Pa : ide 20 Ins ges 9- Me dia All Women’s Wear Daily • The Retailers’ Daily Newspaper • October 24, 2003 • $2.00 -St ars KIDMAN STARS AT CHANEL/2 DESIGN AWARDS/24 WWDFRIDAY Beauty Time In A Bottle NEW YORK — L’Instant, Guerlain’s first new scent in three years, is set to launch in the U.S. in March. The fragrance will debut in just under 500 upscale specialty store doors here, building to a maximum of 700 over the next several years. Industry sources estimate that the fragrance could do $15 million at retail in its first year on counter in the U.S. For more, see page 4. PHOTO BY GEORGE CHINSEE; STYLED BY BRYN KENNY A Saks Surprise: Christina Johnson Resigns as SFA’s CEO By Lisa Lockwood NEW YORK — In a surprising move Thursday, Christina Johnson resigned as president and chief executive officer of Saks Fifth Avenue Enterprises. Johnson had been in the role since February 2000 and was responsible for stores, catalog, Internet and outlets. She couldn’t be reached for comment, but the company said she stepped down to devote more time to family matters. R. Brad Martin, chairman and ceo of Saks Inc., parent company of Saks Fifth Avenue, said in an interview that Johnson’s successor See Christina, Page 22 2 WWD, FRIDAY, OCTOBER 24, 2003 Nicole Kidman: Chanel’s New Face By Miles Socha PARIS — Nicole Kidman has landed another starring role: as the new face of Chanel No.5. The Oscar-winning actress has signed a three-year agreement with the French house and will shoot a commercial for the fragrance in late December in Sydney, reuniting with fellow Australian and “Moulin Rouge” director Baz Luhrmann, who also is integral to the deal. (For more on Chanel see page 5.) Chanel artistic director Jacques Helleu and Arie Kopelman, president and chief operating officer of Chanel’s U.S. subsidiary, confirmed the news exclusively to WWD in separate interviews this week. The Kidman spots, including a print campaign, will be unveiled in fall 2004. In a statement, to be released Nicole Kidman, photographed by Karl Lagerfeld. to worldwide media today, Chanel said it chose Kidman because she “represents a unique standard of elegance and embodies the spirit and modernity of Chanel.” The news brings celebrity advertising to a new zenith — and is a first for Chanel, which historically has featured up-and-coming talents in its campaigns. Ali MacGraw and Candice Bergen were famously featured long before they became household names. Even Catherine Deneuve, the face of No.5 from 1968 to 1976, was scarcely known outside of France when Helleu selected her for the role. But a campaign featuring Kidman is bound to have a blockbuster effect on Chanel, already on a roll with its ready-to-wear, accessories and beauty businesses. “I can’t imagine, on the subject of advertising, anything Continued on page 7 Tchibo Gets Beiersdorf Stake By Melissa Drier BERLIN — Thursday was Independence Day for Beiersdorf. Ending more than two years of takeover rumors and stalled negotiations, the Munich-based insurance group Allianz has agreed to sell a 40 percent stake in Beiersdorf to a consortium led by the German coffee and retail chain Tchibo. “Beiersdorf will remain an independent company,” Tchibo said in a release Thursday. The purchase price for the Allianz package is around $5.2 billion, converted from 4.4 billion euros at current exchange, or an average price of $153.40 (130 euros) a share. That is a premium of $26.25 over the average Beiersdorf share price of the last 12 months. Tchibo, which already holds 30.3 percent of Beiersdorf, will acquire a further 19.6 percent, for a total stake of 49.9 percent. The other members of the consortium are HGV (Hamburger Gesellschaft für Vermögens-und Beteiligungsverwaltung), which will acquire 10 percent of Beiersdorf, and the TROMA Pensions and Widows’ Fund of Beiersdorf AG, which will get 3 percent, and there are plans to offer the remaining 7.4 percent to Beiersdorf AG as part of a share buy-back program. Allianz, which has been a Beiersdorf shareholder for over 60 years, is retaining 3.6 percent. The transaction is subject to the approval of antitrust authorities and will be implemented in stages, both Tchibo and Allianz noted. “We have found a solution that offers tremendous advantages to all concerned,” Dieter Ammer, chairman of Tchibo Holding AG, commented. “Beiersdorf AG can now expand its strong position on the market over the long term with a clear shareholder structure.” “We are relieved and happy,” said Peter Nebel, the spokesman for Beiersdorf in Hamburg. “It was our desired result.” Tchibo’s existing 30 percent holding in Beiersdorf exempts it from German takeover law, which would have required any other party to make a bid for all Beiersdorf shares. Procter & Gamble, for one, was waiting in the wings and had been widely expected to outbid Tchibo, but the coffee company’s blocking 30 percent was perceived as a major obstacle to P&G’s plans to integrate Beiersdorf. Moreover, fears that P&G would dismantle the maker of Nivea, leading to a loss of German jobs and tax revenues, mobilized public opinion — and even the city of Hamburg — to actively support the Tchibo consortium’s interests. Nevertheless, according to Allianz chief financial officer Paul Achleitner, “Tchibo simply made the more attractive offer.” As for its remaining 3.6 percent interest, he said “Maintaining a fungible shareholding of less than 4 percent in a first-class company is attractive for us and fits well into our investment strategy. Ultimately, over the long run, Beiersdorf with its majority shareholder Tchibo can continue to use the attractive opportunities for growth in the interest of all shareholders.” The agreement dashed any shareholder hopes of cashing in on a prolonged bidding war. It also forced the Beiersdorf stock down 7.7 percent, to close in Frankfurt Thursday at $117.41, or 99.50 euros. WWDFRIDAY Beauty BEAUTY 2 4 5 8 Nicole Kidman has landed another major starring role: as the new face of Chanel No.5. With L’Instant de Guerlain, the house’s first new scent in three years, Guerlain is laying out a plan to revitalize its fragrance business in the U.S. Chanel is gearing up for the first half of 2004 with launches planned across its color, treatment and fragrance categories. Procter & Gamble is out to prove it’s not such a shampoo snob after all and will relaunch several brands it acquired from Clairol as midtier and value items. GENERAL 1 2 2 24 26 26 Christina Johnson has resigned as president and ceo of Saks Fifth Avenue Enterprises, but will stay on until the end of the year. 3 Casa caliente…something for the man who has everything…London aglitter…Carolina’s honors…Getting ready for the Savannah Film Festival. Munich-based insurer Allianz has agreed to sell a 40 percent stake in Beiersdorf to a consortium led by German coffee and retail chain Tchibo. U.S. officials arrested about 300 workers at 61 Wal-Marts on immigrationrelated charges as part of an investigation into contractor cleaning crews. DESIGN: The Nasher Sculpture Center opens in Dallas; The National Design Awards; Residential architect Russell Versaci’s latest book; Drawing Board. Lower sales and profits in its apparel operations helped reduce Sara Lee Corp.’s first-quarter net income by more than 25 percent. VF Corp. Thursday said third-quarter income declined by 2.3 percent — better than expected, but softer than profits of one year ago. SUZY Media All-Stars, a special report, appears on pages 9-20. Classified Advertisements........................................................................27 To e-mail reporters and editors at WWD, the address is firstname.lastname@example.org, using the individual's name. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2003 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 186, NO. 78. WOMEN’S WEAR DAILY (ISSN 0149-5380) is published daily (except Saturdays, Sundays and holidays with one additional issue every month except July and two additional issues in April and September and three in August) by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: P.O. Box 1632, Station A, Windsor, ON N9A7C9. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Feds Raid 61 Wal-Mart Stores In Brief By Katherine Bowers and Kristi Ellis BOSTON — The raid Thursday morning that rounded up 300plus illegal immigrant workers at Wal-Mart stores is another blow to the retailer’s campaign to project a softer, more peoplefocused image. Immigration and customs enforcement agents arrested cleaning workers in the wee hours at 61 Wal-Mart stores in 21 states, ranging geographically from Texas to New Hampshire. Although the workers were not employed by Wal-Mart but by third-party subcontractors, the retailer might be on the hook if federal prosecutors find evidence Wal-Mart executives were aware the subcontractors rou- tinely hired illegal workers. Agents searched at least one office in the retailer’s Bentonville, Ark., headquarters perhaps looking for such a link, a source close to the situation confirmed. Wal-Mart is trying to get a handle on the scope and details of the investigation, a spokeswoman said. “We require each of our contractors to use only legal workers,” she said, reading from a prepared statement. “We do not know if the current investigation involves one or multiple outside contractors.” The retailer uses more than 100 third-party contractors to perform cleaning services in more than 700 stores around the country. It’s at least the second time Wal-Mart has run into problems with undocumented workers cleaning its stores. Thursday’s actions stem from an earlier investigation instigated by the Pennsylvania Attorney General’s office in 1998, which also focused on subcontracted crews, said a spokesman with the Immigration and Customs Enforcement division of the U.S. Department of Homeland Security. “This is stemming from a significant amount of investigative work,” he said. “We’re not just taking a net and rounding people up.” ICE regional officials confirmed there were nine arrests in the Albany area and 20 arrests in New England. Stores in California, which suffers most Continued on page 21 ● NEW SOURCING SOURCE: Two former Tarrant executives have formed a private label development firm, B&Y Global Sourcing, based in Los Angeles. Eddy Yuen, a former Tarrant chief executive officer and most recently president of its Hong Kong division, and Norbert Baroukh, formerly president of Tarrant’s private label business, resigned Sept. 26. Yuen will manage B&Y’s Hong Kong office, staffed with six employees overseeing fabric purchasing and pre-production, while Baroukh will oversee the six-person U.S. office of assistant designers, designers and import-export coordinators. Baroukh said the company will source goods globally from eight factories in Southeast Asia and the Mideast. The company will focus on casual sportswear, targeting the private label needs of national chains and mass merchants. Sales are expected to hit $25 million in the first year. ● BCBG’S NEW PLAN: BCBG Max Azria Group has signed a licensing deal with Phillips-Van Heusen Corp. to manufacture and distribute men’s dress shirts and ties for the BCBG Max Azria label. The new classifications will bow for Father’s Day and PVH will develop spring, Father’s Day, fall and holiday collections. Retail prices are expected to range from $40 to $80, with distribution aimed at department and specialty stores. WWD, FRIDAY, OCTOBER 24, 2003 Natalie y Gael ● Buying the Cow ● Midnight Train to Georgia Suzy Earnest.” Among those all thrilled over the fireworks extravaganza and dancing to the Gold Singers until breakfast and beyond were Prince Pierre and Sylvia D’Aremberg; Arriana’s stepmother, Princess Ira von Furstenberg, in Chanel; Arriana’s brother, Prince Hubertus zu Hohenlohe; Daphne Guinness; the fashion maven, Isabella Blow; the Brazilian plastic surgeon, Yvo Pintanguy; Tamara Beckwith and on and on and on. The groom gave the bride a blinding diamond necklace for a wedding present — blinding, maybe, but she could see it all right — and whisked her off on their honeymoon in a black Bentley. “Only Pyrros knows where we’re going,” Beannie laughed as she glided off with pink and white rose petals fluttering all around her. It’s the only way, really. ● Just when it seems the brilliant dancers of American Ballet Theatre cannot possibly dazzle anymore than they already do, they do. The company’s opening-night fall gala at City Center was a triumph with the ever magical stars, Paloma Herrara, Gillian Murphy, Jose Manuel Carreño, Irina Dvorovenko, Maxim Beloserkovsky and Angel Corella, and the corps de ballet performing on wings for the delectation of 400 fans. The chairmen of the evening were Muffie Potter Aston and Dr. Sherrell Aston, Julia and David Koch and Chris and Grace Meigher. The evening was underwritten by Akris, the German fashion giant with a new store on Fifth Avenue. After the show, the guests went on to the Grand Ballroom of the Plaza for supper. You would have loved the all-done-up crowd. Nan Kempner was there, all in white. Wendy Vanderbilt wore one of her collection of beautiful jackets and one of her collection of beautiful necklaces. Susan Fales-Hill, always one of the most beautifully turned out women in New York, wore a vintage black skirt embroidered in silver. And Blaine Trump wore a black vava-voom vintage number fringed at the hem and showing off quite a lot of the famous Trump legs. Grace Meigher showed off her tan all over in bronzy brown chiffon. Also celebrating were ABT’s famous artistic Kevin McKenzie and his wife, Martine van Hamel; Barbie Bancroft; Jill and Walter Fischer (he is the chairman of Rolex); Ellen and Ian Graham; the Lyden Carolina Herrera Susan Fales-Hill twins, Dr. David and Peter of ABT; Peg and Lew Rainieri, the big man at ABT; Dr. Aaron Boardman, have just bought a house on a golf course. Arriana Hill; Peter Bacanovic; Alex Hitz; Nancy Zeckendorf; Fernanda Kellogg and Kirk Henckels; George McNeely, will keep her horses, Baby and Gatsby, at nearby Wellington. The reason for Arriana’s London trip was the wedding of and Judy and Sam Peabody — darling Judy was ABT’s 2003 woman of the year. Elizabeth Esteve, the lovely young Brazilian heiress known ● to her friends as “Beannie,” to Pyrros Vardinoyannis, a scion Her clients come to her looking for good taste, style and of the Greek shipping family, at the Greek Orthodox discretion, and her good works are legion. No wonder Cathedral of Aghia Sophia. Arriana, one of Beannie’s Carolina Herrera is the guest of honor at the South Bronx witnesses, was her roommate in Paris during their school Educational Foundation’s annual benefit at the Roosevelt years, so you know she just had to be there. Hotel on Nov. 4. The Foundation is particularly excited to Among those filling the pews in couture day dresses celebrate the 25th anniversary of the Rosedale Achievement and spectacular hats were Arriana’s mother, Princess Center for Women, which has a long history of working with Jackie zu Hohenlohe, who recently moved to Marbella; Sally Aga Khan, who was divorced from the Aga Khan in young women who face economic and social obstacles. 1994 after 25 years of marriage; Barbara de Portago, Carolina will be front and center in all her glory. ● dressed by Givenchy; Wendy Stark of the Hollywood and Savannah’s fifth annual Film Festival starts tomorrow Beverly Hills Starks; American designer Alexandra Lind, and the crowds from Hollywood, New York and London and Barbara Leary in a blue tweed suit by Chanel. headed there include director Arthur Penn, who will get a Arriana, wearing a cocoa-colored Valentino suit and a lifetime achievement award; Army Archerd, celebrating his chocolate-colored hat with a little feather shooting out of the brim, called Beannie’s dress “quite possibly the 50th year as a columnist at Daily Variety; Alec Baldwin, prettiest wedding dress in the history of wedding whose Las Vegas-based film, “The Cooler,” will be dresses.” Spoken like a true ex-roommate. This off-thescreened; Thora Birch; Paul Morrissey, who directed Andy shoulder Snow White confection was nipped in to show off Warhol’s movies; George Segal; Debra Winger; Rosanna Arquette, and Sony Classics co-presidents Michael Barker the bride’s tiny waist and had a perfectly fitted little jacket with an Elizabethan collar. Her lace veil and seemingly and Tom Bernard, who have three new movies in the endless train and the gown were all designed by Julien festival. The festivities will open with Miramax’s new movie, “The Barbarian Invasions,” and close with Fox Macdonald for Givenchy. That night, the Queen’s cousin, Lady Elizabeth Anson, Searchlight’s new Jim Sheridan movie, “In America.” London’s top party planner, organized a sumptuous seated The pièce de résistance at the festival each year is the dinner and ball for 500 bright young things and their Halloween night candlelit dinner in Bonaventure parents at Wycombe Park, the 18th-century Palladian Cemetery, where a lot of the action in “Midnight in the mansion seen in the movie, “The Importance of Being Garden of Good and Evil” takes place. By Aileen Mehle Natalie Portman and Gael García Bernal, the star of “Y Tu Mamá También,” have moved in together in Natalie’s downtown digs. ® Mexican-born GGB is muy caliente, a coverboy (Interview) who is being gobbled up by filmmakers for one movie after another. Natalie has been out of the country lately and Bernal goes back to Mexico from time to time, but for the moment, that’s what’s going on with the two cuties. ● What to give a boyfriend who has everything including the richest girl in the world: Athena Roussel, who turned 18 last January and who now controls the vast $7 billion Onassis shipping empire, bought her Brazilian boyfriend, Alvaro Alfonso de Miranda Neto, a cow at a São Paulo cattle auction. Before you laugh too hard, you have to know that the animal has a championship pedigree and costs $350,000. Its value will multiply many times as it becomes a part of the breeding stock on Alvaro’s cattle ranch. That is if it lives up to its name, Esperança, which is Portuguese for “hope.” ● The London social season continues to glitter, filled as it is with the little niceties that make England so very very English. Roger Moore checked into the Ritz and was greeted by the staff as Mr. Moore, but when he left last week, they called him Sir Roger because during his stay there, he was knighted by the Queen. Sir Roger also celebrated his 76th birthday during his visit with his family, including his wife, Kiki, and son, Geoffrey, who owns the trendy West End restaurant, Hush. Also passing through the Ritz’s revolving doors recently were King Constantine of Greece and his sister, Queen Sofia of Spain, who booked a table for 10 for lunch with their families. At different tables in the Ritz restaurant were such as Princess Michael of Kent, who will be in New York next week to lecture at the Metropolitan Museum, Lady Thatcher and a host of others, if not just like them, close enough. ● Beautiful Princess Arriana von Hohenlohe flew to London from Palm Beach where she and her husband, Dixon eye Blaine Trump 3 4 WWD, FRIDAY, OCTOBER 24, 2003 The Beauty Report Guerlain’s Instant Gratification Myers Named NEW YORK — In just an Instant, Guerlain hopes to change its fragrance fortunes in the U.S. With L’Instant de Guerlain, the house’s first new scent in three years, Guerlain is laying out a plan to revitalize its fragrance business in the U.S — as well as create a blockbuster globally. “We wanted to show a new face for Guerlain,” said Renato Semerari, worldwide chief executive officer of Guerlain. “Our key challenge when we started working on this fragrance was to develop a new flagship for Guerlain, both in the U.S. and internationally. We are aiming for another classic.” In fact, Semerari’s first challenge to his team — upon joining Guerlain in 2002 — was to reestablish fragrance as the key pillar of the company’s business. Fragrance, while always important to the brand, had been somewhat overshadowed of late by other Renato Semerari segments, including a strong color cosmetics business globally, he noted. While L’Instant de Guerlain began launching in Europe this fall, Semerari was determined to have a clearer field for its launch in the U.S. “There are so many launches this fall in the U.S. that we feared it would get lost in a flood of newness,” said Semerari. “We wanted to have the visibility to reestablish the brand, and we wanted a time where we would have more visibility at counter. Launching in the U.S. in March made more sense for that strategy.” The new fragrance will follow a goal, initiated a year ago, for the brand: launching in narrow, specialty store distribution in the U.S. Since last year, the brand has cut its beauty distribution in half — from more than 200 doors to about 100 — and plans to follow a similar strategy with the new scent, although it will be in more doors than the brand’s color cosmetics and skin care. “We want to get more of a high-end profile in terms of image in the U.S.,” said Semerari. “The brand has never been mainstream, and part of its DNA is to have upscale distribution. In Paris, Guerlain is sold only in our boutiques. [In the U.S.] we need to get stronger in the point of sales where this customer is shopping.” In terms of doors for scent, Camille McDonald, president and chief executive officer of Guerlain and Givenchy in the U.S., noted that will translate to just under 500 specialty store doors at the U.S. launch this spring, with an “absolute maximum” of 600 to 700 doors within a few years. Retailers Head of Origins Camille McDonald We want to get more of a high-end profile in “terms of image in the U.S. ” — Renato Semerari, Guerlain will include Saks Fif th Avenue, Neiman Marcus, Nordstrom, Bergdorf Goodman and Marshall Fields. Sylvaine Delacourte, director of evaluation and development for Guerlain, worked with Maurice Roucel of Symrise to develop the juice, which is said to introduce a new olfactory category: Crystalline Amber. “We wanted a very feminine fragrance that was luminous and fresh at the same time,” said Delacourte, noting that the fragrance uses magnolia as a signature note, a first for Guerlain. “We chose to use bergamot and mandarin, bright and sunny notes, in the top note. A light jasmine, mixed with a dominant magnolia note define the heart of the fragrance, and the base notes include the ‘Guerlainade,’ the accord used by all Guerlain fragrances, which includes vanilla, benzoin and tonka bean. It has been modernized for this fragrance with synthetic musk, to anchor the top notes and the heart.” The juice, Delacourte explained, follows a “dual pyramid” presentation. “Unlike a classically structured fragrance, L’Instant de Guerlain does not develop from one note to the next. Instead, all of the notes build on each other — each note remains even while the heart and base are developing.” The “typically French” name is “an invitation to savor the moment and appreciate time,” said Vincent Brun, manager of marketing for fragrance for Guerlain. “The concept is a moment when your senses and feelings are fully awake, and you are truly alive.” The fragrance’s target audience is women 25 to 45 years old, with 30- to 35-year-olds being the core target. The fragrance’s bottle — both the body and the cap — are made entirely of glass. The glass on the bottle is tinged with amethyst, while the clear glass top is engraved with the fragrance’s name. Outer packaging is white, with a logo — a circular Guerlain Paris motif in purple with the scent’s name centered in the middle of the circle — that is an updated version of one that was created in-house in 1917. The range includes eau de parfum sprays in two sizes, 1.7 oz. for $62 and 2.7 oz. for $82; a 0.25-oz. parfum, $90; a limited-edition parfum packaged in crystal, 0.25 oz. for $500; a 6.8-oz. body crème, $80; a 6.8-oz. body lotion, $47, and a 6.8-oz. bath and shower gel, $42. Although none of the executives would comment on projected sales, industry sources estimated that the scent would do at least $15 million in the U.S. in its first year on counter and that about $3 million would be spent on print advertising in the U.S. in that time period. While the media plan is still being finalized, it will include advertising in upscale lifestyle magazines, likely beginning as single and double pages in April, noted Beth Ann Catalano, senior vice president of sales for Guerlain in the U.S. The ad, featuring model Ingrid Parerwijck and shot by Mert Alas and Marcus Piggott, marks the first time Guerlain has used a blonde in its advertising. Also included in the campaign will be scented pieces in store catalogs, as well as vials-on-cards, deluxe fragrance miniatures and deluxe mini body crèmes, for a total of 20 million scented impressions, Catalano said. — Julie Naughton NEW YORK — The Estée Lauder Cos., parent company of Origins, has named Daria Myers senior vice president and general manager of Origins. Myers, who will take on her new duties Dec. 1, will report to Philip Shearer, group president of the Estée Lauder Cos. Her appointment follows a series of recent executive shifts that began in late September, when Pamela Baxter, a 21-year company veteran who most recently was president of specialty groups worldwide for Estée Lauder Cos., left Lauder to go to LVMH Moët Hennessy Louis Vuitton as president of its U.S. beauty group. Baxter was replaced in her Lauder role — which involves overseeing Prescriptives, La Mer, Jo Malone and Kate Spade Beauty — by Lynne Greene, who had been global president of Origins. Myers was most recently responsible for special projects within the company, and is a 26-year veteran of the Estée Lauder Cos. She joined the company as an assistant for the Aramis division in 1977. From there, she worked up to executive director of marketing for that division, where she was responsible for the launches of such lines as Tuscany and Lab Series for Men. In 1989, Myers became a founding member of the team that created Origins, working on the brand for 10 years and rising to senior vice president of global marketing. In 1999, Myers took on the role of senior vice president of global marketing for Aveda, a post she held for two years before moving over to special projects for the parent company. Daria Myers “Coming back to Origins is like coming home — although there are a few more kids in the family now,” said Myers, referring to the brand’s growth internally and externally over the past several years. “While Origins has been in my blood every day, I have been away from it for four and a half years, so it’s a bit premature to discuss where I want to take it. Since I’ve been away, it has grown in its distribution — both in door counts domestically and internationally — and in its focus. I look forward to taking a fresh assessment of the brand. And, there won’t be a learning curve since I’ve been on the brand before.” On her previous stint with Origins, Myers developed the brand’s department store business, created the format for Origins’ retail stores and helped to develop the brand’s e-commerce site. “Daria is an Origins founder who helped create the essence of this brand,” said William P. Lauder, chief operating officer of the Estée Lauder Cos., in a statement. Lauder was the brand’s founding president and worked closely with Myers at Origins. “I have enormous respect for her ability to both innovate and execute on a global basis. I’m delighted she will lead the Origins team.” “It’s great to have Daria back at Origins,” added Shearer. “I’m thrilled to have someone who knows the brand so well — she has a real connection to the roots of the brand. Her work with other brands here has also given her a good perspective, which will allow her to take a fresh look at Origins. It’s too early to say about strategy, but we’ve been very successful with the A Perfect World skin care franchise, and we have a great opportunity to use it as an anchor for growth.” — J.N. WWD, FRIDAY, OCTOBER 24, 2003 Chanel Hopes Launches Keep Growth On A Roll NEW YORK — Chanel is gearing up for the first half of 2004 with launches planned across its color, treatment and fragrance categories. “We’ve been able to weather the storm well,” said Jean Hoehn Zimmerman, executive vice president of marketing and sales for fragrance and beauté for Chanel. “In this half, we’ve seen double-digit growth [in beauty] globally, and we’ve risen in rank in nearly every country. Given the softness of the market, we’re very happy about that and have a number of new initiatives to keep the momentum going.” “We’ll be aggressive in promoting all of our beauty categories,” added Arie Kopelman, president and chief operating officer of Chanel. “We will not be resting on any laurels. We’re on a roll, and we’re determined to accelerate the pace in 2004.” Hoehn Zimmerman noted that the most recent NPD BeautyTrends numbers show that year-to-date, the total fragrance market is down 2.7 percent, with the women’s fraSeveral of Chanel’s new grance market down 1.6 percent. skin care introductions. By contrast, she said, Chanel’s total fragrance market is up 12.2 percent, with women’s up 16.9 percent. In color cosmetics, she said, NPD’s third-quarter numbers show the category up 6.2 percent, while Chanel’s numbers are up 7.3 percent, in skin care for the same period, the market is up 8 percent and Chanel’s business in the category is up 10.6 percent. “Given that one of our strategic missions is to increase skin care business, we’re very happy with those numbers,” said Hoehn Zimmerman. That category will be bolstered with six introductions by May 2004. Three, coming in December, are in the Rectifiance Intense line: Anti-Age Retexturizing Fluid for oily skin, and Anti-Age Retexturizing Cream and Night Cream, both for normal to dry skin. All include the brand’s Micro-Protein Complex, a blend of green pea extract and firming pentapeptides intended to boost collagen production, as well as essence of neroli, said to help improve skin firmness and elasticity. The fluid and the day cream each retail for $57.50 for 1.7 ounces; the night cream is $67.50 for 1.7 ounces. Eclat Original Maximum Radiance Cream, coming in March, is a gel cream that is intended to increase the luminosity of skin, said Annette Falso, vice president of new product marketing and training, Chanel fragrance and beauté. It features the proprietary Pulsator Complex, made up of mushroom and brown seaweed extracts, intended to help boost circulation; sugar derivatives for exfoliation, and extract of cassia angustifolia to hydrate the skin. It retails for $55 for 1.7 ounces. Eye Tonic, a dark circle corrector with a rollerball applicator, launches in April. The product includes lipotripeptide, designed to diminish the appearance of dark circles; mandarin and horse chestnut to boost circulation in the eye area, and extract of licorice to stimulate the eye area. It retails for $50 for 0.3 ounces. The brand’s No.1 Collection, available only in specialty store doors, will gain Concentre No.1, a 14-day, individual dose intensive treatment regimen designed to significantly reduce the appearance of wrinkles. It retails for $275 and launches in May. To further boost the skin care category, Falso noted, the brand plans an intensive sampling campaign. More than 78 million samples are planned across all Chanel beauty categories, with a skin care emphasis, beginning in January. Extensive sampling will also be offered in the fragrance and foundation categories, noted Hoehn Zimmerman, as will increased advertising across all beauty categories — including a new ad for The limited-edition Satin de Chanel. the Coco Mademoiselle scent featuring a blonde Kate Moss. Sources estimate that at least $12 million will be spent on advertising in the first half of 2004. In color, the brand is paying strong attention to the lip category, said Elizabeth Mankin, vice president of beauté marketing for Chanel. The brand will launch Aqualumiere Sheer Colour Lipshine, an ultrasheer formulation available in 15 shades, in May. The intensely moisturizing formula includes shea butter and Vitamin B and E and sucrose derivatives, as well as SPF 15. Each retails for $23. In addition, building on the success of its Glossimer lip gloss franchise, Chanel will launch Glossimer Tints, four very sheer glosses, in April. Each contains vitamins C and E and jojoba for protection and moisturization, retailing for $24.50 apiece. As well, in addition to the brand’s spring color story, which features peaches, coppers and pinks, the brand will release three limited-edition products in the first half. Satin de Chanel, an allover highlighting powder available in peach and pink with a top-stitched embossed YSL Adds To Skin Care Lineup NEW YORK — Having tapped the fountain of youth by using the power of mushrooms with its Temps Majeur line in 2001, YSL Beauté is headed back to the well this fall. Two new treatment products — Temps Majeur Yeux, formulated for the delicate skin on eyelids, and Temps Majeur Masque, an intensive moisturizing treatment — are based on ganoderma lucidum, a mushroom that has been used in Chinese medicine since ancient times. “By acting on the production of cytokines, which play a vital role in the transmission of inter-cellular information, ganoderma lucidum stimulates an ongoing exchange between the cells,” said a spokeswoman for YSL Beauté. “A true ‘liaison,’ it triggers the skin’s rejuvenating and repair process by activating powerful skin remodeling. To make the most of this benefit, we have added two products and have adapted their formulation to specific skin needs, both in terms of delicate application areas and as a response to states of intense fatigue.” Ganoderma lucidum’s efficacy is said to come from sugar polymers called glucanes, which are said to stimulate the The new Temps Majeur products. design, was inspired by Chanel’s ready-to-wear collection, said Mankin. It will be available in January and will retail for $50. Joues Contraste Duo, a blush compact with two shades — copper and pink — intended for highlighting and contouring, will retail for $42.50 and also launches in January. In April, Chanel will release Poudre A Cils, a volumizing lash powder designed to be used with mascara to enhance lashes. It will retail for $40. Chanel will also release Ecriture de Chanel Automatic Liquid Eyeliner, a new eyeliner pen, in April. It will be available in four colors — black, brown, navy and copper — that will be permanent additions to the line, as well as a limited-edition silver version. Each retails for $30. Chanel will also boost its fragrance category with several launches, noted Laurie Palma, senior vice president of fragrance and Internet marketing, with upwards of 77 million scented pieces in the first half planned to help get the word out to consumers. Allure Homme, launched in 1998, will add a flanker, Allure Homme Sport. “This scent is fresher, more sensual and more casual than its older brother,” noted Palma. Launching in June, the fragrance includes four facets — one including Calabrian and Sicilian orange and Tunisian neroli, one including tonka bean, musk and amber, one of cedar and vetiver and one of black pepper — and was formulated by Jacques Polge of Chanel. Two eau de toilette sprays will be available: 1.7 ounces for $42.50 and 3.4 ounces for $57.50. The brand will also bring back a classic from the Twenties, Gardenia, on a limited-edition basis beginning in January. The fragrance, created by Coco Chanel and Ernest Beaux in 1925, will have a two-month exclusive at Saks Fifth Avenue and will move into the brand’s other fragrance doors in March. Coco Mademoiselle will get three new stockkeeping units — a spray oil, $42 for 4.2 ounces; a deodorant spray, $26 for 3.4 ounces, and a scented hair mist, $30 for 1.2 ounces. All launch in April. Gift sets will abound this spring as well, with two for Chance and one apiece for Allure for Women, Allure Homme Sport, Coco Mademoiselle, Chanel No.5. and Gardenia. Although none of the executives would comment on projected sales, industry sources estimated that the new products would add at least $20 million at retail to Chanel’s beauty sales in the first half of next year. Chanel’s color cosmetics and skin care products are available in about 800 department and specialty store doors, while its fragrances are available in about 3,000 doors. — Julie Naughton quality and intensity of the chemical messages in the skin’s cells. In these products, they are teamed with YSL’s proprietary Cyto-Regenerating Complex, which contains oligo-peptides and almond proteins. In the eye cream, these ingredients are accented with escine, an extract from horse chestnut seeds that is said to help reduce the appearance of puffiness and dark circles, as well as with light-reflecting microparticles to minimize the appearance of imperfections. The mask — intended to be used once or twice a week — combines the mushroom extract with soya phospholipids for intense hydration. Both new products also include ginseng extract, intended to intensify the benefits of the other ingredients. Temps Majeur Yeux retails for $100 for 0.5 oz., while Temps Majeur Masque retails for $130 for 1.6 oz. The products, which are beginning to roll out now, will be available in the brand’s U.S. treatment and beauté doors, currently about 189 department and specialty store doors. While the company wouldn’t comment on projected sales for the two new products, industry sources estimated that together they would do about $1 million at retail by yearend 2003. Sephora, Nocibe, Marionnaud in Paris Price War — J.N. — Brid Costello PARIS — A promotions war has reerupted among major French beauty retailers. Sephora fired the first shot Oct. 17, offering customers a 20 percent discount when they buy a 50-ml., or larger, bottle of fragrance, plus an ancillary product from the same brand. The following day, rivals Marionnaud and Nocibe retaliated. At Marionnaud, customers are offered a 20 percent discount on fragrances, while select Nocibe stores give a 20 percent break on one item when customers buy any two skin care, makeup or fragrance products. The promotions are slated to end Nov. 3. Paris perfumeries waged a similar battle last year leading up to the holiday selling period. 5 WWD, FRIDAY, OCTOBER 24, 2003 The Beauty Report Iman Struts Into Mass Aisles NEW YORK — As she presides over her Seventh Avenue offices on an overcast October morning, where at least a dozen attractive young women are busy at their jobs, Iman, in a crisp white blouse and pinstripe slacks, is the picture of the business-minded entrepreneur. For nearly 10 years now, the longtime model has devoted the bulk of her time to creating beauty products for women with a range of skin tones, hoping to fill what she saw as a gaping hole in the marketplace. She has also managed to fit in the occasional photo shoot or public appearance for modeling contracts with firms such as DeBeers and H&M, the fashion retailer. As a vendor, Iman is no stranger to the vagaries of retail; she learned that flexibility is crucial. Her Iman collection — the first of two beauty brands she’s designed — was simultaneously launched on QVC and in J.C. Penney stores in 1994, where it has enjoyed a steady business ever since. But Penney’s opted out of cosmetics last year, retaining only select Iman items — namely, makeup kits and skin care items. (The other line, I-Iman, is carried at Sephora and other specialty retailers.) Possessing a relentless desire to deliver products to women she feels are underserved, the Somalian beauty quickly started staking out new retail territory for her Iman brand. And she has turned to where the traffic is — discounters and drugstores. With products directed at a multicultural audience, Iman contends her brand can bring some direction to the fragmented ethnic marketplace. “There is no major leadership in the market and this is a brand, not just products,” said Iman, adding, “It is not a new brand and it is successful at what it does.” What it does is emphasize foundation and skin care formulas that are suitable for a range of skin tones and skin types. At present foundations and powder account for 50 to 60 percent of Iman sales. Iman recalled that when she began modeling in 1975, the makeup artist Way Bandy would “spend a half hour mixing foundation to get just the right match for me,” she said. “Other makeup artists would ask me if I would bring my foundation, so I relied on myself to learn.” “I am in a way an authority,” noted Iman. The trick with darker skin tones, she pointed out, is not just about getting the right shade, but also getting the undertone correct. “When thinking about going into the mass market, we saw that everybody has lipsticks and blushes; our focus is on foundation and we have four types,” she said. She also said that a good foundation is useless if skin is not cared for properly. “There was no skin care for women of color,” said Iman, who remarked that specific conditions include pigmentation problems, dry skin and acne. The Iman skin care products were designed to work with the color items. “An investment in your skin is an investment in yourself,” she said, advising, “The skin you take care of in your 20s is what you inherit in your 50s.” The concept of the line, she said, “is about skin of color. It is not about ethnicity.” In-store materials will feature a group of models with a range of skin tones; the products are designed to meet the needs of African, Asian, Hispanic and Caucasian skin types. “Most companies that claim they have foundations for women of color were included as afterthoughts,” said Iman. There were several distinct efforts throughout the years including Shades of You by Maybelline and Revlon’s Polished Ambers, although both collections have long been discontinued. Most general market brands have extended shade ranges to accommodate a broader spectrum of women. In early trials at some Meijer stores, the Iman brand has already charted successful results. Starting with spring resets in February, the brand will be added to select doors by several mass retailers including Wal-Mart and Duane Reade. Walgreens will offer some items on its Web site beginning this month. Most retailers are taking on 3-foot sections containing some 107 stockkeeping units including foundation, powders, bronzers, blush, eye shadow, lip color, mascara, eye pencils and facial cleansers, toners and moisturizers. There is also an area called “Hot Picks” to present new or seasonal items. Additionally, there is instruction on matching foundation and powder shades and other tips for selecting skin care products. Iman ushered in higher price points for mass as well, with tags ranging from $8.99 to $14.99 for foundation. Desiree IMAN PHOTO BY DAVID TURNER; PRODUCTS BY GEORGE CHINSEE 6 Inset: Iman beside an in-store visual for the brand. Top: The three-foot display is full of product information; part of the Iman cosmetics line. Malahoo, vice president, marketing, and general manager for Impala Inc., said that in order to prepare the collection for presentation in mass stores, packaging was modified to give boxes a see-through window. Also, shade cards were added to help shoppers find a correct match, and clear plastic caps were added inside lipstick cases to protect product. The display was designed to be self-explanatory, with clear product descriptions, so no beauty advisor is needed. The mass rollout strategy takes a measured approach. Markets are being targeted chain by chain based on regional leadership. For instance, Duane Reade is eyed for the New York market and Meijer in Michigan. In all, some 200 doors are planned for this year. “The main concern for me,” said Iman, “is that success can be a doubleedged sword. We want to make sure we have enough product and we want to make sure we are in the right doors, so we are doing a slow rollout.” To support the launch at Wal-Mart, makeup artist Eric Spearman will provide in-store consultations and makeovers. A promotional video featuring Iman and other models has been created that will play during events. Because the line is not national there is no advertising planned. Sources predict Iman could hit retail sales of $2 million to $3 million the first year. Several retailers have begun to more closely target market populations. WalMart is noted for its finely tuned demographic information and for tailoring each store’s product mix to its neighborhood. Kmart has begun efforts to speak to the Hispanic market with a range of house brand products including the Thalia label. In beauty, a Kmart spokesman said several brands — including Maybelline, Cover Girl, Revlon and L’Oréal — target Hispanics through in-store signing and specific shade selections. Some brands are also developing bilingual signing to reach out to Hispanic consumers. She noted that as different ethnic populations grow in the U.S., major brands will need to reach out to these consumers to not only maintain, but grow, a future share in the marketplace. According to the 2000 U.S. Census, of women between age 18 and 64, AfricanAmericans represent 12.7 percent of the population at 11.1 million; Hispanics represent 11.5 percent with 10.1 million, and Asian-Americans represent 4.1 percent with 3.6 million. And the spending power of these groups is expected to increase, according to the Selig Center for Economic Growth. Over the next five years, AfricanAmerican spending is expected to jump 34 percent, Hispanic buying power will skyrocket 55.4 percent and AsianAmerican spending is estimated to increase 5 percent. — Laura Klepacki, with contributions from Kristin Finn New Shiseido Line Puts Focus on Men PARIS — As part of a move to ratchet up its European business, Shiseido will begin launching its first global skin care line for men there starting in November. “Especially in the northern part of Europe over the past few years, men’s skin care has been one of the fastest-growing sectors,” explained Shuichi Tanaka, senior vice president of Shiseido Europe SA. “There is demand from the market for expertise.” The Shiseido Men line, which the company bills as a simple, highly functional treatment, has a core target of 30- to 45year-old men. Its products are divided into basic care, which includes cleansing and moisturizing, and “special care,” for targeted skin care solutions. In the lineup is a 4.6-ounce Cleansing Foam for $23.60 at current exchange rates, or 20 euros; a 5-ounce Hydrating Lotion for $31.80, or 27 euros; a 3.3-ounce Moisturizing Emulsion for $37.70, or 32 euros; a 1.8-ounce Total Revitalizer Age-Defense Anti-Fatigue Cream for $70.70, or 60 euros; a 4.6-ounce Deep Cleansing Scrub for $23.60, or 20 euros; a 1-ounce Anti-Shine Refresher Matifying Gel for $37.70, or 32 euros, and a 0.53ounce Eye Soother Anti-Dark Circles Anti-Puffiness Gel for $47.16, or 40 euros. The new products’ formulas include Shiseido’s Damage Defense Complex, said to alleviate dry and rough skin. The items also purportedly give a refreshing and moist aftereffect. The products contain a scent with a floral green base note enhanced with Modified Valerian that the firm’s research shows reduces men’s stress levels — key, Shiseido said, for healing skin. Shiseido Men will be introduced in parts of Europe, including Italy, Germany, Belgium, Luxembourg, Austria, Holland, Russia and Switzerland, plus the Emirates, in November. In early 2004, Shiseido Men will be launched elsewhere in Europe and by yearend it’s expected to be in 70 countries, including some in Asia. The introduction will include a sampling campaign, print advertising — including gatefolds, single and double pages — leaflets inviting people to learn about the products, plus in-store videos and quizzes. Although Shiseido executives refused to discuss numbers, industry sources estimate Shiseido Men will ring up $2.36 million (2 million euros) in Italy through the end of 2004 and the same amount in Germany, Austria and Belgium combined in the period. Shiseido’s European business is showing resilience in a difficult climate due to phenomena including weak economies, as in Germany, and effects of SARS. For year-end, it expects to post sales up 2 to 3 percent compared with 2002, said Tanaka. “For the second half, we’re seeing [some light],” he said, due in part to some strong product introductions. “It seems to be getting better.” Some 25 percent of Shiseido’s overall sales are rung up outside of Japan. And of that quarter, Europe generates about 33 percent. In volume terms, the firm’s strongest European markets are Italy, Germany and France, with the U.K. and Spain vying for The Shiseido Men line. fourth place, said Tanaka. In terms of product volume in Europe, 53 percent of the brand’s sales come from skin care, 25 percent from makeup and the remainder from fragrance and sun care, he said. Best-selling items in the region include Body Creator and Future Solution total revitalizing cream. Looking ahead, Shiseido sees strong potential in countries such as Russia. “Travel retail could be huge,” added Tanaka of the channel that is still nascent for Shiseido. The company has been present in it for only two years and rings up just about 5 percent of its overall business there. — Jennifer Weil WWD, FRIDAY, OCTOBER 24, 2003 Kohl’s Opens Another New Jersey Locale FLEMINGTON, N.J. — Kohl’s is on an expansion track with new stores, such as the one that opened here to a waiting crowd on October 9. Thirteen stores also bowed on that day in Arizona, a brand new market for Kohl’s. But the Menomonee Falls, Wis.-based retailer has not quickened its pace as far as adding more beauty within the past year. In fact, this store has about the same footage devoted to cosmetics as a location opened last October in Hillsborough, N.J. — some 15 miles away. For many beauty manufacturers, Kohl’s represents the Holy Grail — a chain ripe for expansion into more beauty products, especially color cosmetics. Without much growth in cosmetics usage, manufacturers are looking for new doors such as Kohl’s, which is adding 85 stores this year and expects to add another 95 in 2004. And, although many firms claim to have presented concepts to Kohl’s, the retailer maintains a small beauty department. Although larger than its presentations of just two years ago, Kohl’s appears to have put a lid on further expansion into cosmetics — at least for now. Perhaps Kohl’s has long known what most mass merchants are just finding out — today’s shoppers crave value. Kohl’s beauty departments are full of blockbuster beauty sets from manufacturers such as Burlington and Markwins International. There are gift sets created to appeal to teens, those marketed to younger girls and even compilations suited to mature women. A shopper can find color cosmetics kits, bath and fragrances at Kohl’s, although she’d be hard pressed to buy skin care. For the grand opening, Markwins sets were discounted from $10 to $6 and $45 to $27. Whimsical slipper gift sets featuring slippers, bath gel and body sprays were stacked up and priced at $11. Gaining footage at Kohl’s is a holistic beauty line complete with antistress options called Earth Therapeutics. Footage to some products such as designer fragrances, Neutrogena toiletries and even The Healing Garden have been pruned in the new store versus last year’s model. However, the presentation has been elevated a notch, thanks to frosted glass fixtures being used in jewelry and beauty. The location of beauty remains front and center, near the entrances and close to jewelr y. Although the area is strictly self-serve, customers frequently query the associates in jewelry for help. The product selection is either geared toward impulse buys, such as pumpkins filled with beauty products, or planned purchases, such as a designer fragrance. Kohl’s also stresses its house label called BodySource and has expanded it into spa items. BodySource is presented on eight displays in the beauty area. Kohl’s offers fragrances at 15 percent off suggested retail. Among its tight selection is Calvin Klein’s Obsession, priced at $45 for a 1.7-oz. bottle. Many experts think the company is taking a paced approach to beauty and will lock up a deal with a major beauty firm to push it further into cosmetics. Kohl’s would not comment on those reports. Kohl’s is gaining the attention of New Jersey shoppers, especially those who don’t want to take the time to frequent the nearby Bridgewater Mall. At the grand opening, Kohl’s employees greeted shoppers at the entrance and Critical Mass By Faye Brookman issued discounts. Donna Harabedian, a local resident, said she was glad to have this type of store so close to her home, especially on a site which had been vacant for years after the Flemington Mall closed its doors. Many of the sites Kohl’s occupies in New Jersey represent areas in need of mass-market retailing. Eventually the power center here will house a Michael’s, a Borders, a Hallmark, a Panera and a Verizon wireless store. Despite its new store growth, Kohl’s is experiencing only modest gains in mature stores. The company said its September sales at stores opened at least a year rose 5.5 percent. The firm is still targeting a 3 percent same-store sales increase for the third quarter, and it will meet that if October same-store sales are unchanged. Kohl’s is currently the nation’s 37th largest retailer, according to Chain Store Age. The chain has been able to entice well-known brands to its stores, such as Levi’s, Dockers, Reebok, Skechers, Mudd, Calphalon, OshKosh and Nike. ● Kidman Signs On for Chanel No.5 Continued from page 2 being as exciting as this,” Kopelman enthused. “When Jacques Helleu saw [Kidman] in ‘Moulin Rouge,’ he thought she would be perfect for Chanel No.5. All of us at Chanel love Nicole Kidman. We recognize how special she is, how talented she is and how lovely she is as a person. “Chanel No.5 stands for elegance, class and taste. How perfect is Nicole Kidman to represent that? It was a no-brainer.” Still, finalizing the deal took more than 18 months. The principal roadblock was the heavy working schedules of Kidman, who stars in three major films this year, and Luhrmann, who is consumed with pre-production for his forthcoming epic about Alexander the Great, starring Kidman and Leonardo DiCaprio. Luhrmann, 41, first burst onto the movie scene in 1992 with the quirky and camp “Strictly Ballroom,” and then hit the big leagues with his 1996 hit, “Romeo + Juliet,” a kinetic version of the Shakespearean classic for the MTV generation. He joins a long list of major photographers and filmmakers who have immortalized No.5 in advertising campaigns, including Ridley Scott, Richard Avedon, Bettina Rheims, Gérard Corbiau, Jean-Paul Goude and Luc Besson. The director was traveling Thursday and could not be reached for comment, but the Chanel ads are believed to be his first attempt at advertising. Based in New York, Kopelman was a key figure in negotiations with the two film power players, liaising with their numerous handlers and agents. Kopelman stressed Luhrmann was considered a key collaborator from day one. In fact, at his first meeting with Kidman in September 2002 in Los Angeles, Helleu said the actress announced to him that she herself had a concept for a Chanel commercial involving Luhrmann. Kidman could not be reached for comment, but Chanel officials related that the actress also told them repeatedly Chanel was the only fashion brand to which she could imagine lending her support. “It is very flattering for us,” Helleu said Thursday at his minimalist office at Chanel headquarters here. A film enthusiast who sees a minimum of a dozen movies a week, Helleu said he has watched “Moulin Rouge” — or at least his favorite scenes — at least 40 times. A longtime admirer of Kidman’s acting ability, poise and beauty, Helleu said that 2001 film exemplified her magnetic and powerful sensuality. “She is extremely seductive, dangerously so,” Helleu said. “That ability to convey seduction is very rare, even among the greatest actresses. I believed she could bring something special to Chanel.” The storyline for the commercial, to be conceived, directed and produced by Luhrmann, has yet to be defined. Helleu is slated to meet with the filmmaker in Paris next week to go over initial storyboards. The concept will be presented to Chanel’s board of directors for its approval next month. Helleu, who will travel to Australia for the first time for the shoot, assured the commercial would be different from “Moulin Rouge” and certainly set in contemporary times. “And without Ewan McGregor,” he added with a chuckle, referring to Kidman’s “Moulin Rouge” costar. He could not say who else might appear in the commercial with Kidman. However, a key member of the creative team will be Luhrmann’s wife and partner, the Academy Award-winning set and costume designer, Catherine Martin. During the five-day shoot, slated to wrap up Christmas Eve, Luhrmann and his team will be charged with creating several 30- to ● ● Could any existing drug chain digest Eckerd should J.C. Penney decide a sale is the best decision? Antitrust concerns seem to crop up among most potential suitors. Penney’s wants to have a plan by the end of the year about what to do regarding the 2,700-store drug chain. Any chain looking for expertise in beauty would hit the jackpot with Eckerd. The store is noted as having some of the best beauty merchants in the business. Also, Eckerd has been one of only a handful of retailers to succeed with private label cosmetics. Most chains that would be a good fit either don’t have the money, or operate too many stores that overlap Eckerd. The asking price is estimated at $4 billion to $5 billion. Although CVS is mentioned as a suitor, the drug chain getting attention for its interest is Canadian power, the Jean Coutu Group. Jean Coutu already owns Brooks, a 330store chain making a splash in the beauty world with upscale skin care departments. The clout of Eckerd could easily help Brooks realize a vision of a Europeanstyle pharmacy with premium beauty and skin care. The iconic Chanel No.5 bottle. 60-second variations for television and cinema advertising. Also, two photographers, to be determined by Helleu, will lens an accompanying print campaign. One thing is certain: Kidman will wear Chanel in the campaign, and Helleu said the house is fortunate that the actress and couturier Karl Lagerfeld are already great friends. Lagerfeld has photographed Kidman for various magazines, and Kidman has created several extraordinary fashion moments wearing Chanel, perhaps most memorably at the Academy Awards in 2002, when she wore a ruffled pink couture gown. Under the deal, Kidman is not obliged to wear Chanel. “This is purely a No.5 contract,” Kopelman stressed. “Her personal life is hers and she can wear what she wants. I would certainly hope, and be excited, of course, whenever she does choose to wear Chanel, but that’s her call.” Closely held Chanel, owned by the Wertheimer family, declined to discuss financial details of the contract, nor say how much money would be put behind the Kidman campaign over the next three years. Pressed for details, Kopelman said Chanel’s advertising budget would likely be up “in excess of 10 percent” in 2004, and that budgets for the fragrance and beauty division would be “massaged” to ensure maximum exposure of the new No.5 spots. “The idea is to put together a coordinated effort worldwide,” he said. “I think it will have a significant effect on the No.5 business.” Chanel’s beauty business is estimated to pull in more than $1.6 billion a year, and No.5, created in 1921, is ranked the number one-selling perfume worldwide, with estimated retail sales of $100 million annually. It was ranked fifth in the U.S. market at the end of 2002. As for an estimate on No.5’s ad budget, some sources say 5 to 8 percent of sales is typical of luxury brands, thus putting the figure at $5 million to $8 million. Asked about the health of the No.5 business, Kopelman reiterated its top status worldwide and characterized the Kidman campaign as adding fuel to what is already substantial momentum for Chanel, given the recent success of fragrance launches like Chance, a scent aimed at young women, and limited-edition makeup products like its denim-inspired eye shadow, Jeans de Chanel. “We’re firing on all cylinders here,” he said. “We’re all very bullish.” Helleu, too, predicted the campaign would have a positive impact on all products bearing the Chanel name. He noted, for example, that the current No.5 campaign, featuring the iconic bottle in Andy Warhol colors, has already boosted Chanel’s total business in Japan, where fragrance is not a popular product. Meanwhile, Helleu said the Kidman campaign would underline that No.5 is a modern and “mythic” perfume of seduction. “It’s not a classic,” he said, raising a finger of objection. “I detest that word.” 7 WWD, FRIDAY, OCTOBER 24, 2003 The HBA Report P&G’s New Path: Middle of the Road By Andrea Nagel NEW YORK — Procter & Gamble is out to prove it’s not such a shampoo snob after all. Going against the mass hair care industry trend for premium-priced, professional hair care goods, P&G plans to make 2004 the year of the $3 shampoo by relaunching several of the brands it acquired from Clairol in May 2001 as midtier and value items. New promotions, packaging and formulations are expected for Aussie and Daily Renewal 5X in February, as well as for Daily Defense, which now sells for 99 cents. Price points, in other words, will now range from 99 cents for Daily Defense to $7 for Physique styling products, with four out of P&G’s nine hair care brands priced in the $3 or below range. The move toward lower-priced hair care marks the first time P&G has ever expanded its brand portfolio outside the premium and super premium categories. “We are facing very strong competition,” said P&G’s new vice president and general manager for North America hair care, Sonsoles Gonzalez. “And if customers are going to be switching brands, they might as well be switching to brands inside our portfolio. This is a move to really focus on the consumer as our key way to win in the marketplace.” As a testament to the low loyalty rate in hair care, Gonzalez added, “You probably have seven shampoo containers in your shower, right?” P&G’s portfolio, no matter how the brands are priced, dominates the hair care market. Gonzalez said P&G’s brands generate 30 percent of the category’s U.S. dollar share, or $1.5 billion, with its Pantene brand generating nearly $750 million in U.S. sales. P&G’s dollar share was closer to 22 percent prior to the acquisition of Clairol, Gonzalez said. But while Clairol gave P&G a bigger share of the market, the deal also handed the consumer giant a host of brands Gonzalez saw as under supported for their price category, as well as some that were in dire need of attention. To help with the repositioning effort, several changes took place at P&G’s corporate marketing level. Three marketing directors report into Gonzalez. There’s Maile Carnegie, marketing director for Herbal Essences, who joined the division several months ago from a marketing role within P&G’s North American business organization; Scott Rogers, who is marketing director for Pantene and Infusium, and Diana Shaheen, who is marketing director for Head & Shoulders, Physique, Aussie, Pert Plus, Daily Renewal 5X and Daily Defense. None are from the Clairol hair care regime, but P&G said some Clairol employees have been integrated across its hair care business. Perhaps one of the most anticipated changes to result from P&G’s repositioning efforts are the adjustments in the Aussie line, a brand Gonzalez describes as “one of those hidden jewels we got from Clairol.” Once a darling of high school girls everywhere, Aussie’s scent alone has more brand equity than many other hair care lines on the market. But its premiumpriced positioning was considered off the mark, Gonzalez said, adding that she didn’t want “too many P&G brands competing against one another.” So in October 2002, Aussie’s price was dropped from $3.49 to $2.99 and in 2003 a plan was created to revive it. anymore. Is it St. Ives? Salon Selectives? Most retailers have discontinued all but a couple of midtier brands,” said one retailer. Subsequently, the move to embrace lower-priced brands appears to some industry watchers as mere necessity rather than a calculated strategy. “Their positioning sounds more like value than strategic marketing. What do the brands stand for? Who are they talking to?” asked one industry watcher who believes P&G’s price rollbacks occurred too far in advance to their 2004 marketing plans. Another industry watcher claimed the price rollbacks in 2002 kept P&G from fully supporting the brands in 2003 and that’s why the brunt of their marketing support is appearing next year. Daily Renewal In response, P&G’s Shaheen said, “We restarted marwill include keting support for Aussie and Daily Defense this past styling products summer. We’ll extend this support across all three next year. brands in 2004, using strategies appropriate to each brand’s positioning, consumer target and price segment.” Then there are dollar market share figures to consider. With most of the industry well aware of P&G’s short fuse for low-performing brands, just how long will some of their smaller brands live? For the fiscal year ended June 30, P&G said Aussie owns a 2.3 percent dollar share, Renewal has a 0.4 percent dollar share and Daily Defense has a 0.3 percent dollar share. Gonzalez said that brands such as Renewal are not vulnerable to being discontinued. “We are clear Aussie is packaged in shockingly on their role and what they should bright purple containers. do. We are playing off a certain level of brand existence. That is more positive than creating a new brand. They have good equity, which has been forgotten over time.” Gonzalez pointed out that changes in the marketplace also helped her decide where and how to position its hair care brands. “The number of brands that are now playing in the market, Fructis, and Unilever expanding Dove into shampoo, we did our homework. We saw that Daily Defense would provide and win share in the value segment.” Industry concern, however, is not limited to P&G’s lower-priced brands. Apparently over the past two years, P&G has cut back its list price of Pantene to retailers, causing many in turn to slash prices to remain competitive. And, as the largest hair care brand in the U.S., retailers are feeling the effects. “If you sell something that was once $5 for $4, and the retailer is getting 25 percent of that, the retailer Daily Defense aims to communicate a value message. has to take a markdown, and on top of that has to sell As the first brand P&G touched after the acquisition, 1.5 times more to make the same gross profit dollars,” Renewal went from a $4 to a $2 brand overnight. said the industry source. P&G, however, spends hundreds of millions of dollars “Renewal had really low [ad] support from Clairol. It didn’t really have the justification to be in the premium cate- on promotions that drive customers into stores. And gory,” Gonzalez said. Renewal is gearing up for more though the hair care category from 1996 to 2002 grew, shampoo variants, as well as a six-item styling line in 2004. in 2003 the category hit a wall and fell a little more Lastly, Daily Defense will unveil new packaging than 1 percent to $1.28 billion, according to IRI, exand several new sku’s to communicate its value mes- cluding Wal-Mart. “While P&G’s strategy is that they can set a price, sage to consumers. As many in the industry know, the value category is advertise and people will come in and pay, the conalready saturated, with Suave, White Rain and V05 sumer isn’t buying any more than she was last year,” vying for retail shelf space. And some doubt whether the source said. Perhaps women are still finishing off their seven the midtier range is worth investing in. “Nobody really knows what the middle business is bottles of shampoo. Beginning in February, Aussie will offer more styling products, and offer new packaging in “shockingly vibrant purple packages.” Aussie will also receive its first complete TV campaign in four years. Improved formulas will also be used, but Aussie’s star product, Scrunch Sprayer Instant Freeze, “we are not touching,” said Shaheen. Several sku’s will be added to fatten up the line, including 3 Minute Miracle Deeeeep, for intense conditioning; Tizz No Frizz Gel, and Knot Forgotten Detangler. In-store promotions include Aussie Switcharoo, to encourage shoppers to mix and match among the line’s 35 different sku’s to create a customized hair care regimen. Daily Renewal 5X is also receiving attention in 2004. ▲ 8 Kao, Kanebo to Form New Cosmetics Firm NEW YORK — Tokyo neighbors Kanebo Ltd. and Kao Corp. have agreed to join forces in a bid to eventually become Japan’s top cosmetics company. As part of a joint venture that’s slated to be fully complete by March 2007, Kanebo will spin off its cosmetics divisions and related subsidiaries, forming a new company by next March, according to a joint announcement by the companies. Concurrently, Kao plans to take a 49 percent equity stake in that new company. Kao then plans to spin off its cosmetics businesses and merge them with the new company by the 2007 target date. “With this consolidation, [we] have set the objec- tive of becoming the leading cosmetics company in Japan,” the firms stated. A definitive agreement for the venture could be reached by the end of this year. Upon integration of the new company, Kanebo and Kao expect to reorganize the entity into sales and manufacturing divisions — possibly with Kao handling manufacturing and Kanebo handling sales. The agreement doesn’t “extend to any line of business beyond cosmetics,” the companies said. Some of Kao’s major U.S. businesses include Andrew Jergens and John Frieda. Kao also owns KMS Haircare and Goldwell. Some of Kanebo’s holdings include the Kanebo brand and the license for designer Cynthia Rowley’s cosmetics. The new firm is expected to have annual sales of $2.64 billion at current exchange rates, according to press reports, which added that shampoo will not be part of the deal. As part of streamlining initiatives, Kanebo is expected to cut 2,800 jobs by spring 2006. Kanebo, which entered eight European markets in January, had 2002 beauty sales totaling $2.09 billion; Kao Corp.’s beauty sales were $2.43 billion. Also based in Tokyo, Shiseido, Japan’s largest beauty company, had fiscal 2002 sales of $4.83 billion. — Matthew W. Evans WWD, FRIDAY, OCTOBER 24, 2003 Media All-Stars WWD Celebrity Editors: On the Brink? Cashing In on the Simple Luxe Life The Best Magazines You’ve Never Heard Of The American Magazine Conference in 867 Words And, of course, Memo Pad. 9 PHOTOS: THOMAS SCHENK COPYRIGHT 2003 © THE CONDÉ NAST PUBLICATIONS INC. 12 WWD, FRIDAY, OCTOBER 24, 2003 Media All-Stars Is the Celebrity Editor H By Jacob Bernstein NEW YORK — On Monday, word broke that Anna Wintour was the subject of an upcoming, unauthorized biography by a former National Enquirer reporter. Coming six months after she was villainized in the best-selling novel, “The Devil Wears Prada,” it might be easy (almost) to feel a tinge of sympathy for Wintour. But don’t. These days, a little schadenfraude is practically a sign of vitality. Faced with an abysmal advertising climate and a corporate culture increasingly determined by newsstand sales, it’s never been a worse time to be a celebrity editor. Don’t believe it? It comes straight from the horse’s mouth. Two months ago, Tina Brown was discussing the state of the magazine industry with Maer Roshan, who has been seeking funding for his magazine, Radar. “I think what’s changed,” Roshan recalled her as saying, “is that the era of the celebrity editor is over.” In fact, the industry is littered with the corpses of magazine and newspaper editors who went from A-List to unemployment. In addition to Brown, who is the phoenix of the bunch, there is Howell Raines, the hard-charging executive editor of The New York Times who was fired less because of the Jayson Blair scandal than his own arrogance; Tyler Brüle, the quintessential editor of the Prada-greendot.com-generation who left Wallpaper amid growing tension with his corporate bosses at Time Inc.; Marian McEvoy, the home style equivalent of Diana Vreeland who rose to (semi) fame at Elle Decor before jumping to House Beautiful and getting fired, and Stuff editor Greg Gutfeld, who was kicked upstairs the same week The New York Times Sunday Styles section was profiling him as the public face of the laddie generation. Last but not least, there is the late Art Cooper, who died not one week after his retirement after 20 years as editor in chief of GQ went into effect. “There was a theory that if you got a big enough name you’d be able to sell the ads. But I don’t think that has ever worked,” said Kent Brownridge, general manager of Wenner Media, echoing industry-wide sentiments. “The only person who you could hire today who would make your ad pages go up on the basis of her name alone is Anna Wintour, and Anna would be able to do this because she’s in this odd category called fashion where they don’t look at numbers, they look at image. But an automobile company doesn’t care who the editor is.” What they do care about, said Brownridge, is newsstand sales and profits. “This is a bet-on-the-horse business,” he said. “There are always going to be editors who are hot based on their last gigs and people will skulk around the stables at night trying to steal them. I think there’s more of that today than ever before. So [Good Housekeeping editor] Ellen Levine may not be a ‘celebrity editor,’ but she’s making Anna Wintour, still on top, with all of its annoyances. “ There was a theory that if you got a big enough name you’d be able to the money of one.” Stephen Colvin, the president of Dennis Publishing, publisher of Maxim, Stuff, and Blender, saw it similarly. Discussing Maxim’s editor Keith Blanchard, he said, “If he were to theoretically make the move somewhere else and suddenly have huge success, then he would deserve to be a celebrity editor because then he would have been the single variable in that success. But at Maxim he’s part of a team.” Blanchard is also the magazine’s fourth editor in five years. In the past, that would have indicated a magazine’s lack of direction. Now it is evidence of a well-executed concept, a formula that is so powerful the editor is almost an afterthought. “We base our criteria [for hiring editors] on the basis of financial success, on how well the magazine does,” said Eliot Kaplan, editorial talent director for Hearst Magazines. “I don’t know if that was always the case and it may not be the case at other companies, but we don’t hire you because you’ve been in the media. It’s based on a financial and editorial track record. I think the business is more bottom-line oriented than it was 20 years ago. A lot goes into the success of a magazine. Of course creativity is still important, but at the end of the day, it is about pleas- Those Brits Just Can’t Get Enough of Ce By Samantha Conti LONDON — When the U.K.’s top-selling celebrity magazine Now launched in 1996, it gave the gossip-hungry public a fresh take on their pop idols. Instead of allowing the stars to tell their own stories — in the style of Hello! and OK! — Now offered its readers, most of whom were female, a humorous take on celebrity lives, not to mention the details of their hair, beauty and health regimes. “We were laughing with them — but not at them — and that’s what we’re still doing,” said Andrew Kirkland, publisher of the IPC title. Seven years later, Now is still in growth mode with a weekly circulation of 590,544, up 3.6 percent over last year, according to the latest ABC figures. Since Now’s launch, three more celebrity titles — Heat, Closer and New! — with tones that range from snarky to simpering, have landed at kiosks across the U.K. Two more are expected to be introduced within the year: a weekly men’s title from Emap (which also publishes Heat) and another gossipy magazine from Northern & Shell Publications, owned by Richard Desmond. The celebrity weekly readership in the U.K. is currently 2.4 million — and some believe the market shows no signs of slowing down. “The market is just growing and growing, and the trend is for the big publishing houses to launch more than one celebrity title,” said Sarah Meyer of MediaCom, an international planning and buying agency. “The trend appears to be that the new launches are arriving with a bang, and the more traditional titles like Hello! and OK! are losing out.” Indeed, New! — which was launched in February by Northern & Shell, owner of the Express newspaper group and of OK! — had an impressive debut circulation of 339,035. Its cover story this week is titled,“Stars With Spots,” and shows the likes of Cameron Diaz and Britney “Zitney” Spears with acne. Inside is a mix of sugar and spice: Liz Hurley looking fabulous at London’s Fashion Rocks event last week and a shot of Colin Firth “struggling to lift the new curvy Renée” Zellweger during the filming of the Bridget Jones sequel. The Emap title Closer, which launched in September 2002, had a debut circulation of 334,542 and has found its niche not so much with celebrity gossip but with far-from-cheery, true-life stories of date rape, domestic violence and living with terminal illnesses. “That’s another impressive launch, and they were smart to go for an older demographic — and set themselves apart from the celebrity pack,” said MediaCom’s Meyer. Closer is the sister publication of Heat — the magazine that pioneered the snarky coverage of celebrities. Launched in 1999 as a men’s gossip and TV listings magazine that no one read, it was relaunched in spring 2000 as a women’s title and is now a phenomenon. Its circulation grew 18 percent last year to 565,484, and Heat is gunning for Now’s number one slot. While Now may laugh with celebrities, it’s Heat that started the whole trend of laughing at them. “Revealed: Best (& Worst) Celeb Six-Packs!” reads this week’s cover. “Kylie’s Wind Problem” reads an inside headline. Emap isn’t stopping there. It’s working on a weekly title that’s been code-named Operation Tyson, aimed at 16- to 34-year-olds. The new magazine is tipped to be launched early next year with a cover price of $2.44 — the same price as Heat. Emap, which has remained tight-lipped with the details so far, has confirmed it’s investing $13.4 million in the project, and insiders say it will target the male readers who are currently devouring magazines like Heat (ironically, since they ignored it first time around). One reason the market is so vigorous is that readers are becoming so addicted to celebrity news that they are buying more than one title. “There are readers out there who are more loyal to the celebrity sector than they are to the individual brands,” said Now’s Kirkland. “It’s not a massive amount of people, but it’s definitely an emerging trend.” It also helps that these magazines come out on different days so the celebrity junkies can get a regular fix. Kirkland added that reality TV shows like “Big Brother” and “Pop Idol” have provided a constant flow of fresh faces — and overnight celebrities. “We don’t see the bubble bursting because the market is changing. Ordinary people are becoming household names overnight. In ad- WWD, FRIDAY, OCTOBER 24, 2003 13 Headed for Extinction? PHOTO BY WIREIMAGE Howell Raines, down and out. Tina Brown rose from her ashes. Martha Stewart, headed to court and down on newsstand. ” sell the ads. But I don’t think that has ever worked. — Kent Brownridge, Wenner Media ing readers and reaching them.” And the margin for error is decreasing. The advertising economy won’t quite rebound, an increasing number of consumers are heading to price clubs where magazines aren’t sold, and editors are refining coverline editing into a science even as newsstand sales continue to erode. As a result, some think the creativity is going out the window. “Everyone is timid and terrified and corporate,” said Tina Brown in an e-mail. “A combination of excess competition, financial squeezing and corporate greed discourages the kind of atmosphere where a writer can call a magazine or paper and one excited, confident editor or publisher or movie executive for that matter can shout, ‘Fantastic! Go for it!’ and clear a big splashy space for a scoop or trouble-making story. The syndrome is self perpetuating. It means that the flair people who chafe under such conditions don’t get hired. Business is conducted very slowly today with layers of executives signing off on decisions.” And then there are Martha Stewart and Rosie O’Donnell — celebrities as editors — whose behavior patterns and image problems have been a kind of apotheosis of what can go wrong when a magazine is tied too closely to a personality. In fact, compared with Wallpaper’s Brüle, whose expense accounts were said by some estimates to reach as high as $100,000 a month (his helicopter was very expensive), one might even say O’Donnell wasn’t all that bad. Just kidding. She was that bad. But you get the point. And so do publishing executives. Even Cathie Black in Palm Springs this week said that if Oprah Winfrey were hit to get hit by a truck tomorrow, it would be a big problem. And, as well-known editors storm off for equity stakes and extra money for their personal trainers, magazine companies are returning to a tried-and-true technique. Call it the triumph of the number twos. At Wenner’s Us Weekly, Janice Min took over after the far more well-known Bonnie Fuller jumped to American Media as its editorial director. Newsstand sales at Us, industry sources say, are up more than 30 percent since June, while production costs are dropping. At The New Yorker, former staff writer David Remnick has brought the magazine firmly into the black. Company executives say it will earn between $8 million and $12 million this year after a century of losses. And then there was Cooper’s replacement. Condé Nast passed over a couple of (rising) star editors in favor of GQ’s own executive editor, Jim Nelson. Over at The New York Times Magazine, editorial director Gerry Marzorati was picked out of a group that included Kurt Andersen, one of the best-known editors of the last 15 years. Even young editors who like the press seem to eschew the notion that they want to be famous, as though the mere possibility they could be perceived as self-promotional could somehow precipitate their losing their jobs. But some say there will always be a place for the celebrity editor, even if it’s not quite like the late Nineties. Grace Mirabella, after all, began as Diana Vreeland’s assistant. And Remnick has no problem getting a good table these days, even if outside of Michael’s almost no one would recognize him. “I think magazines have never been more connected to their editors and I believe the next crop of editors will come,” said Interview’s Ingrid Sischy, who is still standing fully upright as the high-profile editor in chief of Interview and who cited Vanity Fair’s Graydon Carter and Jane’s Jane Pratt as evidence of the phenomenon’s health. “We’re in an era where there’s a real romance to the newsroom,” said Sischy. “Of course none of us are quite running a newsroom, but the idea is the same. Three friends and a dream can start a magazine. It’s the being there all day and night on spit and a piece of gum that eventually forces money to become an issue.” “I think these things are never definite,” agreed Norman Pearlstine, editor in chief of Time Inc. “At one publication somebody who gets a fair amount of attention gets replaced by someone who gets less.” Or vice versa. As Pearlstine said, “Who was the editor of the Star before Bonnie Fuller?” lebrity Gossip dition, the age range of readers who are interested in “Pop Idol” or “Big Brother” is very wide. We just say ‘Bring it on!’” And what of the oldies? Kirkland said he believes there will always be room in the market for OK! and Hello!, which both saw massive decreases in their circulations over the past year, in part because they stripped out free giveaways from their final tallies. “There will always be readers who want to see stars in a ‘Hollywood’ context, or read about royalty or A-list stars,” said Kirkland. Circulation at OK! dropped 15 percent to 489,882, while Hello! dropped 33 percent to 347,461 during the past year, according to the latest ABC figures. But while the Brits can’t seem to get enough gossip, there are those who wonder whether a peak is just around the corner. Nick Walker, head of Walker Media, is more cautious about the future of the sector. “I don’t think the bubble will burst, but I do think we’ll see a plateau. After all, how many celebrities are actually having sex in a public bathroom? So many of these magazines are forced to churn out the same old stuff. I think what we’re going to see are magazines making changes — Hello! for example will have to shift down market to get its readership back.” One segment that most agree is not eating into the celebrity weekly circulation are newspapers. Although most of the big In the U.K., 2.4 million readers buy celebrity tabloids at newsstands each week and the competition is still heating up. tabloids have increased the pages they dedicate to celebrity coverage, most observers say the tabloids attract a different readership. “The magazines are more picture-led, and feature and Q&A-oriented. It’s simply a different market,” said Kathryn Spencer, editor of the Day&Night and Hickey columns of the Daily Express. She agreed, however, that there’s no sating the public’s appetite for celebrity gossip. “People love to feel ‘in the know,’ whether it’s about their own friends or the lives and misdoings of famous people.” — With contributions from Sarah Harris and Ellen Burney 14 WWD, FRIDAY, OCTOBER 24, 2003 Media All-Stars Trading Up to the By Greg Lindsay NEW YORK — What do Real Simple and The New Yorker readers have in common? The former uses a $400 Dyson vacuum cleaner and shops at Target for Issac Mizrahi, while the latter is growing younger and is taking a look at Volkswagen’s new luxury model, the Phaeton. The answer is that both readers are “trading up,” to use the handy buzz phrase invented by the Boston Consulting Group to explain how affluent Americans now tend to overspend on luxury goods that are “practical” or have “emotional connections” while shopping at Costco and Target for everything else. The publishers at these magazines are quick to identify with the trading up phenomenon, which BCG executive Michael Silverstein and Bath & Body Works chief executive officer Neil Fiske explain at length in their book, “Trading Up: The New American Luxury,” released this month. After all, the book — which takes David Brooks’ “Bourgeois Bohemian” concept (the “BoBos” for short) and translates it for the MBA set — may just be a Rosetta Stone that explains the resurgence of The New Yorker, the runaway successes of Real Simple and O: The Oprah Magazine, and the clouds of gloom gathering over more traditional women’s magazines. The central premise of “Trading Up” is that middle market brands — the ones you’ve come to know and love from Procter & Gamble, Unilever, General Motors and the like — are slowly going away. The wealthiest 20 percent of Americans — who control 65 percent of discretionary spending — are increasingly reaping the savings of big box stores ($100 billion collectively) and immediately spending those savings on “new luxury” items, i.e., “products and services that possess higher levels of quality, taste and aspiration than other goods in the category, but are not so expensive as to be out of reach,” as they’re defined in the book. Together, this category comprises $350 billion worth of goods and services, growing between 10 and 15 percent per year. Thanks to the mass entry of women into the workforce during the past 30 years, new luxury items have largely been determined by the spending habits of women. The perfect “Trading Up” tableau is a Costco parking lot filled with 3-series BMWs, which start at $27,800 but still inspire their owners to wax rhapsodic about their performance and features. The quintessential New Luxury good is one packed with practical features while possessing clean aesthetics and a rocketing price tag, so one can love it objectively without worrying about the tricky subjects of class, status and snobbery. “Love” is the operative word here. “New luxury goods are always based on emotions, and consumers have a much stronger emotional engagement with them than with other goods,” Silverstein and Fiske wrote. Seen through the prism of “Trading Up,” the runaway successes of Real Simple and O clearly indicate a New Luxury pattern. Oprah herself is held up as a New Luxury icon throughout “Trading Up,” and O’s motto, “Live Your Best Life,” speaks directly to the consumption approach to self-improvement that lies at the heart of New Luxury. Real Simple, meanwhile, plays to the functional impulses of its readers. “Our mission is to make life easier and better,” said publisher Robin Domeniconi. “Our readers have an $80,000 household income, but there’s always interest in solutions to better their lives. Anyone who can deliver on those promises will win them over.” O posted a newsstand gain of 37.5 percent, equaling 280,000 copies per issue, in the first half of this year, while Real Simple’s circulation rose 31.3 percent overall in that period (mostly due to subscriptions), or 320,000 copies. “Women are out there working hard, making money,” said O publisher Jill Seelig. “I think women feel it’s OK to reward themselves. We think that what really matters is what’s deep down. With our magazine, we talk about giving back and feeding your soul.” But the proof is in the pages. Beneath the raw numbers both magazines have a high/low mix that complements the “Trading Up” thesis. A number of Real Simple ads play up messages of quality and practicality (especially those of entry-level luxury brands like Mercedes’ C Class); Target’s ads take the reverse approach and tout the homewear’s aesthetics. At O, more Target and packaged goods ads run alongside pages from Lexus and Coach, quintessential New Luxury brands thanks to their fusion of style and durability. But the bifurcation of spending habits — trading up and down — is threatening to wipe out the vast middle that has fueled mass market magazines until now. Silverstein and Fiske see the squeeze everywhere — affecting the Big Three automotive companies, department stores and even individual product lines inside otherwise successful companies. “Even within brands, the middle lines are disappearing,” said Jill Corcoran, a BCG consultant who worked on “Trading Up.” “You even see Whirlpool and Maytag bringing out luxury machines and no-frills ones. The middle of the market is disappearing even within brands.” Further exacerbating the situation is the rise of private label brands inside big box retailers like Wal-Mart and Costco that have eliminated the stigma of store brands and generally don’t need ad campaigns to fight for shelf space and win over consumers, a development that could further squeeze out more brands. “It’s a logical conclusion,” conceded Corcoran, and a losing proposition for mainstream women’s magazines, which have traditionally depended on packaged goods giants rather than “masstiege,” or neo-luxury, goods that Silverstein believes are the future. There have already been ominous signs — Proctor & Gamble’s 2000 decision to regroup around its top 10 brands like Crest and Ivory soap perhaps being the most prominent. “There is no average consumer anymore,” Corcoran said. “This ties into a trend toward more targeted products. Traditional market research isn’t working anymore. You can’t think about the average consumer and build around his or her needs.” The fallout for the magazine business, she said, is that “it requires a new burden on advertisers and magazines to really understand their audience more, and understand there is a different customer buying Coach and Burberry. You have to peel the onion back a few more layers.” On the plus side, the utter refusal of these consumers to admit they are living an extremely expensive life — emotional connection to their cars or not — has apparently blown traditional pricedemand curves. Burberry’s and Gucci’s ability to market their ever-burgeoning product lines as luxuriant while racking up sales volumes far in excess of traditional luxury goods just might be due to their customers being in denial. That’s what Money magazine found in its 2003 Affluent American’s and Their Money study, released Wednesday to coincide with a breakfast discussion with Silverstein on the topic. “What we found,” said Money’s executive editor Sheryl Tucker, “is that they are definitely living a luxury lifestyle, but when you try to put a label on it, no matter what they’re spending on products, they deny it’s for any status or elitist reasons. But then they buy these goods because, they say, it’s a good value, or makes life easier for their family. They’re sort of denying they live this privileged lifestyle. They’re looking at J.Lo and Ben and saying ‘We don’t live like that,’ as if that were true luxury.” “They appreciate quality,” insisted Seelig. “I think it’s a shift toward value and quality rather than status. It’s not about materialism; it’s about rewarding yourself and living a quality life.” The next step for most magazines may be to consciously position themselves as a product worth trading up for, but The New Yorker is already there. Publisher David Carey has openly embraced Silverstein and his ideas since “Trading Up” first appeared in article form in the Harvard Business Review. Carey first met Silverstein back in May, and quickly recruited him to speak to a packed house of the magazine’s luxury advertisers during September’s New Yorker Festival. By the end of his speech, Silverstein was fielding questions about the fate of luxury goods on a sector-by-sector basis — men’s apparel, air travel and Cadillacs. (Coincidentally, editor in chief David Remnick ran a “Talk of the Town” piece that also touted the book.) Carey sees Silverstein and “Trading Up” as a way to explain his magazine’s ongoing conversion from old luxury advertisers to New Luxury ones, and from older readers to younger ones. New Yorker readers aged 18-34 increased by 40 percent this spring, according to MRI, while readers over 65 declined by 20 percent, bringing the magazine’s median age down to 45. “They’re trading up to better editorial products,” Carey said. “As we go around town and hear tales of woe about circulation, we think this phenomenon helps explain some of our own success.” WWD, FRIDAY, OCTOBER 24, 2003 e New Luxe Clockwise from upper left, ads for new luxury brands by Mercedes-Benz, Chrysler, Easy Spirit, Victorinox and Target. Opposite page, cover of Trading Up (top) and an ad for the big box store Kohl’s. 15 A SNAG?: David Remnick and Bill Keller have been friends for more than 15 years, having gotten to know one another in Moscow while employed as the bureau chiefs for The Washington Post and The New York Times, respectively. But while the two remain on good terms, there are indications that competition is increasing between them. The result may be making for some hurt feelings and bruised egos. Two weeks ago, Remnick, editor in chief of The New Yorker, threw a dinner party for Keller, executive editor of the Times, in his Upper West Side apartment. Keller, who was presumably closing the newspaper, showed up almost an hour late, according to several sources. Then there was the toast, reported on Monday in the New York Daily News, in which Keller — giving a lesson in Russian — delivered a message to his old Moscow chum. “Yob tvoyu ma,” Keller reportedly said. The meaning? Go [bleep] your mother. It was meant to be a joke. But Remnick wasn’t laughing. And while the item in the News ended there, the story didn’t. According to sources, a thank-you note for the dinner never materialized from Keller, though he did call and leave a message. But how thankful should Keller have been? Remnick was busy poaching the Times’ Jerusalem bureau chief, James Bennet, to be his magazine’s new Washington bureau chief. That wouldn’t be particularly irksome, but The New Yorker had just stolen Margaret Talbot away from The New York Times Magazine as a staff writer. The Times had tried unsuccessfully to keep her, making a generous counteroffer. Then, as if to put the icing on the cake, there was Talbot’s quote in The New York Observer. “For writers,” she said, “The New Yorker just has that eternal attraction or appeal.” But Remnick said everything’s dandy. “The New Yorker and the Times are apples and oranges and I have all the respect in the world for what they do,” he said by e-mail. “Yes, we've hired some writers from the Times, just as the Times has hired writers from other places like The Washington Post or The Los Angeles Times. As for the dinner, my wife and I threw the party out of friendship of 15 years or more and the Kellers could not have been nicer about it — before, during and after." Keller, through a spokesman, said “David and I are good friends with a healthy element of rivalry in our friendship.” The spokesman added that Keller had brought a gift with him to the dinner. — Jacob Bernstein MEMO PAD V-ANISHED: Call it creative differences. Stephen Gan has only put out one issue of V Man, the offshoot of downtown fashion bible V, but he’s already parted ways with the editor. Phillip Utz, the former European fashion correspondent for Talk and a contributor to Numero, the French fashion magazine, is gone. He’s being replaced by Armand Limnander, the former critic for Style.com and writer for Vogue. The magazine’s next issue will be in the spring. — J. B. quality. I think it’s a shift toward “valueTheyandappreciate quality rather than status. ” — Jill Seelig, O: The Oprah Magazine WHAT YOU MISSED AT THE AMC: Cathie Black, Dan Brewster and David Pecker dutifully climbed on stage Tuesday afternoon at the American Magazine Conference in Palm Springs for the climactic "View From the Top" panel. Mixed in among the perennial complaints (“It’s crazy that we pulp seven out of every 10 copies!) were a few moments of unscripted truth. Black, on being asked what would happen to O magazine if something happened to Oprah: “If Oprah were hit by a bus, it’d be a very different situation.” Pecker: “It'd be a big story for me, though.” The moderator: “What other celebrities would work as the inspiration of magazines? Dan, do you have a thought about that?” Brewster: “No.” Pecker: “Don't ask, because no celebrity would want to do a magazine with me.” — Greg Lindsay GLENDA’S NOT IN THE HOUSE: Note to party crashers: it’s best not to use the top name on a masthead when trying to land an invite. When a man who identified himself as Glenda Bailey’s assistant RSVP’d for the Harper’s Bazaar editor in chief and her good friend, Jenny Bykova, for Wednesday night’s Avant Guardian photography exhibition and party, organizers smelled a phony. Sponsored by Surface magazine to showcase new talent, the event often draws editors. But Celia Chen, a partner at Plug, the public relations firm throwing the bash, knew the phone number didn’t match up with Bazaar’s and phoned Bailey’s real assistant, who confirmed her suspicion. “He aimed a little high,” Chen said. — Rosemary Feitelberg Photo: Chris Militscher Behind that mascara is a very good mind and Marie Claire engages it fully, with true fashion intelligence, beauty advice she trusts enough to use, and in-depth stories about causes that affect women all over her neighborhood: the world. With style and wit, we tell it all, which is why she listens. Let Marie Claire speak volumes for you. Please call Katherine Rizzuto, VP/Publisher, for more information at 212-841-8495 18 WWD, FRIDAY, OCTOBER 24, 2003 Media All-Stars Doom and Gloom In Palm Springs By Greg Lindsay RANCHO MIRAGE, Calif. — Magazine executives had no shortage of complaints about their business at this year’s American Magazine Conference — but they once again failed to offer any real solutions. Addressing the conference Tuesday afternoon, Hearst Magazines president Cathleen Black, Gruner + Jahr chief executive officer Dan Brewster and American Media Inc. ceo David Pecker rehashed the various structural problems facing the industry — wholesaler consolidation, a wrecked distribution system (“The whole thing has imploded,” Black said) and the need for magazines to justify themselves to advertisers that pit them against each other as well as other media. But the best suggestion for change came from Black, who recommended “the operations side of our business is where we can take costs out of business,” i.e. smaller staffs with fewer perks. “This is a place that is ripe for change. It’s been said that pain helps you focus.” Even Pecker, whose AMI has the advantage of controlling its retail display space at checkout counters, said the industry’s structural problems were too deep for any publisher to fix on their own. Facing a situation in which two-thirds of his company’s tabloids are pulped each week, he’s slashed their draw — the number of copies put up for sale — by nine million copies, but his sell-through percentage still dropped to 32 percent from 36 percent. “It’s dropped from 61 percent when I bought it,” he said, “Each [percentage] point was $2 million I lost. No matter how much you drop it, no matter what they do, the efficiency will drop because of how bad things are.” Wal-Mart also cast a long shadow over their discussion. G+J’s Brewster had just returned from Wal-Mart headquarters in Bentonville, Ark., where he had been surprised by the company’s decision-making processes. “There is one office after another specializing in each product,” said Brewster, “and decision making is very, very centralized. At the most senior level, they take a look and make a common sense judgment about whether it’s appropriate for their customers.” When asked for his thoughts on the mass-market women’s magazine Time Inc. is developing with Wal-Mart’s approval, Brewster replied, “My cabbie in Bentonville told me [Time Warner co-chief operating officer] Don Logan had been there the week before.” In an earlier session, the MPA released the findings of a readership survey conducted by Northwestern University that was full of good news for publishers struggling at the newsstand and to prove their contention that magazines have a relationship with readers that other mediums lack. The survey, which polled regular readers of 100 magazines, found there is no difference in value in readers’ minds between a magazine bought on the newsstand or purchased as part of a subscription. This would disprove conventional wisdom that newsstand sales are one of the few reliable indicators of a magazine’s vitality. What’s more, Northwestern professor John Levine said, the readers did not value a magazine less if it had a low subscription price. And perhaps most controversially of all, so-called “paid place” subscriptions sold to doctors’ offices and nail salons attract more avid readers than regular subscriptions and may have more value to advertisers. “They are real readers and you ought to enjoy that fact,” said Levine, adding, “Pay attention to these people because you have a foundation that’s terrific and you should use it.” This comes after a scandal rocked the Audit Bureau of Circulations this spring when it discovered publishers across the industry were misclassifying paid place subscriptions as individual ones, angering advertisers that felt they were worth less, not more, than standard subscriptions. The continuing impact of the Internet on publishing was also on the bill Tuesday morning. In a 30-minute interview, Interactive Corp. ceo Barry Diller once again laid out his vision of a transaction-driven, broadband future for the ’Net, warning the audience that “now, in a converged world, the factors and products will exist to make reading them easy” in an electronic form thanks to tablets and other non-PC devices linked to the ’Net. He also used the opportunity to again call for more oversight of the megamedia conglomerates he calls “the oligarchs.” “Twenty to 30 percent of what has to go through their pipes has to be non-owned by oligarchs dealing with each other,” he said. Preceding Diller was a panel of top Internet execs from Time Inc., Rodale, Meredith, Forbes and Consumer Reports who rattled off the most recent lessons of their Internet forays. Online advertising appears to be making a comeback, with mini-sites for advertisers the most popular format, especially when they’re part of integrated deals. “There’s some very nice six-figure deals out there from major consumer goods makers if you can deliver a complete experience,” said Time Inc. Interactive president Ned Desmond. Forbes.com ceo James Spanfeller said the company is toying with extending its site’s money-back guarantee to advertisers in the flagship. Advertisers that can prove that running ads on the site did not boost their brand can demand a refund. None have qualified so far. “We haven’t offered it quite yet as an ongoing opportunity, but we have thought about it day in and day out,” he said. The Artist as Editor NEW YORK — Raul Martinez has never had top billing. In the Eighties, at age 27, he was working at Vogue — and helped redesign it under the very watchful eye of Anna Wintour. Later, he started his boutique firm, A|R Media, with partner Alex Gonzalez, but their credentials were overshadowed by the fact that they worked almost exclusively with photographer Steven Meisel. But that’s changing. Martinez and Gonzalez have bulked up A|R in a bid to graduate from being an image house for Meisel and luxe clients like Valentino into being a full-service boutique ready to scrap with the David Lipmans, Fabien Barons and Trey Lairds of the world. And Martinez himself has top billing at last — on the masthead of his own pet-magazine project, Influence. An antimagazine of sorts, Influence is a close examination of art, photography and the creative process, bound together by the printed conversations of guest contributors like Kurt Andersen, Inez Van Lamsweerde and Vinoodh Matadin. It’s a vanity project, to be sure, but it sends a message — that Martinez and A|R know how to build magazines from scratch, without Condé Nast’s or Meisel’s help. And considering Martinez believes that content builds brands and that custom publishing may be the way of the future, present and future clients need to hear it. “It’s a personal statement,” Martinez said, “but they’ll see we’re not just about fashion and advertising. If it helps the agency in other fields, that’s great.” It could help prove that A|R can consistently deliver in volume the sort of images it’s produced for Versace, Yves Saint Laurent and Estée Lauder since opening its doors in 1997. There are already signs that A|R will make the leap: it’s currently a finalist for Banana Republic’s business, versus TBWA/Chiat Day, Leo Burnett and Laird & Partners, and it already has added nonluxe clients like Naturalizer seeking a dose of the firm’s highfashion sensibility. But its reputation as being Meisel’s pet shop raises doubts among its peers. “They’re going to have to really prove them- A|R ads for Estée Lauder (top) and Tommy Jeans (above). Above, the cover of Martinez’s magazine, Influence. Left, the creative director himself. selves,” said one competitor. “People aren’t taking them seriously as a full-service agency. The work is going to have to speak for itself.” Martinez has no shortage of ideas. “There are other ways of reaching people without having to spend $68,000 a page,” he said. One way is for the clients to own their own pages — Martinez is a practitioner of custom publishing as it’s done in Europe, where the resulting magazines aren’t treated by the clients like oversized brochures. At one time he’d entertained hopes of a custom publishing division for A|R, but the only fruit of that effort was one issue of Versace Magazine, which the parent company pulled the plug on when its fortunes began to slide. “I think the problem is that [in-house magazines] have been so specifically about the brands, instead of being about anything that could conceivably fall within the world of that brand. It all comes down to economics,” Martinez said. “The bad economy has stopped most of it cold. You have to do at least four issues to make it worthwhile, and people are reluctant to pay that up front.” But the possibilities are there. “Especially for someone like Banana Republic, it can suggest their philosophy, their culture and the world in which their customer lives. They really should explore it.” So think of Influence, then, as A|R’s own house organ — a quarterly designed to encapsulate the firm’s and Martinez’s philosophy — and give it a leg up on the established boutiques it’s now up against. “The reason Influence exists is to create the perfect content and the bridge to culture,” said editor in chief Jan-Willem Dikkers. (Martinez is the publisher and editorial director.) “The clients’ reason to go to a creative boutique instead of the large agencies is because they are more connected to higher culture — something not attributed to the fashion industry. When you look at Marc Jacobs’ or Helmut Lang’s success, it’s not because they make better clothes, but because of a larger cultural component associated with their brand. To have this extra jewel in their crown is extremely important.” But building brand mythologies for fashion houses is one thing; pushing product for midmarket brands is something else entirely. “We’ve been learning through the years what it takes to get to this point,” Martinez said. “That’s why it’s taken this much time. We’re really going through that transition right now. When you say, ‘We are a fullservice agency,’ you have to make them believe it.” — Greg Lindsay YOUR MONEY WELL SPENT. the new men’s magazine from condé Nast. launches 4.04 call Alan Katz, publisher 212.286.7766 cargomag.com © 2003 The Condé Nast Publications, Inc. INTRODUCING THE NEW HUNTING MAGAZINE FOR MEN. 20 WWD, FRIDAY, OCTOBER 24, 2003 Media All-Stars The Best Mags You’ve Never Heard Of READYMADE Launched on the eve of 9/11 by former Surface editor Derek Peck, Planet seeks to do for the global pop cultural what Nylon and Black Book, et al, have done for SoHo. After launching with issue “#0” the next four were built around the elemental themes of earth, air, fire and water, while the fifth and current issue has Angela Lindvall on the cover pushing the peace theme. While certain new magazines seek millions to reconstitute the tired “downtown” formula for readers living west of the Hudson River, Peck has published six issues with a six-figure sum and still managed to recruit name brands like Marc Baptiste to fill out his multicultural roster. Maybe he had exchange rates on his side. While mom comes to grip with the fact that Martha Stewart may be headed to jail, her overeducated and underemployed children are getting busy with the sewing machine and glue gun every time Readymade arrives in the mail. Aimed at hipsters ready to make their loft a home, Readymade is a shelter book for the post-Internet-bust generation — consumption is played way down while appropriately cool do-it-yourself projects and ruminative essays on our prefabricated culture are front and center. Want to build a grass couch in the backyard or make puddle-proof skirts out of broken umbrellas? How about a messenger bag made from FedEx envelopes and duct tape? And have you ever thought of designing your own afterlife with a Louis Vuitton urn? They’re all here. Launched in San Francisco in 2001 by a pair of dot-com refugees who saw early the zeitgeist of the dot-com bust and post-9/11 nesting, Readymade has outlasted almost all the neo-shelter books that were supposed to break in 2002 — Hearst’s Chic Simple test, Meredith’s Living Room experiment, the foundering newspaper insert, Cachet — with the exception of Budget Living, which has completely overshadowed Readymade with its more bourgeois-bohemian take on the topic (and amidst public accusations in Folio of ripping Readymade off). The quarterly, though, goes bimonthly in February. Its biggest problem, perhaps, is that it has too much advice for building things and not enough for buying them. No one ever broke into the big time with Ace Hardware and Home Depot leading the way. RICHARDSON In an age where porn can readily be consumed for free on the Internet, you’d think Richardson would be a complete failure. And yet, in three years and just three issues, it’s become something of a coffee table fixture, a full-fledged art house porn magazine that has even been seen floating around the offices of The New York Times Magazine and Vanity Fair. The brainchild of stylist Andrew Richardson, the magazine’s latest issue includes shoots by top fashion photographers Mario Sorrenti and Terry Richardson (no relation). Not everyone is amused. Richard Avedon wound up in a nasty exchange with the magazine, going so far as to fax it a message saying, “I actually think the magazine brings nothing to the potential art of pornography, and do not want to be quoted in any way.” The magazine’s response? It printed the fax in the latest issue. ISSUE Missing in action for the last two years, Issue actually delivers on the promise that most hipster art and culture books can’t keep: originality. That can mean convincing video artist Pipilotti Rist to supply new work for an issue, or persuading the already overexposed photographer Ryan McGinley to bashfully disrobe for the camera. “Issue magazine strives to be the National Geographic of the American Liberal Arts,” in the words of its founders, co-editors Jan-Willem Dikkers and Martynka Wawrzyniak. That’s a tall order, but Issue has already transcended the clichés of downtown style books and wonky arts publications — the two genres its hybridizes brilliantly. The new issue, #7, is devoted to the topic of adolescence, and contains a graphic novella, neoclassical paintings of African-American men in hip-hop regalia and a letter to Calvin Klein on the life-changing effects of his quasi-pornographic advertising. CARLOS ZEMBLA Vowing to have “Fun With Words,” the first issue of Zembla, just published in the U.K., resembles nothing so much as Harper’s Magazine mated with Dazed & Confused, or at least the former’s wonkiness crossbred with the latter’s self-indulgence. What magazine would authorize an artist to chisel the Ten Commandments in stone in Klingon and then devote eight pages to photographs of each commandment? But that’s about as out there as it gets. Backed by London rare book dealer Simon Finch (he’s on the masthead as publisher), Zembla and its editor, Dan Crowe, are making an earnest attempt at celebrating books and bookishness without any of the mustiness. Actress (and Viktor & Rolf muse) Tilda Swinton interviews her husband, the writer and artist, John Byrne, in a game stab at the celebrity interview, and contributors include Steve Martin and Manolo Blahnik — who illustrates a Q&A with the very dead Marcel Duchamp. The name Zembla is an obscure reference to Nabokov’s novel, “Pale Fire,” and if you caught it, then you probably know exactly how large Zembla’s eventual readership will be. Still, both Paul Smith and Gucci were curious enough to buy a few ad pages in the debut issue (the magazine will come out five times a year), an affirmation that one can be smart and sexy. PLANET No one needs another too-cool-for-school “downtown” book chasing the same Marc Jacobs and Miss Sixty ads and running competing spreads on The Strokes. Which is why Planet’s photo spreads of Tibetan wrestlers, Guatemalan prostitutes and the Senegalese supergroup, Orchestra Baobob, are so welcome. (The ads are still the same, however.) Carlos is what McSweeneys would look like if David Eggers happened to be obsessed with Kate Moss, Russian oligarchs and the franchising of hip-hop. Pocket-size, wrapped in brown cardboard covers and looking like it just came off a letterpress, you’d never guess it belongs to the same magazine genus as American Way or Hemispheres. Produced by the custom publishing polymaths at London’s John Brown Citrus Publishing, Carlos only can be found tucked into the seat pockets of Virgin Atlantic Upper Class passengers. A quarterly, the magazine alternately tackles the burning questions of Virgin’s glamour-puss clientele (the latest trends in fragrance design; the comeback of Ms. Moss) and amuses readers with short sketches of life at Virgin destinations — a Russian aircraft carrier theme park outside Hong Kong, or London’s boom in ice rinks. An inspiring example of just how good custom publications can be when taken seriously by their underwriters, Carlos mixes name-brand contributors (like British Vogue’s Harriet Quick) with an elegant, illustrationsonly design that’s 180 degrees from the shoddy glossiness of most in-flight magazines. A few ads appear on glossy paper running in the middle (Mulberry and Thomas Pink are in the current fall issue), but the lack of pressure to pay for itself, whether on the newsstand or via ads, means the editors can reprint Ian Fleming’s short story, “James Bond in New York,” for the heck of it. WWD, FRIDAY, OCTOBER 24, 2003 21 By Samantha Conti LONDON — CVC Capital Partners and Texas Pacific Group might have delivered a knockout punch in their battle to acquire the U.K. department store group, Debenhams. On Thursday, the firms, through their newly formed Baroness Retail, upped their bid to $7.94 a share from the $7.69 tabled last month. Private equity fund Permira and partners, operating under the name, Laragrove, pulled out of the race, saying, “It will not be increasing its offer. The price offered by Baroness is in excess of the price which Laragrove was prepared to offer.” Dollar figures are converted from the pound at current exchange as Baroness offered 4.70 pounds a share after its previous 4.55 pound offer. The revised offer values Debenhams at approximately $2.9 billion, or 1.72 billion pounds, a 10.6 percent premium to the initial offer from Laragrove that sparked the bidding war. As reported, Laragrove, working in tandem with Debenhams chief Belinda Earl on a management buyout, had made a $7.18, or 4.25 pound, bid at the end of July. That bid was topped by Baroness in September. Laragrove had been planning a counter bid until Baroness’ sweetened offer, and it had until the end of the month to table it. Debenhams’ independent directors have recommended Baroness’ fresh bid. A spokeswoman for Debenhams said the extraordinary general shareholders meeting requested by Baroness would go ahead on Nov. 10. As reported, Debenhams agreed to the request for what is known as a “scheme of arrangement,” which provides for a quicker and cleaner means of presenting an offer to shareholders. A scheme of arrangement is simply an alternative way of making an offer for a company. For Debenhams to be sold, approval is required, in person or by proxy, of no less than half the shareholders representing at least 75 percent of the value of shares voted. Baroness made the request in order to give shareholders the chance to vote before the crucial holiday selling season. As reported, John Lovering, the U.K.-based entrepreneur who tried unsuccessfully to buy the Somerfield supermarket chain earlier this year, will become chairman of Debenhams if and when a purchase by Baroness is consummated. The Debenhams’ spokeswoman said Laragrove will be paid its breakup fee of $13.5 million, or 8 million pounds. ICE Raids 61 Wal-Marts, Over 300 Illegals Found Continued from page 2 publicly from immigration problems, were not visited. Asked whether today’s actions represent the tip of the iceberg for Wal-Mart, the spokesman instead responded with a warning for retailers in general. “If an agency or corporation knowingly hires illegal workers, they should not be surprised to get a visit from ICE,” he said. “We take the laws we are tasked with enforcing very seriously. This is an ongoing worksite investigation and there will be others.” Legal experts said since Sept. 11, 2001, ICE has focused on national security risks, such as illegal workers in airports. In that context, the raid on Wal-Mart is “very unusual,” said Hofstra law professor Peter Spiro. “Certainly this was authorized at the highest levels. Perhaps the thinking was if you catch one big company in the crosshairs, it makes everybody else think twice.” Stephen Yale-Loehr, who teaches immigration law at Cornell University, said the probe of Wal-Mart in Pennsylvania likely indicated the problem was systematic enough to merit national investigation. He noted that joint liability is often tough to prove — ICE would need a memo or other “smoking gun” — but that it’s another public relations black eye for Wal-Mart. The retailer, facing a possibly mammoth class action gender discrimination lawsuit, has been attacked on multiple fronts lately, facing charges that it forces workers to work off the clock, offers insufficient benefits, harasses unions and bullies its way into communities. To combat the negative publicity, Wal-Mart has been running a feel-good national ad campaign featuring testimonials from its associates. The company also faces pressure from unions, a longtime foe. Spearheaded by the AFLCIO, unions and other social activists have launched the People’s Campaign for Justice at Wal-Mart, claiming WalMart’s cost-cutting measures jeopardize the future of the American middle class. The alliance is demanding a range of concessions from the world’s largest company, including better wages, affordable health benefits and safer workplaces. “Wal-Mart is pushing the trend to lower wages and no benefits, which makes the economy more dependent on cheap labor and undocumented immigrants,” said Thea Lee, assistant director for international economics at the AFL-CIO. “In the end, the people work at Wal-Mart stores and Wal-Mart needs to take responsibility.” PHOTOS BY KEITH SMITH Baroness Ups Bid Spring’s in the Air at Ann Taylor To Buy Debenhams Left: Looks from the Ann Taylor Loft spring collection; two styles from the signature line. NEW YORK — Ann Taylor can’t wait for spring. Such was the retailer’s enthusiasm that it showed off its spring collections for the Ann Taylor and the Ann Taylor Loft divisions Wednesday night at Pier 59 Studios here. Shoppers will have a chance to see the effort in the firm’s more than 580 doors across 42 states come spring. In a setup replete with grass, a blue-sky backdrop and lights that created a faux sunny afternoon, mannequins sported a few dozen looks from both lines. Present for the celebration was a host of the retailer’s upper echelon, including chairman and chief executive officer J. Patrick Spainhour. Shari Hershon, senior vice president of design for Ann Taylor Loft, described the line she oversees as “very feminine and flirty” for spring. “A lot of the silhouettes that looked good to us felt [like the] Fifties,” Hershon said. Throughout the collection there were dynamic colors including several oranges and pinks. Not everything in the line, though, recalls sock hops and drive-in movies. Loft is continuing with its surfer-inspired sport story, which Hershon described as “not performance at all, very spectator.” Hershon is also looking for impact from little details in the line. “Loft is really known for a lot of little details,” she said, adding that the idea is to take a clean look and add a little splash with touches such as contrast stitching or ruching. “We’re very much about that one great detail that makes it proprietary for us.” Fashion Scoops BLASS ACT: “Aren’t you proud of our friend?” asked Casey Ribicoff, a coexecutor of the estate of the late Bill Blass, as bidders made their way out of Sotheby’s on Tuesday night, after the opening of an auction of the designer’s vast collection of paintings, sculptures and furniture. That night alone, Sotheby’s received more than $3 million in bids for the first 106 lots of the 805-lot collection. Over three days, the collection more than doubled its high estimate, bringing of $13.6 million. Blass specified in his will that the proceeds of his estate be donated to the Metropolitan Museum of Art and the New York Hospital AIDS Care Center. Among those in the auction action during the week were longtime Blass devotees Helen O’Hagan, Nina Griscom, Carolyne Roehm, Duane Hampton, Lynn Nesbitt and Sheila Marks, but also one surprise visitor: Hervé Pierre, now the creative director at Carolina Herrera. He was there to bid on a few objects on behalf of Lars Nilsson, despite any ill will left at the house after both were let go from Blass this spring. (Nilsson is now designing at Nina Ricci in Paris.) The top five items for the week were a pair of Russian wall lights in the shape of bears that sold — — Evan Clark including Sotheby’s 20 percent markup at the gavel — for $321,600, more than 10 times the high estimate; a marble portrait head from the late first century B.C. for $209,600; a bronze rendition of the Colonne Vendome for $176,000; a pair of Regency daybeds for $164,800, and a Noguchi sculpture for $153,600. SHIRTING THE ISSUE: It looks like French designer Jose Levy, who filed the French equivalent of Chapter 11 proceedings last June, has landed on its feet. A Paris source said Levy has been tapped as the new designer for Thomas Pink, owned by luxury giant LVMH Moët Hennessy Louis Vuitton. This will be Levy’s second stint at a British house. He was the creative director at Chanel’s Holland & Holland from 1998 to 2001. Alloy Brings in Bernard, Revises Guidance Downward NEW YORK — Alloy Inc. said it hired retail industry heavyweight Robert Bernard on Thursday, but the move was overshadowed by the company’s downward revision of both thirdquarter and full-year guidance. The New York-based teentargeted marketing and merchandising company said it hired Robert Bernard as chief executive officer of its retail and direct consumer division, a new position. Bernard will report to Matthew Diamond, chairman and chief executive officer, and James Johnson, president and chief operating officer. In a statement, Diamond said, “We are excited to have Rob spearheading the integration of the Delia’s business and guiding our overall merchandise business toward a potential strategic transaction in the future.” The addition of Bernard couldn’t stop downward pressure on the stock, however. Shares tumbled 21.7 percent to close at $4.14 in Nasdaq trading for the day. Bernard, a 25-year retail veteran, resigned as president and chief executive officer of The Limited Stores division of Limited Brands in February 2002 after a five-year tenure at the Columbus, Ohio-based company that included the presidency of the now-defunct Cacique division. Prior to his stint at Limited, he had been president of J. Crew, president of the international division of Liz Claiborne and senior vice president of women’s sportswear at Macy’s. Since leaving Limited, his name has popped up often when vacancies have materialized in top specialty store jobs. Bernard will be put to the test quickly. Weaker-than-anticipated catalog performance, combined with poor newspaper and broadcast advertising sales, prompted the company to revise earnings estimates downward. For the third quarter ending Oct. 31, the company now expects a loss of 6 cents to 11 cents a diluted share, compared with earlier guidance of earnings of between 1 cent and 7 cents. For fiscal 2003, the company is expecting a loss of 15 cents to 25 cents a share, versus previous guidance of a loss of 1 cent to 8 cents. Earnings before interest, taxes, depreciation and amortization is expected to come in between $11 million and $15 million. Third-quarter merchandise revenues are projected at $49 million to $51 million and sponsorship revenues of $57 million to $59 million. Third-quarter financial results are expected to be announced the week of Dec. 8. — Ross Tucker 22 WWD, FRIDAY, OCTOBER 24, 2003 Christina Johnson to Exit Saks Continued from page one has already been selected, but that person “has some responsibilities he or she needs to finish up,” and the current employer has requested that person’s name not be released until December. Martin said the successor will assume the role in January 2004. In the interim, Steve Sadove, vice chairman of Saks Inc., will assume day-to-day leadership of the SFAE organization. According to sources, Saks didn’t use an executive search firm to find its new ceo, and Martin sent a note to industry executives Thursday saying it found an “outstanding leader.” Speculation was rampant, both within and outside Saks, on who that leader might be, with most of the conjecture zeroing in on Howard Socol, chairman and ceo of Barneys New York, and Fred Wilson, ceo of Donna Karan International, a unit of LVMH Moët Hennessy Louis Vuitton. In addition to having the luxury experience from Barneys, Socol is best known for his successful career running Burdines, the Miami-based division of Federated Department Stores, where he spent 28 years. Socol, whose contract at Barneys runs through Jan. 31, 2005, didn’t return a phone call seeking comment. Wilson, who is in the process of trying to turn around Karan’s business, was previously president and ceo of the LVMH Fashion Group, prior to which he was ceo of LVMH Specialty Store Retailing and president and chief merchandising officer at the firm’s DFS Group Ltd. He began his career at Federated Department Stores in 1969. “Our company policy is we do not comment on rumors,” said a spokesman for DKI, when asked about Wilson. Faced with disappointing financial results and difficulty in keeping key executives, Johnson’s departure was inevitable and only a matter of time, sources believed. Russell Reynolds Associates, the executive search firm, had been searching for a new head merchant since June, but sources said the problem was that bringing in a heavy-duty top merchant would require making him or her ceo. “Tina made terrific contributions over a 12-year career, rising from store manager through the president’s and ceo job,” Martin told WWD. In addition, he said over the past four years, SFAE improved its merchandise planning and allocation systems; enhanced customer service levels; improved store design, and strengthened the store base through opening, remodeling and closing key stores. But the need for a top merchant became increasingly evident following the departures of two key executives: Gail Pisano, executive vice president of merchandising for women’s designer and Gold Range merchandise, intimate apparel, jewelr y and accessories, who left the company in July, and Wayne Meichner, Saks’ other executive vice pres- ident for merchandising, who handled men’s wear, cosmetics and ready-to-wear and who left the store in May 2002. In addition, Saks was shaken by several key departures in the past several months. Most recently, Barbara Cavanaugh, vice president for private label product development, resigned to join Kellwood Co. In July, Eileen Warner, a 25-year veteran of SFA, who held the title of vice president and divisional merchandise manager over handbags and accessories, left to join Isabel Fiore, the handbag firm, and Sal Lenzo stepped down as visual director. Bobbie Lenga, partner and managing director of the retail practice at Russell Reynolds Associates, has been conducting the search for the head merchant. “I was searching for president of merchandising, and we didn’t find that person. It was put on hold,” said Lenga Thursday. She said she didn’t know whom Saks has chosen to succeed Johnson, but added: “They’ll pick a phenomenal merchant for that role. Saks Fifth Avenue is a very desirable marquee brand, and it takes a certain individual for that role. They need a phenomenal merchant, as well as a great leader.” Lenga believes that Johnson also will be sought after. “She will be highly desirable in another role. She’s a phenomenal executive. She has so many fabulous assets and brings tremendous strength to an organization. She’s tough, but she’s very fair. Her expectations for herself are no different than what she has for others,” said Lenga. Harry Bernard, executive vice president and chief marketing officer at Colton Bernard, the San Francisco-based consulting firm, believes Saks should be run by a top merchant. “She was, rightly or wrongly, the person who couldn’t hold it together at Saks. Most fashion companies should be led by a merchant. She’s had some great difficulty in her people-management skills.” Those two things, combined with her financial performance, made it inevitable that Johnson would lose her job, he believes. Robert Kerson, a longtime search consultant who is on sabbatical and will announce his plans in January, said the ceo role at SFA is untenable. “I think Tina is a very smart and capable executive. She’s strong, decisive and strategic. The role of ceo is going to be difficult and may not be doable unless the organizational structure is changed. The job will be a revolving door unless the person is allowed to function without a lot of interference. Tina will land on her feet. The organizational structure doesn’t make a lot of sense. The question is who’s running the company, and there are many cooks in the kitchen.” During Johnson’s tenure, Saks Fifth Avenue undertook a major initiative to present a clearer luxury identity and to reach a broader customer base. In addition to spearheading Leaving… …On Deck? Howard Socol Fred Wilson Christina Johnson Tina made terrific contributions over “a 12-year career, rising from store manager through the president’s and ceo job. ” Saks’ ongoing $100 million renovation at the flagship, the company refocused its private label offerings more to Baby Boomers, built up its contemporary assortments and expanded its selection in the “gold range,” including such brands as Peter Cohen, Max Mara and Piazza Sempione. In addition, Johnson updated its assortment in fine jewelry and accessories by dramatically increasing its number of luxury resources, with the aim of going head-tohead with Neiman Marcus and Bergdorf Goodman. Last December, Johnson unveiled a new accessories concept on the flagship’s main floor featuring a mix of upscale designer merchandise such as Fendi, Marc Jacobs, Lambertson Truex and Coach, and luxury leather goods shopin-shops from the likes of Louis Vuitton, Prada, Christian Dior, Burberry, Salvatore Ferragamo and Bottega Veneta. Saks’ flagship also relocated and renovated its fine jewelr y area, adding a slew of luxury jewelers to its assortment, including Cartier and Graff. It now features a separate entrance and fine jewelry and watches from the likes of Corum, Tag Heuer, Chopard, Bulgari, David Yurman and Roberto Coin. Saks scored coups when it opened Cartier’s first store-in-store offering its jewelry and watches, and becoming Graff ’s first — and only — wholesale account. Joining Saks Inc. in 1991, Johnson rose through the ranks primarily through the store operations and selling side. She was named vice chair woman in September 1998, adding the chief operating post in May 1999. In November 1999, Johnson was named president and ceo of the Saks Fifth Avenue division. As ceo, she succeeded Philip Miller, who continued as chairman. The president’s title had been vacant since Rose Marie — Brad Martin, Saks Inc. Bravo left Saks in 1997 to run Burberry. Analysts believe Saks has underperformed compared with its competitive set and was ripe for management change. Robert Buchanan, an equity analyst for A.G. Edwards, said in a research note Thursday, “Potentially, this is a positive development depending on who ultimately is named to the top post. For too many months SFA has appreciably underperformed its peer group, including Neiman Marcus.” He added: “Our field research has consistently pointed up dull merchandising, including a lack of originality, as well as a homogeneous offering from store to store, meaning next to no micromerchandising by store. In a broader sense, [Saks Inc.’s] returns on sales and investments remain lackluster and need to appreciably improve for the stock to outperform.” Over the last year, half of Saks Fifth Avenue’s monthly comparable-store sales reports have been negative. While that means the chain registered positive comps for the other half of the year, the down side has been more negative then the up side was positive. The lowest lows were drops of 11.4 and 8.6 percent in February and March, respectively, while the highs were 6.3 and 6.5 percent advances in April and July, respectively. The chain was only able to best Neiman Marcus on a comp basis during two months out of the last 12. During September, SFA’s comps pushed up 1.2 percent while Neiman’s shot ahead 13.6 percent. However, sources said SFA’s numbers have recently been trending upward. During the second quarter ended Aug. 2, the SFA chain posted operating losses of $22.1 million. This compared with a deficit of $13.8 million a year earlier. Sales ticked up 0.9 percent to $486.3 million. By comparison, Neiman Marcus Group in its fourth quarter ended on the same day saw operating earnings rise 64.5 percent to $16.6 million while sales advanced 5.4 percent to $702.7 million. Ron Frasch, chairman and ceo of Bergdorf Goodman, said, “I feel badly for Tina. It’s a tough industry and you have to perform. All of us are comrades, and you hate to have anyone lose their job for whatever reason.” Industr y executives were stunned to hear of Johnson’s departure. “I am in total shock; no one had told me anything about it. I liked her, we got along really well and our business with Saks was very strong, so I will certainly miss her,” said Oscar de la Renta. “I am sorry to see her leave,” said Henri Barguirdjian, president at Graff. “We had a few meetings with her to discuss our plans for growth, and she was always very aware of what was going on with our business.” Designer jeweler David Yurman said Thursday, “Tina was incredibly supportive of the Yurman business and we’ll miss her.” James Ammeen, chairman and ceo of Halston, added, “I think she was a positive force at Saks Fifth Avenue. She understood retailing as a merchant and it was good to have a merchant in that spot. She was issue oriented and raised the profile of the store and I wish her the best. In terms of the company, I have the utmost confidence that Brad Martin and Steve Sadove will carry out a smooth transition.” Christian Knaust, president of Carmen Marc Valvo, noted, “We worked with her quite a lot and I really liked her. I thought she was very professional and I think she really cared. She made an effort of trying to build our business up. Our business with Saks increased when she came on board.” St. John Knits International Inc.’s co-chief executive, Kelly Gray, said, “Whatever the case, I feel like Brad Martin will ensure the success of Saks Fifth Avenue’s future.” — With contributions from Evan Clark, Melanie Kletter, Marc Karimzadeh and Joshua Greene Are you one? ? WWD Retail Visionaries Section II: November 18 Close: October 31 WWD explores the top twenty-five visionaries in modern retailing, the concepts they engineered and their impact on the industry. Guaranteed to reach top CEO’s who will turn to this must-read issue to find out where the retail industry is heading. Relied upon from Wall Street to Seventh Avenue. For more information, contact Ralph Erardy, Senior VP, Group Publisher at 212-630-4589, or your WWD sales representative. WWDMediaWorldwide® 24 WWD, FRIDAY, OCTOBER 24, 2003 Design Awards Gone Wild This ‘New Old House’ NEW YORK — If there’s a lesson to be learned from the Cooper-Hewitt Museum’s decision to embrace the fashion world this year at its National Design Awards, it’s that design is for everyone. It certainly is for Sarah Jessica Parker, wearing head-to-toe Gucci straight from the spring runway, right down to her fringed handbag. “Look at this,” she said. “It lives! It breathes! This should win an award of its own.” When a Gucci-loving girl like SJP lives and breathes for Tom Ford, it must be pure anguish to hear all that talk that he might leave the company. “I choose not to believe that,” she said. “I’m assuming all will be be taken care of and that all will be fine.” Really? “I didn’t ask him. I thought that would be inappropriate.” Not everyone was being so careful on Wednesday night, however, as Martha Stewart breezed through the crowded upper Manhattan museum in search of Isaac Mizrahi. “I want to see Isaac,” she said. “I’m wearing his sweater from Target.” But shouldn’t she be shopping at Kmart? Cynthia Rowley was there with the Target contingent, along with Mizrahi and Todd Oldham, but she made a point of hunting out Gordon Segal, the founder of Crate Martha Stewart in Isaac & Barrel, to say hello, as they Mizrahi for Target. share a hometown of Chicago. “They told me I shouldn’t,” she said. “That’s the enemy.” But before any of the bosses of the above get upset reading this, they should remember the point of the evening: Design is for everyone. The awards were created by the Smithsonian to bring national attention to the impact of design on all facets of life. The honorees gathered for the evening included — as video displays attested — a finalist in the competition to redesign the site of the World Trade Center; a designer of artificial robots, including one with bunny ears; the creator of the opening credits for “Superman” and many other films; design legends like Lella and Massimo Vignelli and I.M. Pei, and, for the first time this year, three finalists in the category of fashion design: Ford, Narciso Rodriguez and Christina Kim of Dosa. Ford and Domenico De Sole took a quick break from their tough contract negotiations at Gucci Group to come to New York for the event, and, SJP will be relieved to know, had no comment on that subject. “We have a meeting in the morning with all our U.S. managers for Gucci,” De Sole said. “So the timing worked out well. In Europe, they have a real sense of the fashSarah Jessica ion business, but anything that can happen Parker in Gucci. in America that heightens interest in fashPHOTOS BY STEVE EICHNER Design On America’s most fashionable streets, for Chanel, Louis Vuitton, and Polo Ralph Lauren, no one builds more distinctive retail than Shawmut. For more information call Les Hiscoe at 617.622.7187 or write email@example.com Carolina Herrera and Tom Ford I.M. Pei with Reed Krakoff of Coach, the evening’s sponsor. ion is great.” The interest looked pretty great by the number of guests sandwiched into the museum’s small lobby for cocktails. “I’m just happy to be included with all these people,” Ford said. “I really want to meet Richard Meier and I.M. Pei.” Someone tapped Ford on the shoulder, trying to pass by in a crush of people. “Oooh,” Ford said. “I’m standing on I.M. Pei.” During the awards, Crate & Barrel’s Segal was honored with a design patron award and the General Services Administration was honored for corporate achievement. Bob Ulrich, chairman and chief executive officer of Target, accepted an award for the company’s longstanding commitment to incorporate well-designed products for a mass audience. “A core belief of Target is that great design should be affordable and accessible to everyone,” he said, then recalled a quotation from Michael Graves, whom he described as Target’s dean of design. “Good design doesn’t have to be so serious or seriously expensive. It’s there for everybody.” Pei and the Vignellis were awarded for lifetime achievement, and winners also were named in five design categories: Robert Greenberg, co-founder of RGA, which creates visual effects for TV and film, for communication design; Tod Williams and Billie Tsien, architects of the American Folk Art Museum and the Scripps Institute for Childhood & Neglected Diseases, for architecture design; Michael Van Valkenburgh, the landscape architect behind Teardrop Park in New York’s Battery Park City and the redesign of Pennsylvania Avenue at the White House, for environmental design; Herman Miller, a pioneer of furniture design, for product design, and, in the category of fashion design, the winner was Ford. “I have no idea what to say,” said Ford, considering the work of the other nominees. “The robot with the ears, I mean, I just design dresses.” — Eric Wilson WASHINGTON — Residential architect Russell Versaci has modern sensibilities packaged in a singular focus on building old houses. Versaci has just published a primer detailing his vision for modern living that would surely raise eyebrows among his former Bauhaussteeped professors at the Harvard Graduate School of Design. In “Creating a New Old House” (The Taunton Press), Versaci has Russell Versaci’s new book. narrowed down some 30 years of experience into eight tenets of designing traditional American homes to accommodate the trappings of modern living. He traveled the country selecting regional examples of new-old homes, from a Craftsman bungalow in Washington to a SpanishCaribbean cottage in Florida. The burgeoning new-old home design movement has been percolating for several decades and is the product of architects like Versaci who attended college in the Seventies and Eighties and were disillusioned by curricula narrowly focused on sterile modernism. “It’s a group of people who relearned the old ways by being self- taught,” says Versaci. But pursuing tradition in modern times doesn’t mean these architects are stuffy historic preservationists refusing to abandon 18th-century floor plans in order to be authentic. “I am a designer, not a preservationist,” says Versaci, who thinks old-looking houses don’t have to forsake gourmand kitchens, family rooms or Internet hookups. He’s an architect who sees more comfort and humanity in living in a house rooted “ I am a designer, not a preservationist.” — Russell Versaci in the diverse building traditions immigrants brought to America. “These are homes that are designed for people who truly want to create a nest that is comfortable and with a familiar feeling…in a way you never connect with a modern house,” says Versaci, whose firm, Versaci Neumann & Partners, is based in Middleburg, Va. To increase authenticity, Versaci says new-old houses should “tell a story over time” — one of his eight design tenets he calls pillars — so a house appears to have parts remodeled or wings added, even if it means mixing designs from various periods. Probably the most crucial among Versaci’s eight pillars is the use of building materials like solid clapboard and stone that will endure, which he calls “building for the ages.” Another pillar, “detail for authenticity,” taps into new-old architects’ years of studying traditional home blueprints and journals ferreted from libraries. An example of the new-old school’s extreme attention to detail is how, in a Pennsylvania Dutch farmhouse, a slurry of buttermilk, mold spores, beer and a dash of cow manure was applied and spoiled, promoting mildew growth that created an ages-old weathered look on stone and mortar. Such detail has become second-nature to Versaci, who was first a furniture designer and home renovator in Providence, R.I., after leaving the Harvard design school because of its focus on modernism developed by Bauhaus founder Walter Gropius. “I was interested in doing something more touchable,” Versaci, 55, says. “I’m afraid I’m not very good with orthodoxy.” Versaci’s interests in building traditions led him to the University of Pennsylvania Graduate School of Fine Arts for a masters and doctorate (his undergrad degree in art history is from Yale). At Penn he became an assistant to visiting professor James Marston Fitch, the father of the historic preservation movement. The budget for new-old custom homes ranges from about $200$400 per square foot. “But there’s also a low, $100-per-square-foot range you can build with the authenticity you can afford,” says Versaci, who bemoans the acres of “faux traditional homes,” designed by builders, that have cropped up in suburbia and are a jumble of unrelated historic styles. Versaci pegs their life span at 50 years. Versaci, whose timeline for traditional houses to borrow from is the Colonial period to 1940, hasn’t completely eschewed modernism. Twentieth-century Finnish architect Alvar Aalto, who pursued organic links between people and buildings, is on Versaci’s short list of modernists he admires, along with the father-son Finnish architects Eliel and Eero Saarinen. Eero, who died in 1961, was responsible for the TWA terminal at New York’s LaGuardia Airport, Dulles International Airport near Washington, D.C., and the St. Louis Gateway arch. As for contemporary architects, Versaci offered one name: New York-based Richard Meier, whose public works include Los Angeles’ Getty Center, the High Museum in Atlanta and the Barcelona Museum of Contemporary Art. “In any given time frame over two or three generations there are probably only two or three geniuses,” says Versaci. — Joanna Ramey WWD, FRIDAY, OCTOBER 24, 2003 Nasher Finds a Home for His Collection A Richard Serra installation. DALLAS — Raymond Nasher, well known in the retail community as the creator and owner of prosperous North Park Center mall, unveiled another Dallas landmark this week: the Nasher Sculpture Center. The developer’s 20th-century collection of more than 300 pieces is so respected that half a dozen top museums in New York, London, Washington, D.C., and other cities sought its donation, even offering to build gardens to display it. Lucky for Dallas, Nasher opted to keep the art trove here and build a suitably artful residence for it. “What made me feel that Dallas was the right place was because of what it could mean to Dallas on a global basis,” Nasher said in a phone interview. “It was time to see if we couldn’t give something back to the city, since it had been important in the growth of my children, lifestyle and business. Hopefully it will become the center for modern sculpture in the world.” Designed by Renzo Piano and costing $70 million, the center is billed as the first urban museum devoted to the display, research and conservation of modern and contemporary sculpture. Piano created a sleek, symmetrical building of glass, steel and travertine that glows with natural light, thanks to its specially designed aluminum perforated roof developed for the site, which allows only northern sunlight to enter. Works by such sculptors as Alexander Calder, Henri Matisse, Pablo Picasso and Auguste Rodin stand on its blond oak floors. Glass walls at the front and rear of the wide building enable approaching visitors to gaze beyond the works inside to the expansive garden at the rear. “I’m tremendously pleased with the results,” Nasher said. “Renzo Piano is truly one of the greatest architects in the world, and he knows more about art and exactly what is needed for the art than anyone else. [Landscape architect] Peter Walker produced a beautiful garden. They seem to flow together perfectly, so it is as if one is a building and the other is an area without a roof. I feel very strongly about the indoor-outdoor aspect of the building.” Designed as an oasis for reflection, the lawn and its rows of trees is dominated by huge metal sculptures by Joel Shapiro, Mark di Suvero and Richard Serra, while smaller pieces such as Picasso’s “Head of a Woman” will be swapped periodically for other pieces. Along the garden’s back wall is a “skyspace” by James Turrell — a 26-foot, square black granite building with a 10-foot square hole in the roof that frames the sky. Nasher began buying art on a budget with his late wife, Patsy, in 1950 in Mexico. “When we started collecting we had very little funds and would take vacations in Mexico and go to ancient sites, such as Chichen Itza, and dig a bit and find a few things, and get to know archaeologists and dealers,” Nasher recalled. “In those days, we could buy superb pieces of clay sculpture from various regions for a very small amount. “Then in the late Fifties, I was in real estate development and I decided that I wanted to incorporate art into the commercial aspects of things that I was doing. Sculpture at that time was a secondary kind of happening. Painting was always the first priority. Sculpture is something that we had grown to love from the pre-Columbian, and also, sculpture can be placed outdoors. “Since I was building a number of different developments, it was mandatory that the art could be in an outdoor area. It was also true that in those days a great sculpture was about a 10th or so of the price of great paintings by the same artist. With the funds that one had, it was much easier to get a Matisse or Picasso or Brancusi at a 10th or 20th of the price of a painting.” The Nashers studied art and artists by visiting museums, dealers and art shows around the world, but they applied a simple “butterflies” rule to what they purchased. “It’s a personal collection,” he noted. “We look at works of art and we’re only interested in those pieces that really give us some butterflies — that sense of understanding and stimulation, 25 the kind of thing you want to live with on a daily basis. It’s totally personal.” Nasher is often asked about his favorite pieces and his reply is always the same. “I say, ‘Do you have a favorite child?’ The true answer is that with works of art of that nature they change every day or week,” he said. “You may look at a gorgeous Matisse one day and it is so stimulating and heartrending, and the next day the interest could be David Smith’s ‘House in a Landscape’ or it could be a Picasso. It really does change almost on a daily basis.” Nasher believes he was the first developer to place art in a shopping mall when he opened North Park Center in 1965. “When I built North Park, I wanted to be certain that it had the light and background and skylight to be able to graciously display sculpture and artworks so we could expose people to art,” he explained. “So many people go through there on a daily basis, and whether they liked the art or not, it was a question of exposure with the hope that gradually they would go to museums.” At the time, many people tried to talk him out of it. “I did have a lot of opposition,” Nasher recalled. “People thought things could be damaged and destroyed, but I felt strongly that sculpture could be exciting, rewarding and educational in a public place. Sometimes you have to have risk taking as a part of your psyche, so I felt we would try it, and the end result has been that it is really the consumers who are the security people because if they saw anyone touching a work of art, they would personally prevent it.” Over the years, there has been some minor damage, such as scratches, “but it is meaningless in relationship to the totaliMark di Suvero’s “Eviva Amore.” ty,” he said. Jonathan Borofsky’s kinetic “Hammering Man,” a striking piece that has long been displayed outside North Park, has been moved to the sculpture center’s garden. There’s another retail link to the center, as well: Fashion fans are buzzing about its shop, since the buyer is Mar y Bloom, the tasteful founder and former owner of the Translations home, gift and accessories store. — Holly Haber Code Cracker 2987453280 The industry intelligence you need to plan your next move. Go to The news online at 12:01am EDT 6 continents, 11 bureaus, 203 reporters for unmatched coverage Search the previous five issues of WWD online 24/7 access on your desktop, anytime, anywhere WWD.com first. insider. authoritative. global. 26 WWD, FRIDAY, OCTOBER 24, 2003 Nautica Sales Help VF Net Sara Lee Profits Slip 25% tive in their orders. The ceo expects many to continue their cautious outlook into spring, and noted VF’s replenishment program will help them in that regard: “When they need the goods, we will have it for them.” Driven by double-digit gains at The North Face, sales in the company’s outdoor coalition rose 15 percent in the quarter. International jeans sales were flat with last year’s levels, while domestic jeans sales and imagewear sales each declined 6 percent. Global intimate apparel sales were down 3 percent. Eric Wiseman, chairman of the sportswear coalition, said one of the company’s top priorities is to stabilize Nautica’s By Vicki M. Young NEW YORK — VF Corp.’s thirdquarter profits were better than the company expected, but softer than those of one year ago. The Greensboro, N.C.-based firm said Thursday that income for the three months ended Oct. 4 declined by 2.3 percent to $125.3 million, or $1.14 a diluted share, from $128.2 million, or $1.15, in the same year-ago quarter. Sales rose 2.5 percent to $1.44 billion from $1.4 billion. The company disclosed that Nautica, acquired before the quarter’s final month, contributed $72 million in sales and 5 cents a share in earnings. VF said the results were boosted by sales in its core businesses and a profit contribution from its recently acquired firm, Nautica Enterprises Inc., that were both stronger than anticipated. Additionally, the expected sale of VF’s children’s playwear business — and projected losses associated with it — didn’t materialize, and the firm said it’s exploring other options. Mackey McDonald, chairman and chief executive officer, said in a statement, “We were pleased to see a pickup in sales toward the end of the quarter, in line with generally stronger sales at retail, particularly in September. We also are pleased with the contribution made by Nautica in the quarter and are looking forward to building Nautica as the foundation for our new sportswear coalition.” The ceo said during a conference call with Wall Street analysts that sales of “domestic jeans fared better in the quarter than we had expected.” He disclosed that while the European jeans market remained challenging, the company’s Wrangler [retailers] need the goods, “weWhen will have it for them. ” — Mackey McDonald, VF Corp. brand achieved market leadership in the men’s category in Germany. Executives at VF noted sales of denim in the junior category were weakening slightly. In response to analysts’ queries, they said they’d experienced little impact from the introduction of Levi Strauss & Co.’s Signature line at Wal-Mart. Instead, they emphasized that Wrangler and Rider brands are great products at “good value” and VF is “ready to compete with anybody out there.” The ceo said VF has been reluctant to build up inventory because it isn’t yet confident about a rebound in sales. While cooler weather has helped, McDonald said the firm is still waiting for consistent signs that consumer confidence is on the rise. Retailers, he said, are still conserva- men’s business, including focusing on men’s sportswear and increasing the jeans business. A new Nautica women’s collection is being planned as well. The company increased its full-year earnings per share guidance to $3.50 to $3.55 a share, an increase of between 8 and 10 percent from the $3.24 a share from continuing operations reported in 2002. For the nine months, income was $292.3 million, or $2.65 a diluted share, against a loss, principally due to a goodwill-related account change, of $231.1 million, or $2.05, last year. Sales inched up 1.3 percent to $3.82 billion from $3.77 billion. Shares of VF gained $1.06, or 2.5 percent, to close at $42.83 in New York Stock Exchange trading Thursday. By Arnold J. Karr NEW YORK — With retailers keeping tight reins on inventory levels, lower sales and profits in its apparel operations helped reduce Sara Lee Corp.’s first-quarter net income by more than 25 percent. In the quarter ended Sept. 27, the Chicago-based consumer goods powerhouse registered net income of $230 million, or 29 cents a diluted share, 25.4 percent below the year-ago mark of $308 million, or 38 cents. The earnings performance exceeded consensus estimates by 3 cents, but those had been lowered in July following revised guidance from the company. Sales rose 2.9 percent to $4.67 billion from $4.53 billion in the corresponding period last year. At the firm’s Intimates and Underwear unit, operating income contracted 40.6 percent to $127 million from $213 million, an $86 million decline that was greater than the $73 million total drop in the operating income of SL’s five business segments. Revenues for Intimates and Underwear were down 5.3 percent to $1.6 billion from $1.69 billion. Steve McMillan, chairman and chief executive of the firm, said in a statement, “In Intimates and Underwear, sales were lower as our retail customers continue to reduce inventory levels compared to a very robust first quarter of last year, but we expect inventories to normalize and our sales to increase in the coming six to nine months.” Apparel operations’ share of corporate operating income dropped to 45.4 percent from 56.5 percent while share of revenue declined to 34.4 percent from 37.3 percent. Unit volumes dropped 7 percent in apparel as all three segments of the business — intimate apparel, knit products and legwear — experienced identical 7 percent reductions. The company cited continuing declines in worldwide sales of sheer hosiery and price decreases in the U.S. printables market for apparel’s soft performance. The steepest declines in unit volume were registered by European knit products (18 percent), global sheer hosiery (17 percent) and U.S. intimate apparel (11 percent). Of six apparel categories broken out by Sara Lee, only the global sock market experienced an increase, rising 5 percent in the quarter. Profitability was pressured not only by lower volume, but also by higher costs for pensions and raw materials such as cotton, heavier promotional spending and the toll taken by restructuring activities, the firm said. While benefits were derived from Sara Lee’s recent restructuring actions, the company said higher costs and “competitive pricing in printables” are expected to continue throughout the year. However, the company expects year-end earnings per share to increase to between $1.51 and $1.61 from $1.50. “Intimates and Underwear operating segment income will be down for the year,” the company cautioned, “although improving on a year-over-year basis in the second half as new product activity and a better market environment drive performance.” As reported, the company earlier this week made a series of appointments in its apparel unit, including the promotion of Michael Flatow to the presidency of the new Intimates Group. Bebe Up, Charlotte Russe Down in Quarter Reebok Shares Soar On Rise in Earnings By Jennifer Weitzman NEW YORK — Kicking off the earnings season for specialty stores, youth-oriented Charlotte Russe Holdings and Bebe Inc. Thursday saw their profits turn in different directions, although both were upbeat about the holiday selling season. With Bebe’s income up and Charlotte Russe’s down, both firms saw their earnings follow their recent comparable-store sales results. For San Diego-based CR, strong merchandise margins and expense control helped produce better-than-expected profits, but net income still fell 3.2 percent to $5.7 million, or 24 cents a diluted share, for the three months ended Sept. 27 from $5.9 million, or 25 cents, in the year-ago quarter. The quarter’s results reflect a 1 cent a share benefit from the reversal of store closing costs. Earnings easily beat average analysts’ estimates of 17 cents and recent management guidance of 15 to 19 cents. Sales during the quarter grew 12.4 percent to $123 million from $109.4 million, offsetting a 9.5 percent comp decline. “It is fair to say we are disappointed with our sales performance, but we are impressed with the continued financial strength of these two concepts,” Mark Hoffman, chief executive, said of Charlotte Russe and Rampage on a conference call. While Hoffman said he was confident about holiday merchandise, he said he expects the current first quarter to be challenging. The company said its comp trend has remained negative thus far in October and said it expects first-quarter earnings of 24 to 28 cents, below current Street expectations of 30 cents and the 32 cents reported last year CR said lean inventories — down 13.5 percent at the beginning of October — helped it manage markdowns and protect the bottom line during the slow selling period, but it’s now building stock levels for holiday. They’re now down just 5 percent and should be up 2 to 3 percent by December. For the year, CR earnings were sliced 50.9 percent to $11 million, or 47 cents a share, compared with earnings of 22.4 million, or 95 cents, reported in 2002. Sales for the 12 months increased 11.5 percent to $456.6 million from $409.4 million, but fell 10.1 percent on a comp basis. Brisbane, Calif.-based Bebe said its first-quarter earnings rose 18.6 percent to $6 million, or 23 cents a diluted share, for the period ended Sept. 30, matching analysts’ earnings expectations. That compares with $5.1 million, or 20 cents. Sales for the three months rose 13.1 percent, to $83.6 million from $73.8 million, and climbed 6.8 percent on a comp basis. In addition, Bebe said it expects second-quarter earnings to be in the range of 47 to 50 cents, compared with the 47 cents analysts expect and the 42 cents reported last year. October and second-quarter comps are projected to rise in the low- to mid-single-digit range. Manny Mashouf, chairman and chief executive, said on a conference call, “On the product side, we made improvements; in the store, we have rejuvenated and made it more exciting and impactful, and we have added designers to the design team which is showing in the product.” However, he said while productivity improvements contributed to its on-plan inventory levels, the deliveries were still not on time. Mashouf based his confidence about holiday primarily on the impact of new design personnel. “We see the results of their contribution to the team that would show in the November and December merchandise mix, and I am feeling really good about it,” he commented, adding that the stores will have more suits in their mix this holiday. NEW YORK — Shares of Reebok International Ltd. hit a 52-week high Thursday after the firm, aided by robust expansion in apparel, reported double-digit earnings growth in the third quarter. For the three months ended Sept. 30, the Canton, Mass.-based athletic footwear and apparel magnate saw earnings spike 17.4 percent to $62.7 million, or 96 cents a diluted share, besting Wall Street’s consensus estimate by 3 cents. Comparatively, the company posted earnings of $53.4 million, or 81 cents, last year. Total sales for the quarter increased 14.2 percent to $1.04 billion from $911.6 million a year ago. In a statement, the company acknowledged that fluctuations in currency exchange rates had worked to the benefit of sales comparisons. According to the company, on a constant dollar basis, sales would have increased approximately 10 percent. After hitting a new high for the year of $38.20 in midday trading, shares of the firm closed up 51 cents, or 1.4 percent, at $37.75 on the New York Stock Exchange. Sales of Reebok branded apparel in the U.S. shot up 31.1 percent to $207.9 million compared with $158.6 million last year. International apparel sales were up 11.8 percent to $203.2 million. Ken Watchmaker, chief financial officer and executive vice president, said on a conference call, “What is definitely driving the energy is the sports license business.” Apparel sales figures received a $17 million boost from closeout sales. However, Watchmaker pointed out that this figure was equalized by $16 million in cancellations. “The business was slowing down. As we were taking cancels, we were closing out product and getting out. It hurt sales,” said Watchmaker. Paul Fireman, chairman and chief executive officer, said the company was likely to reap the benefits of the ongoing reorganization of its apparel operations. “We have consolidated our apparel business, especially the sports side, with our licensing business,” said Fireman. We’ve got a lot of growth left on that.” For the nine months to date, the company’s earnings increased 17.4 percent to $129.1 million, or $1.99 a share, versus $110 million, or $1.71 a share, last year. Total sales for the ninemonth period jumped 11.7 percent to $2.64 billion from $2.37 billion last year. — Ross Tucker WWD, FRIDAY, OCTOBER 24, 2003 Private Label Manufacturing Skin & Hair Care/Body & Bath Care Products made for you... Spas, Salons & Fashion Lines Call the Natural Products Experts Visit our Factory Orjene / Jason Call: 718-937-2666 E-mail: Lynne@jasoncorp.com Holiday Gift Certificate Fashion Art Cards Large 9" x 6" size printed with your store name, address & phone number. Includes matching envelopes & gift log. www.art-with-style.com PATTERNS, SAMPLES, PRODUCTIONS All lines,Any styles. Fine Fast Service. Call Sherry 212-719-0622. PATTERNS/SAMPLES PRODUCTION Samples & patterns. Full service shop to the trade. Fine fast work. 212-869-2699 MURAD, INC., a leader in the fast growing doctor brand skincare industry, is a world-renowned company dedicated to building beauty through health. Widely acknowledged as one of the country’s foremost authorities in skincare, Howard Murad, M.D. has devoted his life to the science of internal and external skincare. We are recruiting for the following: EDUCATION MANAGER This position is based in El Segundo, CA. Responsibilities include: motivating/educating retail & professional staff at Spa on protocols, assisting Director with new educational & promotional modules/programs, updating existing written material, creating new educational & promotional materials (i.e. programs, brochuresupdating existing written material, creating new educational & promotional materials (i.e. programs, brochures, etc.), and facilitating training to all Regional Educators on new/existing educational &/or promotional programs. Must be a licensed Esthetician or Cosmetologist with 5+ yrs. exp., preferably in a similar role in a cosmetics/skincare company. REGIONAL EDUCATORS RESUMES THAT WORK! SINCE 1970 PROFESSIONAL RESUMES, INC. 60 E 42nd Street, NYC 10165 (212)697-1282/(800)221-4425 www.resumesforfashion.com Accountant/Analyst to $65K Sales & prop tax, GL, Degree requd, ADP preferred. firstname.lastname@example.org 914-478-3333 Bryant Pk Duplex 1100, 2000, 4500 FT. 20 Ft Ceilings - Great Windows/Views SoHo-Sublet Penthouse 2000 FT Prime Manhattan Jon 212-268-8043 Search-www.manhattanoffices.com ACCOUNTS PAYABLE NYC manufacturing company. Part Time. Minimum 5 yrs experience. Knowledge of computers. Fax Resume to: 772-619-7994 Accounts Payable/Payroll to $35K 1 + yr exp, ADP exp preferred. email@example.com 914-478-3333 Admin. Assistant 3750 SqFt GREAT LIGHT * FULL FLOORS IDEAL FOR SHWRM/OFC/DESIGN FASHION CORE BERNSTEIN RE Richard Price 212-594-1414 x265 For Space in Garment Center Helmsley-Spear, Inc. 212-880-0414 Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Great ’New’ Office Space Avail ADAMS & CO. 212-679-5500 Leading global packaging accessories & design corp. seeks Executive Assistant to join a fast-paced environment. Candidates should be very organized w/a professional phone manner, strong written & verbal communication skills. Individual will be involved in all phases of client & administrative support, including order processing, customer follow-up, and administrative/clerical duties. This F/T position requires the individual to manage phone calls for an executive, prepare correspondences, liaison between client and executive. Individual must be detail oriented & Word/Excel proficient. Knowledge of garment/fashion industry preferred. Please E-mail resume & salary requirements to: firstname.lastname@example.org Admin Due to expansion of Education team positions are available in most regions. Responsibilities include: handling educational needs for all types of accounts; medi spa, spa, salon, dept. stores, and specialty stores, supporting sales, conducting Educational Seminars, as well as one on ones, trade shows and promotions. Must be a licensed Esthetcian or Cosmetologist with 3+ yrs exp prior training exp., preferably in a similar role in a cosmetics/skincare company. Both positions require extensive travel as well as strong verbal/written, presentation & PC skills (Word/PowerPoint). Interested candidates please submit resume to: email@example.com NO PHONE CALLS PLEASE. EOE. DESIGNER Tween Sportswear Co., seeks talented creative individual with 3-5 yrs. design experience in Junior or 7-16 Girls market. Must be able to develop product from beginning stages through production and have a great eye for color and trend. Must have knowledge of Photoshop and Illustrator. Domestic & Overseas travel required. Great opportunity! Family atmosphere. Fax resume to 212-221-7064. Attn: Cathy Designer Wanted Better Sportswr Co. seeks exp. highly motivated/detail-oriented design assoc. for Prvt Lbl. 3-5 yrs exp needed. Able to do flats, boards, specs, multi-task & a team player. Fax to: 212-768-7651 FABRIC COORDINATOR Women’s contemporary dress and sportswear company seeks experienced fabric merchandiser to source fabrics from Far East and Europe. Must have at least 5 yrs experience. Fax resume to Lynn at 212-302-2399 Since 1967 PRODUCT DEVELOP. W-I-N-S-T-O-N ASSOCIATE APPAREL STAFFING DESIGN*SALES*MERCH ADMIN*TECH*PRODUCTION (212)557-5000 F: (212)986-8437 Apparel Staffing, Ltd. See Career Openings @ www.apparelstaffing.com Fax Resume to (212) 302-1161 Colorist/Project Manager Fast-paced Import/Export Textile Co. seeks Colorist/Project Manager. Must have great color sense, understand layout and pitching. Work w/V.P. of Design & customers. 7-10 yrs. exp. Portfolio a must. Fax resume to S.K. at: 212-575-2660 Wanted for mens/boys swim-wear and wovens importer communication skill with overseas factories essential. 3 years experience required. Fax resume to 212-695-1050 PRODUCTION ASSISTANT Exciting Oppty for detail-oriented person to do order processing, follow-up and sample tracking. 2+ yrs. exp. Fax resume 212-683-4038 COLOR/PRINT ANALYST PRODUCT MANAGER SOURCING DIVISION Women’s Mfg. seeks 4 plus years industry experience. Responsibilities include approving and tracking strike off’s and Lab dips. Must have Textile Design degree. Need experience in communication with overseas and domestic vendors. Excellent organizational and computer skills. Bi-lingual a plus. Please fax resume to: 212-921-7713 ATTN: LauraD Designer Established junior import co. is seeking a designer with min 2 yrs exp. who has knowl. of the latest trend to design Jr. bottoms. Knowl. of photoshop/ illustrator a plus. Great family atmosphere! Please fax resume to 212-764-7245. Merchandiser Intimate & Lingerie private label mfg, looking for merchandiser with 2-3 years experience. Work directly with major domestic account with Merchandiser Manager. Daily communication with Overseas office and factory. Technical knowledge, computer literate with knowledge of Excel a must. Please fax or email resume with salary requirements to 212 -219-9486 / Sari.firstname.lastname@example.org Leading childrenswear company is seeking a highly motivated, detailoriented indiv to work in our Sourcing Division. The candidate should have min 3 yrs exp in production and sourcing. The candidate will maintain & handle vendor costing, line plans, style, fabric & trim tracking, and seasonal status reports. The candidate will standardize & approve raw material dvlpmt. Daily communication with vendors. Responsible for maintaining sample lines. Office skills required include a working knowl of AS400, Microsoft Word & Excel. Please e-mail your resume: email@example.com fax: 212-643-2826. No calls. EOE. Exciting opportunities available in all areas: * WOVEN DESIGNER * ASST DESIGNERS * TECHNICAL DESIGNERS We offer a competitive salary and comprehensive, companypaid medical benefits package. Please fax resume to: (212) 632-4322. EOE M/F SPEC TECHNICIAN Women’s Mfg. seeks 4 plus years industry experience. Strong knowledge and understanding of garment construction fit and grading from development through production. Able to run fittings independently. Close interaction with design, sales and mer chandising on a daily basis. Ability to translate designer’s sketches into detailed specs, flat sketching skills to highlight garment details or pattern correction, a knowledge of developing graded specs, and the capacity to effectively manage multiple priorities and meet deadlines. Please fax resume to: 212-921-7713 ATTN: LauraD SPEC TECHS,SPEC TECHS,SPEC TECHS I NEED SPECH TECHS SusieJessilyn@aol.com Call 212-947-3400 Tech Designer/Spec Person For Jr. woven bottoms and Jr. plus. Rapidly growing Co. Must be articulate and detailed oriented. Pls. fax resume, Attn. Dorene @ (212) 575-5311 27 MARITHE+FRANCOIS GIRBAUD We are searching for a professional sales rep to handle our menswear specialty store business and reside on the WEST COAST. Must have strong specialty store contact. Please fax resume to: 212-967-4389 Flagship Madison Ave. boutique, specializing in fine jewelry & luxury accessories, seeks qualified Sales Associates. Must have experience in luxury goods. GIA certified a plus. Please Fax resume to: 212-717-5800 Fine Jewelry ***APPAREL EMPLOYERS *** Do you need exp’d DESIGNERS, PRODUCTION, ACCOUNTING, TECHNICAL etc. staff? **CALL 973-564-9236 Jaral Fashion Agcy.** Evening Bags & Jewelry NY based high-end accessories line with retail & wholesale presence, seeks NY based Sales Rep with est’d. high-end clientele. Great opportunity w/young co. High commission; All support provided. Please Fax resume to: 212-868-9899 Highly exp’d. Head of Distribution & Logistics, including compliance, vendor/ customer relations, and charge-back admin. for $250 million+ major moderate mfrs., seeks similar position with growth oriented company. Northeast location preferred; Travel okay. Proven track record of dollar recovery. Call/E-mail Alan: 917-690-1005 / firstname.lastname@example.org Cleanser Boscia Purifying Cleansing Gel Moisturizer Neutrogena Healthy Defense SPF 30 Daily Moisturizer Sunscreen Vichy Laboratoires Capital Soleil SPF 30 Lotion Shampoo Nature’s Gate Organics Chamomile and Lemon Verbena Shampoo Conditioner Matrix Sleek Look Deep Moisture Masque Styling Product Frédéric Fekkai Protein Rx Reparative Spray Lip Color Prada Beauty Shielding Balm SPF 15 Lip/Tint Foundation Max Factor Facefinity Foundation Mascara Tony & Tina Herbal Eye Mascara Nail Product Elon Fre`e Moisturizing Polish Remover Congratulations to the winners of Health magazine’s fifth annual Healthy Beauty Awards! Beauty or brains? We say, why not both! Check out Health’s November issue honoring the ten best beauty products of 2003, selected by a panel of leading dermatologists.
© Copyright 2017