FOCUS ON FASHION RETAIL, February 2012 by FOCUS ON FASHION RETAIL

FFANY, NEW YORK FN PLATFORM, LAS VEGAS MICAM, MILAN e-mail: pr@antebifootwear.com

1370 Avenue Of The Americas Suite 403 New York, NY 10019 Tel. 212-397-3080

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EDITOR’S LETTER Set your goals high, but aim higher. Hello, and welcome to the new edition of FOCUS! Wow! It’s hard to believe that it’s been our 11th year of continuous circulation. Started in 2001 as a small 8-page booklet, now our baby has grown and is distributed worldwide. I want to share with you a little story. When Focus was conceived and the first issues produced, it was just about anything and everything. The ads were for free and you know what? Nobody wanted to advertise even for nothing… Then, first sponsors, all non-branded wholesalers showed up, and I came with this issue to better brands who told me- Who do you think we are? We sell to Macy’s! We don’t want to be next to… these.

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 COVER PHOTO: Brazilian Model Ana Beatriz Barros wearing diamonds and pearls necklace by Cartier

Ok, we worked harder, made many improvements and eventually reached Macy’s level or acceptance. Then, I approached the next tear of prospects and they went- Who do you think we are? We sell to Nordstroms, we don’t want to be next to… these. Another effort, another success and I am approaching new, better prospects and hear exactly the same- Who do you think we are? We sell to Saks and Barney’s. We don’t want to be next to… these. Fine! We do our best and now we’re reaching all those stores. What can be a better indicator of success? Well… I go to Italy for a trade show and suddenly see the most beautiful shoes and tell the guy- let me help you to get to Saks, Barney’s, Neiman Marcus, anywhere! And he goes- Who do you think we are? Well, the point of this story is- there’s always someone who will be critical of you or what you do. And, there always will be someone who will be critical of them. Don’t worry about satisfying everybody, just try to be the best you can. People laughed at the way this little orphan girl dressed, but that was the secret of her success: she didn’t look like anyone. Read the story and business lessons from Coco Chanel in this issue and get inspired to be different. Take a look at the Trade Shows Calendar to expand your horizons regarding upcoming events (don’t miss FFR’s ratings for better practical use). Review the Spring-Summer 2012 fashion proposals from the world’s top designers and leading brands. Enjoy other articles in this issue, they all are good and prepared for you with one objective- to inspire you to be a better person, and better informed about the business you’re in, the business of where being different and creative is the key to success. I want to thank you for your continuous support and appreciation of our efforts to make this magazine worthy of your interest. 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 4

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table of contents: 4 Editor’s letter 6 Spring/Summer 2012 Fashion Trends

18 Special report: Notes from Couromoda 2012

22 5 Business Lessons From Coco Chanel

24 Trade Shows Calendar February/March 2012

28 Case Study: Attendee

Acquisition And Outlook 2012 Quiz: Does Your Shop POP? Celebrities & Fashion Social Media: Like, Unlike Sales 101: I’m Just Looking, Will It Ever Go Away? 43 Subscription 44 Your Opinion Counts Survey

30 34 36 40

All images and editorials in this issue are subject to copyright law and are the property of FFR and/or the owners/contributors. No images, designs or texts may be reproduced, copied, used whole or in part without written permission.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

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FN PLATFORM FEB 13-14, Las Vegas Convention Center South Hall booth 60402 FFaNY Feb 1-3, 1370 Avenue of the Americas, 3rd. floor New York, New York 10019 212.977.8355 MICAM March 4-7, Pavilion 1 GDS March 14-16, Hall 4 isle A #3 www.titanindustriesinc.com

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E N T R E P R E N E U R O F TH E MO NTH

5 Business lessons from COCO CHANEL “A fashion that does not reach the streets is not a fashion” Lesson 1: Be One Of A Kind

less unique, Chanel was able to become not only a mainstay in the fashion industry but also one of the most powerful guiding forces behind the latest fashion trends.

“In order to be irreplaceable one must always be different,” said Chanel. “People laughed at the way I dressed, but that was the secret of my success: I didn’t look like anyone.”

Lesson 2: Be Bold

Having grown up in an orphanage and being surrounded by the simple black outfits of the nuns that looked after her, Chanel emerged into adulthood with a different view of fashion. She disliked the look of corsets and felt that women were taking on too much discomfort in the name of fashion. “Luxury must be comfortable, otherwise it is not a luxury,” she said.

“In fashion, you know you have succeeded when there is an element of upset,” said Chanel. When Chanel first introduced her jersey and tweed suits for women, she was rebuked by the European critics. But, Chanel gave no matter. From day one, her career had been characterized by her willingness to defy convention time after time. Whether it was through her own personal style or the products she designed, Chanel was audacious and paid no attention to those who didn’t see eye to eye with her vision. “The most courageous act is still to think for yourself,” she said. “Aloud.”

With that opinion, Chanel set out to bring her unique vision to the fashion industry. She was a resourceful woman who tried to bring her creativity to her products in a distinctive way. For instance, Chanel grew tired of holding her purse and became the first designer to ever attach a chain to a purse. A fashion faux pas at the time, it was only a matter of time before Chanel’s invention had become the latest fashion trend. Soon, more purses than not would have chains and straps attached thanks to Chanel’s unique vision. It was Chanel who introduced the world to numerous fashion trends that were unheard of at the time, but which soon became the industry standard. When she wanted a shoe that would flatter her foot and give the appearance of a longer leg, Chanel created her famous two-tone sling-back, a shoe that was tan at the foot but black at the toe. This had never been done before and it took a visionary like Chanel to see that it was possible. It was this kind of problem-solving that Chanel brought to all of her product lines that allowed her to be so successful. Her designs weren’t like all the others; they were unique, they were simple, and they were practical. Chanel introduced the women of the world to the sailor blouse, stretch jerseys, costume jewelry, cashmere cardigans, chic waterproof raincoats, and most famously, the ‘little black dress’, which even today remains a basic necessity in almost every woman’s wardrobe. 22

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Chanel was an innovative force in the fashion industry despite the fact that she felt the constantly changing nature of fashion trends was a little on the ridiculous side. “Innovation! One cannot be forever innovating,” she exclaimed. “I want to create classics.” When Chanel No.5 was released, it was not only the first perfume to bear a designer’s name, but it also had a distinctly masculine scent and bottle that set it apart from its competitors. Yet again, Chanel had created something unique that would prove able to stand the test of time; throughout the 1990s, the company claims to have been selling one bottle of Chanel No.5 somewhere in the world every thirty seconds. By creating classic pieces that were nonethe-

She created her signature scarlet lipstick before such a color was ever envisioned for a proper lady’s lips; she wore open-necked shirts when everyone else was buttoning theirs up; and she wore trousers that showed off her ankles which only men had been able to do before. “Success is often achieved by those who don’t know that failure is inevitable,” said Chanel. She ignored the critics and continued embodying her bold vision of fashion and femininity. During the First World War, when Chanel was just starting to grow in prominence, she ran into trouble. Fabric supplies were running low the world over and she did not know how she was going to continue designing her clothes. She could have given up, closed down her business, waited for the war to end and hoped that she could begin anew afterwards. But, giving up was not in Chanel’s nature. Because Chanel had always loved wearing men’s clothing and borrowing clothes from her partners’ closets, she came up with a bold new idea to use jersey to make women’s dresses. Before Cha© FFR- Focus On Fashion Retail

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nel, jersey was a fabric whose use was limited to men’s underwear. It was unthinkable that the same material that was used to create men’s underwear should be used to make fashionable dresses for proper ladies – unthinkable to everyone but Chanel, that is. She was willing to take that bold first step and soon, her jersey dresses were all the rage. “How many cares one loses when one decides not to be something but to be someone,” said Chanel. When she accidentally singed her hair, instead of worrying, Chanel boldly decided to chop it all off. Would her new hairstyle ruin her image of femininity and class? She wasn’t worried. She showed up to an opera with her radically short tomboyish hair and almost immediately, she had created the latest fashion trend. The next day, women everywhere were going to hairdressers to demand this new hairstyle, called the ‘bob’.

During the 1930s, Chanel came as close as she ever would to marrying. She was the mistress to the Duke of Westminster, one of Europe’s richest men, and was due to marry him but in classic Chanel style, she changed her mind, explaining, “There have been several Duchesses of Westminster. There is only one Chanel.” But, it was during her time with the Duke that Chanel got her

Lesson 4: Leave A Strong Impression “Dress shabbily and they remember the dress,” said Chanel. “Dress impeccably and they remember the woman.” Chanel understood the importance of appearance to getting ahead in the business world. Looking her best wasn’t just a matter of wanting to feel feminine or being attractive for Chanel, it was also a way to gain respect.

Lesson 3: Be Inspired

Chanel’s fame came almost as much from her personal exploits and relationships as it did from her designs. From Picasso to Salvador Dali to Stravinsky to Diaghilev, Chanel became a companion to many of the most powerful and talented men of her time. But, she wasn’t just idling her time away in their company. Instead, Chanel was using them for the inspiration they were providing her. © FFR- Focus On Fashion Retail

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Throughout most of her career, Chanel made her home in her beloved Ritz Paris, in which her suite continues to be named after her to this day. Her view overlooked the Place Vendôme, a hexagonal open area in the centre of Paris. It was this shape that inspired many of Chanel’s creations, including numerous watch faces as well as the stopper for the Chanel No.5 perfume bottle. “A fashion that does not reach the streets is not a fashion,” Chanel once said. Not only did Chanel bring her fashion to the streets, but she was also able to take fashion up from the streets, using the personality of a city and its natural environment to inspire her creations. The simplicity of this approach was a large part of their appeal; a simple flower on the side of a handbag would bring more elegance than a thousand tiny frills and laces. Chanel understood that message and made it the basis of all her creations. She took the beauty from the world around her and transformed it into beautiful products that could sell.

“I’ve never done anything by halves,” said Chanel. Her career was characterized by a willingness to be bold, to take risks, to defy convention and to challenge stereotypes. She ignored society’s rules and created a style all her own. It was her readiness to be daring and follow her own path that set Chanel apart from her competitors and attracted loyal customers the world over. She offered women exciting new propositions and in opening the door to a new world of fashion freedom, Chanel turned the industry on its head.

“Fashion is not simply a matter of clothes,” said Chanel. “Fashion is in the air, born upon the wind. One intuits it. It is in the sky and on the road.” A passionate woman, Chanel found the inspiration for her designs in the simplicities of her everyday life. From the closets of her lovers to the time she spent outdoors on her frequent fly-fishing expeditions, Chanel never stopped seeking out ideas for new product lines.

come one of Chanel’s classic trademarks.

inspiration for her soft-belted coat, tweed jackets and blazers, sailor sweaters and cuff-linked shirts. She had borrowed his wardrobe to create a sense of style all her own. Chanel also sought inspiration from the natural environment around her. She had an enduring love for the camellia, a large, delicate flower whose leaves are simple and arranged in an alternate pattern. She became infamous for trying to immortalize the flower in fabric and for wearing a white camellia herself on many occasions. The camellia is said to represent radiance and purity and was soon being placed on Chanel bags, belts and jewelry, in addition to clothes. This simple flower would be-

When Chanel first started her own business, she did so at a time when it was almost unheard of for women to be calling the shots. She had to struggle to break into the male-dominated industry and knew that in order to do so, she would have to present herself as well put together as possible. Chanel believed that it was a simple fact of life – the more beautiful the woman, the more successful she would be. “I don’t understand how a woman can leave the house without fixing herself up a little – if only out of politeness,” said Chanel. “And then, you never know, maybe that’s the day she has a date with destiny. And it’s best to be as pretty as possible for destiny.” Chanel didn’t create her products with just beauty in mind; she didn’t want women to be Fe b r u a r y 2 0 1 2

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E N T R E P R E N E U R O F TH E MO NTH During the war, Chanel had begun a relationship with Hans Gunther von Dincklage, a German Nazi officer who was 13 years younger than her. It was von Dincklage who protected Chanel at the Ritz Paris. But, once the war was over, Chanel found that her difficulties were just beginning. Her reputation in the public’s eye was destroyed because of her association with the Nazis. Chanel believed that her career as a designer had effectively come to an end. She was 56 years old and she was giving up. Relying primarily on the continuing sales of her perfume as her income, Chanel became a recluse and tried as hard as possible to stay out of the public eye. For fifteen years, the world saw little of Chanel and, except for her name lining the shelves of perfume departments she had faded into the background. It was in 1954 when Chanel decided that she wanted to make a comeback. Numerous reasons are given for her return; Chanel wanted to stop the rise of Christian Dior, who was bringing women back to an era of tight, restricting clothing; sales from her perfume were falling; and she was just plain bored.

beautiful just so they could leave their houses. She wanted women to be beautiful so that they could leave their houses and become someone, to do something important. Chanel knew all too well that in order to succeed in any industry, it was important to present yourself as the success that you dream of being. And, for her, it was important to feel like a real woman. “The more feminine a woman, the stronger she is,” said Chanel. She once joked that, “A woman who doesn’t wear perfume has no future.” Chanel was a staunch believer in the importance of personal appearance as being a contributing factor in one’s professional success. In the 15 seconds it takes for someone to make a first impression, Chanel believed it was important to fill that time with nothing but elegance and class. Beauty, according to Chanel, was something that was attainable by any woman who put any effort into it. “Nature gives you the face you have at twenty,” said Chanel. “It is up to you to merit the face you have at fifty…a woman has the age she deserves.” Investing in your appearance was an investment in your future, according to Chanel. By presenting yourself as an elegant, youthful and refined woman, she believed that you were com-

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municating success itself. If you dressed the part, you could achieve the part. Although she spoke mainly of femininity and would never have defined herself as a feminist, Chanel’s contribution to the emancipation of women is indisputable. It was this desire to help women feel beautiful and successful that kept Chanel working in the industry until the day she died. “I love luxury,” she said. “And luxury lies not in richness and ornateness but in the absence of vulgarity. Vulgarity is the ugliest word in our language. I stay in the game to fight it.”

Lesson 5: Take A Second Chance World War II proved to be a turning point in Chanel’s career. Despite being wildly successful, Chanel decided to close up shop in 1939, when France declared war on Germany. She closed the doors of her stores and stopped designing altogether. While other couturiers were leaving the country, Chanel decided to remain in her beloved Ritz Paris apartment. It was here where she would live out the controversy that was soon to surround her life.

Regardless, Chanel was now in her seventies and would be competing against a fresh, young crop of designers. Could she handle the challenge? She believed so and armed with that faith in herself, Chanel set out to find the financing she needed, assemble her staff, and find the fabrics and equipment she required to reinvigorate her company. She was, in essence, starting all over again. In 1954, Chanel launched her first comeback collection but it was not the success she had envisioned. European fashion critics dismissed her line as the same old thing and believed Chanel had passed her prime. America, on the other hand, embraced her new collection and within three seasons, Chanel had regained her position atop the fashion industry. She gave her classic Chanel suit a makeover, along with her handbags, jewelry and shows. Soon, Chanel had become a status symbol for a brand new generation of wealthy women and celebrities. She had disappeared from the industry for over 15 years. When Chanel returned, she had to fight not only a tarnished reputation but now her younger competition as well. She had been written off and was considered past her prime, but Chanel persevered to regain her fashion crown. Chanel knew she had a fresh wave of ideas and energy coming to her and she set out to claim her second chance to use them. Reprinted with permission from www.evancarmichael.com

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Social Networking Sites and Events

Mobile Applications

Social networking sites are not connecting with eventgoers as a platform for engagement and discussion yet.

Use of “at show” mobile applications.

Percentage of event-goers using social networking sites to keep up to date with events they have already attended.

If you were creating a “trade show wish list”, which of the following offerings would you include? N=298

10% - Facebook show page 6% - LinkedIn show or industry group 2% - YouTube 1% - Twitter (#showname)

Mobile application most likely to be used “at show”.

Secondary features of “at show” mobile applications.

Map of show floor

Show program (e.g. class schedule, live demos, etc.)

Below are selected descriptions of what event-goers like or don’t like when following a show via Facebook, Twitter, etc. These are direct quotes from event-goers. Like

Don’t like

• LOVE when they showcase vendors and new product. • Loved online catalogs available long after show. • Place and date and description of the event as well as examples of what to find. • Want new info not rehash. EventSurveyGroup.com

• Do not like cutesy or social remarks about show, want more factual info.

Have you used an “at show” mobile application? N = 297

• Endless chatter from people just wanting to post something regardless of it’s relevance to the event. • I don’t like seeing trade shows on these sites because you must join each of them, tradeshows that I may only want to read about not join or be a part of. I think trade shows on these sites should be open so we can read about the show. • Message posts that are veiled ads or solicitations.

Yes

15%

No, but I’m interested in this concept

54%

No, and I’m not interested

31% EventSurveyGroup.com

Attendance Outlook Attendance outlook by event type. In the next year or two do you expect to spend more time or less time at each of the following events? N = 319 In-person exhibit hall Webinars (without exhibits) In-person education sessions

n More time n Same amount of time n Less time

Teleconference Virtual events (with exhibits) EventSurveyGroup.com

Event Survey Group, headquartered in Los Angeles, CA, offers market research and consulting services for event producers as well as organizations designing products or publications for professional groups. Founded in 2006, Event Survey Group has defined itself as a consulting firm by implementing technologies to collect usable data and developing action plans to improve client business outcomes. For more information visit www.eventsurveygroup.com. © FFR- Focus On Fashion Retail

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TEST

Quiz: Does Your Shop Pop? - TEST TEST TEST TEST

By Pamela N. Danziger

1. Pick the statement that best describes your store: A.

My store is a destination for my customers. I am continually hosting special events, serving food, or just talking to my customers. They tell me they want to come in because it is a fun place to be.

My store is very practical. Customers come in to get what they need; easy in, easy out.

2. Pick the statement that best describes your store: A.

My store is very straight-forward. You can tell from the sidewalk exactly what you will find inside and exactly what is going on.

My store is multi-layered. You are engaged by the interesting window displays and view from the outside, then you are drawn in to a variety of unexpected sights, sounds, displays, and products.

3. Pick the statement that best describes your store: A.

My store has soul. I am excited to go to work most days, and my employees feel the same – and so do our customers. They comment on the positive, festive atmosphere they find inside our door.

I focus on function. If I want to build an electric atmosphere, I will construct it with music or design; it isn’t something that “just happens.”

4. Pick the statement that best describes your store: A.

I want my store to be organized. I am always looking for the best way to display more merchandise in a neat fashion in the same place.

I want my store to allow for synchronicity. I am always looking for ways to let my customers discover my store and its merchandise during their visit.

5. Pick the statement that best describes your store: A.

My store has a vision and a mission that go beyond simply selling products. We focus on a bigger picture.

We’re a store; we sell things. Isn’t that the mission of a retail establishment?

6. Pick the statement that best describes your store: A.

Customers are looking for the lowest price. I can spark an increase in sales by lowering the numbers on the price tags.

Customers are looking for value. I can increase sales by helping customers understand why they are getting a great product for the amount of money they are spending.

7. Pick the statement that best describes your store: A.

My store is all about openness. You never know who might be your next big sale, so we open our doors wide to make welcome everyone who wants to share in the experience we create.

My store is exclusive. The customers who feel comfortable here know that they are part of a very select group of shoppers, kind of like a private club. For the answer key go to page 32

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TEST

Quiz: Does Your Shop Pop? - ANSWER... ANSWER... ANSWER... 1. CORRECT Answer: A Bravo, your shop pops through building intense customer involvement and interaction. You have transformed your store from a place simply to buy products to one that is a true customer experience. You engage customers’senses with delicious smells, good food, great music, interesting conversation, and/or the tactile experience of touching and interacting with the products. You don’t just invite people into the shop; you want them to becomeinvolved.

If you answered B… It is good that you make your shop accessible and easy for your customer to get in and find what they want. But research study after research study has found that the longer a shopper stays in the store the more they are likely to buy and to spend. Further, the more they touch, feel and interact with merchandise in the store, the more likely they are to make purchases. So in order to make your shop a true destination, you need to find ways to increase customer involvement and interaction.

2. If you answered A… It is good that people understand your store and what kind of merchandise they can find in your store, but you are missing a HUGE opportunity by not leaving more to the shoppers’ imagination. Curiosity is a powerful motivator for shoppers. It is what draws them into the store, pulls them down the aisle, and makes them turn the corner. Instead of laying it all out for them, you need to put some surprises into your store to excite them today and bring them back for more surprises in the future.

CORRECT Answer: B Bravo, your shop pops by evoking curiosity in your shoppers. You customers have come to expect the unexpected when visiting your store. That is why they visit and visit often, to see what is new, what is fun, what is happening in your store. They never know what they will find from visit to visit and that is what compels them to stop by regularly and frequently. You continually change up your store by tweaking products, promotions, music, or displays. That is what builds curiosity and makes shopping in your store a true experience.

3. CORRECT Answer: A Bravo, your shop pops by creating a contagious, electric quality in your store. In other words, it’s got soul. Customers feel the excitement and electricity from being in your store whenever they visit. The electricity results naturally from the enthusiasm that you and all of your employees feel simply by being in the store and offering such a wonderful shopping experience to the c ustomers. If any of your staff doesn’t live up to that level of excitement and doesn’t have the spirit, but brings the feeling down, then they don’t have a place on the payroll. Only passionate, upbeat, enthusiastic, and caring people work in your store. 32

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If you answered B… Good, but you need more excitement and electricity flowing directly from you and your staff to the customers. Creating a more vibrant atmosphere in the store takes more than pumping up the music or designing displays. A shop that pops has a kinetic quality that arises organically from the people, both the staff and customers, in the store. It is the dynamic energy that results from excited, passionate people interacting with each other.

4. If you answered A… It is good that you have a neat, well-organized store, but that isn’t enough to make your shop pop for customers. You need to use the physical elements that make up your store – the merchandise offered and the way it is displayed and organized for sale – to stimulate the customers emotionally to buy.

CORRECT Answer: B Bravo, your shop pops by creating a convergence in atmosphere, store design and merchandise that creates an exciting experience for the shopper. “Expect the unexpected” is the motto for your shop. In your store, customers don’t find cookie cutter organization or displays; rather, they are continually happening on surprises that satisfy desires they didn’t know they had. There is a surprise around every corner, which only stimulates them more to experience more of the store today and visit again tomorrow.

5. CORRECT Answer: A Bravo, your shop pops because your store is more than just a place to buy ‘stuff.’ The concept behind your store is bigger than just being a retailer. You have a mission in your store. It aims at a higher purpose than just selling goods. You see your business and your relationship with your customers as more than just a business relationship. You are looking out for the good of your customers and one of the ways you do that is by selling them products than help them satisfy their longings.

If you answered B… Right, the mission of a store is to sell stuff, but to make a real impact on your customers, you need to think in bigger terms. Ultimately you need to find a concept that propels your store into the future and it is more than being a gift shop, or a home furnishings store or a fashion boutique. For example, the owner of a fashion boutique sees her business not simply that of providing her customers clothes. Rather she delivers a much more profound experience to her customers. She helps her customers discover their personal style. In other words, her business is personal transformation, not selling clothes. © FFR- Focus On Fashion Retail

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6. If you answered A… True, customers are looking for good prices, but finding cheap prices is hardly the most important reason in why people buy. The fact is, using cheap prices as your primary competitive strategy is terribly weak, since some other store right around the corner can offer virtually the same merchandise for less. To make your shop pop, you have to use more than just cheap prices to entice shoppers into your store. You need to focus on delivering the ultimate value to your customers, and people know that true value doesn’t come cheap.

10 TIPS FOR THRIVING IN AN UNCERTAIN ECONOMY By Rieva Lesonsky

With economic uncertainty the “new normal,” how can your business move forward? Here are 10 tips that will help you not only survive, but thrive.

Tighten your belt. Running lean and mean is essential for small businesses hoping to stay competitive. Look for ways to trim costs whenever you can. Eliminate unnecessary expenses like redundant subscriptions, phone lines or memberships. Review agreements with key vendors annually.

Adjust prices. Don’t let rising costs for inventory, materials or supplies take you by surprise. Monitor trends and be ready to increase prices as needed to stay profitable.

Find new customers. In tough economic times, keeping a steady supply of new prospects in your sales pipeline is more important than ever. Don’t skimp on marketing activities that help your business generate leads. Consider expanding to new markets or targeting a different subset of customers.

Get creative with hiring. You probably need more manpower, but hiring full-time employees is not the only option. Look for lowercost solutions that also offer flexibility, such as retaining temporary employees, part-time workers or interns, or outsourcing to independent contractors.

Maximize productivity. Make sure your staff has the tools they need to be productive. Create systems and processes that streamline operations, and provide training so employees know how to use them.

Harness technology. Technology tools like tablet computers and smartphones for your team can quickly pay for themselves in increased productivity. Assess what IT changes make sense for your business. A small outlay to upgrade technology is worth the cost if it helps you stay ahead of the competition.

Use social media. Social media is a buzzword for a reason. As more and more Americans join social networking sites, social media is influencing everything from the stores and restaurants customers visit to the services they use and the products they buy. If you haven’t yet explored this marketing tool, make 2012 the year you do so.

Monitor your cash flow. Slow-paying customers can put your business at risk. Get accounting software and learn how to use it. Then track your cash flow on a weekly, even daily, basis, and take action to speed income and delay outflows.

Keep up with trends. Now more than ever, you need to know the trends brewing in your city, your industry and your market. The needs and wants of both consumers and business-to-business customers are changing rapidly, and if you don’t keep pace, you’ll get left behind.

CORRECT Answer: B Bravo, your shop pops because you focus on the value side of the price/value equation. You know your customers look first at the value you offer in your store, then decide if the price you ask for an item is fair. You recognize that price can’t be the reason why people shop in your store. You give shoppers other reasons to shop, rather than just a promise of cheap. At the same time, your customers know you are fair and that you strive to give them the best value for their money. They trust you and know you are looking out for their pocketbook, as well as your own.

7. CORRECT Answer: A Bravo, your shop pops because your store welcomes all kinds of shoppers into your store. Your shop is highly accessible, non exclusive and totally free from pretension. The most important message your store sends to customers is, “You are welcome here and we are delighted that you chose to spend some time visiting with us.” You recognize that every shopper in your store should be treated like you would treat a guest in your own home. You make customers feel comfortable and at home so your store is a truly nice place for everyone to visit.

If you answered B… It is good that you have group of customers who feel that they belong in your store, but how can you possibly grow your clientele if you don’t make newcomers feel welcome? You need to fight exclusivity to make your store accessible to a wide audience. You need to make everyone feel welcome and not excluded. Pamela N. Danziger is a nationally recognized expert in understanding 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 © FFR- Focus On Fashion Retail

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10. Think strategically. To succeed in business today, you must stay

one step ahead of the game. Consider how the trends you’re monitoring will affect your business and your competitors in the years to come. Develop a plan for dealing with threats and taking advantage of opportunities.

Source: Small Business Development Center (SBDC) Network, www.smallbizla.org

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S oci a l M e dia

Social Media: like, unlike By Mercedes Gonzales for Focus on Fashion Retail

f anyone reading this hasn’t jumped in feet first into the social media world, you may not be missing out on much. Having spent much of last year working on growing my social media exposure, there are a few things I’ve learned along the way. I have been tweeting for 3 years and have tweeted over 7000- 140 characters of wisdom. Well, I like to think they are. My Facebook page has a less than average number of “likes”- 208 for Global Purchasing Companies and 164 for Dovetail Clothing Company. Seems that people “like” me more as a person- 491 friends on my personal page. I’ve gathered this information from using my own companies as the testing grounds and this is what I have learned. You can’t ignore or wish away social media, it’s here to stay and it’s not just “something the kids do”. Every credible business must have, at the very least, a Facebook page and a Twitter account. How you use them is going to depend on the type of business you have and what you would like to accomplish. Some of the most important moments of the year have been predicted or reported on Twitter. It saved lives on March 11 when @abcnew.au reported that a Tsunami was going to hit the coast of northeast Japan in 15 minutes, and a family was found alive after a tweet giving their locations during the aftermath of the Turkish earthquake. Twitter has been able to report the news as it happens. Remember the local man in Abbottabad that reported a helicopter hovering over the predawn sky in Pakistan? He unknowingly was tweeting about Osama bin Laden’s raid. It’s shared funny moments, like when Julia Probsta, deaf since childhood and huge soccer fan, reads the lips of the players and live tweets their comments during the game. It’s also united us, such as after the London riots when people rallied on Twitter and Facebook with a “brooms up” call to help clean up after the chaos. It has shared points of view, entertained and educated us on how small and fragile our world is, and most important, it has liberated us. Your Facebook/Twitter is a great way to engage your consumer and have them become 38

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interactive with the brand. They can become cheerleaders, brand ambassadors and through word of mouth, your best asset. The challenge is to get them to care enough to want to “like” you, never-the-less get them to post on your wall and spread the news. Keep in mind there are many advantages to just listening to them and not really posting much about yourself. This works best for designers/brands. You really want to be able to understand the consumer in the most intimate way. They will tell you everything from what they had for lunch to where and how they like to shop. By finding friends on Facebook or by using the # (hashtag) to find keywords that are important to you (and your business) you will start to follow and learn from a very specific target market. Think of it was a cyber focus group. Getting them to care is really the most difficult part. At Dovetail Clothing we used my personal base of friends to send invites to “friend” the company. Some did, some didn’t. We used the hashtag on Twitter to find people that had a similar profile to our target market and started to follow them. We looked at who they follow and followed those people. There is an unwritten rule on Twitter that if I follow you, you should follow me. You might notice that some people of an equal number of followers to following; to me this defeats the purpose. Twitter isn’t a popularity con-

test and if you treat it as one you will soon regret it. So once you get a few followers it’s important to start an interesting stream of tweets. We have found that most followers will re-tweet or comment on your post early in the morning and in the evening. Once we get a few followers that we find to be “tribal” leaders we invite them to be our friends on Facebook. We have also tried to get them to have their friends to like us. We offered a gift if they re-tweeted our post to their friends. We got 10 people to re-tweet. We had a t-shirt design contest where the winner would get $500 plus their name on the t-shirt label. We got zero response. We’ve done polls and asked questions all with very little response. “Is anyone out there?” was the daily question in our office. Then Irene hit. My retail location was flooded out. The first few days, I posted about its progress but soon I grew weary and stopped posting on the store’s Facebook page. A week or two passed by, when I started getting postings on the stores wall; “Are you alright? When will the store reopen? Will you open in a different town?” Low and behold they are out there! I just didn’t really give them a good enough reason to want to post. Let’s face it, we all are time poor. Don’t ask me about those that play Farmville and Angry birds all day, but most of us don’t have time to check who’s doing what, and when we are asked to answer anything that takes time, forget it. So I started to study those Facebook sites that have incredible interaction to see what they had in common. n They all address the good, the bad and the © FFR- Focus On Fashion Retail

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ugly in a timely and funny matter. Let’s face it, there is always going to be someone, somewhere who wasn’t happy with the product or service. You will win over more friends by how you handle the situation, plus it’s just not credible to not have any negative comments. n They educate and keep you informed. We are finding that 80/20 is the mix you want to keep with your social media. 80% should be fun or educational. On the Global Purchasing Companies’ Facebook and Twitter (which are linked saving time) I like to post retail business related stories. This saves my followers time in reading all the massive amounts of information since I have edited it. Great news is that now most stories offer an icon so you can link the story right to your social media of choice. 20% are postings of workshop dates and events I am speaking at. n They give you special privileges, insider updates and discounts. Everyone wants to be the insider. By offering them limited edition items, early bird discounts, before a sale and the “scoop” before it hits the press, they feel they are part of a VIP group

and more likely to “talk” about your brand. n They create a little drama. Mattel woke up Barbie sales after a long slump. Barbie had just broken up with Ken, and Bratz dolls were hitting Mattel’s bottom line. Mattel used the popularity of other websites to draw attention to the single Barbie and Ken by posting profiles on match.com. Fans were encouraged to vote if Barbie should take Ken back. All the voting could be done on the Facebook page. Everyone likes playing matchmaker. n They stand for a cause. Everyone likes the idea that they are contributing to a cause, but they consider it a “value added”. They don’t want to pay more or make a donation but they are more likely to pass on the information to a friend if you have an interesting talking point. You could offer a $1 donation to a charity of choice for every “like” the Facebook page gets.

Emails are part of the whole social media world and it’s important that they look and are professional. Use a service like Constant Contact. They will help you put together your email blast, track it and also offers the clients receiving the emails the option to “op out” which is now the law to do so. Tracking is a key component to email marketing. You want to check who is opening your emails and who is passing them on (forward) to someone else. So you might be asking yourself “do I even need a website?” The answer is yes. While Facebook does offer some e-commerce, it’s limited and it doesn’t seem to be very effective. You are able to post items for sale on their “market place” or by adding a shopping tab on your tool bar. I have yet to have anyone clicking on anything I have posted for sale. The “big” brands seem to be more successful but what I found was a link from their Facebook page to their website. If you are planning on just using social media as a form of advertising, beware that it does cost money and it takes a lot of time to update. I suggest you take out ads with Google Ad Words to drive traffic to your site. I wouldn’t spend money on Facebook ads that only get the person to “like” your page since I haven’t found evidence that the person liking the page will engage it right away. A simple plan of action would be to run one email campaign a month. Most of it informative fashion tips, trends and brand reviews. Part of the email would be on what’s happening in the store, events and sales. Most services will tweet and Facebook your email to those online but not on your email list. The informative part of your email then gets posted on your website. Side note- the more text (words) you have on your webpage the higher in ranking you go on Google. On your Facebook page you’ll post photos from the past events encouraging all your customers to post their favorites. Send out daily tweets with fashion and celebrity news. Become the “go to” credible expert that your followers have come to rely on.

About the Author:

Mercedes Gonzalez is the director of Global Purchasing Group a retail strategies company that offers workshops & training. www.globalpurchasinggroup.com; @mercedesgpc twitter

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SALES 101

“I’m Just Looking”: Will It Ever Go Away?

e all hear it and we all wish we didn’t. It’s a phrase that’s been around for a long time and shows no signs of fading. I, for one, am waging a full-scale attack on “I’m just looking.”

Your whole goal in life should be to avoid hearing it so you can find out what the customer wants, needs and desires. Only then are you able to assist them. “I’m just looking” is just one of the obstacles set up on your sales course.

By Harry J. Friedman Founder/CEO, The Friedman Group

However, schmoozing can’t go on forever. There comes a time when you have to get around to the business at hand and make the sale. The transition is made by asking the customer, “So, what brings you in today?” I prefer phrasing it this way for several reasons, one of which is that it sounds very non-threatening and casual to the cus¬tomer. It also can’t be answered by yes or no, so your chances are already better than they would be with “Can I help you?”

Unfortunately, even if you’ve schmoozed well with the customers, the moment you fi¬nally ask about business they revert right back to being deIt’s the customers’ weapon. It is simple, fensive and say “I’m just looking.” They still don’t yet effective. My weapons are likewise simrealize they’re saying it! Never fear! A technique If you know ple, yet effective. But I have a wider variety called the take-away could be the answer. When anything about my selling system, you know I of weapons, coupled with a strategic defense plan the customer says they are just looking, you smile talk about schmoozing with the customer as opfor maximizing their success. They are techniques and say, “Well great! What kinds of things are you that prevent “I’m just looking” from looking for?” Think about it for a moeven occurring and techniques for hanment. If the customer isn’t even aware dling it when it does occur. of saying it half of the time or is using The take-away is a terrific tool that should it to get rid of you, if you can take the Everyone agrees that “I’m just phrase away from the customer, they are become as much a habit for salespeople as “I’m looking” has become a habit for cusdefenseless. At that point, the customer tomers. It worked so well in getting rid just looking” is for customers. has no other alternative than to come of salespeople in the past that customers clean and tell you what they are looking use it repeat¬edly. Now, even when they posed to saying, “Can I help you?” Schmoozing for, unless of course, they really are just looking. know exactly what they want or if they really do is simply using questions about a non-business need your assistance, they still say it. Frankly, I related topic to encourage conversation with the The take-away is a terrific tool that should don’t think they even realize what they’re saying customer—making small talk. The theory is that become as much a habit for salespeople as “I’m sometimes. Believing this to be true is essential in if you can get the customer to talk with you about just looking” is for customers. If done properly, it avoiding the dreaded phrase. The percentage of something other than business for even a brief pewill allow you to get further in more presentations customers that really are just looking is so small riod, the customer will not be intimidated you are than you’ll ever imagine. However, the odds of the that I make a general rule of never really believing a salesperson. This person-to-person type of entake-away working are reduced significantly if you that the customer is “just looking.” If you believe counter lessens the need for the customer to even haven’t schmoozed enough. Some resistance must the cus¬tomer more times than not, there’s really say, “I’m just looking,” in the first place. After all, be broken down during schmoozing. If it isn’t, no point in even reading the rest of this arti¬cle. you’re just being a friendly human being. the customers still consciously want to resist, thus 40

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SALES 101 making the take-away almost useless. The customers will simply repeat that they are just looking when the take-away is used. Another key element in executing the takeaway properly is to use it without thinking. If you have to think at all about what to say, there will be a slight hesitation. This hesita¬tion snaps the customers into reality and they sense a salesperson now instead of this human being they were just conversing with comfortably. Using some sort of exclamation before say¬ing, “What are you looking for?” is also a must. It helps to bridge the gap and make your transition into probing resemble conversation more than probing.

customers who seem close to opening up. Make a sign that says, ‘I’m just looking widget, Regularly $50.00, Sale Price $9.99!” Place it somewhere discreet. Now, follow along with me. You schmooze with the customer, you ask what brings them in today, the customer says, “I’m just looking,” and you say, “Great! What kinds of things are you looking for?” When the customer says, “Nothing really. I’m just looking,” you go get the sign and say, “How lucky for you! We have one on sale to¬day!” If you feel comfortable having fun with this, your customers will laugh and have fun as well. In turn, resistance will be broken. And, that’s the goal, right?

To solve this dilemma, a technique called the “180-degree pass-by” is the saving grace. Here’s how it works. Instead of walking right up to the customer to begin schmoozing, walk right passed them and offer some sort of greeting like, “Hello. How are you?” on your way past. As you pass the customer by, resistance is weakened. The customer perceives that you are busy. A critical part of doing the 180-degree pass-by effectively is to never walk directly toward the customer. Walk in a different direction passed the customer and walk quickly, with intention, as though you are on an important mission that just won’t allow you to stop and chat right now. Having something in your hand is a plus too. It adds to the perception by the customer that you are, in fact, already busy.

Lastly, you must always be sure to take away whatever phrase the cus¬tomer uses. It may not always be “I’m just look¬ing.” Certain customers are creative and prefer “I’m just browsing,” “I’m just getting ideas,” or “I’m just killing time!” Whatever the phrase, you must take it away verbatim. For example, if the customer says, “I’m just getting ideas,” you would say, “Terrific! What kinds of things are you getting ideas for?” or “Well that’s fun! What type of ideas are you trying to get?” By taking away the customers’ favorite defense, you are actually taking away their only defense. Why? Because customers rarely switch phrases. Remember, the phrase itself is just a habit. And we all know how hard old habits are to break! For the customers who still insist they are just looking even after you use the takeaway, we have three options. 1) Turn the sale over to another salesperson. It could be a personality conflict of some sort. Maybe the customer just doesn’t like the way you look, the way you talk, the way you dress or some other such nonsense. Don’t be offended. It happens to all of us occasionally. 2) If there isn’t another salesperson available to try again with the customer, tell the customer to have fun and leave them alone. To hover over the customer or continue trying to probe at this point would be pushy. Give the customers plenty of space and remain constantly aware if they indicate a need for assistance. After giving them a little more time, you may even be able to try approaching them again. 3) This option won’t be appropriate for every customer, but certainly is terrific for

When customers enter the store and you begin walking toward them, the mere fact that someone is about to approach them is a signal to them to prepare to get rid of or dis¬courage the approaching salesperson. If the idea of schmoozing is to get the cus¬tomer to think of you as a human being first instead of a salesperson, then the ap¬proach alone can set up your first contact with the customer all wrong. After all, who else would be walking up to them and schmoozing in your store if it weren’t a sales¬person. You might as well be wearing a neon sign on your forehead that says, SALESPERSON COMING!

So, schmoozing helps prevent “I’m just looking” and the take-away gets past it. What about customers who are so resistant that they say, “I’m just looking,” before you even say anything to them? You know the type. You just start walking toward them, they hold up a hand as if they were a traffic cop and say “I’m just looking.” What they really mean is, “Get away from me, don’t come near me, I don’t want you to even look at me much less say anything to me. I hate salespeople!” Well, here’s a challenge! Just because they’re ultra resistant doesn’t mean that they don’t need assistance or guidance just as your other customers do. So we have to examine not only what we are going to say to these people, but how we actually approach them as well.

After you pass the customer, wait a few seconds and re-approach them at a safe distance. What do I mean by safe distance? It’s especially important with this type of customer to allow them enough personal space, otherwise resistance increases again. Now you make an attempt at schmoozing. I’m certain you’ll find that customers will be less prepared to get rid of you when you return now than if you had walked right up to them initially. So, there are my ideas for defeating “I’m just looking.” I believe they work. No, I know they work. You just need to practice them until they work for you. Is it worth it? Well, if “I’m just looking” is one of the major barriers to you opening the sale with more customers, then it follows that it is also one of the major barriers to you closing more sales. Need I say more?

About the Author:

Harry J. Friedman is an internationally acclaimed retail consultant and Founder/CEO of The Friedman Group. Since 1980, his retail sales and management techniques have been used by over 500,000 retailers worldwide. For information on upcoming free retail webinars, seminars, training programs, on-site training or eLearning, call 800-351-8040, email info@TheFriedmanGroup.com or visit www.TheFriedmanGroup.com.

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SUBSCRIPTION SUBSCRIPTION SUBSCRIPTION SUBSCRIPTION SUBSCRIPTION SUBSCRIPTION

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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 consideration to receive FFR occasionally, regularly (or never again) - depending on marketing preferences of our advertisers (US retailers only).

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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:

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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. ________________________________________________________________________________________________ Any Suggestions/ Comments to help FFR to become more helpful to your business? __________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

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December 2011

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L E A DE RS H I P

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 2012. 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.

Show

Organization, Planning, Promotion

Attendance, Traffic

If you have attended any of the shows listedbelow 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 identify yourself (see opposite side); • Your opinion must be fair and objective; • 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. Upon completion, please send this form to FFR. Your personal information will not be disclosed, nor shared with anybody.

Convenience

Services offered at the show

Cost of attending/ exhibiting

Value for your business

AccessoriesTheShow Atlanta Apparel Market Australian Shoe Fair Chicago Shoe Expo Children's Club China International Clothing & Accessories Fair ENKVegas ENKWSA Fame Fashion Coterie FN Platform Focus GDS International Event for Shoes & Accessories ISPO (International Sporting Goods And Sports Fashion) BEIJING KIDShow London Fashion Week Londonedge/ Londoncentral MAGIC Memphis Gift & Jewelry Show Mercedes Benz New York Fashion Week Miami Beach International Fashion Week MICAM Shoevent MIPEL Moda Las Vegas Moda Manhattan Mode Shanghai MRket LV OFFPRICE show Pool Trade Show Premiere Classe Project Sapica Shoe Market of the Americas (SMOTA) SIMM- Semana Internacional De La Moda Sole Commerce Southwest Shoe Expo Stylemax The Atlanta Shoe Market- TASM The Children's Great Event Shoe Show The New York Shoe Expo (FFANY) Transit- The Los Angeles Shoe Show WomensWear In Nevada- WWIN 44

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