1607 FOS master 20110518.indd
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1607 FOS master 20110518.indd
EDITOR’S LETTER May is here and the sights and sounds of spring are everywhere. The air is mild, new buds appear, sun shines in a cloudless sky; yet tomorrow it will rain. But that’s all right, because I know there will be sunny days again after the storm. Rainy days are natural occurrences, and they will pass—just like the things that threaten our livelihoods and businesses on a daily basis. Listen. As we struggle to make our businesses work, everything seems to be turning against us: escalating oil prices, dwindling property values, and consumers who don’t spend. It would be foolish to deny these realities. Yet, it would be just as foolish to assume that they’ll never end, that the sun will never shine again. It’s certainly true that negative reports get the most press. But we cannot and should not let bad news rule our lives, because it’s equally true that economic downturns can be largely self-fulfilling as people trim expenses through fear of worsening economic conditions, unwittingly contributing to a perpetual cycle of economic scarcity. Focusing on the negative doesn’t help, and playing it “safe” is probably your worst strategy for improving your store’s performance. Here’s why: If, through excessive caution, you stock only predictable, uninspired merchandise, a drop in sales is virtually assured—no, guaranteed! By featuring styles that don’t “speak” to your customers, you only bore them, making them feel justified in forgoing discretionary purchases. Don’t fall into this trap. Change is coming. Trust me. Take a good look inside this issue. Be sure to check out our selection of fashion shoes and accessories by renowned labels for upcoming Fall/Winter trends. Carefully review the Trade Show Calendar with FFR’s star ratings, and shop the most appropriate show for your needs! Get business advice from Donald Trump! And while perusing the pages of this issue, don’t just look! Read our practical, informative articles prepared especially for you, and start putting their wisdom to work right now to be better prepared for the approaching season. Don’t let the clouds of pessimism obscure your view. Instead, do your part to improve the economy by improving your store, your business, and your life. Do you notice the buds on the trees outside? They are the signs of a brighter future! Let them inspire you to grow your business—then let Focus show you how. As always, I’d love to hear your thoughts. Please feel free to contact me at editor@focusonshoes.com with questions, comments, suggestions or topics you’d like to see covered in future issues. Serving you better is our goal and privilege. Sincerely, Alex Geyman Editor table of contents: P. P. P. P. P. P. 4 6 16 20 22 24 P. P. 28 30 P. 34 P. P. P. P. 36 39 40 41 Editor’s letter Fall/ Winter 2011-12 Fashion Trends Entrepreneur Of The Month: Top 5 Lessons From Donald Trump Business Development: 10 Tips For Selling To The Government Trade Shows Calendar (June- July 2011) Consumer Behavior: Shopping: Why We Love Kit And How Retailers Can Create The Ultimate Customer Experience. Part 2/2 Retail 101: Don’t Get Cheated On Exterior Signage Going Green: Add Sustainability To Your Collection And “Green” Your Bottom Line Opinion: Retail, Fashion – Time To Let Consumers Join The Brand Community Forecast: 12 Key Loyalty Marketing Trends Subscription Your Opinion Counts- Participate In Our Survey! Classified Ads COVER PHOTO: Paris Hilton Wearing Tony Ward Couture, Earrings By Katerina Maxine 4 5 June 2011 BUSINESS MAGAZINE FOR SHOE, APPAREL & ACCESSORIES STORES FASHION RETAIL EDITOR: Alex Geyman GENERAL MANAGER: Dmitry Nelipovich ART DIRECTOR: Allison Moryl GRAPHIC DESIGNER: Pay Fan GRAPHIC DESIGNER: Laurie McAdams FASHION EDITOR: Francesca Trippoli SUBSCRIPTION: Sandra DaSilva RESEARCH: Shawn Lancaster SALES: Claudia Perez All editorial pages are intellectual property of FFR and/or featured authors. No portion of this issue may be reproduced without the express permission of FFR and/or featured authors. FFR magazine disclaims responsibility for the statements, claims made by either advertisers or contributing authors. FFR magazine is not responsible in whole or any part of advertisement or typographical errors. FOCUS ON FASHION RETAIL 25924 Viana Avenue, Suite 19 Lomita, CA 90717 USA Tel. (310) 784-0790 fax (310) 202-6027 General E-Mail: info@focusonshoes.com Web: www.focusonshoes.com © FFR- Focus On Fashion Retail FASHION sexy, classy, and classic • Fur boots • Laced-up boots • Thigh-high boots • Buckles Fabi Casadei Giuseppe Zanotti Loriblu Gabriel Seguí Giovanni Fabiaini fashion trends Fall/Winter 2011-12 6 June 2011 © FFR- Focus On Fashion Retail Art 7 For All Mankind Moda di Fausto Vittorio Virgilio Fornarina Neosens Vic Matie Die Kosmonautin Laika Ted Baker Alex Vidal © FFR- Focus On Fashion Retail June 2011 7 FASHION Giuseppe Zanotti Design Taccetti Emilio Pucci Fornarina sexy, classy, and classic • Stilettos • Chunky heels • Wedges • High platform 7 For All Mankind Donald J. Pliner Pakerson 8 June 2011 © FFR- Focus On Fashion Retail Adidas Girard-Perregaux Montblanc Tod’s ICE - Watch Paul Frank + Beryll Jee Vice Alain Mikli Swarovski Annie Diamantidis Paolo Coppolella © FFR- Focus On Fashion Retail June 2011 9 FASHION sexy, classy, and classic MsBellezza Jewelry EV Jewelry Florence Henderson MsBellezza Jewelry • Metal jewelry. Light weight, large in size, yellow or white. Structured, angular and/or irregular shapes. • Bold statements. Oversized bracelets, long earrings, extravagant necklaces • Strong Motifs. Snakes, elephants, flowers, birds, bugs, leaves and coins. • Fringe. • Layered necklaces • Square bangles • Large Retro Inspired Rings MsBellezza Jewelry Sylva & Cie Clara Kasavina Misaki Misaki MsBellezza Jewelry Carrie Ann 10 June 2011 © FFR- Focus On Fashion Retail Sylva & Cie MsBellezza Jewelry EV Jewelry MsBellezza Jewelry Wendy Joan Williams Cynthia Desser Kathleen Dughi Misaki MsBellezza Jewelry Chelsea Kane Staub © FFR- Focus On Fashion Retail June 2011 11 FASHION masculine, classy, and sporty This Fall menswear trends proceed with some last year’s pieces and bring the world a few new ideas as well. Bomber jackets, comfortable short coats, sporty elegant look. Silhouettes straight and slim, broad shoulders and narrow waists. Classic Loafers, high sneakers, hiking shoes. Rounded toes and comfortable thick outsoles. Barracuda 7 For All Mankind Georgina Vendrell 12 June 2011 © FFR- Focus On Fashion Retail Carlo Ventura Valentino Nero Giardini Gianfranco Butteri Stonefly Noxis Speroni Nicola Benson Bait © FFR- Focus On Fashion Retail June 2011 13 Fossil + Beryll Jaeger-LeCoultre Girard-Perregaux ICE - Watch Sunglasses retro and classic shapes, chunky and larger size than last year. Watches also favor classic timepieces for upscale professional look, while casual lifestyle calls for bright colors. All metal light weight jewelry. + Beryll + Beryll Kenneth Cole Paul Frank Montblanc DSquared2 14 June 2010 © FFR- Focus On Fashion Retail ENTREPRENEUR OF THE MONTH Top 5 Lessons Donald Trump FROM he biography of Donald Trump has it all, from lavish properties and beautiful women to lots and lots of money. But, behind the glamour and glitz of what the world knows as Donald Trump, there is a story of hard work, failure, determination and finally, triumph. Any extensive telling of this tale would have to cover the rise, fall, and rise again of the real estate mogul. Born on June 14, 1946, in Queens, New York, Donald Trump already had business in his blood. His father was a relatively successful property developer, whom the young Trump would go to work for following graduation from the Wharton Business School. For five years, the father and son duo would make profitable deals and solidify their position in the affordable housing market. That is, until he wanted to break out on his own. He had a vision that was larger than his father’s. Indeed, he wanted his life story and his achievements to be known to the world. He was broke, but he set his sights on Manhattan as his ticket to success. Using his charm, he was able to gain access into an exclusive club, along with which came access to power and money. The only condition of his membership was that he was to stay away from the other members’ wives. Soon, he would have found his niche market – catering to the real estate needs of the wealthy. However, the biography of Donald Trump is not simply a story of success and riches. He became notorious for his flamboyant lifestyle during the 1980s, which was part of the reason behind his near-bankruptcy in the 1990s; he was over $900 million in debt. Nevertheless, Donald Trump would rebound using his unique strategy – raising prices when others were lowering theirs and refusing to cut corners. He understood the upper segment of society and what they wanted in matters of real estate. In little time, he had created an empire for himself. From gambling casinos to exclusive hotels, the name brand had become synonymous with wealth and high quality. But, “The Donald”, as he has come to be known, was unsatisfied and he wanted more. Thus, in 2004, he took a foray into the world of television. With the launch of The Apprentice, a weekly show where eighteen contestants from across the United States compete for the chance to work in the Trump Organization, he had entered popular culture. Now in its sixth season, The Apprentice continues to enjoy high ratings, thanks in no small part to the outspoken and self-publicizing personality of Trump himself. Today, the Trump name is associated not only with real estate, but also everything from bottled water (Trump Ice) to vodka (Trump Vodka) to disposable cameras. However, the biography of Donald Trump is not just one of business and money. He is also a family man, with two ex-wives, one current wife, and five children, two of whom currently work for the Trump Organization. LESSON 1: BE FIERCE “Always look out for yourself,” says Trump. Never one to back down from a challenge, Trump has made a career out of being ruthless when it came to his business. Trump realized early on that he would only reach the heights of success of which he dreamed if he was willing 16 June 2011 1607 FOS master 20110518.indd 16 © FFR- Focus On Fashion Retail 5/18/11 10:50 PM to tackle whatever or whoever stood in his way. He took no prisoners when it came time to make a deal and did whatever it took to get the job done. When Trump was first getting his feet wet in the Manhattan real estate market in the 1970s, he immediately took a liking to the property at 56th Street and Fifth Avenue and began designing plans for its renewal. The eleven-story building was owned by Genesco, which had also bought out the adjacent Tiffany store. Trump knew that especially in light of the depression that the market was facing at the time, it was going to be a difficult task to acquire this property. Repeatedly told that his grandiose plans were unrealistic, Trump refused to give up. “I was relentless, even in the face of total lack of encouragement, because much more often than you’d think, sheer persistence is the difference between success and failure,” said Trump. His persistence paid off and his property would soon be home to the now-famous Trump Tower, a 58-story building, which with its elaborate décor and indoor waterfall has become a New York City landmark. Trump understood that in order to be successful, he had to ignore his critics and remain headstrong. Unwilling to ever back down, Trump advises that, “When somebody challenges you, fight back. Be brutal, be tough, just go get them.” He attacks all his deals with similar ferocity, refusing to take ‘no’ for an answer. “My style of deal-making is quite simple and straightforward,” says Trump. “I aim very high, and then I just keep pushing and pushing and pushing to get what I’m after. Sometimes I settle for less than I sought, but in most cases I still end up with what I want.” In the face of your competitors, Trump warns that it is detrimental to show any fear. “You can’t be scared,” he says. “You do your thing, you hold your ground, you stand up tall, and whatever happens, happens.” And, part of doing your thing, is getting your goals met at any cost. Whether it is denigrating the competition or remaining firm on an original bid, Trump refused to let anything stand in the way of his real estate dreams. He was going to make a name for himself in New York City no matter what. “My experience is that if you’re fighting for something you believe in – even if it means alienating some people along the way – things usually work out for the best in the end,” says Trump. He put himself on the line with every business transaction and indeed, things seemed to have worked out for the best in the end for Trump. Lesson 2: Love Your Work “The most important thing in life is to love what you’re dong,” says Trump, “because that’s the only way you’ll ever be really good at it.” It wasn’t Trump’s knowledge of the real estate market or salesmanship alone that led him to become one of the wealthiest Americans and owner © FFR- Focus On Fashion Retail 1607 FOS master 20110518.indd 17 of over 18 million square feet of land in Manhattan alone. Rather, it was all the late nights he worked to get his ideas off the blueprints and onto the streets; it was the endless business meetings and phone calls he placed to the powers that be; it was his tireless promotion of what seemed to others to be nothing more than outlandish fantasy. In other words, it was his passion. As soon as the young Trump began making property inspections with his father, he knew he could take a strong liking to real estate. While he had confidence in his abilities to excel in this field, it wasn’t the potential for money that was pushing Trump ahead. Nor was it the fame. Instead, it was the real estate business itself and the art of deal making that Trump thrived on. “Money was never a big motivation for me, except as a way to keep score,” says Trump. “The real excitement is playing the game.” It is Trump’s love for the game that allowed him to keep playing despite the critics, the lawsuits, and the bankruptcy. It was only the dedication that came from his passion for real estate that enabled him to continue reaching for his dreams against all odds. “Without passion, you don’t have energy, without energy you have nothing,” says Trump. “It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” Trump knew he would never be able to devote his life to anything else, and so he threw all his energy into real estate. And, that, says Trump, is one of the biggest keys to his success. Otherwise, he might have crumbled when the first ten or so people laughed at his ideas. Making business deals was, for Trump, an art form that he was happy to spend endless hours devoted to. “Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals,” says Trump. Whether it’s painting or writing or buying and selling real estate, Trump stresses that a passion for what you do will be the underlying cause of whatever success you achieve. And without it, success will never come. Today, Trump could easily retire knowing not only that he has amassed a fortune worth over an estimated $2 billion, but that he has also changed the face of New York. Instead, Trump’s passion keeps him going to work every day. He craves the adrenaline that comes from a handshake over a new deal, a tough negotiation, or a groundbreaking for a new building. Despite his lavish lifestyle, Trump would not be content to sit in the penthouse at the top of Trump Tower and be idle. He craves his work, he loves his work and this is why he has succeeded in his work. Lesson 3: Think Big “I like thinking big. I always have,” says Trump. “If you’re going to be thinking anyway, you might as well think big.” Lofty goals with a lofty ego to boot, Trump is not afraid of taking risks. His philosophy of thinking big typifies the strategy behind every single business deal Trump has ever made. From building the Trump International Hotel and Tower in Toronto, which will be the tallest residential tower in Canada when completed, to installing a seven-story waterfall in the lavish marble atrium of the Trump Tower, Trump either does it big or goes home. Recalling the criticism he got when he first unveiled his waterfall design, Trump says, “Most of my people at first favored putting paintings on the wall. To me that was old-fashioned, unoriginal, and just not very exciting. As it turned out, the waterfall proved to be an art form in itself, almost a sculptured wall. And it attracts far more attention than we’d have gotten if we’d put up even some very wonderful art.” Trump considers his ability to think in larger than life terms one of his greatest strengths and a major reason for his significant success. “Most people think small because most people are afraid of success, afraid of making decisions, afraid of winning,” he says. “And that gives people like me a great advantage.” Trump is not afraid to go after what he wants, nor is he afraid of the consequences of his decisions. Trump has gotten to the top of his game today not by following his competitors and going with the flow, but by daring to do things differently. “Sometimes it pays to be a little wild,” he says. When other developers were lowering their prices during the real estate slump, Trump was raising his. When others were focused on building mediumincome housing, Trump was designing million dollar condominiums. And, when others were losing faith in the market’s comeback, Trump saw only possibilities. Anything that Trump touches seems to take on a mystical aura. This is because Trump sells fantasies and dreams and things that most people don’t dare to imagine. “We took our strengths and promoted them to the skies,” Trump says of Trump Tower. “From day one, we set out to sell Trump Tower not just as a beautiful building in a great location but as an event.” Indeed, Trump’s ‘events’ are beyond what most will ever attend in their lifetime. But, Trump cautions that thinking big does not necessarily mean seizing every opportunity that comes your way. Often times, rather, less is more. “If you go for a home run on every pitch, you’re also going to strike out a lot,” he says. “I try never to leave myself too exposed, even if it means sometimes settling for a triple, a double, or even, on rare occasions, a single.” Trump has only managed to stay in the game so long by maximizing his options and diversifying his portfolio. From hotels to casinos to books to beauty pageants, Trump has branched out into different areas of business, not only minimizing his risk but also making a name for across a wider audience. By thinking big, Trump has turned himself into one of the biggest names in America. June 2011 17 5/18/11 10:50 PM ENTREPRENEUR OF THE MONTH Lesson 4: Play On Perception “If you want to sell a car and you spend five dollars to wash and polish it and then apply a little extra elbow grease, suddenly you find you can charge an extra four hundred dollars,” says Trump, “and get it.” In the fine art of deal making that Trump has mastered, perception is often one of the most important factors that stands in the way of success. As a good salesman, Trump found it crucial to control the perceptions he was giving off to the other side. Aside from his all-important self-grooming in order to look as professional as possible, Trump became an expert in keeping up appearances when it came to his deals. Trump’s success came from the fact that he was always able to maintain the upper hand in making a deal. While he was often in an inferior position to be making demands, Trump managed to convince property owners that his terms were the only ones worth meeting. “If you want to buy something, it’s obviously in your best interest to convince the seller that what he’s got isn’t worth very much,” he says. By over-selling himself and resorting to tactics of fear and guilt, Trump would always make himself appear as if he were the only man for the job. Trump had an ability to make people see things the way he wanted them to and knowing this, used it to his advantage in making his multi-million dollar business deals. “When I build something for somebody, I always add $50 million or $60 million onto the price,” he says. “My guys come in, they say it’s going to cost $75 million. I say it’s going to cost $125 million, and I build it for $100 million. Basically, I did a lousy job. But they think I did a great job.” When Trump was first starting out in the business, he had little experience building the types of projects he was envisioning and no experience whatsoever in a prime real estate market such as Manhattan. Thus, he encountered a lot of resistance when proposing his plans. But, being a master of persuasion, Trump did not let that stand in his way. In one of his very first negotiations to get the rail yard property along the Hudson River, Trump recalls that when speaking to the owner, “I couldn’t sell him on my experience or my accomplishment, so instead I sold him on my energy and my enthusiasm.” In a similar situation when Trump was working on transforming The Commodore into the Grand Hotel, he instructed the architect to, “Make it appear that we’d spent a huge sum on the drawings. A good-looking presentation goes a long way.” Trump believed that a presentation that looked as if it were put together by an established firm with a large budget would be more credible than a few sketches done in Trump’s little, dingy apartment. By making sellers believe that Trump was the best and only person to lead a redevelopment project, he was able to manipulate and manufacture the terms of his own success. 18 June 2011 1607 FOS master 20110518.indd 18 Lesson 5: Go With Your Gut “Experience taught me a few things,” says Trump. “One is to listen to your gut, no matter how good something sounds on paper.” Trusting his instincts is what has distinguished Trump’s groundbreaking career from his competitors. With his natural ability to spot unique business opportunities, and the knowledge he gained from his father and the Wharton School, Trump had honed his instincts to the point where he had more confidence listening to his gut feelings over anything else when making an important decision. While Trump is a self-proclaimed disbeliever in marketing surveys and consultants, trusting his instincts never meant making an ill-informed decision. “I’m a great believer in asking everyone for an opinion before I make a decision,” he says. “I ask I ask I ask, until I begin to get a gut feeling about something. And that’s when I make a decision. I have learned much more from conducting my own random surveys than I could ever have learned from the greatest of consulting firms.” Trusting his instincts is what pushed Trump to enter the dwindling New York real estate market when everybody else was pulling out. And, not only did he enter the market and purchase decrepit properties, but he actually raised prices. His instincts are also to thank for his decision to stay on the sidelines a little longer when prices sometimes seemed too high. “I knew that if I was patient and kept my eyes open, a better opportunity would eventually arise.” When Trump first started building golf courses, it was his instincts that told him it would be a profitable business venture. He combined his passion for golf along with his business knowledge and his courses have turned out to be huge hits. “The results have been spectacular because I paired both instinct and logic,” he says. Similarly, Trump knew to listen to his instincts when he first met Mark Burnett, the man behind The Apprentice. “Within a few seconds of meeting [him]…I knew he was one hundred percent solid, both as a person and as a professional.” The success of this business partnership has since been extremely rewarding for both, with The Apprentice becoming one of the highest rated reality shows on TV. But, everybody has instincts and instinct alone is not enough to succeed, says Trump. The ability to recognize and listen to your instincts is equally important and is something that many people are unable to do. Recognizing your instincts requires the courage as well as the opportunity to be able to do so. “Somewhere out there are a few men with more innate talent at golf than Jack Nicklaus, or women with greater ability at tennis than Chris Evert or Martina Navratilova, but they will never lift a club or swing a racket and therefore will never find out how great they could have been,” he says. Instead, they’ll be content to sit and watch stars perform on television.” In any profession, instincts mean nothing if you are too scared to acknowledge and use them. Trump wasn’t scared and he let his instincts push him all the way to the penthouse. Breaking New Ground: Trump’s Success Factors “What separates the winners from the losers is how a person reacts to each new twist of fate,” says Trump. He has reacted to the twists and turns in his life with optimism, becoming CEO of the largest privately held company in New York, with over 22,000 employees and estimated revenues in excess of $10 billion. What did he use to get ahead? Ferocity: “What I admire most are people who put themselves directly on the line,” says Trump. Never one to back away from a challenge, Trump was aggressive and unforgiving in making his business deals. Even if it were costly and difficult and risky, Trump would continue to fight to get the best terms he could. And, he would settle for nothing less. Passion: “I don’t make deals for the money,” says Trump. “I’ve got enough, much more than I’ll ever need. I do it to do it.” Trump’s love affair with real estate began at an early age and never diminished. Having passion for his work is the only thing that kept Trump going despite the personal failure of divorce, bankruptcy and failed deals. To those wondering how to balance both work and pleasure, Trump says to stop wondering. Instead, he advises to “make your work more pleasurable.” Idealism: “I wasn’t satisfied just to earn a good living,” says Trump. “I was looking to make a statement.” The Trump Organization has become synonymous with luxury, lavishness, class and extravagance. It didn’t get that way by following its competitors. It got that way because Trump was not afraid to think big, to do what hadn’t been done before and in a way that many couldn’t even imagine. His ability to blur the line between fantasy and reality helped push Trump’s company into a league above the rest. Perception: “Watch, listen, and learn,” advises Trump. Indeed, Trump’s success came about largely as a result of his own ability to observe others and thereby learn how to manipulate their actions. By convincing others they could not do without him, Trump truly refined the deal-making process into an art. It was by mastering this art that Trump was able to rise to the top of his game. Instinct: “It pays to trust your instincts,” says Trump and in his case, it paid off remarkably well. When sellers, banks, consultants and even friends were telling him one thing, Trump knew he had to go with his gut. By having confidence in himself and the courage to follow through, Trump was able to make difficult and risky decisions when others might have simply given way to the pressure. Trump’s instincts are now worth over $2 billion but he has no plans of retiring, saying, “Anyone who thinks my story is anywhere near over is sadly mistaken.” The Trump Organization is still expanding, with a revenue growth of 22% between 200405 and Trump continues to demonstrate his ability to draw a good hand, pulling out the Trump card every time. © FFR- Focus On Fashion Retail 5/18/11 10:50 PM BUSINESS DEVELOPMENT 10 Tips for Selling to the Government The federal government spends hundreds of billions of dollars annually buying products and services from small businesses. Could your company be one of them? Here are 10 steps to breaking into the lucrative world of government contracting. 1 EDUCATE YOURSELF. The federal government is vast, and every agency is different. Do your homework to understand each agency, its goals, and whether your business can help achieve those goals. You can find a list of agencies at www.USA. gov (www.usa.gov/Agencies/federal.shtml). 2 BE REALISTIC. Can your business handle the requirements involved in fulfilling a government contract? You’ll need to manage lots of paperwork, maintain certifications, institute quality control procedures and comply with regulations. Know what’s expected--and make sure 3 BE PATIENT. The government sales cycle can last years. You need to find and get to know decision-makers, search for opportunities, submit proposals and wait for results and funding. If you need to make money now, contracting may not be the way to go. 4 GET REGISTERED. To begin, get a DUNS (Data Universal Number System) number from D&B. You need this to register with the Central Contractor Registration (CCR) system, which you must do in order to get contracts and obtain payment. 5 GET CERTIFIED. When you register in CCR, you can self-certify your business as small, disadvantaged, or women-, minority- or veteranowned. These certifications can give you an edge in competing for contracts, as most agencies “set aside” a certain percentage of spending for these kinds of businesses. 6 LEARN THE BASICS. The Federal Acquisition Regulation (www.acquisition.gov/far) explains all the rules regulating government buyers and sellers. The General Services Administration (www.gsa. gov) is the biggest federal purchaser of goods and services. Being listed on the GSA Schedule opens your business to contracting opportunities. 7 GET EXPERIENCE. Don’t even think about 8 MARKET YOUR BUSINESS. Getting listed 9 10 government contracting unless your business has a track record of success. Past performance is key to landing a federal contract, so you must have a history of customers who will give you excellent references. on a government schedule doesn’t guarantee sales. You still have to market to decision-makers. Use social media tools, networking organizations, and events like those sponsored by the SBDC to network with government buyers in person. THINK SMALL. The federal government isn’t the only game in town. Contracts with local or state governments are a good way to learn the ropes. Visit www.Business.gov for information and resources on doing business with state governments. PARTNER UP. Subcontracting to a federal government prime contractor is another good way to break into government business even if you have limited capital, resources or experience. You can find prime contractors seeking subcontractors at the GSA website. Rieva Lesonsky is founder CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily. com.to sign up for her free TrendCast reports. Cesar Arellanes, Director of the Long Beach Center for International Trade Development (CITD), contributed to these tips. 20 June 2011 1607 FOS master 20110518.indd 20 © FFR- Focus On Fashion Retail 5/18/11 10:50 PM The business of fashion discover. inspire. connect. SHOP OVER 1200 BRANDS OF FOOTWEAR AT the shoe show at MAGIC August 22, 23, 24 2011 SOURCING OPENS ON THE 21st Las Vegas & MANDALAY BAY Convention CENTERS magiconline.com (877) 554 4834 TRADE SHOWS CALENDAR JUNE - JULY 2011 JULY JUNE DATE 22 June 2011 1607 FOS master 20110518.indd 22-23 FOCUS' RATING EVENT LOCATION M W C 2-5 DALLAS APPAREL & ACCESSORIES MARKET DALLAS, TX • • • • • • (214) 655-6100 WWW.DALLASMARKETCENTER.COM ★★ 5-7 DENVER APPAREL & ACCESSORY MARKET DENVER, CO • • • • • • (303) 292-6278 WWW.DENVERMART.COM ★★ 7-9 THE NEW YORK SHOE EXPO (FFANY) NEW YORK, NY • • • • • (212) 751-6422 WWW.FFANY.ORG ★★★ 9-12 ATLANTA APPAREL MARKET ATLANTA, GA • • • • • • (404) 220-3000 WWW.AMERICASMART.COM ★★★ 13-15 SELECT- THE CONTEMPORARY TRADE SHOW LOS ANGELES, CA • • • • • (213) 630-3616 WWW.CALIFORNIAMARKETCENTER.COM N/A 13-15 FOCUS- APPAREL & ACCESSORIES SHOW LOS ANGELES, CA • • • • (213) 630-3616 WWW.CALIFORNIAMARKETCENTER.COM ★ 13-15 TRANSIT- THE LOS ANGELES SHOE SHOW LOS ANGELES, CA • • • (213) 630-3616 WWW.CALIFORNIAMARKETCENTER.COM ★ 13-16 LA KIDS MARKET LOS ANGELES, CA • (213) 630-3616 WWW.CALIFORNIAMARKETCENTER.COM N/A 14-17 MOSSHOES MOSCOW, RUSSIA • • (495) 781-3411 WWW.MOSSHOES.COM N/A 14-17 PITTI IMAGINE UOMO FLORENCE, ITALY • • 39 05536931 WWW.PITTIMMAGINE.COM ★★★ 14-17 PITTI W WOMAN FLORENCE, ITALY 39 05536931 WWW.PITTIMMAGINE.COM ★★★ 15-17 ATLANTA FASHION SHOE & ACCESSORY MARKET ATLANTA, GA (706) 923-0580 WWW.ATLANTASHOEMARKET.COM ★★★ 18-22 MILANO MODA UOMO MILAN, ITALY +39.02.7771081 WWW.CAMERAMODA.IT ★★★ 21-22 CHICAGO SHOE EXPO CHICAGO, IL (312) 943-3800 WWW.CHICAGOSHOEEXPO.COM 22-26 MODE À PARIS- MEN’S FASHION PARIS, FRANCE FASHION SHOW 0142 66 64 44 WWW.MODEAPARIS.COM N/A 23-26 HONG KONG JEWELLERY & GEM HONG KONG, CHINA • (852) 2516-2158 WWW.UBM.COM N/A 23-25 PITTI IMMAGINE BIMBO FLORENCE, ITALY 24-26 RENDEZ-VOUS HOMME PARIS, FRANCE • 25-27 (CAPSULE) MENS PARIS, FRANCE • 26-28 SHOE MARKET OF THE AMERICAS (SMOTA) FORT LAUDERDALE, FL • 2-5 MODE À PARIS- HAUTE COUTURE PARIS, FRANCE 4-7 HONG KONG FASHION WEEK HONG KONG, CHINA • 5-8 PREMIUM MEN BERLIN, GERMANY • 6-8 BREAD & BUTTER BERLIN, GERMANY • 7-8 (CAPSULE) MENS/ WOMENS BERLIN, GERMANY • 15-19 MERCEDES-BENZ FASHION WEEK SWIM MIAMI, FL 17-19 ENKNYC NEW YORK, NY • • • 17-19 MRKET NEW YORK NEW YORK, NY • • 18-19 (CAPSULE) MENS NEW YORK, NY • 20-22 CHILDREN CLOTHING AND ACCESSORIES EXPO SHANGHAI, CHINA 23-26 PREMIUM DUSSELDORF DUSSELDORF, GERMANY • • 27-29 ENKWSA SHOW LAS VEGAS, NV • • • 31-2 AUGUST ACCESSORIESTHESHOW NEW YORK, NY • • • 31-2 AUGUST FAME NEW YORK, NY • • 31-2 AUGUST MODA MANHATTAN NEW YORK, NY • • 31-2 AUGUST ACCESSORIE CIRCUIT NEW YORK, NY • • • 31-2 AUGUST INTERMEZZO COLLECTIONS NEW YORK, NY • • • 31-2 AUGUST CHILDREN'S CLUB NEW YORK, NY © FFR- Focus On Fashion Retail • PHONE THIS ISSUE IS BROUGHT TO YOU BY: • • • • • • • • • • • • • • • FASHION SHOW • • • • • • • • • • • • • ★ • • 39 05536931 WWW.PITTIMMAGINE.COM • • (917) 388-3124 WWW.RENDEZ-VOUS-PARIS.COM • • (212) 206-8310 WWW.CAPSULESHOW.COM N/A • (786) 331-9000 WWW.SMOTA.COM ★★ 0142 66 64 44 WWW.MODEAPARIS.COM N/A • FASHION SHOW • WEB SITE ★★★ ★ • • • (852) 2240-4323 WWW.HKTDC.COM N/A • • • +49 (0)30-629-085-78 WWW.PREMIUMEXHIBITIONS.COM N/A • • • • 49 (0)30 400 44 160 WWW.BREADANDBUTTER.COM ★★★★ • • • • (212) 206-8310 WWW.CAPSULESHOW.COM ★★★★ (212) 489-8300 WWW.MBFASHIONWEEK.COM • (212) 759-8055 WWW.ENKSHOWS.COM ★★ • • (212) 686-4412 WWW.MRKETSHOW.COM ★★ • • • (212) 206-8310 WWW.CAPSULESHOW.COM ★★ • • • +86-571-88393239 HTTP://WWW.CBMEXPO.COM ★★ • • • +49 (0)30-629-085-78 WWW.PREMIUMEXHIBITIONS.COM N/A • • (818) 379-9400 WWW.WSASHOW.COM ★★★ • • (212) 686-4412 WWW.ACCESSORIESTHESHOW.COM ★★★ • (212) 686-4412 WWW.FAMESHOWS.COM (212) 686-4412 WWW.MODAMANHATTAN.COM • (212) 759-8055 WWW.ENKSHOWS.COM ★★ • (212) 759-8055 WWW.ENKSHOWS.COM ★★ • (212) 759-8055 WWW.ENKSHOWS.COM ★★ FASHION SHOW • • • • © FFR- Focus On Fashion Retail ★★★ ★★ ★★★ Show dates and locations were accurate at the time ★ Awful of printing and subject ★ ★ OK to change without notice. Please contact ★ ★ ★ GOOD venues directly for ★ ★ ★ ★ Awesome the latest information. FFR’s ratings are based on reports from our correspondents, contributors, vendors and retailers who attended these events. Ratings reflect people’s opinion of show organization, traffic, convenience and value for attending /participating businesses. LEGEND June 2011 23 5/19/11 7:25 PM CONSUMER BEHAVIOR SHOPPING: Why We Love It and How Retailers Can Create the Ultimate Customer Experience. By Pamela N. Danziger. Excerpts from the book. Part 2/2 The “Pop Equation” Means Success for Retailers to Enhance the Shopping Experience Due to the experiential shift, making a retail concept work today is far less about the tangibles or objective aspects of the business—product, location, price—and all about the intangibles that color and flavor the shopper’s experience in the store. The bar has risen in retail. In order to be successful a retailer must offer an enhanced, truly memorable, and distinctive shopping experience to its customers. The Pop Equation: Field Guide to Shops that Pop In the future retail will continue to transform toward an emphasis on entirely new kinds of shopping experiences. Shoppers are rejecting the old concept of “hunting and gathering” shopping in favor of a more involving, interesting, dynamic retail experience. The profiles of shops that pop in this book are stores on the cutting edge of the new experiential retailing paradigm. The distinctive features they share, called the pop equation, include: • High levels of customer involvement and interaction—Shoppers do not just want to browse the aisles. Shops that pop encourage customers to touch, feel, taste, try on, and participate in the store in a more involving way, like Charlotteville’s Feast! gourmet food store, Washington, DC’s Blue Mercury beauty apothecary, and Atchinson, Kansas’ Nell Hill’s home store. • Evocation of shopper curiosity—Shops that pop excite consumer curiosity to explore and 24 June 2011 © FFR- Focus On Fashion Retail The Pop Equation • Involvement • Curiosity • Contagious • Convergence • Authenticity • Price/value • Accessibility All the stores profiled in the pages to come embody each of these pop attributes to a greater or lesser extent. To show how the pop equation works, let’s look first at The Apple store, a retailer that is so electric it exerts a magnetic pull that draws shoppers into the store. The Apple store—Once You Take a Bite of This Apple, You Can Never Go Back to the Ordinary Computer Store, or Computer, Again. experience, from the shop windows and entrance through the different displays. Atlanta’s Boxwoods Gardens & Gifts lures shoppers through a maze of wonderful displays that promise a new treasure around every corner. • A contagious, electric quality—A shop that pops exudes energy and excitement. They are so kinetic that even shoppers not all that into the category feel there is something in the store for them, like Magnolia Audio Video stores, Cabela’s, the chain for outdoor enthusiasts, or Charleston, South Carolina’s Tiger Lily award-winning flower shop. preceding qualities, plus another essential feature— they are immediately accessible to everyone, free from pretensions of exclusivity or snobbishness. The new lifestyle shopping centers, like Columbus, Ohio’s Easton Town Center, get rave reviews from shoppers because they are so much more accessible than the old-fashioned enclosed mall. Saks Fifth Avenue carefully selects the best-of-the-best luxury and warmly welcomes both shoppers and browsers into the store to experience the best. You might think the Apple store is a new retailing concept by the buzz of activity swarming around every single store front, but the first store opened in Tyson’s Corner Center, Virginia, a DC suburb, in May 2001. Since then over 100 stores have launched, including flagship stores in New York, Los Angeles, Chicago, and San Francisco, distinguished by their larger size and Internet Café from the regular Apple store models. They have recently gone international with a five-story store in the center of Tokyo’s Ginza shopping district and a new double-decker model on London’s Regent Street. A stunning glass staircase in the center of each multilevel store invites shoppers up to the next level. • Convergence between atmosphere, store design, and merchandise—A shop that pops presents a comprehensive vision that captures all the tangible and intangible elements. Colonial Williamsburg Gift Shops and Stores are true to their colonial 18th-century roots throughout, while The Apple stores propel us into the future. • An authentic concept—A shop that pops is more than just a store selling stuff. It is conceptually driven and reflects a visionary’s values. It transcends being just a store into a new realm of experience, like Rapid City’s Prairie Edge where the shopper can touch, feel, and participate in Native American culture through art, crafts, fashion, jewelry, books, and home furnishings. • Right price/value proposition—A shop that pops must offer superior value at a reasonable cost. They aim to get the price/value proposition “right,” and price their goods neither too high nor too low for the value. Pricing is a powerful communicator to consumers of value, and a price that is too outrageously low sends a signal that maybe, after all, the item isn’t worth it. Shoppers value both Target and Nordstrom because they offer an outstanding price/value proposition that pops. • Accessibility, no exclusivity, and freedom from pretensions—Shops that pop have all the © FFR- Focus On Fashion Retail “We didn’t think about the experience in the store. We said, ‘let’s design this store around their life experience,’” said Ron Johnson, senior vice president of retail, Apple. June 2011 25 CONSUMER BEHAVIOR Speaking at a Success for Design conference, Ron Johnson, the former head of merchandising at Target who was tapped to head up Apple’s fledgling retail business in 2000, claimed the company’s grounding in design as the springboard for their success, “I think it is all about Apple’s grounding in design, applied to a different business from products—to a retail strategy.” Johnson describes the feeling the store’s design aims to deliver as high touch shopping that creates an ownership experience for the customer. It’s not just about selling the customer another computer, iPod, or other gadget; it is about building a lifelong relationship with the customer that transcends the time spent in the store making the purchase. Johnson explains, “We didn’t think about the experience in the store. We said, ‘let’s design this store around their life experience.’” Key to the Apple store shopping experience is the store layout, clearly revolutionary in today’s increasingly cluttered retailing environments. With a minimum of product on display, a sparkling contemporary design workspace showcases each computer and piece of peripheral equipment. Shoppers are welcome to get handson with the equipment (with the exception of the hot new nano-iPods, which are in a plexiglass display case to keep these super-minis gadgets out of undeserving shoppers’ pockets), check their e-mail, and give each computer model a test drive. Johnson explains the unique layout of the store is intended to “guide the intellectual and emotional experience of the customer through the store.” In design, The Apple store is more like a public library than a typical computer store with its distinct sections devoted to specialized tasks, like the Apple kiddie table with iMacs displayed on kindergarten-sized tables and chairs. So the front of the store is devoted to products, with a section further back for music and photos, and accessories and software are grouped around the checkout counter on the far back wall where no cash registers are visible, thus reinforcing the feeling that you are not in an ordinary retail store anymore. However, the centerpiece of every Apple store—and what really sets it apart from all the rest—is its Genius Bar, where the real magic of The Apple store experience is conjured. The Genius Bar is where you go for help and someone who wears a badge saying Apple Genius (so you know you are in capable hands no matter what the technical challenge) services you face-toface. Today with most computer technical support delivered only by telephone, Apple lets you bring your troublesome machine right into the bar where you get your very own genius to tackle all the mechanical details. The Genius Bar is the heartand-soul of the Apple store and where you can usually find a flock of people of all ages gathered around discussing this and that and tweaking the innards of some machine or another. In a recent shopping trip to our local Apple store in King of Prussia Mall, outside of Philadelphia, I got my first personal taste of The Apple store experience. My teenaged son who owns an iBook laptop model—required college freshman equipment these days—insisted that I trade in my old-fashioned Microsoft Windows-based machine for a super-cool, easy-to-use, and virtually virusimmune Apple computer. Guess it’s been a while since I went computer shopping, but Apple doesn’t have those big bulky boxes where you plug in all your disks and wires anymore, unless you are a super-computer nerd and want that extra baggage. The sleek new iMac model I looked at came with only an 18- inch flat screen on a stand, a keyboard, and a mouse. The brains of the machine were all inside the screen; no box and no more digging around under my desk when something goes wrong. Moreover, the speed with which the computer could open and run layers of different programs demonstrated it didn’t lose any horsepower by its compact size. If I ever get into trouble, I can pick up the lightweight screen and lug it on over to the Genius Bar. They offer classes that I can schedule on the store’s Web site even before I leave home so they will be ready for my lesson when I get to the store. Best of all, I can use some kind of backup program to make my home Apple machine a virtual Web site somewhere out there in cyberspace. That means when I am in my office on my Windows machine I can tap into any home Apple file with the Web browser. So, I signed myself up for this new Apple computer that I expect to revolutionize my ability to use the computer. Even though the new computer system, software, yearly support, and all will cost around $2,000 or so (about double the price of the last Windows computer I bought), I feel the value is there and thus justifies the price premium. The key value for me is the personalized support. Frankly my problem isn’t knowing what a computer can do, but figuring out how to make it do what I want. In my backward Windows world, there isn’t a soul around to help with the details, but I will now have a computer genius at my beck and call to show me how to do it, hands on, face-to-face. It’s magic and the results for the Apple Company prove they have a shop that pops. The company claims they average about 85,000 store visitors each day. Before launching their stores, Johnson reports, the company’s only direct contact with ordinary customers/users was the Annual MacWorld trade shows, which at its peak drew 80,000 visitors to a single show. Now Apple has personal contact with that many customers each day. The viral-spread of the Apple computing revolution is really starting to pick up steam as it moves from the early-adopter, nerd fringes to the mainstream and definitely nontechno freaks like me. The company has already reached a milestone in the retailing “Guinness book of world records”—Fastest retailer to ever reach $1 billion in revenues. Prior to that, The Gap held the honor. Commenting on The Apple store’s success, Johnson said, “fundamentally, we think what makes our stores successful is the design decision to put the customer at the center, but not the buying experience—the life experience.” That is where the real retailing magic begins, enhancing the customer’s life experience before, during, and after the in-store shopping experience occurs. Johnson recognizes that The Apple store is at the forefront of that revolution, not just for the Apple Company, but for retailing in the 21st century, when he explains that the right concept can change not only a company like Apple, “but can start to influence retailing all over.” Pamela N. Danziger is a nationally recognized expert in undertanding the mind of the consumer. She founded Unity Marketing in 1992 as a marketing consulting firm for marketers and retailers that sell luxury goods and experiences. A highly sought after keynote speaker, Danziger has addressed large conference audiences, including Global Luxury Forum, Global Shop, National Retail Federation, etc. She has appeared on NBC, CBS, Fox News and CNN and is frequently called upon by the Wall Street Journal, New York Times, Businessweek, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune, Women’s Wear Daily and other business and consumer publications for commentary and analysis. She holds a B.A. Degree in English Literature and a Master of Library Science degree. In recognition of her ground- breaking work in the luxury consumer market, Pam received the Global Luxury Award presented by Harper’s Bazaar for top luxury industry achievers in 2007. She is also the author of three books on consumer psychology and behavior. For more information, go to www.unitymarketingonline.com or email her at pam@unitymarketingonline.com 26 June 2011 © FFR- Focus On Fashion Retail Retail 101 DON’T GET CHEATED ON EXTERIOR SIGNAGE A veteran sign manufacturer tells retailers how to protect themselves from the hidden safety, liability, and maintenance risk of low-bid exterior signage By RoBeRt LaURenCeLLe fter years of cost cutting, retailers have unwittingly created a cheating-prone climate for buying external signage. Cheating is more common than you’d think, as retailers have routinely pitted exterior signage vendors against each other to win low-bid contracts, then failed to check if they got what they paid for. Mexico and other locations where there is little quality control. The result can be products with parts that don’t match the specs, don’t meet UL requirements, are poorly constructed, and could even be a liability risk for fire or injury. Because the buyer isn’t typically aware of how to spot these shortcuts and isn’t routinely inspecting for them, they are not often discovered until it’s too late. While electrically powered, external signage may look fine on the outside, subtle shortcuts can pose a fire risk, increase liability, hurt brand image, and cost much more in maintenance and installation. Even national retail brands are not immune to being cheated on signage. For example, when signage supplied to a major oil company by a national sign company on exclusive contract was As a service to the industry, a veteran sign manufacturer not only gives retailers the inside scoop on how such cheating occurs but also details how they can protect themselves from the hidden safety, liability, and maintenance risk of low-bid exterior signage. Spotting the Cheat In today’s price-driven market, many sign vendors are outsourcing part manufacture to 28 June 2011 1607 FOS master 20110518.indd 28 inspected, they found numerous shortcuts including the use of thin, reclaimed sheet metal on the sign’s back; visible gaps, some larger than 1/4”, between sign face and cabinet; and duct tape adhering the sign face to the sign cabinet. A common tactic of unscrupulous sign vendors is to ‘bid and switch,’ that is spec a higher grade part in the bid, but substitute a lower grade part later. Failing to meet spec in power supply, electrical components or wiring carries the biggest fire, insurance, and liability risk. While it may seem like a remote possibility, having a retail chain’s name on signage that’s linked to a mall or strip mall fire can carry serious liability and hurt the brand in the eyes of consumers. Failing to build to local weather conditions, such as for wet, cold winters; dry, hot summers; or excessive humidity is another problem that can accelerate signage failure. Supplying non ULcompliant power components instead of the ULcompliant ones specified can cause problems too. More blatant signage cheats occur as well, such as bidding on a 122” sign, but delivering a 116” one to save on materials. © FFR- Focus On Fashion Retail 5/18/11 10:50 PM A subtle but potentially costly “cheat” takes place in the “one-year warranty” of many signage vendors that actually covers just 90 days before parts and labor become the responsibility of the store owner, franchise master dealer, or retail corporate office. Most retailers don’t realize that the cost of servicing a relatively small sign can cost nearly as much as the sign itself when it’s out of warranty. To safely work on an elevated sign, such as one attached to a building or pylon, can require a crew of 2 to 3 with a bucket truck, which can cost up to $1,500 per visit. Beating the Cheat Retailers looking to beat the cheat on exterior signage, including purchasing agents feeling “nickel and dimed” by tacked on costs for basics like painting the sign, can fight back in a number of ways. vendors of dubious quality out there – when you choose wisely.” Retailers can also protect themselves from shortcuts in quality with the help of third-party partners, who can help ensure that exterior signage meets all required safety standards and specifications, including installation. They can help with signage contract conception, specification, and inspection. By inspecting a percentage of signage at the retail site, at the manufacturing plant, or by having the signage shipped first to them, for instance, such watchdogs can guard against cheating and serve as a deterrent to dishonest low-bid signage practices. By creating signage cheating contractual penalties for or missed specifications, retailers can quickly offset the cost of involving a third-party partner. Multiple instances of missed specifications, if not outright cheating, is very common. “Even if locked into a large multi-vendor contract, you still need an independent third-party partner on your side to protect you from lowbid quality issues,” says Curry. Curry’s third-party partner, in fact, has stepped in to improve signage from other vendors on more than one occasion. “Whether it’s as simple as putting a gasket inside a sign to better protect it from winter weather, or making it more energy-efficient, dealing with our sign vendor helps to take the risk out of low-bid exterior signage.” One of the easiest ways to get quality signage at a reasonable price is to choose a vendor that offers a multi-year warranty, including parts and labor. That way, if anything goes wrong, the signage is promptly repaired onsite, and the retailer has no out-of-pocket cost. Kevin Curry, co-owner of Danby Gasoline Marketers Inc., a convenience store/ petro retailer and wholesaler based in the U.S. Northeast, for instance, has relied on the 3-year parts and labor warranty of their sign vendor. “We chose a sign vender that has even optimized our exterior signage after the 3-year warranty,” says Curry. “The initial price needs to be competitive, and when you consider parts, labor, installation, maintenance, and any extra charges, the total cost of ownership it can be at least 50% less expensive than the low-bid Robert Laurencelle is the President of Signage US, a third-generation, family-owned signage provider based in Meriden, Conn for over 104 years. For more info, call 203-440-9419; visit www.signageus.com; or write to Signage US at 38 Elm Street, Meriden, CT 06450. © FFR- Focus On Fashion Retail 1607 FOS master 20110518.indd 29 June 2011 29 5/18/11 10:50 PM GOING GREEN add Sustainability to Your Collection and “Green” Your Bottom Line Submitted by BrownFlynn in Cleveland, Ohio b y M a r g i e P. F l y n n , P r i n c i p a l & C o - O w n e r Contributing Author: Katherine Kaminski, Associate Consultant At BrownFlynn, we believe in going beyond green. By adding sustainability to your collection—no matter what the season—you can add value to your company’s bottom line. In simple terms, “sustainability” means the capacity to endure over time. In the business community, sustainability is often referred to as “the triple bottom line,” which considers the wellbeing of the “3P’s,”—or people, planet, profit—in all organizational decisions. No matter if green is a term, trend, or just a color in your wardrobe, today’s global market is demanding individuals and businesses to act responsibly by caring for the environment, people and society in general. Sustainability is becoming a timeless classic in the industry, and something that Mayor Michael Bloomberg has even incorporated into New York’s Mercedes-Benz Fashion Week. There are many sustainability issues facing the fashion industry—especially when it comes to environmental and social concerns. Is your company prepared to answer challenging diversity questions? In anticipation of future water shortages, how will your company use raw materials, like cotton, that are water-, labor- and pesticide-intensive? Will your company consider the remanufacturing or reuse of recycled or upcycled materials? What will your company do to promote human rights within your global workforce and give back to local communities? Has your company developed a sustainable supply chain policy or response to climate change impacts or high energy prices? A smart sustainability strategy will help your company prepare for future risk, anticipate shareholder concerns, become environmentally, socially and financially responsible, and establish itself as a preferred provider for consumers and industry peers. Today’s consumers prefer putting their dollars into sustainability-focused companies. For instance, 50% of all shoppers indicate a willingness to pay a premium for a green product. Additionally, 70% of Americans pay attention to what companies are doing, or not doing, regarding the environment. Sustainability also has impacts on current and future employees. 75% of entrants into today’s workforce evaluate firms’ environmental and social responsibility records prior to choosing an employer of preference, and 92% of young workers would choose to work for an environmentally-friendly 3 10 June 2011 company. Considering the top driver of a firm’s overall corporate reputation is the public’s ratings of its products and services, and the second most important driver is the public’s perception of the company’s citizenship (or environmental, social and governance (ESG) responsibility). Therefore, setting a solid plan for your company’s sustainability initiatives is more important than ever. A well-thought-out strategy is smart business, especially since sustainability is often regarded as a management process. In return, businesses will be afforded with new opportunities, innovation and bottom-line success. Some examples of the benefits derived from “greening” your business include: • Increasing revenue and cutting costs • Turning waste streams into revenue streams • Anticipating and reducing risks • Increasing employee attraction and retention rates • Reducing greenhouse gas emissions, waste and water consumption • Creating a healthy workplace • Enhancing relationships with stakeholders and communities © FFR- Focus On Fashion Retail GOING GREEN Many of those in the industry are already realizing the benefits of sustainability initiatives. Some industry players recognized for their sustainability initiatives include: Abi Ferrin, American Apparel; Eileen Fisher, Gap, Inc.; Levi’s Strauss & Co.; Nike; Nordstrom and Timberland. Those in the industry leading responsible initiatives often attest to the importance and value of weaving sustainability into the fabric of the organization, rather than keeping it as a stand-alone department. Several industry best practices are highlighted below: employees across the globe; specific examples include improved healthcare services and access to microfinance in Bangladesh and improved women’s healthcare services in China and Vietnam. Perhaps leading the industry by example, Mayor Bloomberg is encouraging sustainability within iconic Fashion Week through his Fashion.NYC.2020 project. Actionable items that Bloomberg hopes will encourage responsible business practices include: leveraging technology and mobile marketing (to embrace and promote sustainability); taking a hard look at street vendors and quality of life issues; bolstering business in the boroughs, and stimulating tourism. These initiatives consider sustainability as a whole, as well as encourage human rights, innovation, financial profitability in communities and the use of technology. The Fashion.NYC.2020 project focuses on sustainability as a strategy that is best implemented on both a short- and long-term basis. While you can “green” your business overnight by printing double-sided, maximizing design/cutting space on fabric, increasing natural or LED lighting in your facilities, starting a fashion education outreach program in your community or engaging in a product life cycle analysis, sustainability will help your business realize more returns over time as goals are set and targets reached. As a management process, sustainability aims to define a vision and mission which encompasses the triple bottom line; engage stakeholders in dialogue to identify important, material issues; set goals and targets; track data and measure performance against the goals; and communicate successes and challenges—typically in the form of a corporate responsibility report. After all, what gets measured gets managed. Abercrombie & Fitch Supports diversity by encouraging a culture of inclusion that allows them to better understand their customers, workforce and communities. Recruiting strategy has resulted in their store-associate demographics to be more racially and ethnically diverse than the U.S. population and the Federal government. A stylish, sophisticated sustainability strategy is quickly becoming a staple for many companies. Business is no longer focused solely on the financial profitability, but rather the triple bottom line. For the fashion industry, human rights, product responsibility and environmental stewardship are keys to keeping your collection a popular one. Gap Inc. Ties factory compliance to performance of production personnel at the highest levels (Vice President and above). Established a Clean Water Program to monitor their denim laundries’ wastewater discharge; required them to clean up wastewater practices. Levi’s Strauss & Co. One of the first companies to take action in the fight against AIDS/HIV. The first company in the industry to establish a Restricted Substance List which identifies the chemicals that are not permitted to be used in its products or in the production process due to their potential impact on consumers, workers and the environment. Timberland In 2007, introduced the “Green Index®”—a self-measurement tool that focuses on the environmental impact of its products. Implemented its “Sustainable Living Environment” program, which aims to provide a fair life beyond a fair wage to all Timberland 33 2 June 2011 For 15 years, BrownFlynn has been advising companies on how to integrate responsible practices into their business strategies and how to communicate these practices internally and externally for bottom-line impact. Through BrownFlynn Learning, its corporate sustainability education and training division, BrownFlynn conducts workshops, webinars, on-site trainings, conferences and a variety of other venues, to educate companies how to triple their bottom line—environmentally, socially and economically. To learn more, visit: www.brownflynn.com or www.brownflynnlearning.com © FFR- Focus On Fashion Retail OPINION Kelly Osbourne for Madonna’s Material Girl collection (Macy’s) By Kate Benson In today’s hyper-paced, sound bitten world, digital marketing allows a brand to become multidimensional. Not only can a brand be broadened to represent a company and its lines, it is now capable of becoming almost a “living organism.” By becoming digitally inclusive, a brand can give its audience the chance to gain access past the gates – and join the exclusive brand “community.” 34 June 2011 1607 FOS master 20110518.indd 34 © FFR- Focus On Fashion Retail 5/18/11 10:50 PM Internet, but a matter of perfecting the formula – figuring out a way to give the world an immediate glance of your art, and most importantly, somehow make it feel personal. ATTITUDE VS. EGO Technology has immensely affected different aspects of fashion, retail, beauty and luxury industries. The communities of these realms have expanded, allowing anyone to give commentary, display designs, distribute retail goods or communicate ideas and ideals of fashion. Social media has led the way for aspirants – dreamers and competitors, young hopefuls looking to participate in the discussion. These are the ones who love, rather than those who declare themselves professionally obligated. The amateurs coerce freshness out of old perspectives. Their approach is to forgo their Ego in lieu of their Id, making their ideas novel and raw – they perform on a digital stage, one that gives young designers and retailers a platform and instant audience. The Internet, for those who can use it effectively, has only magnified what we already knew about these industries. Now, however, we cannot only see things clearer and faster – but we can participate and self-declare our own voices a designer’s worst critic. Retail must embrace this change, as there is no longer a wall standing between the design and its consumer. CAN DO VS. HAVE DONE It’s not easy to keep secrets from the flash of the media. Some retailers and designers praise this accessibility, as it gives a collection mass coverage. Tom Ford, however, made this approach blasé, with his latest collection last September. Under a hushed veil of secrecy, Ford hosted a fashion show, equipped with cocktails, at his Madison Avenue menswear store. Rather than plucking girls from agencies, he had friends, such as Julianne Moore, Rita Wilson, Marisa Berenson, Daphne Guinness, Beyonce and ItGirl models Amber Valletta, Daria Werbowy and Liya Kebede, sashay down his runway. Ford only allowed 100 journalists present at the showing – he spoke about each model with a sense of knowledge, friendship and humor. His show was full of commentary, encouraging laughter among the audience. Cameras and camera-phone photography was strictly forbidden to prevent immediate streaming of his designs. DIALOGUE VS. MONOLOGUE Ford created buzz for the show by distancing his collection from the one force that designers use to create buzz in and of itself – the Internet. In modern companies, offices are opening up. While the corner office still has a window view, perhaps the CEO is joining the rest of the group, and maybe even sitting next to an intern. This dynamic creates a democracy, a dialogue, which will only better the company as a whole, as it allows young newcomers to lend a fresh perspective to the top heads. The monologue of a CEO is no longer the only opinion in the room – there needs to be a constant conversation about the state of the industry to not only remain relevant, but with hopes of staying above the grain. VISION VS. HISTORY NEW VS. KNOWN What has caused fashion shows to go viral? In a sense, isn’t a fashion show like a movie, book or piece of art? Would you expect a director to produce six Oscar-worthy films within a year? Designers and editors haven’t been given the time to digest a show, when it is demanded that they travel the world season after season producing or critiquing them. The virtual fashion show allows designers to stream their art in real-time. Whether this condensed experience is better or worse than the real thing, is too personal a question. It’s seemingly similar to asking whether emotions can be felt through a text or an email, rather than a handwritten letter. You may be surprised at the range of responses, based on the age of the individual answering. How do well-known brands become applicable to consumers today? Look at companies such as Estee Lauder, TAG Heuer, Chanel or Dior – they are all established, successful and have history. These universal brands need to remain pertinent to a younger audience, one which prefers everything to be of the newest and latest. Buyers no longer just go to the stores, feel the fabrics and see the merchandise on the floor, they are now purchasing based on number crunching, and textures viewed through a computer screen. The collections are endless and there is a constant demand for change. Some designers, such as Christopher Bailey of Burberry, have the vision to take their art and make it mass. They know how to press Refresh and have been praised for their technological savviness. Others such as Alber Elbaz of Lanvin are selfdeclared romantics – cherishing the traditional beauty and history of fashion. It’s not a question of whether such experiences will go on the Commercial endorsements tie celebrities, musicians, or even certain models, to brands. In this way, a brand can associate itself with any celebrity it feels represents its’ personality. An individual can become the face of a brand, and contractually embody the label’s attributes, so that a consumer will see the brand and think of the A-lister, or vice versa. Julia Roberts is now tied to Lancome; Leonardo Dicaprio is associated with TAG; Lady Gaga is MAC’s new It-Girl. All of these brands are able to be compelling because they have chosen ambassadors who can be effective on their behalf. Brand stewardship needs to be positioned at the forefront. People want to hear a compelling story and the best way for your products to tell one is through the brand. Give the consumer a chance to be a brand ambassador because once they become part of your community, they will fight for you, especially if you make it as easy as a click of the mouse. Kate Benson A founding member of Martens & Heads!, Kate has 15+ years of executive search expertise in retail, fashion and luxury for global iconic brands like LVMH and Prada, to start-ups. Her experience within brands and in executive search gives her a keen understanding of client needs and unsurpassed access to industry talent. She is active in industry associations including: the Fashion Group International, Cosmetic Executive Women, and the Society for Human Resource Management. © FFR- Focus On Fashion Retail 1607 FOS master 20110518.indd 35 June 2011 35 5/18/11 10:50 PM FORECAST “Engagement. Collaboration. Sustainability. ROI. Some may call these buzzwords, but I predict these are bottom-line concepts that will drive loyalty marketing,” says Mark Johnson, CEO of Loyalty 360 – The Loyalty Marketer’s Association (www.loyalty360.org). “We’ve got our finger on the pulse of the issues our members are struggling with and the strategies and solutions our experts are focusing on. And all signs point to a very consumer-driven, new school approach to loyalty.” 12 KEY LOYALTY MARKETING TRENDS Johnson predicts these key trends will dominate the Loyalty Marketing Industry: Engagement is the goal. From merchants and banks, to hotels and restaurants, to health care providers and insurance agencies (all but airlines), marketers are embracing engagement. These organizations know that engagement is the process that creates loyal customers, clients and employees. However, most don’t know how to define “engagement,” how to incorporate it into their marketing strategies, and most importantly how to measure, monitor, increase and sustain it. There is a keen focus on sustainability. Customers want to be aligned with socially responsible companies and reward brands that champion the issues they believe in with their purchases and, ultimately, their loyalty. Given customers’ confusion over “greenwashing” and often higher prices for green products, brands that claim to be environmentally responsible need to be authentic and transparent in their marketing efforts in order to achieve true commitment. 37 6 June 2011 Loyalty programs will become more collaborative. Merchants want to work with banks, retailers and other partners. Each wants to work with the other’s members to create unique communities that can provide the value, behavioral information, and insight they cannot get in the market. The need for metrics and quantifiable ROI is profound. Merchants want to work with banks, retailers and other partners. Each wants to work with the other’s members to create unique communities that can provide the value, behavioral information, and insight they cannot get in the market. There is a vast dichotomy between old school and new school incentive programs. The market is moving away from the old school mentality of trying to put a watch into an incentive program with the hopes that it will © FFR- Focus On Fashion Retail FORECAST initiatives will continue to increase their market share, profitability and brand equity. Brands, CPGs, and channel program providers have been disintermediated from their customers. Because the data in the channel is controlled by the merchants; brands, CPGs and channel program providers want to develop strategies that will give them more insight and access and to their customers and dialogue with them directly. Changes in the funding for credit card loyalty programs are shifting costs, which impacts how the programs are implemented and run. The interest in webinars, case studies, and best practices is more and more important to the market. The market has grown tired of hyperbole and is now focused on the companies, processes, and procedures that can drive the behavior, ROI and engagement needed within their organization. The market wants to leverage those organizations that have completed these processes (case studies), understand practical market based solutions (best practices), and have presented them in an ongoing learning process (webinars). Banks are increasingly dissatisfied with their traditional loyalty programs. They are looking for more engaging loyalty/ incentive/engagement marketing programs with different costs models that are unique and provide measurable behavioral change. The interest in open forums and communities to address these opportunities continue to grow. drive ROI and behavior. Instead, the market is looking to adopt the new school mindset, which is focused on data, insight, and sustainable behavioral change. Customers are dissatisfied with old school “what has my customer done for me lately” loyalty programs. Loyal customers want to know what brands have done for them recently ---- and brands need to implement loyalty programs that respond to this opportunity. Focus is on “voice of the customer” to drive bottom line results. Those who engage in a true “voice of the customer” approach within their loyalty, engagement, and customer experience 38 June 2010 Large retailers are trying to leverage their brands. Large retailers want to expand the control, impact and overall direction of their customer experience, loyalty, and engagement marketing initiatives. They want to lead with their brand and increase the efficacy of these brands when developing engagement and loyalty initiatives. There is a large and growing interest in social, mobile, and emerging media. Yet the responses we are seeing suggest that there is still confusion over how to implement these programs. The “vanguard” and the “visionary” leaders in this market at times seem to be more interested in “chest thumping” rather than listening to market opportunities and solving problems. For additional insights, Mark Johnson can be reached directly at markjohnson@loyalty360.org; Tel. 513-290-5147. Loyalty 360 – The Loyalty Marketer’s Association (www. loyalty360.org) is the only organization that addresses the full spectrum of both customer and employee loyalty issues. An unbiased, market driven clearinghouse and think-tank for loyalty and engagement opportunities, insights, and responses, Loyalty 360 is the source business leaders trust for industry metrics, market driven research, actionable case studies, and networking opportunities. © FFR- Focus On Fashion Retail ✄ Focus on Fashion Retail is a direct mail business magazine, distributed ONLY to targeted audience. If you have received this copy of FFR with the mail, it’s because your business’ description matched the criteria set by our advertisers. Please fill out the marketing survey below to be included in our database for a chance to receive FFR occasionally, regularly (or never again) - depending on marketing preferences of our advertisers (US retailers only). If you wish to receive FFR regularly by subscription, filling out the Marketing Survey portion is optional SUBSCRIPTION Send a check/money order ($30 for USA subscribers) along with your address and contact information to our office. International orders- please contact office for rates. Advice for a FREE SUBSCRIPTION: Ask our advertisers or your vendors to pay for your subscription! If your business is important to them, they may agree to by pay for your subscription from their marketing funds. Business Name:_ _______________________________________________________________________________________________ Mailing Address:_ _______________________________________________________________________________________________ City:____________________________________________________ State:______ Zip:______________________________________ Phone:__________________________________________________ Fax:_ _______________________________________________ Name:_ _________________________________________________ E-Mail:_ _____________________________________________ MARKETING SURVEY Please fill out this form completely, answering ALL questions. Incomplete or inaccurate entries will not be considered. I certify that I am: oA Retailer__________________(signature) / oNot a Retailer If a retailer, please tell about your store: Specialty: oMen oWomen oChildren Age Group: oInfants And Kids oTeens o20-30 o30-45 o45+ Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+) Store Type: oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations Merchandise: oShoes Only oApparel Only oAccessories Only oAll Type: oDress oCasual oAthletic oComfort/Slippers oSpecial Occasions oWestern oDance oMedical oShoecare/Footcare oUrban oEthic oBeach oGothic/Alternative/Other_________________________________________________ Best Selling Brands__________________________________________________________________________________________ Notes About Your Store_______________________________________________________________________________________ • Your Primary Business Sources (describe): o Trade Magazines_________________________________________________________________________________ o Consumer Magazines_ ____________________________________________________________________________ o Trade Shows_ ___________________________________________________________________________________ o Internet oCatalogs How Do You Find New Merchandise?: oAt Trade Shows oResponding To Ads oSellers Contact You At Trade Shows You: o Know Exactly What You Need And Who Sells It o Know Exactly What You Need But Don’t Know Who Sells It o Just Looking How Frequently Do You Purchase Merchandise For Your Store?: o Every Month oEvery 3 Months oEvery 6 Months Your Average Purchase Is: oLess Than $1,000 o$1-5k o$5-10k o$10k+ Your Priorities Are (Please RATE, 1 is most important): oPrice oFashion oBrand oQuality oOther________ RETAILER: Please name your 3 biggest headaches to which you want to find a solution: 1._ _____________________________________________________________________________________________ 2._ _____________________________________________________________________________________________ 3._ _____________________________________________________________________________________________ What do you would like to see in trade magazine?_ ________________________________________________________________ ____________________________________________________________________________________________________________ • • • • • • • • Any Suggestions/ Comments to help FFR to become more helpful to your business?____________________________________ ____________________________________________________________________________________________________________ 1607 FOS master 20110518.indd 39 5/18/11 10:50 PM YOUR OPINION COUNTS As a service to our worldwide audience, Focus on Fashion Retail regularly conducts surveys to determine satisfaction with the various footwear, apparel and accessories trade shows and to rank our readers’ favorites. Being an independent media outlet not affiliated with any trade show, we believe that peoples’ opinion must be heard, it adds up to the value of our services as well as serves the needs of the industry. As always, in the closing issue of the year (November) we will be announcing and reviewing the TOP 10 TRADE SHOWS of 2010. For that purpose, we will be conducting this survey throughout the year, offering to rate performance of various shows. Events collected the maximum score will make it to the final list. If you have attended any of the shows listed below and would like to submit your opinion, please do so according to these rules: • Rate the shows you have attended on the scale of 1 through 10, where 1 is awful and 10 is awesome; • You must be an independent observer, not employed by not affiliated with any trade show; • Please rate only those events that you have attended within last 6 months. • You must identify yourself (see opposite side); • Your opinion must be fair and objective; Upon completion, please send this form to FFR. Your personal information will not be disclosed, nor shared with anybody. Show Organization, Planning, Promotion Attendance, Traffic Convenience Services offered at the show Cost of attending/ exhibiting Value for your business (capsule) Mens/ Womens Accessorie Circuit AccessoriesTheShow Atlanta Apparel Market Atlanta Fashion Shoe & Accessory Market Bread & Butter Chicago Shoe Expo Children Clothing and Accessories Expo Children's Club Dallas Apparel & Accessories Market Denver Apparel & Accessory Market ENKNYC Fame Focus- Apparel & Accessories Show Hong Kong Fashion Week Hong Kong Jewellery & Gem Intermezzo Collections LA KIDS MARKET Mercedes-Benz Fashion Week Swim Milano Moda Uomo Moda Manhattan Mode à Paris- Haute Couture Mode à Paris- Men’s Fashion Mosshoes MRket New York Pitti Imagine Uomo Pitti Immagine Bimbo Pitti W Woman Premium Dusseldorf Premium Men Rendez-Vous Homme SELECT- The Contemporary Trade Show Shoe Market of the Americas (SMOTA) The New York Shoe Expo (FFANY) Transit- The Los Angeles Shoe Show WSA show 40 June 2011 1607 FOS master 20110518.indd 40 © FFR- Focus On Fashion Retail 5/18/11 10:50 PM CLASSIFIED ADS PROFITABLE SOLUTIONS EXECUTIVE SEARCH “The Footwear, Fashion and Outdoors Talent Specialists” NOW HIRING • DIR. SALES, in Eastern Europe • VP SALES, Fashion Accessories, USA • LINE BUILDER, Women’s Footwear • DESIGNERS, and more…. Contact: Susan Proffitt susan@jobwish.net Visit the JOBWISH BLOG http://jobwish.wordpress.com/ Join us on FIIN http://www.footwearpros.ning.com LUXURY ACCESSORY SALES AND MARKETING Luxury accessories line is looking for an in-house rep with experience in accessories, handbags, and small leather goods. Our company, Thale Blanc launched last year and has since received press from Genlux, Shape Magazine, Daily Candy, Angeleno, and numerous online editorials as well as sold out collections at Ron Robinson Fred Segal & Saks Jandel. We are currently looking for an energetic sales rep to expand our collection to department stores and luxury national retailers. Preferably 5-10 years experience in luxury accessory sales with a focus on department stores and high-end retailers and network with buyers and agents nationally and internationally. Please send resume to info@thaleblanc.com or call 310.472.2740 to apply. © FFR- Focus On Fashion Retail 1607 FOS master 20110518.indd 41 Line Offered Experienced Independent Sales Representative wanted for established highly successful and motivated women’s fashion forward shoe company. Must have proven growth track with independent and regional retailers. Territories: Southwest, and Southeast. Compensation based on highly motivated footwear experiences. Send Resume to: info@josephgriffinshoes.com BUYING! Let us help you clear out your closeouts, overstocks, returns and cancellations. Please email me at: info@richlan.net RICHLAN INTERNATIONAL SALES DIRECTOR OF MARKETING Rainbow Apparel Companies, Brooklyn, NY The E-Commerce Marketing Director is responsible for developing Marketing and sales strategies for online growth opportunities. • Must haves for this position are a background in Social media, Online Marketing, Email and affiliate marketing, SEO and SEM; • Responsible for coordinating all aspects of the marketing department including web site promotions and initiatives. Primary resource for prioritizing and allocating budgets and resources. • Manage driving e-commerce traffic and demand creation efforts, such as SEO, paid placements, affiliate and social commerce. • Responsible for managing promotional email marketing, list cleaning and customer segmentation. • Responsible for creative direction and design, and manages the relationship between outside agencies and business users. Resume at: Joeychehebar@rainbow-mail.com or kathleen@kreisler-associates.com Attention Fashion Desingers! We are looking for emerging designers interested in showcasing their clothes in our upcoming web series. Contact us for immediate consideration at jacqueline@statusj.com Do you need a loan,funding or financing? We can help! We operate a private loan company, specializing in providing an array of financial and loan products and services to help corporate bodies, individuals and companies find affordable solutions to increase their business. • Obtain additional Working Capital to maintain or increase business. • Provide Customer Financing due to a decrease in available credit. • Real Estate financing, • Start up capital, • Business loan, • Bridge Loans, • Factoring Loans, • Improve Personal Credit Score, • Create Business Credit. Whatever you need as a business owner, whether short-term working capital, funding a retirement plan, providing customers a way to pay for services or creating a better profile, we can help. CONTACT EMAIL: martinlawcesllc@aol.com The Footwear & Fashion Industry Insiders Network Dedicated to serving the needs of industry professionals worldwide. It’s a great place to market yourself & your company for FREE while networking with the people you want to meet. Need a designer, have a sourcing question, want to know what’s hot at retail etc., someone in manufacturing, wholesale & retail with the answer is already a member. www.footwearpros.ning.com June 2011 41 5/18/11 10:50 PM