met with a grudging reception from Helen Dickinson, head of retail at tage and core values.” the perfect the town’s grouchy denizens, who fix- KPMG. “While, without a doubt, the Mulberry creative director emma food to nibble ated on the disruption that the Games olympics brought a much-needed boost Hill agreed that the summer events have with a glass of would bring. to consumer confidence, the country lent London “a larger international Champagne isn’t caviar — it’s a hot dog. But when they finally rolled around, was ‘otherwise engaged’ in august, and audience. i think that can only have a The venture, which bowed in late august, the Games’ success generated a surge the sales figures show a mixed picture.” positive effect on the fashion industry serves up gourmet hot dogs accompanied of goodwill in the city. From and London Fashion Week. by a selection of Champagnes that are all Danny Boyle’s quirky open- People are talking about produced by small houses, rather than ing ceremony celebrat- British young Brit designers and the the better-known grand marques. Chef ing Britain’s history to the designs at success of the older houses, James Knappett and his partner, sandia British team’s uncharacter- the Olympic plus there is a certain fasci- Chang, dreamed up the concept. among istic success at the Games, closing nation and appreciation of the eclectic hot dogs on the menu are the Londoners have since been ceremonies. British heritage and tradi- Trishna, made with mint, mango chutney basking in olympic afterglow. tions that translates interna- and coriander, and the Fourth of July, a Britain’s Prime Minister tionally. it’s lovely to be able hot dog wrapped in bacon and topped with David Cameron was quoted to celebrate this unasham- barbecue sauce and coleslaw. last month in The sunday edly and through so many dif- Bubbledogs Times of London, saying, ferent mediums this year.” 70 Charlotte Street, W1T 4QG “over a decade, we can indeed, to further forge a Tel.: 44-0207-637-7770 use the olympics to bring connection between fashion Web: bubbledogs.co.uk home business worth 13 bil- and the olympics, the BFC lion [pounds],” or $20.4 bil- held events that allowed RADICAL VICTORIANS: it seems that today’s lion at current exchange. local designers to offer their modern artists don’t hold the monopoly “That’s more than the cost creative interpretation of the on shocking polite society. With its show of the Games.” and 25-year Games. The Britain Creates “Pre-Raphaelites: Victorian avant- olympic sponsor Visa re- project saw designers and Garde,” London’s Tate Britain gallery ported the Games will result artists team up to create aims to illustrate that the 19th-century in an economic stimulus of 5.1 billion she noted that women’s clothing was works inspired by the “excellence and Pre-Raphaelite pounds, or $8 billion, to Britain be- one of the categories hardest hit by the performance” of the olympics and movement’s key tween now and 2015. sales fall, as spending on discretionary Paralympics. among the works were a figures, who included However, it’s unclear whether the items spun downward. pagan-inspired mannequin created by Dante Gabriel halo effect from the Games and the But while the olympics might not Giles Deacon and artist Jeremy Deller, Rossetti, William Queen’s Diamond Jubilee in June will have had an immediate and tangibly and a halo-style installation designed Holman Hunt and cast a similarly golden light on the local positive effect on the British fashion by stephen Jones and artist Cerith Wyn John everett Millais, fashion industry and London Fashion and retail sector, designers and indus- evans. Those pieces were exhibited at “rebelled against the Week, sept. 14 to 18. try figures have been doing their best the Victoria and albert Museum and art establishment George Wallace, chief executive of- to harness the buzz to inspire interest then sold in a charity auction held at of their day…defied ficer at retail consultancy MHe Retail in Britain’s creative industries. During the old selfridges Hotel. Meanwhile, convention, provoked (formerly Management Horizons the olympics, the government held a labels including alexander McQueen, “Astarte Syriaca,” critics and entranced europe), said that while the two events reception for the creative industries at Christopher Kane, Burberry, Jonathan 1877, by Dante audiences.” had no doubt created a “feel-good fac- London’s Royal academy, as part of its saunders and Paul smith were among Gabriel Rossetti. The show will tor” in the U.K., “it would be quite op- Great campaign, which was launched to those that dressed the gaggle of mod- spotlight those artists’

timistic to think that factor would have promote the country’s trade and tour- els — among them Kate Moss, stella MAGES colorful, detailed and ism internationally during the olympic Tennant and Lily Cole — who parad- I often ornate works, which took inspiration year. The Duchess of Cambridge (wear- ed during the fashion segment of the from a range of disciplines, from literature ing a dress by London-based Roksanda olympics’ closing ceremony. and as part to classical mythology. Major works SSOCIATION

ilincic), Lily Cole and stella McCartney of the opening ceremony, east London- A include what the Tate describes as Hunt’s were among the guests. based designers Christopher shannon,

RESS “psychedelic” work “The Lady of shalott,” and Caroline Rush, ceo of the British Michael van der Ham and Nasir Mazhar /P and Millais’ “ophelia.” IRE

Fashion Council, said the organization dressed 350 dancers who appeared dur- W The exhibition opens sept. 12 and runs

has seen a “much earlier surge” in at- ing one of the dance sequences. /PA through Jan. 13. tendees registering for LFW this season, But Rush said that while it’s been a Tate Britain HYLD

since the Games and Jubilee. “Clearly, welcome boon having the spotlight on W Millbank, SW1P 4RG everyone was…focusing on London not London, the BFC continues to focus

EWIS Tel.: +44-207-887-8888 only as [a sports destination], but also on its ongoing projects to build design- L Web: tate.org.uk [for] being a creative capital with this in- ers’ businesses. “This year, we’ve been BY credible opening ceremony and creative fortunate to have the olympics and SHARP MEMORY: swarovski’s crystal and cultural calendar, which has really the Jubilee to increase the focus [on elements are a familiar sight during enhanced the reputation of London.” London], and as a sector we’ve hope- London Fashion Week, when the house Rush was referring to the London 2012 fully embraced that and taken full works with a number of the city’s designers Festival, which spotlighted artistic hap- advantage of it,” she said. “But our to lend their creations added sparkle. But penings around the Games. strategy has [always] been to build all this season, swarovski will be making a she added that LFW has had a strong our events, build our showcases…and splash at London’s Design Museum, too. WINCH-FURNESS; MCCARTNEY response from buyers from the U.s. and create environments to build our busi- With the museum, swarovski has asia planning to attend, and that a num- nesses and to grow.” alongside London PAUL staged “Digital Crystal: swarovski at ber of media crews in London for the Fashion Week, the BFC also organizes the Design Museum,” for which the olympics and Paralympics planned traveling showroom events to showcase house commissioned designers to create to stay in the city for the week, boost- London designers’ collections in cities installations that explore the future of ing the shows’ international coverage. from Paris to Hong Kong. memory in the digital age. The 14 pieces on Stella McCartney and Giles Deacon at the “There are lots of crews in London who Meanwhile, branding and retail ex- show include Ron arad’s “Lolita,” a crystal Great campaign reception. have been sent to cover what else hap- perts agree that as the focus inevitably chandelier that displays text messages that pens in the city while the Games are shifts from London, what the local fash- arad originally created for the house in a really positive impact on the fashion happening, and a lot of that focuses ion industry should aim to harness is 2004, and Dutch designer Maarten Baas’ scene.” instead, he contends that the around the creative industries,” said the can-do spirit and the level of execu- piece — a house olympics and Jubilee instead simply Rush. “and obviously, fashion being tion in London that was much-praised with a chimney that provided a respite to Brits from think- such a great part of London’s creative during the games. emits a “thought ing about “the squeeze on incomes and industries, there’s been a great interest said Robins, “2012 has been about a cloud” — that aims economic realities.” in our sector here.” culture of excellence. For brands, it’s a to celebrate human indeed, when it came to retail sales, Rebecca Robins, european direc- question of understanding what excel- thought. the British Retail Consortium said this tor at branding consultancy interbrand lence means to their businesses…and The show opens week that according to its BRC-KPMG and coauthor of “Meta-Luxury: Brands how they continue to make that relevant today and runs Retail sales Monitor, U.K. same-store and the Culture of excellence,” said the for current and future audiences.” through Jan. 13. retail sales in august fell 0.4 percent energy from the olympics and Jubilee Wallace concurred that rather than Design Museum

compared to the same month last year, “should have a positive cascade across transforming London’s image, the IMAGES; HOT DOG GOUHIER-GUIBBAUD-JMP/ABACA/PRESSBY ASSOCIATION 28 Shad Thames, though overall they rose 1.6 percent. [the U.K.’s] creative industries, increas- events have confirmed its aspirational BY SE1 2YD The BRC said august’s retail sales had ing interest in established British design- status. “London was already riding Tel.: +44-207-940- registered the slowest monthly growth ers, as well as having a halo effect for high,” he said, “and [the events] have 8790 A Swarovski creation at since November 2011, driven by weak emerging new talent. From the opening cemented its reputation as one of the Web: the Design Museum.

sales of nonfood items. and closing ceremonies to the sets and world’s great cities.” PHOTO OLYMPICS designmuseum.org

w05a004a;11.indd 1 9/4/12 6:55 PM 09042012185621 Form follows perfection.

The new CLS Shooting Brake and Joan Smalls captured by . www.mercedes-benz.com/fashion 6 WWD WEDNESDAY, SEPTEMBER 5, 2012 The Scenes Behind the Scenes THE ROAD TO THE RUNWAY IS A LONG ONE, BUT THE FINISH — MADE POSSIBLE IN PART BY AN INVALUABLE NANNY, A STOCK OF RED BULL AND BEDTIME MASSAGES — IS NEARLY IN SIGHT. HERE, TWO P. R . EXECS, TWO DESIGNERS AND ONE PRODUCTION GURU SHOW US HOW IT’S DONE. FOR MORE, SEE THURSDAY’S WWD. — JESSICA IREDALE AND MARC KARIMZADEH

THE NEW DESIGNER: What are you dreading? Marissa Webb, the former head of women’s “I’m staying positive. Negative thoughts and design at J. Crew, is launching her own ‘dreading’ only slows me down and I do not collection with her first presentation at have time for that.” Lincoln Center. What will you do the night before your show? It’s your first show. When did you start prepping for it? “I’m sure I’ll be at the studio finishing up “Being that it’s a new label and company, last-minute alterations and dealing with there have been numerous things to tackle. unexpected curveballs.” We knew we wanted to do something for fashion week but didn’t really start working What are three things you need to survive fashion week? out the details until about two months ago.” “My sugar fix, my amazing team and Red Bull.” What are you most nervous about? “I’m keeping myself busy enough to not have What will you wear to your show? time to be nervous, but if I stop for a moment, “My appearance is the last thing I’m focusing I could find many things. My philosophy is to on right now. I usually don’t plan outfits until stay focused, allow myself to freak out for five the last second. I could really use a haircut —

minutes if necessary and then move on.” but that won’t be happening!” ▲

Marissa Webb (left) and Bobbi Brown during a makeup test. MORELAND LEXIE AND KIBLER RYAN ERICKSEN, KYLE EICHNER, STEVE AQUINO, JOHN

BY Donna Karan tweaks a look with her design and creative director Peter Speliopoulos. PHOTOS

▲ THE ROCK STAR DESIGNER: When do you start prepping? With more than 50 runway shows “Three months before. I start to behind her (fall 1985 was her first design before the summer.” season), Donna Karan has fashion week down to a tee. What are you looking forward to this time? Do you still get nervous? “I show early, and I get to leave.” “I could probably be the most stressed I have ever been, but if Where to? I take that route, it would be the “I am going to be spending Rosh stupidest thing I could do — so I Hashanah in Los Angeles.” stay cool.” Do you dread anything? Do you have a fashion week survival guide? “It amazes me how I am a “Really simple: Nature. And mess that morning of the that’s what the collection is show. I think it’s an old all about. The atmosphere, emotion that pops up. It’s like FOR MORE life and something larger than going to the dentist — you PHOTOS, SEE this thing called ‘the fashion will never like it.” show.’ Also yoga, Pilates, juices, WWD.com/ aromatherapy — but that’s What will you wear to your shows? fashion-news. normal life for me. I get a “Same thing I wear every day — massage before I go to bed.” my bodysuit, my skinny pants.” WWD WEDNESDAY, SEPTEMBER 5, 2012 7 WWD.COM

▲ THE PRODUCTION GURU: stop preparing. As soon as one cycle An 8 a.m. pacing for the Tommy Julie Mannion, president of KCD, works finishes, we start on various aspects Hilfiger show on the High Line. as a producer and creative consultant of the next season. The big picture during . Her starts three to five months out. clients include Tommy Hilfiger, Marc Typically, we are fully engaged with Jacobs, Tory Burch, Vera Wang, Marc by locations, research, scheduling and , Narciso Rodriguez, Reed budgeting at two months out through Krakoff, , and the final process.” . What are you most looking forward to this How many shows are you working on this season? season? “I genuinely get excited every time “Our agency handles 40 shows I see a new collection — I love the worldwide. I am more personally creative process. I love the planning, involved in 16.” logistics and problem solving. I love the team effort and the shared feeling What are three things you need to survive of pride with all for the designer on a fashion week? “Stamina. Passion. An ever- great show. A great high…” accessible charger.” What are you dreading?

When do you start prepping? “I never “The feeling of lack of time.” ▲

Julie Mannion (center) pacing the Tor y Burch show at Lincoln Center’s Avery Fisher Hall.

▲ THE P. R . EXECS: for the next season.” This season, Vanessa von Bismarck and Carrie Ellen Phillips, partners at BPCM, are What are you most looking forward to? overseeing the shows for Wes Gordon, J. V.V.B.: “Our designers’ new collections Crew, Rachel Zoe, Prism, Edun, Suno, and seeing everyone again after Cushnie et Ochs, plus the United Colors spending the summer in Europe on of Benetton concept event and the Lady maternity leave.” Gaga perfume launch. C.E.P.: “Thirteen years after starting the company, I am still like a little What do you need to survive fashion week? kid when it comes to seeing what our Vanessa von Bismarck: “My nanny, Carrie, designers come up with each season. I and my new Original & Mineral am also pretty type A, so I love planning [Original] Detox Shampoo, which picks everything about the guest experience me up in the morning.” down to the label on an envelope.” Carrie Ellen Phillips: “Nothing would be possible without our incredible team — What will you wear to the shows? and Vanessa to keep me sane — green V.V.B.: “We are both excited about juice and an iPhone charger.” wearing color this season and supporting our CFDA/Vogue Fashion When do you start prepping? Fund nominees, so expect lots of Suno, V.V.B.: “We started working on time slots Wes Gordon and Jennifer Meyer. And we and venues back in May, but really as both took a hiatus from heels over the Vanessa von Bismarck (left) and Carrie Ellen soon as one show season is over, we start summer, so it’s time to pull the Atwoods Phillips play dress up with Wes Gordon. talking about strategy on how to improve out again.” 8 WWD wednesday, september 5, 2012 WWD.COM Zegna Names Stefano Pilati {Continued from page one} Before that, Milan-born Pilati appreciated Pilati for his pro- will have opportunity to apply my Italian suit maker Brioni with worked in senior design and fessional qualities, but also for technical expertise across brands, ambitions to boost its global fabric development positions for his knowledge and appreciation divisions and categories, with my profile via a rollout of company- a number of Italian design hous- of fabrics,” Zegna said. own creative impulse and aes- owned stores, and expansion into es, including , Prada There are 10 Agnona boutiques thetic vision,” he told WWD. sportswear and leather goods. and Giorgio Armani. today, of which five are in China, The designer, who often Over the summer, Brioni Pilati will introduce his and the collection is wholesaled to sports a small flower bud in the named Brendan Mullane as designs for the Ermenegildo retailers such as Harrods, Neiman lapel of his blazer, described his its new creative director, tap- Zegna collection in June next Marcus and Isetan. role at Zegna is to “update” the ping the British designer from year in Milan. His first col- Appointing Bruno Laguardia men’s wear for a “contemporary, Givenchy, where he had been se- lection for Agnona will be for as Agnona’s ceo in September elite audience.” nior head men’s wear designer. spring 2014. “We are still evalu- was the first step in fortifying As for Agnona, he character- Meanwhile, LVMH Moët ating how and when to present the brand, a move that had to be ized it as a “meeting ground be- Hennessy Louis Vuitton is Agnona, but it will definitely be followed by the choice of a top tween fashion and innovation transforming its Berluti brand, in Milan,” said Zegna. designer. in design.” known for its cult dress shoes, The executive said the Zegna praised Pilati’s de- “My creative mission will be into an elite lifestyle brand for Ermenegildo Zegna line and the signs. “He respects women’s as much about pure creation men. With Antoine Arnault at more niche, formal Couture col- femininity and sensibility,” he and an holistic approach to the management helm, Berluti lection offer “strong growth op- said, adding that he is one of women’s wear: connecting the poached Z Zegna’s former de- portunities.” the few designers skilled at both high end and the high tech, as a signer, Alessandro Sartori, as its Pilati will add “more fetch- women’s and men’s categories. challenge to elevate the tactile, creative director and recently ing, more fashion and glamour “He is very talented and versa- sensorial dimension of fashion.” acquired Arnys, a heritage Left designs,” and the runway show tile and will work for us exclu- At YSL, Pilati had a fruitful, Stefano Pilati

Bank brand, with plans to apply will continue to present “a mix sively, giving us his full atten- if turbulent eight-year run at Giannoni Giovanni photo by its made-to-measure exper- of the tailored and the couture” tion,” said Zegna. the creative helm. Hedi Slimane tise and plum retail location to pieces, Zegna added. Pilati will be able to build the succeeded Pilati at YSL and is time of strong growth and devel- Berluti’s expansion. As for Agnona, founded in brand from “a clean, pure luxu- to show his first runway collec- opment, particularly in Asia. Net Zegna acknowledged that 1953 and controlled by Zegna ry” base, with a “fresh approach,” tion here in October. profits in 2011 rose 91.5 percent those developments spurred his since 1999, Zegna has plans to expanding it with accessories, Although he was inconsistent to 115.1 million euros, or $149.6 decision to hire a well-known double the business in three which Zegna acknowledged were with YSL ready-to-wear, Pilati million, on the back of record talent. “Surely big groups are a years and to expand it in terms among some of the designer’s designed an array of winning sales of 1.13 billion euros, or stimulus, they were brave and of product and distribution forte in previous posts. handbags and shoes that helped $1.47 billion. Sales, fueled main- they raised the bar and brought around the world. Zegna charac- For his part, Pilati lauded the firm log continual business ly by foreign markets, increased us to make brave choices. Good terized Agnona, with sales of 30 Zegna’s “significant industrial improvement, finally emerging 17 percent on the previous year. competition is a stimulus to im- million euros, or $37.3 million muscle and a time-honored de- from the red in 2010. YSL sales, At the end of 2011, Zegna had prove,” he said. at current exchange, as still “a votion to the finest in quality fueled by Pilati’s designs, cata- 557 stores worldwide, of which Pilati is a known quantity at niche” brand. and craftsmanship. pulted 46.4 percent in the first 311 are fully owned. Zegna, since the firm produced “The time came to decide “Ours is a collaboration I find half of this year to 223.5 million Zegna reiterated that the some men’s wear for YSL, where what was next, and an important particularly compelling in the euros, or $290 million at average private, family-run company Pilati had worked since 2000, ini- designer was a must, especially current landscape of luxury and exchange rates. “is not interested” in an initial tially as women’s design director. for a women’s brand. I knew and high fashion — one in which I Pilati arrives at Zegna at a public offering.

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w05a008a.indd 1 9/4/12 6:37 PM 09042012183835 tAking her SeAt: natalie Massenet, the founder of net-a-porter, will be the next chairman of the british Fashion WWD STYLE Council. pAge 11 MeMo pad CoSMo ColeS: Joanna Coles has been editor in chief of Marie Claire for six years, but her office reveals she may have always been a Cosmo girl at heart. On Tuesday afternoon, a few hours after Coles was named editor in chief of Cosmopolitan, the platinum blonde sat down in a leopard-print chair in her old office to talk about the transition. “I have some ideas, but I want to get there and meet everybody,” said Coles, who officially starts Sept. 10. “I have some ideas for partnerships and leveraging some of the brand and expanding various bits of it. Opening it up more editorially.” She declined to provide a more specific game plan but did say fashion will be covered in a different way and that she wants the magazine to have front-row representation at New York Fashion Week. Coles also said the brand will explore more TV opportunities. She succeeds kate White, the face of the brand for 14 years who has edited the magazine while publishing mystery novels in her spare time. Shortly after the news broke, White sent an e-mail to close friends and colleagues informing them that back in January she told Hearst Magazines president david Carey that she wanted to make a change. “Fourteen years is a long time — particularly in the Instagram era,” White wrote. “I will be focusing more intensely on my career as an author and speaker, and I’ll also be working on some exciting projects in the digital arena. Though I’ve loved Cosmo, I’m thrilled to be turning the page.” White will continue to work as an adviser at Hearst until the end of the year. Coles’ appointment at Cosmo created an opening at the top of the masthead at Marie Claire that took only a few hours to fill: Anne Fulenwider was named Coles’ successor. A former executive editor at the magazine, she moves back to Hearst after a brief stint as editor in chief of Condé Nast’s Brides, where she unveiled a major overhaul in May that received a mixed reception. Fulenwider said her staff at Brides was “surprised and excited” to hear she would be leaving. Insiders claimed they were shocked. “The timing is not the most ideal for me but it’s the most exciting opportunity and one of my dream A Little titles so I could not pass up the chance to take it,” Fulenwider told WWD at the Marie Claire offices Tuesday afternoon, an hour or so after she broke the news to her colleagues at Brides. Fulenwider comes back to a Marie Claire team she knows well — she hired three or four of the editors near the top of the masthead. She has the good fortune of returning while the magazine is on a roll, coming off its largest September issue ever with a 23 percent increase in ad pages to 237. Brit The title was also one of the few to maintain its VENICE — Gucci kept a newsstand during the first half, selling an average of 199,071 copies, which was flat compared to the busy social schedule at previous year. Cosmo, meanwhile, is treading the Venice Film Festival, water. In September, ad pages fell 13 percent to 146, although from January through September, ad hosting a trio of events, pages were down 5 percent. Newsstand was down 15 percent for the first half, to an average of 1.35 including an awards million copies sold. Coles and Fulenwider are friends but they dinner honoring women will also now be competitors, fighting for cover in film, where nominee girls, fashion news and, perhaps, editorial staff. Coles joked that they would be naked wrestling Brit Marling attended in over the staff at Marie Claire. “People have already bought tickets,” she added. Of course, the house’s finest. For it’s not true. But if Cosmo becomes more like a fashion magazine under Coles, they will be more, see page 10. head-to-head soon enough. — AMy WiCkS

MiXed doUbleS: It’s been a year since Barneys New York established its new visual direction with a high-impact women’s campaign styled by and featuring , along with her children. Barneys creative director dennis Freedman followed that with a personality-driven photo by AndreA delbo spring campaign featuring penelope tree. So for {Continued on page 11}

w05a009b.indd 1 9/4/12 7:51 PM 09042012195240 10 WWD WEDNESDAY, SEPTEMBER 5, 2012

Myriam Catania and Luca Argentero, Salma both in Hayek Gucci.

Patrizio di Marco, VENTURELLI/GETTY IMAGES FOR P&G PRESTIGE;

François- Frida Giannini, ANDREA DELBO Henri Pinault Blake Lively, Luigi and Charlotte Feola and Nicolas Italian Trio Casiraghi Winding Refn. ALL OTHERS BY PHOTO BY DI MARCO

FOR THE SECOND consecutive actress, writer and director important roles in the business. actress Blake Lively, director project premiered Friday in year, Gucci celebrated women in Brit Marling; and journalist “There are so many women Nicolas Winding Refn and Procter & Lido’s Sala Grande, where Rosi the film industry with a dinner and documentary filmmaker executives in Hollywood now it’s Gamble Prestige vice president accepted a Golden Lion for his and awards ceremony, held Sharmeen Obaid Chinoy — were all astounding,” she said. “That’s all Luigi Feola in welcoming the career in cinema. during the Venice Film Festival on present. When Hayek announced new, and that’s happened fast.” guests. Lively, the face of the The nearly 90-year-old director Friday inside the Hotel Cipriani’s Schoonmaker as the winner, Hayek, however, spoke of the fragrance’s ad campaign, flew in was greeted with thunderous Granai, an old granary for cereal the room erupted in applause. need for greater equality: “We’re for the event, and was set to jet applause by a diverse audience harvests. Guests dined on lobster Guests included Frida Giannini, far behind.…Many more men are back to New York the following that included politicians Furio and ricotta tortelli under a Hayek’s husband and PPR supported in business. Women day to work on the final season of Colombo — who appears in the wooden-beamed ceiling with long, chairman François-Henri Pinault; are afraid they’re not going to be “Gossip Girl.” “Venice is such a film — Francesco Rutelli and judge elaborate chandeliers, as images Gucci chief executive officer taken seriously,” she said. beautiful, beautiful place,” said Antonio Ingroia, whose work of the nominees were projected Patrizio di Marco, Charlotte Casiraghi, Chicago native Marling, who the actress, who wore a sleeveless fighting the mafia was particularly on darkened brick walls. Harvey Weinstein, Ginevra Elkann, was at the Venice festival for the red Gucci cocktail dress and relevant given the film’s focus on Salma Hayek gave a passionate Trudie Styler and Luca Argentero, first time, spoke enthusiastically burgundy python sandals. “ Yo u the mysterious plane crash that speech about the difficulties as well as jurors Mary Schmidt of the gathering. feel like you should wear a killed Enrico Mattei, the former women and girls face around Campbell and Giulia D’Agnolo Vallan. “Women who find themselves ballgown everywhere.” ENI president who was charged the world, with many unable Gucci will make a grant of in positions of power don’t Separately, Gucci funded the with developing the Italian to get an education and facing $25,000 to the Maurice Kanbar always think to turn around and restoration of Italian director economy after World War II. The abuse. She highlighted the Institute of Film and Television help other women.…It’s really Francesco Rosi’s classic 1972 film film opened with a personal video importance of recognizing at NYU Tisch School of the Arts cool to put the spotlight on “Il caso Mattei” (“The Mattei message from Scorsese to Rosi, women’s achievements in the in Schoonmaker’s name. that,” she said. Affair”) with Scorsese’s The Film in which the American director male-dominated film industry. An industry veteran who The following night, Gucci Foundation and ENI, the Italian praised his longtime friend for The nominees — Lebanese has worked with director Martin held a cocktail and dinner oil and gas company. The fashion creating enriching films that actress and director Nadine Labaki; Scorsese for over 40 years, party for the launch of its new house began its partnership with attack abuses of power while costume designer Colleen Atwood; Schoonmaker said she has seen fragrance, Gucci Première. Scorsese’s foundation in 2006, revealing a deep love for . film editor Thelma Schoonmaker; women take on increasingly Di Marco and Giannini joined and its eighth and most recent — CYNTHIA MARTENS

Guests had dinner Donna Karan at poolside. and Brooke Shields Back to School STEVE EICHNER WHEN DONNA KARAN says her Barry Manilow, who arrived with girlfriend Barbra is a houseguest Lorna Luft, was spending his first for the Labor Day weekend, summer ever in the Hamptons. PHOTOS BY it’s Streisand she’s referring to. “I was a musician, but a geek “She’s stayed here for many musician,” he recalled of his high years. I always see the white school years. “When I discovered house as Barbra’s house,” music in the orchestra class, I explained Karan of one of four knew that I was solid. Everything houses on her East Hampton else was boring.” estate, which stretches along Streisand and McCartney’s endless yards of waterfront pubescent years went unlearned, in an out-of-the-way enclave as press was forbidden from overlooking Gardiners Bay. posing any questions to them at Streisand and James Brolin, the screening and dinner (and along with Sir Paul McCartney and photographers from snapping Shevell, Howard and Beth their pictures), which was Stern, Katie Couric and Rachel served on a single table running Zoe were among the guests at the length of a pool and catered the Cinema Society screening by Gabby Karan and Gianpaolo of “The Perks of Being de Felice’s Tutto il Giorno a Wallflower” at Karan’s restaurant. Also on hand for the Logan Lerman Katie sumptuous, torch-lit domain. evening, which was sponsored Couric and The film, an adaptation of a by The Hollywood Reporter and John Molner popular teen novel exploring the Samsung Galaxy S-III, were the revelations and heartbreaks Russell Simmons, Johan Lindeberg, of American adolescence, Lou Reed, Kathy Najimy, Padma sparked plenty of memories Lakshmi and Darren Starr. of teen angst, even among this Logan Lerman, who stars as the self-assured crowd. title Wallflower of the movie, “Bad hair, no dates,” insisted said he was drawn to author Brooke Shields of her time at the Stephen Chbosky’s writing. “He Dwight-Englewood school in New created such a challenging Jersey. “I had just made ‘Blue role for a young actor,” he Lagoon’ so nobody was going to explained. “I went to Beverly ask me out. I was just avoided Hills High School. I was just for a while.” However, Shields another kid. I was acting and happily made some social inroads I would leave occasionally. upon joining the cheerleading Towards my senior year, I was Barry Manilow squad. “I had pom-poms. It was, like ‘F--k it, I’m gone.’ I wanted and Lorna Luft ‘Go, go, go; beat, beat, beat; Stony to start working professionally.” Brook, Stony Brook!’” — DAVID LIPKE WWD, WEDNESDAY,WWD wednesday,SEPTEMBER 5, september 2012 5, 2012 11 1 WWD.COM

Paolo Roversi shot two women, MeMo pad meant to be lovers, for Barneys Fashion scoops fall women’s campaign. {Continued from page 9} fall, he decided to go traditional… HOLMES RUN: Industry sources are and loyal following, and we welcome sort of. The women’s campaign, shot saying that Katie Holmes has inked a the opportunity to help expand her by Paolo Roversi, features models Arizona deal to become the first face of Bobbi relationships through endorsements Muse and Magda Laguinge dressed to the Brown Cosmetics. Executives at Bobbi as well as our global network that nines in Paris, with the innuendo that Brown declined comment, as did reaches beyond fashion,” said ivan Bart, they’re lovers. “It’s not hitting you over representatives for Holmes. Holmes IMG Models’ senior vice president and the head, but they’re two women,” said will present her spring 2013 Holmes & managing director. Freedman. “They’re lovers, but there’s Yang ready-to-wear collection on Sept. In her four-year career, Kloss has two different sides to their lives.” One 12 during New York Fashion Week. been featured in ad campaigns for is swanky, captured in a lavish chateau — JULiE NAUgHTON ANd PETE BORN Oscar de la Renta, Christian , stocked with 20th-century furniture; and Chloé and Dolce & Gabbana, and has one seedy, shot in a pool hall and what WiNNiNg STYLE: Ten designers and appeared — in the past month alone Freedman calls “a very, very inexpensive celebrities will receive awards tonight — on the September covers of British hotel.” Barneys has been a big supporter at the ninth annual Style Awards at The Vogue, Russian Vogue, Japanese Vogue of the Human Rights Campaign (HRC) Stage at Lincoln Center. Carolina Herrera and Numéro. — RACHEL STRUgATZ in support of its Americans for Marriage will receive designer of the year from Equality Program, via its Perfect Pairs Katie Holmes; Reed Krakoff will receive shoe campaign and last holiday season’s accessories designer of the year; Prabal Gaga’s Workshop, sales from which gurung will get the breakthrough designer benefited the Born This Way Foundation. of the year award from Elettra Wiedemann; The fall men’s designer campaign men’s campaign. She was photographed Katharine McPhee and Ed Westwick will get also features a twist: Freedman and stripped down — no makeup — with an ones to watch awards from Joe Zee and Juergen Teller took the team to Belgrade, entourage of men, including a fresh new Simon Spurr, respectively; Cristina Ehrlich is Serbia, a city not known for its fashion. face, Hendrick Siems, whose orange hair getting celebrity stylist of the year from Freedman featured a female model, and unique look made the cover of the Amy Adams; will present Joan Smalls irina Kulikova, for the first time in the mailer. — JESSiCA iREdALE with model of the year; Nicole Richie will present Andy Lecompte with hairstylist of the year; hockey player Henrik Lundqvist is getting most stylish athlete from Jeff gordon, and Allison Williams will present Amex Teams With Fashion Sites Jenn Rogien with TV costume designer of the year. The awards are organized by Doré and Jenné Lomabardo, to give brows- Penske Media Corp., Style Media and By ALEXANDRA STEIGRAD ers of e-commerce site The Fancy their IMG Fashion, with an after party at the fashion picks. Those picks will be acces- Stone Rose Lounge. — WWd STAFF NEW YORK — American Express is sible to the public, but what AmEx will flexing its digital muscle and upping its specifically bring to the table are deals MASSENET’S NEW ROLE: Natalie Massenet, fashion cred. for members that include a $20 discount the founder and executive chairman of The company is teaming with The on items over $100. AmEx’s partnership the Net-a-porter Group, will succeed Fancy, Harper’s Bazaar and Lucky with The Fancy will go live at midnight Harold Tillman as chairman of the British 2012/stuDioCaNaL Bowie fiLmsarChive LtD of the DaviD Photo Courtesy Magazine to introduce new e-commerce on Sept. 7, while its collaboration with Fashion Council next year, WWD has An image from the david Bowie exhibition. platforms meant to seamlessly link shop- MyLuckyShops, a shopping site recently learned. The chairman’s role is an ping and social media. Timed to the launched by Lucky Magazine, is already honorary one with an initial three- BOWiE ON SHOW: david Bowie’s gallery launch of Mercedes-Benz Fashion Week, up and running. According to AmEx, it year commitment. A spokeswoman of guises, from Ziggy Stardust to Amex will give its card members exclu- hopes to expand upon that relationship for the British Fashion Council Aladdin Sane to the Thin White sive deals on merchandise curated by in- by offering more benefits and promotions declined to comment on Tuesday. An Duke, has provided inspiration fluencers and the editors of Harper’s and to its cardholders in the near future. Like announcement is expected today. for many a designer’s collection. Lucky. The partnerships will continue Lucky, Harper’s Bazaar is gearing up to in- Tillman took over the post from Now London’s Victoria and Albert through fashion week. troduce a digital shopping site in the com- Sir Stuart Rose in 2008, and during Museum, in partnership with Gucci, is “We recognize that there’s a massive ing months. The platform will serve a high- his tenure formed a full-time putting the musician’s style under the convergence in digital between fashion end fashion client that mirrors the glossy’s management team to run the BFC, spotlight. Next spring, the museum and shopping,” Deborah , AmEx vice readership, and AmEx will also facilitate spearheaded London Fashion Week’s will unveil the exhibition “David president of entertainment, marketing and deals with its members who shop the site. return to Somerset House, encouraged Bowie is,” which will run from March sponsorship, said. “It alters how people are “Each site has its unique point of Burberry to move its women’s show 23 through July 28. The show will interacting in retail. It’s become an entirely view,” Curtis said, explaining that the of- from Milan to London, and helped to explore everything from Bowie’s incredibly merged experience.” fering for all three platforms will span plan a series of events to mark the creative processes to what the V&A Trading off that, AmEx has tapped a a wide range of price points and tastes. London 2012 Olympic Games. called “his shifting style and sustained slew of influencers, including designer “For us, we really see the power of our As reported in January, he will reinvention across five decades.” Prabal Gurung, Susie Lau of Style Bubble, network, and at our very core we connect remain in his position through the end The show will comprise more than Kelly Framel of The Glamourai, Garance buyers and sellers.” of 2012. The appointment is subject to 300 objects, including handwritten the approval by the BFC board. lyrics and set lists, original costumes, — SAMANTHA CONTi photographs, diary entries and musical scores. — NiNA JONES

Natalie Massenet SLiM KEEPS SELLiNg SAKS: Carlos Slim Helú continued to lighten up his Saks Inc. stake Friday, selling 225,000 shares at prices ranging between $11.73 and $11.82, according to filings with the For more career opportunities log on to WWDCareers.com. Securities and Exchange Commission. The Mexican billionaire is still the firm’s biggest shareholder with 23.1 million shares. diego della Valle, Tod’s SpA chairman and chief executive officer, holds 22.7 million Saks shares. — EVAN CLARK MERCHANDISER SARAH’S KEY: There may be a little more WOMEN’S SCARVES Men’s Dress Furnishings firm expand- elbow room in the retail section’s ing into women’s accessories seeking front row at the upcoming round merchandiser for women’s scarves. Minimum 5 years merchandise man- of international fashion weeks that agement experience in better and a couple of Sarahs are apt to miss. bridge women’s scarves necessary. Interested parties may email their re- Word has it Sarah Andelman, purchasing sume to [email protected] manager and creative director of Colette in Paris, is sitting out many of the shows HEAdS TO iMg: Karlie Kloss as she is expecting her first child. has just signed on with IMG Models, And Sarah Rutson, the leggy fashion deciding not to renew her contract with director of Lane Crawford, said she’ll To subscribe, visit our website Next Model Management. Currently be viewing the shows from a distance as www.wwd.com/subscribenow ranked number two on Models.com’s she delves into expansion plans for the or call 800.289.0273 Top 50 Models list (Joan Smalls holds Hong Kong-based retailer. “Our priority the top spot), Kloss will now share a is to work on merchandise strategy manager with gisele Bündchen. This is particularly for the growing e-commerce the first step in expanding the 20-year- business and the China flagship in old model’s portfolio beyond the Shanghai, which will open in the second (800) 423-3314, or email [email protected] fashion space. “Karlie has an immense half of 2013,” Rutson said. — MiLES SOCHA

w05a011a;8.indd 11 9/4/12 8:18 PM 09042012201859 edgy, provocative, image-maker, stylist, carine roitfeld edits her signature look into a collection of colours and tools inspired by her aesthetic.

maccosmetics.com/carine WWDSPECIALREPORT SECTION II MADE IN AMERICA In a development few ever expected, a range of economic and political factors and circumstances have come together for nothing less than a revival of the U.S. textile and apparel manufacturing industry.

PRESIDENTIAL FOCUS Q TEXTILE TALK THE CONSUMER VIEW N.Y. AND L.A. REV UP QRETAILERS REACT 2 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA U.S. Jobs in Campaign Spotlight

President’s signature health care plan of 2014. For the year ending May 31, suppliers available to produce apparel By KRISTI ELLIS and the Dodd-Frank financial regula- U.S. exports of textiles and apparel and other products in the U.S. tions; shrinking the size of the govern- to the world rose 7.5 percent to $22.6 “This is a result of brands and retail- WASHINGTON — Made in USA is prov- ment through federal spending cuts; billion, compared with the year ear- ers constantly coming to our office over ing to be a key battleground of the presi- extending tax cuts for everyone, in- lier period, according to Commerce’s the last six months to a year looking to dential campaign and some experts are cluding the wealthy, and passing more Office of Textiles & Apparel. U.S. tex- source products closer to home,” Glas predicting that a shift in sourcing back said. “They want Made in USA labels in to the U.S. has just begun. their stores because customers are de- As job growth wavers between ane- manding that. This project came as a di- mic and modest every month— the over- rect result of companies asking about it.” all economy added 163,000 jobs in July Commerce also joined forces with and the unemployment rate edged up to the Sourcing at MAGIC trade show 8.3 percent from 8.2 percent — the gov- for the second installment of the ernment is trying to find ways to jump- “Sourcing in the Americas” pavilion start the economy, while President and summit, highlighting U.S. appar- Obama and Republican presidential el producers, as well as those in the candidate Mitt Romney work feverishly Western Hemisphere, at the Las Vegas to convince voters their plans will bring Convention Center last month. jobs back to the U.S. “I think what Francisco Sánchez [un- The fashion industry is watching dersecretary for international trade at the political debate over job creation the Commerce Department] is doing is closely and pressing for a wide range great,” said Kevin Burke, president and of proposals, ranging from government chief executive officer of the American stimulus intervention and tax breaks Apparel & Footwear Association. “He to a more aggressive trade policy and is promoting jobs in the U.S. and the overhaul of the tax code. Western Hemisphere.…And we fully Apparel and textile manufacturing support that. We think that is good for has contracted significantly over the the industry.” past two decades. In 2011, the apparel Burke said even though the majority and textile manufacturing sector em- of apparel consumed in the U.S. is im- ployed a combined 506,000 workers, ac- ported, the combined industry still sup- cording to the Labor Department, less ports 4 million jobs in the U.S. and he than half of what it was a generation said the government should place more ago. Combined apparel specialty store, of a positive emphasis on imports as it department store and discount store does with exports. employment was 4.41 million. “Don’t try to make imports look bad “I’m very optimistic about this on- because certain parts of the American shoring or reshoring move you hear base are not doing as well as before,” said about,” said Edwin Keh, a lecturer at Burke, addressing the government. “The the Wharton School at the University economy as a whole has to be balanced. of Pennsylvania and former chief oper- If we can make things in the U.S., terrific. ating officer and senior vice president But if we bring value [he estimated that of Wal-Mart Global Procurement. “We 75 percent of a product’s value is added went offshore because the American in the U.S.] to the American economy by dollar was so valued overseas that it importing, we will continue to do it.” made everything more affordable for 30 The Obama administration also years. In the last couple of years, chiefly pressed Congress to pass two trade in the relationship of the U.S. dollar to measures in early August that could the Chinese renminbi, it became less. help maintain or stimulate more jobs Coupled with stubbornly high oil prices, at home. One in particular helps U.S. suddenly the question became why take textile producers and apparel import- on so much risk to offshore when you ers doing business in Central America. are not getting the value you wanted to The bill closed a loophole in the Central create in the first place? American Free Trade Agreement that “The challenge now is we don’t have allowed companies to substitute a fine a supply chain that can respond to the yarn as sewing thread and get around turbulent times we live in. But I think a requirement that sewing thread be it is a lot more feasible to think about made in the U.S. or Central America. high-quality products that can be made “There are 1,800 [employees mak- onshore and that can respond to much ing] sewing thread in the U.S. alone,” faster marketplace turbulence,” Keh Glas said. “This will have an impact continued. “How fast onshoring hap- on their jobs. I am starting to hear pens will depend on the momentum. If from companies that are actually look- one or two big brands decide to make a ing to hire more workers to produce

commitment and bring the whole sup- POST WASHINGTON NICHOLAS MELINA MARA/THE KAMM/AFP/GETTYOBAMA PHOTO BY IMAGES; ROMNEY BY the sewing thread.” ply chain ecosystem with them, from President Obama and Republican challenger Mitt Romney have made U.S. job creation Auggie Tantillo, executive director zippers, button and thread suppliers, a key issue in the election. of the American Manufacturing Trade then all of a sudden this becomes much Action Coalition, said: “By closing faster in terms of velocity.” free trade deals, while cracking down tile and apparel exports to the Western [the loophole], we are confident that The economy is a centerpiece of this on China’s undervalued currency. Hemisphere rose 8.6 percent to $15 bil- U.S. thread producers can begin to year’s presidential election and Obama As the two presidential candi- lion in the same period. recapture market share in the CAFTA and Romney have put forth their eco- dates battle it out in the final stage Kim Glas, deputy assistant secre- region, leading to more jobs and in- nomic and job growth plans in a bid to of the election, the White House and tary for textiles and apparel at the creased U.S. exports.” woo voters at the polls in November. Congress have passed and implement- Commerce Department, said her office “I think the apparel and textile Obama’s plan places an emphasis on ed some policies and programs aimed has received many phone calls and e- manufacturing industry is really on the middle class and American manu- at job creation. mails all year from brands and retail- the cusp of seeing significant growth facturing, extending tax cuts imple- The Obama administration, through ers “looking for sourcing finished ap- for many years if the right policies are mented by former President George W. the Commerce Department and U.S. parel here in the USA.” To facilitate put into place, because you see this in- Bush, which expire at the end of the Trade Representative’s office, has that, Glas said OTEXA is developing a crease in costs in China and a greater year, only for families making less than placed the fashion industry at the cen- Made in USA database where U.S. tex- interest in buying goods made in the $250,000 and individuals making less ter of its Made in America campaign, tile and apparel suppliers can upload U.S. by consumers,” said Cass Johnson, than $200,000; giving tax breaks to small which has trade officials promoting information to the government Web site president of the National Council of businesses and companies moving pro- U.S. jobs and visiting several apparel and make information available to re- Textile Organizations. “So you have duction back to the U.S., and opening companies from coast to coast. tailers and sourcing executives. two great drivers and you have already more markets abroad for U.S. exports The focus on the fashion industry is OTEXA expects to have the data- seen some manufacturing come back. with an emphasis on trade enforcement. part of the Obama administration’s ini- base operational this year, although Whoever is in the government needs Romney’s plan focuses on repealing tiative to boost U.S. manufacturing and there is not currently a target date, she to put in trade, economic and regula- regulations and laws enacted under the meet its goal in the National Export said. On request from brands and re- tory policies that help to ensure that Obama administration, including the Initiative to double exports by the end tailers, the office will share the list of growth actually occurs.”

4 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA

vantage of U.S. sourcing includes a Back in the U.S. They Are broader picture. “Having our clothing manufactured in the USA is very important to our brand DNA, allowing us to consistently give our consumers the color and quality of cloth- By ARTHUR FRIEDMAN ing they have come to love and associate with our brand,” said Mary Ellen Vernon, LIKE A PHOENIX, the American tex- chief executive officer of Fresh Produce, a tile and apparel industry could be ris- Boulder, Colo.-based company that makes ing once again. about 80 percent of its garments and pur- The crest of a new beginning has chases 90 percent of its fabrics in the U.S. emerged from the scrap heap of the “Made in the USA is good for the bottom import era that spanned a genera- line. Fresh Produce’s U.S.-based produc- tion and the emergence of offshore tion model enables higher sales and re- production and dominance of China as quires less working capital. Higher sales the world’s factory. as reorders of the fastest-selling items can A confluence of factors and circum- be accommodated over the course of the stances — from the Great Recession season. Less working capital is needed and protectionist politics to higher labor because more production is matched to rates in Asia and technological advance- actual orders instead of building specula- ments — have come together to create tive inventory based on guesstimated fore- one of the most surprising developments casts made up to six months in advance. the fashion world has seen in decades: With better inventory control, there are

Made in America is back and likely here ERICKSEN KYLE PHOTO BY fewer markdowns and fewer markdowns to stay. Nobody thinks it will even come result in lower overall costs.” close to its heyday of the Fifties and Fessler’s knitting machine. Vernon noted that two-thirds of shop- Sixties, when factories flourished from Left: Texollini touts Made in USA. pers at Fresh Produce — which has 400 Midtown Manhattan to the Carolinas independent retail accounts, 25 compa- and the industry employed more than materials of a garment make up about ny-owned stores and an online business one million people, but experts believe two-thirds of the cost, with the balance and employs about 400 people — say a need and a niche for fast-turn, high- consisting mostly of labor, along with Made in the USA is an important factor quality, low-risk goods and production shipping and incidentals. They also when buying apparel. for American brands has found a new stress that any mills or factories looking No nonsense, a division of Kayser- sourcing spot, right where it used to be. to open or expand in the U.S. must use Roth Corp., produces 95 percent of its “There is a certain amount of ap- modern machinery to be able to compete products in the U.S. The company’s parel we can and should be making with foreign imports. “Made in USA” presentation on its Web in this country because we can make Mike Hubbard, vice president site explains how this goes hand-in-hand it in a matter of days, giving us quick and manufacturing in the U.S. can be of the National Council of Textile with being more efficient and eco-friend- response and test-marketing abilities,” done and it has its advantages.” Organizations, said, “Plant capacity uti- ly in its manufacturing plants in North said Gail Strickler, assistant U.S. trade David Sasso, vice president of in- lization is not full. The industry could Carolina. “When you buy No nonsense representative for textiles and apparel. ternational sales at Buhler, said the re- ramp up pretty quickly.” socks, you’re helping keep jobs at home,” “We have yarn spinners in this country vival of interest in Made in USA “is defi- Hubbard said if the only factor con- the company says. that have the most sophisticated equip- nitely real, but the real question is, ‘is sidered is wages, the scale tips toward ment in the world and that are paying it sustainable and how will it evolve?’” China for apparel production. But with 4.4 cents per kilowatt hour of electric- He noted that there is already a niche wages and other costs rising in China, Comparing Wages ity. That’s globally competitive.” in sourcing for Made in the Americas, he said the U.S. becomes a more viable Those U.S. yarn spinners and knit- where goods are produced in other alternative. The American Apparel & Workers in the apparel manufacturing ters said interest in more domestic Western Hemisphere countries using Footwear Association said average sector earned less per hour on manufacturing is high and some new U.S. yarns and fabrics. hourly earnings for production and average than workers in some of the business is coming their way. Lenzing “The U.S. manufacturers that are left nonsupervisory workers at U.S. apparel top U.S. manufacturing industries. Fibers, the Austrian cellulosic fiber have to make good products,” Sasso said. manufacturers in 2011 was $11.96, com- producer that also has a manufacturing “We can always cheapen the product, but pared with about $5 an hour in China, facility in Mobile, Ala., featured 10 U.S. then we’re not going to compete.” which has seen wage rates more than JUNE 2012 mills — Fessler USA, Buhler Quality With all the talk about a resurgence double in the last three years. Yarns, Laguna Fabrics, Design Knit Inc., of Made in America apparel, many ques- “If you are an importer and sourcing Apparel Manufacturing: $17.72 Texollini, Ecotex, Mansfield Textiles tion whether there is enough capacity to closer to home, it is easier to turn the tap Computer and Inc., SG Knits Inc./United Pacific Group, meet the need or enough trained work- on and off,” said Hubbard. “Whereas, if Software Manufacturing: $40.37 JH Textiles Inc. and Tuscarora Yarns ers to do the job. you are importing from Asia, there is so Inc. — in its pavilion at Texworld USA Beth Hofer, senior manager for cus- much more of a lead time.” Aerospace Products/Parts: $37.89 in July, all reporting renewed interest in tomer relations and educational resourc- Howard Silver, who owns and op- Chemicals: $27.88 domestic sourcing. es for the Stoll Fashion & Technology erates Jasco New York with his wife, “As a U.S. manufacturer, it’s one of Center, a three-year-old facility the Madia, said his company, based in White Motor Vehicles/Parts: $23.57 our advantages when people want things German machine manufacturer set up Plains, N.Y., produces all its fabrics SOURCE: BUREAU OF LABOR STATISTICS to replenish their lines and keep them on West 39th Street in Manhattan, said, within a 200-mile radius of Manhattan updated and be innovative every sea- “The timing is right because we see peo- and has been able to survive the import son,” said Brian Meck, vice president ple who have a vision come into our fa- onslaught because “we specialize in ser- Edward Chapman, ceo of Marchesa, of sales and marketing at Fessler USA, cility. We have new designers coming in vicing boutique, high-end designers and said all of the collection is made in its based in Orwigsburg, Pa. “We can handle and saying, ‘We want to make it here and emerging talent, thus our production is New York atelier. He said it’s important that and turn that very quickly.” support the industry here.’” not volume-driven; rather, quality and to designer Georgina Chapman and busi- Meck said his firm, which makes Stoll conducts training classes on its service are our main focus.” ness partner Keren Craig to be involved yarns and knit tops, is receiving “very knitting machines for students at the Silver said he’s encouraged by the re- with every step of the production process. strong interest…from the larger brands Fashion Institute of Technology, Parsons vival of Made in the USA because Jasco “Georgina is incredibly hands-on and and retailers” that are evaluating work- The New School for Design, Savannah is predicated on domestic fabric pro- oversees every last detail of design,” ing with the company and testing small College and Kent State University, and duction and it works with U.S. knitters, Chapman said. “New York’s Garment orders. Fessler already works with re- production managers from companies dyers and finishers. District has manufacturing capabilities tailers such as Dillard’s and Nordstrom. that either have purchased or plan to NCTO said the U.S. textile industry with a very high level of expertise and (For more on Fessler, see page 6.) purchase Stoll machines. might have been forgotten, but it’s far craftsmanship. Additionally, we like to do “People have made the decision to The owners of Keff NYC, which in- from gone, noting that textile firms last as much here as we can to support local establish some vendors and factories in stalled the first six of 20 Stoll machines year employed 238,000 workers, who manufacturing, which is key for the pres- the U.S. and find a way for it to work for they have purchased in their new factory make an average salary of $575 a week. ervation of our garment industry here. them as a percentage of their sourcing at 142 West 36th Street in the Garment Overall textile shipments were $53 bil- I think that many businesses are recog- strategy for flexibility and replenish- Center last month, noted that without lion in 2011, with exports growing 13.4 nizing the importance their consumers’ ment, and to reduce risk and create di- Stoll’s fully automated machinery, they percent to more than $17 billion in 2011, place on USA-made product, but ulti- versification,” Meck added. would have had to employ many times making it the third-largest exporter of mately it has to make sense from a busi- Linda Corby, a sales representative more people than the number they plan textile products in the world. ness and creative perspective. We find it for Texollini, a Long Beach, Calif., knit- to hire, and they never would have con- Hubbard at NCTO also pointed out makes good business and creative sense ting mill, said the interest in Made in templated their new endeavor without that U.S. textile firms invested $16.5 for us due to the quality of handcrafts- America is there, “but the big players the labor-saving technology. billion in new plants and equipment manship and level of artistry that goes have not yet.” Corby said, “It’s “With the old hand-knit machines we from 2001 to 2010, and recently produc- into Marchesa’s couture collections. The just a matter of time before they enter had 10, 20 years ago, it would have been ers such as Unifi Inc. and Dupont have factories in New York are able to manu- the market, too. It’s becoming a neces- impossible,” said Leonard Keff, a co- opened recycling facilities to convert facture at the highest level so we can be sity because people are finding it’s not owner of Keff NYC. textile waste to fibers, yarns and resins. sure our product is of the highest quality as easy to do business in China anymore Experts agree that the fabric and For some brands, the strategic ad- when it reaches the shop floor.”

6 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA If They Can Make It Here...

The U.S. is expected to see a manufac- By ROSEMARY FEITELBERG turing renaissance within the next five years, according to a report released this AS MADE IN the USA products con- spring by the Boston Consulting Group. tinue to gain ground with consumers, With wages in China climbing at an an- domestic manufacturers are stepping nual rate of about 17 percent and the up their commitment. value of the yuan also on the rise, the gap New York’s Garment Center, once between American and Chinese wages is the hub of American apparel manu- narrowing. In addition, government in- facturing, is at the heart of the revival centives in Mississippi, South Carolina A Stoll knitting movement, as well. and Alabama are making these and sev- machine being The nonprofit Save the Garment eral states more competitive alternatives delivered to Keff Center now lists an assortment of re- for companies with U.S. clients. NYC’s factory on sources for apparel labels that want to There are 7,100 apparel manufactur- West 36th Street. manufacture in New York, and the new ers within New York’s Garment District Web site, keepinitlocal.org, was created and 284 contractors for all different to help emerging designers do just that. kinds of production, according to Susan Lauren’s Made in China opening-cere- was tagged and ready to be shipped to Even at trade shows like Designers Chin, executive director of the Design mony uniforms for American athletes Pakistan,” said Mich Berthiaume, vice & Agents, locally made lines promote Trust for Public Space. Citywide, there at the London Olympic Games and the president of sales. “Before our looms themselves as Made in the USA labels. are about 28,000 manufacturers, mak- brand’s — as well as the U.S. Olympic were even running again, I had calls At this month’s Sourcing at MAGIC show, ing fashion the leading manufacturing Committee’s — commitment to make the from clients saying, ‘Promise me that we the U.S. Department of Commerce dedi- sector in the city. Having just completed 2014 team’s uniforms domestically, U.S. can get everything domestically. We need cated more space to and an even bigger the final part of its “Made in Midtown” Sen. Sherrod Brown (D., Ohio) has intro- Made in America products.’” focus on Made in USA, with 40 companies study, Chin’s group hopes the results duced a “Buy America” plan to ensure A sign of the increasing interest in represented. Save the Garment Center will help to preserve, maintain and im- that the federal government purchases Made in the USA goods, Keff NYC, a executive director Erica Wolf, who also prove the 1.1 million square feet in the apparel that is 100 percent American 7.500-square-foot knitting factory owned works for Nanette Lepore, another big Garment District that are earmarked for made. Lepore, an Ohio native who has by industry veterans Ricky Schiffer and supporter of U.S.-made goods, was among apparel manufacturing. helped champion New York-made goods Leonard Keff, opened a knitting factory the speakers at a one-day seminar there The neighborhood has also gotten for years, is lending her support. last month in the Garment District at geared to stimulate manufacturing. a lift from an influx of different firms. Far from the city but symbolic of the 142 West 36th Street, feeling the time Gary Wassner, co-chief executive offi- Fashion Center Business revival mood, Faribault Woolen Mill had come to bring such manufacturing cer of factoring firm Hilldun Corp., which Improvement District executive direc- Co., which reopened last year after a back to the city. works with 350 fashion firms, said, “More tor Barbara Randall said, “The good two-year hiatus, has hired 80 workers Caravan Stylist Studio houses an array than ever, people are asking us for local news is that there has been a growth in since October and will add 50 more this of locally made labels, including Tucker, resources. They are finding it more expen- Fashion District jobs that has outpaced year. Dating back to 1865, the company’s Callula Lillibelle, Dana-Maxx, Primary sive and more difficult to source overseas, the growth in both Manhattan and New Minnesota factory was revived by cous- NY, Synderla, and Kim Hicks. and the quality of production in China is York City [overall] — that includes ins Paul and Chuck Mooty, who both After people started requesting Made in going down. They also need to be in their fashion- and nonfashion-related jobs. came out of retirement — Paul was an the USA clothing, owner Claudine DeSola factories more frequently to get their There are currently about 4,500 manu- attorney and Chuck served as chairman rounded up 20 celebrities to shoot a video products quicker. Every day somebody is facturers in the district, according to a and ceo of Dairy Queen — to help re- encouraging others to support New York asking us how they can bring production survey commissioned by the FCBID.” charge the local economy. manufacturing and the Save the Garment or some part of their production back.” In the wake of the dust-up over Ralph “This was a vacant mill. Everything Center campaign. Fessler: An Oasis Grows in Orwigsburg

jobs in the area and as a commitment said the key to turning the interest into By ARTHUR FRIEDMAN to sustainability,” Meck said. reality is the retail mind-set. “We also did it to remain competi- “For most retailers, the right price ORWIGSBURG, Pa. — Nestled tive with foreign manufacturing by is what they paid in the past,” she said. along the rolling hills of eastern keeping costs down in the long term,” “Our challenge is to educate the retail- Pennsylvania lies an oddity — at once said his son, Brian, who is vice presi- ers to understand what the value is to a vestige of a bygone era and a beacon dent of sales and marketing. “It’s going be able to replenish within season, to pioneering the potential of a new age to allow us to be more profitable, and not have those excess markdowns at in American manufacturing. maintain and hopefully add jobs.” the end, and that’s been the ongoing It’s a family-owned, fully integrated, Fessler employs 130 people directly, challenge for our company.” state-of-the-art knitwear factory called and another 150 to 300 indirectly at any Brian added that one of the most diffi- Fessler USA. Owned and operated by given time, including sewing shops in cult conversations with potential custom- the Meck family, the 155,000-square-foot nearby Allentown and Reading, and con- ers is the cost-to-risk ratio of U.S. manu- facility serves as company headquarters, tracted dyeing and other service jobs in facturing versus foreign production. manufacturing plant, warehouse distri- the area. Bonnie Meck, Walter’s daugh- “One of the things we go through bution site and hub for shipping goods to ter and the company’s chief operating is to explain…what’s the cost of them satellite sewing factories in the area. officer and chief sustainability officer, having to go out and buy yarn, fab- The factory houses a computerized has discussed job training programs ric, contract a knitting factory, all the design and patternmaking department with local government officials because things that need to be done if you’re run by Gerber systems, cutting rooms she said if Fessler and other companies not buying from a vertical operation — Walter and Brian Meck for its array of knit tops and medical in the area are going to expand, more you don’t have control,” he said. “We and health-care goods made and pack- skilled workers are going to be needed. tell them, ‘If you buy from us, we have and where the use of better quality fab- aged on site, and a bar-coded inventory Walking into the nearly pristine the team in place and the capability, ric is important — fashion, children’s control system that integrates functions building, Fessler proudly displays signs we’re going to manage that all for you wear, activewear and performance wear. from shipping and receiving to sales and depicting its key customers, including and take away that risk and lack of con- Its full-package manufacturer’s price av- manufacturing. The system also accounts Dillard’s, Nordstrom, Pendleton and trol. You might pay a little more for the erages $7 to $9 a garment. for every yard on every spool of yarn that Michael Stars. The family and company finished product, but in the long run In general, textile manufacturing is goes onto the diversified selection of are strong advocates of Made in USA it’s not going to cost as much.’” easier to bring back than garments be- Vanguard/Monarch knitting machines. textiles and apparel, for the obvious Walter feels there are more compa- cause, while it’s more capital intensive, A trip up to the roof during a tour reason that it would help their busi- nies that want to either create a percent- there are less peripheral supply chain of Fessler’s sprawling facility on rural ness, but also with a broader agenda age of their manufacturing domestically issues and less labor is involved, he said. Route 61 reveals a year-old array of 160 for which they passionately advocate — or increase what they are already doing. “There are no more Chinas,” he solar panels that provides the full ener- bringing back a business that sustained “The problem right now is that not added. “About five companies have ‘re- gy capacity for the plant, generating 0.5 jobs in the region and country, and was enough companies have figured out shored’ with us in a so-called China Plus megawatts annually, with the excess put a more efficient way for brands and re- how to do it, but several have and many One strategy, and the fact is we shouldn’t back into the East Coast power grid. tailers to operate. are still trying,” he said. “There are a be the replacement.” “At times, the meter runs back- Interest in U.S. manufacturing has number of companies who think they Walter noted that one of the posi- ward,” said Walter Meck, 61, the patri- been revived in the last few years be- are just going to take their sourcing tives of the industry’s near extinction arch and chief executive officer of the cause of frustrations over delivery, re- structure from offshore and impose it and now slow rebirth is that “on the firm, noting that the solar panels were liability and dependability of foreign on the USA, and you can’t just do that.” yarn and fabric side, anything that paid for in part by a federal grant in manufacturing, brought to light by the Fessler has been successful by focus- comes back is state-of-the-art, it’s the form of tax credits. recession and China’s shifting sourc- ing on areas that are less price-conscious brand new. We’re rebuilding a world “We did the solar project to keep ing dynamic, contended Walter. Bonnie and where being quick to react to trends class textile industry in the U.S.” WE WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK ALL OF OUR LOYAL CUSTOMERS IN THE UNITED STATES.

You have stayed with us through the ups and downs of the last decade, and for that we are truly grateful.

We would also like to welcome our new customers. You have joined us at an exciting time—and together we will pioneer the rebirth of the Made in America movement.

Stoll technology has made its statement about the future of knitting in America by basing our Fashion & Technology Center in the heart of Manhattan’s Garment District.

WE ARE HERE TO SUPPORT YOU. JOIN US!

ADORE AMERI-TEX, INC. ANDARI FASHION, INC. ANDREWS KNITTING MILLS, INC. ANPECA CORP. DBA BINGHAMTON KNITTING CO., INC BLANKET BOSS CATIA’S FASHION KNITWEAR, INC. CRAVE KNITS ESCAPADE KNITWEAR, INC. FLECK KNITWEAR CO, INC. J&J GARMENT KNIT, INC. J-MAR TEXTILES, INC. JOY KNIT INC. JYTTE KEFFNYC KNITCRAFT CORPORATION KNITWORK PRODUCTIONS CORP KUSTOM KNITS LIAMOLLY M&M EMBROIDERY & KNITTING MACHINIT INC. MYRRHIA RESNECK NORTH STAR KNITTING MILL, INC. PHOTO THROW, INC. RISE KNITTING SAMBO, INC. SARUG, INC. SIMPLY KNITTING ST. JOHN SWIFT KNITTING TRIM KNIT, INC.

Stoll Fashion & Technology Center, New York 250 West 39th Street (Ground Floor) New York, NY 10018 Tel: (212) 398-FTNY (3869) 8 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA L.A. Looks to Gain as Apparel Hot Spot

“The demand is way over the ca- By KHANH T.L. TRAN pacity right now,” said Brian Weitman, chief executive officer of Security LOS ANGELES — If there were a Sourcing, a full-package provider poster child for the movement to make based here. “There are not a lot of good clothes here, a prime candidate would operators to fill the demand. When you be Heidi Merrick. find a good contractor, you find gold.” Shortly after starting her namesake Remy Leather Inc. opened contemporary label in 2007, the fashion the doors to its downtown factory in 1971. designer could be seen treading the down- While one sewing manager retired after town sidewalks here between her studio 40 years of employment, the average and the nearby buildings housing the con- worker clocks 18 years with the company, tract factories that produce her colorful, which employs more than 75 people who carefree sportswear. Having inherited produce close to 1,000 leather jackets, her dedication to domestic production pants, skirts and bags a week for its name- from her father, Al, who hired scores of sake brand, private label business and a local residents for the Channel Islands contemporary line called 1020 by Nicole. Surfboards company he started in Santa “You can’t have someone walking off Barbara in 1969, she would stick to a one- the street,” said Justin Remeny, grandson mile radius for her clothing production. of founder Zoltan Remeny, who works in “I was only using people I could the family business alongside his dad, walk to,” she said. “Driving and park- John, and his sister, Nicole Goodwin. ing is a total nightmare. It’s so much Being made in Los Angeles sets their easier to just roll fabric over and put it business apart, said Goodwin, adding, in a big bin and go back and forth from Three generations of the Remeny family make leather clothing and accessories in downtown “It’s a selling point for salespeople, es- your cutter and sewer to pressing. It L.A.: From left: John Remeny, Nicole Goodwin, Zoltan Remeny and Justin Remeny. pecially now, in the last few years, with just made more sense.” the economy not being good. The fact One season, Merrick decided to ex- that we maintained our integrity and periment with importing knit sweaters stayed here is meaningful.” from Portugal. The results were dismal. Speed to market is also important. “The samples came in totally wrong,” Consider Pretty Rebellious, which she said. “I thought it would be easier caught the trend for pastels after see- overseas. I don’t think that’s the answer.” ing European fashion awash in the Los Angeles is burnishing its title as subtle palette earlier this spring. The the nation’s apparel manufacturing hub L.A.-based juniors company asked thanks to people like Merrick. As part of local factories to switch the color for a a resurgence, she joins a growing circle trendy polyester chiffon top with a key- of designers and executives who pick hole back from neon pink to blush, pale the city and and its surrounding area as pink and mint green. Six weeks later, the preferred provenance for making ac- it shipped the $29.50 blouses to Macy’s, cessories, beauty products and apparel. which sold out of everything. Katin USA, which began making surf “It was good for them,” said Debbie trunks in Huntington Beach, Calif., in Batanides, president of merchandis- 1954, continues to produce beach gear, ing for Pretty Rebellious. “[Retailers] as well as out-of-the-pool togs for the need to react fast. With business being U.S. men’s national water polo team in so bad, nobody has that crystal ball [for Southern California. American Apparel predicting trends].” often touts its downtown Los Angeles Joie Rucker got a quick reaction for factory in ads. BB Dakota, after seven Mayor Antonio Villaraigosa tours Lucky Brand’s new Tarina Tarantino is converting this her new line, Calvin Rucker, which she years of manufacturing its young con- headquarters in downtown L.A. building into a factory and store. formed with Caroline Calvin in just eight temporary clothing overseas, opts to months. After Calvin, the former senior make its new denim line, called Dakota in 2009 to double U.S. exports by the end its 10-year-old business is the quick vice president of global design at Levi’s, Collective, in Los Angeles because buy- of 2014, Villaraigosa formed the Los turnaround of small orders. The com- moved to Southern California in January, ers consider domestically made denim Angeles Regional Export Council last pany can make it from conception to the duo started partnering with local ven- a better product than the imported October to streamline export services in production in just six weeks, compared dors such as Security Sourcing, Atomic version. Michele Bohbot, who already the area. Apparel exports from L.A. total to a minimum of six months if it were Denim, Monte Christo Trade Corp. and makes her activewear line Electric Yoga $870 million, including $178 million worth to manufacture overseas. Blue River Denim. They began manu- in the U.S., is considering increasing of goods shipped to Japan alone, accord- “Right now we do not receive ben- facturing the Edwardian-inspired lace the number of domestically made items ing to the Los Angeles County Economic efits from the city of Vernon,” said True tops and hand-painted jeans by March, for Bisou Bisou after recently produc- Development Corp. Villaraigosa added Religion founder Jeffrey Lubell. “We just and signed up boutiques such as Ron ing two knit tops in L.A. for the mostly that less than 1 percent of L.A.-based com- added a second facility in Vernon and are and Guild in L.A. and Dressed imported contemporary brand. panies export. Of those, more than half continually committed to keeping busi- in Montecito to launch the collection, What’s more, L.A. represents the bas- export to a single country. ness in the city even without incentives.” which retails from $275 to $650, this fall. tion of manufacturing for other contem- “Made in the USA means something The recent uptick in domestic manu- “All of these people are our part- porary labels, including Odilon, Wren, to people,” Villaraigosa said. “But I’ve facturing won’t completely reverse the ners,” said Rucker. “It creates a syner- Amber Sakai and Black Halo. Seven traveled enough around the world decades-long mass migration of manu- gistic relationship. That creates a bet- For All Mankind, J Brand, AG Adriano to know that made in L.A., in some facturing from L.A. to foreign factories ter product, too.” Goldschmied and Citizens of Humanity ways, has even a stronger draw. It’s in places such as China, Vietnam and A key pitfall in growing local manu- are among the premium denim com- Hollywood. It’s glitz and glamour but Honduras. The majority of companies facturing is that costs, which run 20 per- panies that maintain their competitive also casual and free. It’s eclectic and I that choose to make clothes here charge cent to three times higher than overseas edge by manufacturing and washing think that is something that we want to higher prices for their wares, which are production, is inching up, and in a strug- their jeans in Southern California. market more and promote more.” produced in smaller quantities. gling economy, many retailers prefer a Government officials are eager to In neighboring Vernon, the five- Despite the heightened interest in lower price to an American pedigree. encourage local production. L.A. Mayor square-mile home to apparel companies domestic production of clothing and “The buyers care more about the bot- Antonio Villaraigosa kicked off a “Made including True Religion and BCBG Max textiles, the number of jobs continues to tom line,” said Alfonso Campos, ceo at in L.A.” initiative to boost the wholesale Azria Group and wash houses such as decline. In Los Angeles County, the num- Tarina Tarantino. “They think all consum- apparel and manufacturing businesses Denim-Tech LLC, city officials are ham- ber of textile mill employees decreased ers want is cheap. We don’t look at manu- that generate $13 billion in annual rev- mering out a rebate program for busi- 4.3 percent to 6,600 in July, the most re- facturing and our people as numbers.” enue in Los Angeles County. In addition nesses whose electricity bill surpasses cent month that the state’s Employment Campos and Tarantino cemented their to sponsoring a Made in Los Angeles $1 million a year. Alex Kung, assistant to Development Department compiled such roots in the city by buying a seven-story pavilion at last month’s Sourcing at the city administrator, said the city hopes statistics, from a year ago. In the same building on Broadway in the fashion dis- MAGIC trade show in Las Vegas, he cre- to implement the rebate by December. period, the number of workers in apparel trict for $4 million. They plan to move ated a team that focuses on connecting “We want to provide incentives for manufacturing fell 1.1 percent to 44,800. Tarina Tarantino’s corporate office, fac- small businesses to capital. He’s also the larger manufacturers to stay in In July 2000, by contrast, the county tal- tory and design studio into the top three working to extend the tax holiday that Vernon,” Kung said. “What we’re trying lied 14,300 people working in textile mills floors in October. Three other levels will exempts any company that moves to the to incentivize is if you’re able to bring and 93,000 in apparel manufacturing. be leased to other businesses such as art city from paying business taxes during in more business into Vernon, you use There lies an opportunity for entre- galleries. Next summer, they aim to open its first three years of operation. more electricity and sell more clothing, preneurs to build more state-of-the-art a store on the ground floor, where they’ll In response to the Obama administra- the discount gets bigger in a sense.” vertical manufacturing facilities in sell Tarantino’s own designs and other

tion’s National Export Initiative, launched True Religion said what helps drive L.A., according to fashion executives. U.S.-made clothing and home furnishings. SARDELLA DONATO PHOTO; ALL OTHERS BY STARKOPF/COURTESY DAVID VILLARAIGOSA PHOTO BY SPEED-TO-MARKET / VALUE / TRANSPARENCY SERVICE / QUALITY CONTROL / OVERSIGHT LOCAL JOB CREATION / COMMUNICATION SUPPLY CHAIN EFFICIENCY / PRIDE

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www.buhleryarns.com 1881 Athens Highway, Jefferson, GA 30549 t. 706.367.9834 or e. [email protected] 10 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA USA: Consumers Say They Will Pay

The trajectory of those attitudes sur- By ARNOLD J. KARR prised Marshal Cohen, chief industry Should the government analyst for NPD. YES THE SEVERE economic challenges of “I wasn’t surprised that the attitude provide businesses 74.2%

the 21st century have Americans think- had changed, but I was surprised by just with incentives to help ing about jobs, and that’s got them think- how much more supportive it was,” he ing differently — and far more positively told WWD. “When you ask people to pin- rebuild apparel and NO — about American-made apparel. point their feelings about something, you textile manufacturing 8.1% With the unemployment rate hov- have to take the numbers with a grain of in this country? ering above 8 percent since February salt. If 40 percent of the people say they NOT SURE 2009, many unable to find full-time work care, maybe just 20 percent would act on matched to their skills and jobs in a that. The jobs market has had a big effect ·· 17.3% manufacturing sector that has been dec- on conscious consumer priorities, but imated not only by hard times but also the wallet doesn’t always follow when it by improved productivity, Americans comes to purchasing. tion but with a certain degree of pride.” they products they purchase were made, are reflecting more on where their cars, “Still, that doesn’t mean that it’s not Michael Klein, William L. Clayton dropping to 87.9 percent for those 55 to clothing and other consumer products an opportune time for brands and stores professor of international economic 64 and 81.1 percent for those between 45 are coming from. to explore the opportunity to build and affairs at the Fletcher School of Tufts and 54. There’s an uptick, to 81.6 percent, A survey conducted by The NPD sell more American product,” Cohen con- University and senior fellow at the among those between 35 and 44 and then Group exclusively for WWD revealed tinued. “The companies that are build- Brookings Institution, said, “There’s a a drop for those 25 to 34 (72.9 percent) and that more than half — 54.9 percent — of ing product in the U.S. and those selling parallel between this and social consum- 18- to 24-year-olds (70.9 percent). the 1,600 adults responding are either those products need to exploit it; and ing. People talk about green consuming Tufts’ Klein believes that this trend “much more aware” or “somewhat more those who aren’t sourcing here or using aware” of the country of origin of their product sourced here need to explore it. apparel than they were five years ago, Who can overlook the opportunity to ad- before the onset of what is now termed dress what might be even a 20 percent People are more likely to pay for ‘Made in the Great Recession and what is certainly level of greater passion about the prod- perceived as a turning point in the eco- ucts they’re offering?” America’ if there was a value proposition tied to it. nomic fortunes of the country. In addition Whether they’d back their opinions to the 25.1 percent who said they were up with cash, checks or credit cards — BARBARA KAHN, UNIVERSITY OF PENNSYLVANIA much more aware of where their apparel might remain to be seen, but Americans is being made and the 29.9 percent who say that they’re ready to buy American described themselves as somewhat more even if it costs them more. More than or Fair Trade, and it’s a similar reflec- might have more to do with disposable aware of it, 37.5 percent said their aware- one in five — 21.4 percent — said they’d tion of social concerns that are reflected income than it does with strongly held ness was about the same as it had been pick an American-made shirt or blouse in people’s purchasing.” social attitudes, adding, “It could simply five years ago. Just 7.6 percent indicated over a comparable import as long as the Similarly, Barbara Kahn, direc- be that older people have more income they were somewhat or much less aware price wasn’t 25 percent higher, and an- tor of the Jay H. Baker Retailing and are willing to pay a bit more because of where their apparel originated. other 17.3 percent said they’d go with the Center at the Wharton School of the they can afford to.” Americans have spent the better part American option as long as the price was University of Pennsylvania, sees an Consumers might have mixed feel- of 40 years watching production migrate no more than 10 percent higher. To those opportunity for domestic manufactur- ings about how much more they want to from the U.S., which now produces only figures, you can add another 9 percent ers to promote their American roots, pay for U.S.-made apparel, but, without about 15 percent of its own apparel, to representing those who’d pay a premium as American Apparel Inc. and a num- respect to the effect it·· could have on China and other low-cost production of no more than 10 percent. Three in 10 ber of premium denim brands, such as prices, they approve of government in- markets. According to the NPD data, col- — 30.4 percent — would buy American if True Religion, have done. tervention to rebuild U.S. apparel manu- “People are more likely to pay for facturing. Nearly three-quarters — 74.2 ‘Made in America’ if there was a value percent — supported incentives for com- How important is it to you now to buy apparel made in proposition tied to it,” she said. “The panies that help rebuild apparel and tex- Italians have done that, and in that kind tile production in the U.S., with just 8.1 the U.S.? And how important was it to you 10 years ago? of a trade-up, people are willing to pay percent opposed. Support for new trade extra money for something. You can barriers to discourage imports was less TODAY 2002 market to the economic recovery, the solid, with 55.7 percent of respondents in need for more American jobs and social favor, 14 percent opposed and 30.3 per- Extremely important 24.7% 13.1% responsibility, but it takes on greater cent unsure of their position. meaning if it’s coupled with emphasis on However, when asked about the past, quality, as some of the premium denim 75.9 percent felt that the government Somewhat important 51.5% 33.3% brands have seen.” should have been “more diligent” in pro- The NPD numbers indicate that dedi- tecting apparel and textile jobs in the U.S. Of little importance 15.7% 32.6% cation to domestic derivation increases as imports from China and other coun- with age. Nearly nine in 10 — 89.2 per- tries grew. Just 5.3 percent felt otherwise, cent — of those 65 and over said they while 18.8 percent were unsure of what Of no importance 8.0% 21.1% always or usually pay attention to where the correct approach might have been.

Do you always or usually pay attention to where the lected and analyzed by the research firm the prices were roughly the same, while last month, brands and retailers may 21.8 percent, about the same percentage products you purchase are made? be lagging somewhat behind in market who’d accept a premium of up to 25 per- 89.2% presence than what consumers have em- cent, would buy American “under any 87.9% braced in their attitudes. The firestorm conditions.” 81.6% 81.1% that erupted following the disclosure “Consumers are telling us that they’re that Ralph Lauren Corp.’s attire for the willing to pay at least a bit more, and oc- 70.9% 72.9% U.S. Olympic team was made in China casionally quite a bit more,” Cohen ob- would suggest there’s more of a market served. “The tolerance [for higher prices for U.S.-made apparel — and more emo- on American products] is there and the tion about it — than some apparel mar- consciousness is there, but so far there keters may realize. hasn’t been a move in that direction.” Asked to evaluate the importance of The NPD analyst considers domes- U.S. origin in their purchasing of appar- tic origins among any number of selling el, 24.7 percent said it was “extremely points that retailers and brands have yet important” and fully 51.5 percent said to fully leverage, similar in ways to envi- “somewhat important,” meaning more ronmentally sustainable practices. than three in four of those surveyed — “There could be an added benefit to 76.2 percent — placed some importance marketing the product that way, as in on it. Asked how important U.S. origins shapewear products that can claim they were to them 10 years ago, less than half make you feel better and look better. If considered them important — 13.1 per- you add, ‘And they’re Made in the USA,’ cent “extremely important” and 33.3 per- it’s a more attractive sell, something peo- 18-24 25-34 35-44 45-54 55-64 65 & UP cent “somewhat important.” ple could purchase not just with satisfac- SOURCE: THE NPD GROUP WWD WEDNESDAY, SEPTEMBER 5, 2012 11

SECTION II WWD.COM

MADE IN AMERICA U.S. Stores Eye Domestic Goods

ing the Made in USA label, and while products are made in the U.S., By DAVID MOIN and representing a small percentage of the including Halogen accessories, SHARON EDELSON overall collection, it’s a growing piece. Classiques Entier women’s apparel The offering includes neckwear, woven and John W. Nordstrom ties, though SLOWLY THEY TURN. shirts, topcoats, suits, sports coats, chi- Nordstrom manufactures private A growing number of U.S. retailers nos, denim and shoes, while a domestic label in 38 other countries. are taking a closer look at or increas- sweater manufacturer is being sought. “Generally, when we decide where ing their purchase of domestically “It’s considered a capsule col- to manufacture or partner with a ven- made apparel. lection,” said Aaron Levine, Club dor, we are looking at price, quality, de- Brooks Brothers, with its classic Monaco’s vice president of men’s de- sign and delivery, and so whether it’s American style, is fortifying the repu- sign. “We design it separately from the made in the U.S.A. or another country, tation by advancing its U.S. production. regular collection, but it always talks those are things we are considering,” “There’s been tremendous growth,” back to whatever we are doing.” the spokeswoman said. “I wouldn’t said Paulette Garafalo, president of Levine said the U.S.-made prod- say there is a conscious program” to wholesale manufacturing and interna- ucts are merchandised separately in carry U.S.-made products. “But we The tional at Brooks Bros. “We feel we are the stores, and working with a domes- are always looking for opportunities, Southwick just at the beginning.” tic supplier provides the flexibility to because our customers say they want factory. Brooks Bros. has acquired three be cautious by ordering a handful of Made in the USA.” factories since 2007: one in Haverhill, pieces, or to write a bulk order when The search engine on target.com Mass., called Southwick, where 80 per- the demand is perceived. He also pulls up U.S.-made items such as A Brooks cent of the brand’s suits are made; a cited the shorter production cycle — velvet retro armless chairs and Just Brothers suit. plant in Long Island City, N.Y., where two months or sometimes less from One You baby clothes by Carter’s. all the ties are made, and a third fac- design to delivery. Target’s sourcing, domestic or over- tory in Garland, N.C., where all of the “We want to support domestic pro- seas, depends “on a number of fac- luxury and made-to-measure shirts duction,” Levine said. “There is a tors, including demand, production and shirts under the Black Fleece trend into domestic production. It’s quality and capacity, speed to mar- label are produced. getting bigger in men’s wear.” ket, price and risk,” said a spokes- “The strategy is to become more “Definitely, I would say there’s a woman. While Target declined to dis- and more vertical and to really en- movement,” agreed Garafolo. “How cuss any new U.S. initiatives, Natural hance the made in America portion long it lasts and how strong it gets Advanced Technologies, the maker of the Brooks Brothers product line,” I don’t know. Many American brands of Crailar Flax, said in July it part- said Garafolo, adding that the flip side would like the synergy of being nered with Target to test the fiber for of the strategy is to become a more im- made in America if they can figure an array of home products. portant domestic supplier to other U.S. out all the dynamics.” J. McLaughlin, a vertically inte- retailers, including current clients Brooks Bros. did just that, assem- grated retailer known for colorful, Club Monaco, Jack Spade and Orvis. bling a team of seasoned executives, classic and preppie styles, produces For other U.S. retailers, such as including a senior vice president of some 30 percent of its collection at its Nordstrom Inc., Abercrombie & Fitch manufacturing, a head of production Greenpoint, Brooklyn, central office Co. and Target Corp., sourcing domes- planning, a chief financial officer, a that includes an 8,000-square-foot man- tic is a quietly growing strategy. Boston customer service manager and others ufacturing space that is contracted and Consulting Group has reported that in quality control and engineering. The employs 40 sewers, pressers and cut- changing economics are starting to company has about 1,000 employees in ters. The factory is owned by Dynotex. favor manufacturing in the U.S. and total at its three factories, which have “They are our only domestic suppli- that 15 to 20 percent annual increases been automated to have flexibility to er and we are their primary customer,” in Chinese wages and other factors handle small or large quantities, to said Steve Siegler, chief executive offi- were “rapidly eroding China’s manu- transition more quickly to different cer of J. McLaughlin. “We call it a part- facturing cost advantage over the U.S. products, and to lessen the risk of in- nership. We can control the product, and that the advantage would end terrupted production. the quality, the consistency, and we completely in five years.” Abercrombie Brooks Bros. is growing its third- can react quicker.” is pursuing more U.S. and Central party manufacturing business and par- The factory manufactures cut-and- American sourcing as a means to help ticipated at the MAGIC trade show for sewn wovens and generates 2,400 reverse sagging sales, while Wal-Mart the first time in August. stockkeeping units, or about 150 styles Stores Inc. continues to promote the “This is a freestanding business each year. McLaughlin’s knitwear is “Made in America” theme, though unit, geared to make profits,” Garafolo produced offshore. lately much of the effort seems tied to said. “As we bring up the volume, we Siegler said producing locally groceries, not apparel. should see our prices become very means eliminating the two to six Retailers source domestically for competitive. We are already starting to weeks it takes to ship to the U.S. by greater speed to market, flexibility see that. Our tie factory and Southwick plane or boat, and eliminates the in the size of production runs, qual- are at full capacity and growing.” unpacking and repacking of over- her hands-on involvement in the pro- ity control and to a lesser degree, Nordstrom thinks its customers seas shipments before distribution. duction “absolutely mitigates the the prestige associated with a Made want more U.S. products, which are Asked if customers care if an item extra cost of production. Being able to in USA label. They acknowledge that readily found on nordstrom.com. is made in the U.S., Siegler replied, oversee production daily ensures that with consumers, it’s quality, style and “We hear from customers that Made “It certainly is a positive. Customers every garment is manufactured to the value that matter most; country of in USA is important, so we are look- first look at the garment, its color, its highest specifications.” origin is secondary. ing for more opportunities,” said a silhouette. Then they touch it, try it Her TriBeCa store houses a design Since October 2011, Club Monaco Nordstrom spokeswoman. on, and if they love it, they will buy studio that’s visible behind a glass wall. has been offering men’s wear bear- Some Nordstrom private label it. Made in USA has a positive con- “Customers are definitely im- notation, a quality connotation, just pressed, but it’s not a gimmick,” like Made in Italy. It adds value, said Cho. “It makes economic sense” Zella’s seamless tanks and sports bras. but we don’t market toward that. We since she can design and see how the think great product is great product. garments look and fit on customers at We love the idea of Italian cotton, the same site. which we use to make men’s shirts “There are a lot of advantages in Portugal. Certain products we to buying things made domestical- can’t make here, like sweaters, knit- ly. Speed to market is a big one,” wear and socks because you can’t get said Susan Davidson, ceo of Scoop the raw materials. Our store people and Zac Posen. “You cut out all the think customers feel better when transportation from Asia, probably a they buy made in USA but I don’t good two weeks, as well as the trans- think it’s a big determinant.” portation costs. It’s about buying Designer Juliana Cho said at her the right product and being able to company, Annelore, “Each of our get back into it. The manufacturing garments is inspired by, designed cycle is a lot faster.” and manufactured in New York Davidson said about 20 percent City,” adding, “It totally makes sense of what’s sold at Scoop is from U.S. for us to keep our production here, manufacturers, with plenty of the where we have complete control store’s jeans, T-shirts and dresses over the quality.” sourced in Los Angeles. She also said Cho, who has a store in the West Zac Posen manufactures evening Village and another in TriBeCa, said gowns in New York.

12 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II MADE IN AMERICA ·· Accessories Council Leads Initiative for Made in USA

By ALEXANDRA STEIGRAD and RACHEL STRUGATZ Making a product in the USA is not easy.…It ABOUT A YEAR AGO, Karen Giberson, still isn’t necessarily cheaper to make things president of the Accessories Council, noticed something unusual — countless vendors, weighed down by rising costs here, but we want to get designers to think from their factories in Asia, began call- ing to inquire about making their goods about what can be made here competitively. in the U.S. “When we started hearing the topic — KAREN GIBERSON, ACCESSORIES COUNCIL repeat itself, we knew this was an im- portant issue,” said Giberson, who formed a group to promote the produc- costume jewelry capital of the world,” spring 2013, the brand will carry only tion of Made in USA fashion jewelry said Celeste Greenberg, who started U.S.-made products. and other accessories. Tuleste with her sister Satu five years “It’s night and day in terms of qual- “Twenty-five years ago, 85 percent ago. “However, because the industry ity,” said Greenberg, who noted that be- of fashion jewelry was produced in the has shifted so dramatically, with most of fore it took about eight to 12 weeks to United States. Now, 95 percent is manufac- our competitors producing overseas, we get product shipped from her factories tured abroad,” she said. “We are looking to mistakenly assumed the cost of produc- in China, and even in that time span, regain at least a small portion of this mar- ing Stateside would be too astronomi- the merchandise wasn’t perfect. Now, ket, focusing primarily on jewelry.” cal. Fortunately, once we began working it takes just three weeks·· and she can Facing rising labor costs in China, with the Accessories Council and ex- be more involved in the quality-control high transportation expenses and de- ploring more options, we realized that process, as Providence is just a few celerating speed-to-market, 32 vendors there was actually a cost-effective way hours from New York. A Miriam joined Giberson’s movement to bring to make this happen.” Still, designers, including Greenberg, Haskell back production to the States. New York-based Tuleste, which had said that while shipping times are fast- necklace. “We were always curious about cre- made all of its contemporary jewelry in er and the product is better, the cost of ating our pieces in the U.S., especially Asia, recently moved all of its manufac- manufacturing in the U.S. is still higher because of Rhode Island’s history as the turing to Providence, R.I. Starting with than making goods abroad, which can be a stumbling block for smaller brands. Higher production costs usually trans- late to pricier wares. Prices on some of to control everything that goes on from Tuleste’s baubles have increased up to start to finish, including the pace of de- FASHION+HOME 50 percent, Greenberg noted. liveries,” Saiger added. “Ensuring that pantone.com/colorfullcolor But for some brands, that’s a trade- we deliver to our retailers and e-com- off worth making. merce business on or ahead of time is “Domestic production gives us the extremely important to us.” ability to produce at a faster pace than This also gives the brand the ability to if it were to be done overseas,” said control its overhead and maximize profits Michael Saiger, who founded men’s because the company is never stuck with jewelry line Miansai in 2007. excess inventory. Although Miansai is not part of the “This is part of the reason we never Accessories Council initiative, the have sales,” he said of the company’s full- brand makes its signature leather and price model, adding that the higher costs rope “hook” and “anchor” bracelets for manufacturing in the U.S. are “rela- from its home base of Miami. tive,” if other expenses such as shipping, “The best part about it is it allows us duty and customs fees are factored in. Another benefit for brands manufac- turing domestically is that they aren’t at A Carlos the behest of committing to minimum Falchi orders. Unlike smaller factories in the handbag. U.S., larger factories in China will re- quire 500 to 600 piece minimums, which can be difficult for upstart brands to juggle. All of this is further exacerbated in tough economic times. But putting aside costs and produc- tion issues, brand identity may just trump any financial concerns. Companies steeped in American history such as Miriam Haskell, place a high degree of impor- tance on remaining Now with 2,100 shades to choose from made in the USA. According to Gabrielle Fialkoff, president and chief operating officer of Haskell Jewels, the parent company that acquired all of Miriam Haskell’s assets in 1990, keep- ing the made in New York element is an integral part of the collection’s heritage. “So much of what PANTONE® and other Pantone trademarks are the property of Pantone LLC. we do is about intricate Clariant is a registered trademark of Clariant International Ltd. and has a strategic partnership with Pantone. Pantone LLC is a wholly owned workmanship, from each subsidiary of X-Rite, Incorporated. © Pantone LLC, 2012. All rights reserved. WWD WEDNESDAY,·· SEPTEMBER 5, 2012 13

WWD.COM

their wares here. According to Vale, who makes totes, clutches and purses, “saving” New Domestic production York’s Garment Center is of the utmost importance. The design- gives us the ability er has not only penned a blog called Make It to produce at a faster in Manhattan, but she’s also filmed a docu- pace than if it were to mentary of the same name on be done overseas. The the topic. Longtime New best part about it is York-handbag de- signer Falchi is also adamant Miansai’s anchor about keeping his production it allows us to control necklaces. for his couture collection in New York, even though he inked everything that goes a licensing deal with the U.S. di- vision of Hong Kong-based Li & Fung on from start to finish, last year. Falchi’s entire couture col- lection, which is carried at Saks Fifth Avenue and Bloomingdale’s, has been including the pace made here since 1970, and that isn’t bead being hand-picked and wired workers here have lost that expertise. about to change. of deliveries. like embroidery onto the filigree, then “It was really important to me when Kate Falchi, senior director of de- backed with a second filigree, all the I started the brand that everything is sign and development and daughter of — MICHAEL SAIGER, MIANSAI while manipulated by hand,” Fialkoff made in New York,” the native New Carlos, who calls the artisans that work said. “This is how jewelry used to be Yorker said. “It’s part of the values for the brand “like family,” said oper- made in the U.S., but it largely does not my parents instilled in me. We had ating a factory in the city has perfected not mass-produced.” exist today. Our goal is to continue the an American car growing up. I’m very her father’s craft. Giberson of the Accessories Council training of this lost art.” proud that I’m born and raised here.” “Because of my father’s decon- added: “Making a product in the USA Jewelry designer Alex Woo said The significance of being made in structed approach, it is important is not easy. The fact of the matter is, it many American workers have “lost” America isn’t just restricted to jewelry to work one-on-one with our pattern still isn’t necessarily cheaper to make some of the plating and sculpting skills brands. For example, milliner Albertus makers. The process is as important as things here, but we want to get design- required in making jewelry, noting that Swanepoel and handbag makers such as the initial design in achieving a luxu- ers to think about what can be made as those jobs have moved overseas, Michelle Vale and Carlos Falchi, craft ry product,” she said. “True luxury is here competitively.” ·· 14 WWD WEDNESDAY, SEPTEMBER 5, 2012

SECTION II WWD.COM

MADE IN AMERICA Men Seek Heritage, Craftsmanship in U.S. Product

ongoing popularity of heri- Gitman Bros. (Ashland, Pa.), churns out 1,200 tailored jack- By DAVID LIPKE tage brands. That trend paral- Corbin (Shippensburg, Pa.) ets and 700 pants a day. lels the uptick in interest in and Individualized Shirts The facility also enables ON HIS MEN’S BLOG, A American manufacturing, as (Perth Amboy, N.J.). The com- Joseph Abboud to operate a Continuous Lean, Michael many heritage brands produce pany calls its Westminster, Md. made-to-measure program with Williams has compiled an au- domestically. Further, newer factory, which produces be- Nordstrom, where a salesper- thoritative list of brands that brands that aim to capture the tween 400 and 500 custom suits son using an iPad app can show manufacture in the U.S. It’s veneer of heritage are finding a day for its English American a customer all the available full of heritage names such that producing in small quanti- brand, the largest custom suit choices of fabrics, styles and de- as Pendleton Woolen Mills, ties in the U.S. is economically facility in the world. tails and send an order directly Woolrich Woolen Mills and J. and logistically sensible while “We do many trunk shows and to the factory, which can make Press, along with newer design- appealing to the sensibilities of we hear from consumers how the requested suit in 10 working ers like Alexander Olch, Ernest consumers newly conscientious important it is to them that we days, between $845 and $1,300. Alexander and Rag & Bone. of where their suits, jeans and are made in America,” said Blair. “To do a made-to-measure “I don’t want to live in a coun- leather goods are made. The biggest challenge to suit from Italy would take six try that doesn’t know how to At the most recent Project IAG is the high labor costs at its to eight weeks,” said Anthony make anything,” said Williams men’s show in New York in 100 percent unionized plants. Sapienza, chief executive offi- of his fixation on domestic July, the centerpiece of the first However, Blair noted the com- cer of JA Apparel. manufacturing, which reflects a floor was an installation of in- A Joseph Abboud ad. pany has been profitable for “We’re always looking at similar increased interest in the dependent, hand-crafted prod- every one of the past 34 years ways to make things faster topic among men in general. uct that was made in the U.S., As Detroit heralds the re- and it plans to further invest and more efficiently, while Williams pointed to a con- such as Julian Boots footwear, vival of American-made au- $10 million between the next maintaining our level of qual- fluence of factors for the trend, Westbrook Maker hats and tomobiles, it’s not a stretch to three and five years, upgrading ity,” said Sapienza, noting that including the recession that Etwas leather bags. say men’s wear is enjoying a its manufacturing capabilities. while labor costs are higher glaringly highlighted the loss This Sept. 15 and 16, the renaissance in American-made Other tailored clothing than overseas, those are offset of American manufacturing next edition of Northern clothes, shoes and accessories. brands that produce in the at least in part by savings on jobs here, a natural backlash Grade will be held in Individualized Apparel Group, U.S. include Hickey Freeman shipping costs, import tariffs, to the spread of mass-pro- Minneapolis, a three-year-old which owns 12 tailored cloth- in Rochester, N.Y., Hart insurance and quality control. duced fast fashion, heightened pop-up men’s fair dedicated ing and furnishings brands and Schaffner Marx in Chicago and Carhartt has manufac- environmental and workplace solely to American-made makes 95 percent of its product even Germany’s Hugo Boss in tured in America for 120 concerns among consumers goods. Participating brands in the U.S., will grow sales over Brooklyn, Ohio. The JA Apparel years, and this fall has cre- and a masculine zeitgeist that include Red Wing Heritage, 25 percent this year, said chair- Corp. has made its Collection ated a special label and mar- embraces a genuine interest in Leather Works Minnesota, man and president Joe Blair. suits and sport coats in its keting initiative to identify authentic craftsmanship. Aurora Shoe Co. and Defiant IAG owns seven factories company-owned New Bedford, some of its most iconic piec- Men are often interested in Bicycles. The show has ex- in the U.S., which produce tai- Mass., factory since the Joseph es, including its classic ring- the history and functionality panded this year to Chicago, lored clothing and furnishings Abboud brand was founded in spun cotton duck jackets. of garments, added Williams, which will host a Northern for its brands such as Oxxford 1986. The 350,000-square-foot — WITH CONTRIBUTIONS which has helped drive the Grade fair on Oct. 27. Clothes (made in Chicago), facility employs 500 people and FROM JEAN E. PALMIERI

Over Sixty Years Serving the Design Community [Est. 1949] BUSINESS & FASHION TOGETHER

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P (631) 755-1230 F (631) 755-1259 www.limcollege.edu • 800.677.1322 • 12 E. 53rd St. New York, NY [email protected] WWD WEDNESDAY, SEPTEMBER 5, 2012 15

SECTION II WWD.COM

MADE IN AMERICA

Alan Ennis PHOTO BY STEPHEN LEEK PHOTO BY Beauty Sector Builds Domestic Foundation

As sun care products — and By MOLLY PRIOR their regulations — have grown more complex, the category has IN NEW JERSEY, a toll bridge presented an opportunity for some that spans the Delaware River pro- American beauty product manufac- claims, “What Trenton Makes the turers with the wherewithal to sift World Takes.” through the regulatory paperwork. It’s a reminder of America’s in- Mana Products, a beauty sup- dustrial heritage that now seems out- plier and contact manufacturer dated as most manufacturing has left based in the Long Island City area Trenton, and more broadly the U.S., of Queens, N.Y., is one of them. in search of cheaper labor abroad. Nikos Mouyiaris, the founder The beauty industry, however, and owner of Mana, said, “In the bucks the trend, with New Jersey and past few years, [U.S. Food and Drug New York serving as the hub of local Administration] regulations and contract product manufacturing. those from other agencies are be- U.S. cosmetics and beauty prod- coming more demanding. We’ve had uct manufacturing is on track to to hire four to five people to handle generate $54.9 billion in 2012, said the regulatory paperwork needed to Nikoleta Panteva, senior analyst at satisfy the authorities.” IBISWorld Inc., a market research Mana develops products across firm. By category, the three biggest skin care, hair care and cosmetics, segments are hair care, accounting and its expertise and investment in for 24 percent of the products, fol- sun care has become a competitive lowed by skin care at 23.7 percent advantage, said Mouyiaris. The inde- and cosmetics at 18.6 percent. pendently owned, contract manufac- The industry has rebounded turer has been working with some of from a slight downturn during the the most well-known beauty firms and recession — revenue dropped 0.1 retailers in the industry since 1975, percent in 2009 for the first time in and currently employs about 800 peo- five years. This year, it’s expected to ple. It’s also helped to incubate small- gain 2.2 percent, bringing the aver- er, niche cosmetics lines by develop- age annual growth rate to 1.3 per- ing formulas for them from its private cent over the five years to 2012, ac- label business, Your Name Cosmetics. cording to IBIS. What has dropped Mouyiaris acknowledged that off are the number of people the as beauty companies expand over- industry employs, as manufactur- seas, particularly in Asia, they will ers worked to sustain a profit. Its source more formulas from interna- workforce has contracted to 53,619 tional manufacturers. people in 2012, from 58,474 in 2007, “For U.S. consumption,” he clari- said IBIS. fied, “most of the products are made Despite competitors from aboard, in the U.S. and Europe.” particularly in Italy and France, the During a presentation at the industry is poised to grow steadily WWD Beauty CEO Summit in May, over the next five years at an aver- Revlon Inc. president and chief ex- age annual clip of 3.3 percent to ecutive officer Alan Ennis said he $64.5 billion. But as beauty firms ex- hopes to see more manufacturing pand their global reach, manufactur- return to America, especially as ing will become more global, as well. regulations for beauty products be- For instance, Procter & Gamble Co. come standard across the industry. has manufacturing facilities in 42 “We are all striving to produce countries. That said, the level of ex- high-quality products at afford- ports is expected to also rise. Over able prices that are safe for the the next five years, exports are fore- consumer and that work,” he said. cast to increase an average of 6.3 “The issue with regulation is that percent a year to $9.5 billion, accord- it’s disintegrated, that there is no ing to IBIS. common set of standards around The firm said areas of oppor- the world. There is no common set tunity for U.S. firms include men’s of standards in the U.S. There is products, eco-conscious packaging, a real opportunity to harmonize formulas with a natural bent and what’s considered to be the accept- sun protection. able regulations.”