December_2011 by FOCUS ON FASHION RETAIL

EDITOR’S LETTER “Too many people are thinking of security instead of opportunity; they seem more afraid of life than of death.” (James F. Bymes) I started writing this letter with rather sad words and phrases, like “we’re going through turbulent times… uncertainty and despair”, and so on, but then- what for? Everybody knows where we are, everybody realizes what’s going on, and everybody is sick and tired of negative news already. It feels so comfortable blaming the economy, the weather, the neighbors, whoever or whatever that is beyond our control. So what? All that always has been imperfect and unfriendly, and circumstances always will be against us. Let’s talk about something positive and fun, shall we? Like, the future? The future is always exciting, because you CAN make it exciting. This entire issue is about the future. It starts with a Spring-Summer 2012 fashion trends, demonstrating proposals from the world’s top designers and leading brands. This is to get you some visual ideas on what people will wear months from now, so you can go to your favorite trade show (see “the Top 10 trade shows” article) and prepare for the new season responsibly, in advance. Please check out the article about how China is transforming from the world’s manufacturer into the mall of the world, exclusively prepared for FOCUS magazine by the reputable experts in Chinese economy and trade. If you’re thinking about expanding your sales to other markets, this article will be an invaluable tool for you. Once upon a time, there was a boy in the Bronx who became a billionaire making and selling fashion. His name is Ralph Lauren, and you can read his success story and get inspired by his Business lessons, also published in this issue. And, if you need a celebrity to convince you what’s hot, we’ve got plenty of those in the “Celebrities and Fashion”, for your intellectual and philosophical pleasure, so to speak. Enjoy! And if this still doesn’t inspire you to feel optimistic about the future and better yourself… just hear what Laurie McAdams, my good friend and a colleague working on this issue, said - “There is only one way to put it in your letter. It is, KICK ASS!!!! Now, how to top that?” Hope, you’re feeling better already and, or at least, you’ve got a smile on your face by now. Look, my point is- “The more you seek security, the less of it you have. But the more you seek opportunity, the more likely it is that you will achieve the security that you desire.” (Brian Tracy, author and speaker) With that, on behalf of all at FOCUS magazine, let me wish you Happy Holidays and a very Happy New year. May it be a year of NEW BEGINNING for you, your loved ones and your businesses. A 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

December 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 COVER PHOTO: Actress/Model Olivia Palermo presents Atenea jewelry collection by Carrera y Carrera

table of contents: 4 Editor’s letter 6 Spring/Summer 2011-12 Fashion Trends

16 China:

The New Mall of the World

20 5 Business Lessons From Ralph Lauren

23 Trade Shows Tips 24 The Top 10

Trade Shows of 2011

30 Trade Shows: 21 Occasionally 32 33 38 42 43

Silly Predictions For 2012 Editor’s Pick Of The Month Celebrities & Fashion Visual Merchandising Holiday Sales Prediction Subscription

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

Loriblu

Badgley Mischka

DKNY

Marzetti

The upcoming season of Spring-Summer 2012 will be characterized as a season of bright colors and light fabrics. But, let’s face it - you can’t go wrong with the traditional black and white outfit. The designers know this little fact and continue to cash on it (wisely) and this is why the everlasting Black and White colors defy the time again, keeping their well-deserved place as big colors of this season. For women, dresses and skirts will remain must haves, decorated with vivid geometric ornaments, colorful prints and stripes. 70’s glam is back in the form of one piece jumpsuits with smaller shoulder pads to square off the shoulder line. Think the days of Studio 54 with all that glam and sequins. This season you will see the changes in the waist band. Comparing with the last season with uncomfortable tiny hipster waists, the upcoming fashions are about comfort and elegance, the higher waist line returns! In regards to length - You will see short shorts, to knee toppers, that just hit the top of the knee. The fit on a knee topper should be straight, not tight. As skinny pants and tight silhouettes have expanded into their own category, wider and more voluminous cuts will dominate the look of the next summer You will also see some cuffed shorts, well tailored and very cute. A huge trend this Summer will be the long to just above the knee boyish long shorts - paired with feminine tops.

BCBG Max Azria 6

December 2011

Custo Barcelona

Bibhu Mohapatra © FFR- Focus On Fashion Retail

The biggest trend in handbags this Spring- Summer - short strapped oversized handbags or totally oversized clutches, featuring lots of shiny hardware. Do you Crochet? Well it’s back... Crochet and netting are big this Spring, in both clothes and shoes. New trends in women shoes: squared, rounded and tucked up lines, short squared heels. Mid-heel clogs, ultra flat sandals.

Nando Muzi

Men’s footwear like clothing fashions, pays attention to the technical aspects that become deliberately displayed decoration. Urban and technical, without frontiers. Natural and artificial in an innovative mix. wrinkled and exotic leathers, woven, zippers, laces, buckles, micro-perforated suede, camouflage printed on suede.

Diane Von Furstenberg

L.A.M.B.

Comfort and show-off coexist and move together looking for new balances. Ethnic touches still will be present in both men’s’ and women’s’ clothes and accessories: exotic leathers, tribal prints, large ornaments, patches. As you can see on the photos, fashion proposals for the season demonstrate active use of earthy, floral, tender colors. Oversize sunglasses, denim continues being in style this season. For men, while the short blazers will remain in mainstream, a little touch of “retro”- longer jackets will be the trend. Sporty California “cool” seen in shorts and trousers, canvas sneakers and oxford lace-up shoes. For women’s footwear the high heels and platforms, wedges and wide use of lace, tribal ornaments and floral accessories.

Taccetti

Giorgio Piergentili Katya Leonovich

Falguni & Shane 7 Peacock

December 2011

Stefania Pellicci

Casadei

Isharya

Montblanc

Calvin Klein

Elie Tahari Donna Karan

Ralph Lauren

Nando Muzi

December 2011

ÂŠ FFR- Focus On Fashion Retail

Donna Karan Misaki

Misaki

Monique Lhuillier

Betsey Johnson

Marc Jacobs

Jason Wu

Anna Sui

KumKum

Sara Kent

ÂŠ FFR- Focus On Fashion Retail

D e c e m b e r 2 0 1 1

Vera Wang

Carolina Herrera

Nicole Miller

Lacoste

Taccetti

Emilio Pucci

Pas De Rouge

Venexiana

Diesel Black Gold

Donna Karan

MsBellezza Jewelry

December 2011

Tommy Hilfiger

Carrie Ann ÂŠ FFR- Focus On Fashion Retail

Roberto Cavalli

M.C.L. By Matthew Campbell Laurenza

Alue Optics Diesel

Swarovski

Manas

Nouchka Norman Ambrose

Ester Shoes

Cerutti

Ice-Watch Trend G&G

ÂŠ FFR- Focus On Fashion Retail

Michael Kors

December 2011

General Idea

Burberry

Calvin Klein Dino Bigioni

Gianfranco Butteri

Ixone Elzo 12

August 2011

Roberto Verino

Lamborghini

ÂŠ FFR- Focus On Fashion Retail

Adolfo Dominguez

Perry Ellis

Aldo Brue

Gabriele

Speroni

VLOV-QingQing Wu ÂŠ FFR- Focus On Fashion Retail

J.Crew

Noxis D e c e m b e r 2 0 1 1

Barracuda

Gianfranco Lattanzi

General Idea

Perry Ellis

Luca Guerrini

Soldini

VLOV-QingQing Wu 14

December 2011

Marc Jacobs ÂŠ FFR- Focus On Fashion Retail

Tod’s

Diesel Alue Optics

TAG Heuer Fossil

Hamilton

OXS

Lamborghini

Roberto Verino

Montblanc

Lamborghini

Fossil

D e c e m b e r 2 0 1 1

CHINA: THE NEW MALL OF THE WORLD to its needs, and state control of communications.

Driving Forces However, as this centrally planned system shifts into a market economy, as it rises in its value chain to make products requiring higher skill levels, as it nurtures its own global class companies, as its vibrant group of young and urban consumers multiply, and as its domestic market development intensifies, China is increasingly becoming the market to which the world could look for the sale of its luxury merchandise.

Brands: Recognizing China as a late adolescent in its market growth evolution, Zakkour emphasized how China is different from the United States. For example multi-brand buyers are still a rarity in China. Consumers in the country are deemed to be brand conscious, and although affordable niche brands like Kate Spade, Furla, and Lancel are growing, shoppers are not necessarily brandloyal. And, while domestic brands have a strong presence in the mass market, foreign brands have dominated the luxury market, which is now open to middle- and high-end segments.

Fashion, Beauty, and Status:

One Year on the Frontlines of China’s Apparel and Luxury Markets icture Americans seeking to acLawrence Delson, faculty member, FIT Internapropose measures to limit its dominance as an exquire the latest jeans by Juicy tional Trade and Marketing Program and presiporter and promote its highly debated reputation Couture and finding out that dent, Delson International, Inc. as a currency manipulator. With rising labor and Chinese teens are just as eager material costs, American retailers and companies The event was co-sponsored by FIT’s Deto be wearing them. Envision are seeking to produce goods in countries such as partments of International Trade and Marketing; China with millions of bargain Vietnam, Bangladesh, the Philippines, and CenGlobal Fashion Management; Entrepreneurship; hunters and high- end shoppers tral America. Cosmetics and Fragrance Marketing; the Interin many of its cities clamornational Trade Students Association; the Asian ing for ways to fashionably express themselves. Momentous Leap into an Era of Student Network; New York University’s DepartWhile this is not yet a typical image of the Chiment of Finance in its School of Continuing and Unprecedented Local Consumption nese consumer, the rapid interdependence of inProfessional Studies, the Manhattan Chamber of China’s middle class is now 300 million people, dustries and markets around the world fostered resembling the United States’ by innovative developments in own total population. Sevtransportation and communicaenty-two individuals have tion is helping to catalyze this A lesser-known but emerging trend is the recognition that China’s been identified as billionaires, transformation. attractiveness lies less in its manufacturing capability than in its which, according to the HuffChina expert Michael Zaington Post (April 12, 2011), potential to consume worldly goods. kkour, principal of Technomic ranks second only to the Asia, commented at a lecture at United States. With a still rapthe Fashion Institute of Technolidly growing economy despite Commerce, and the Organization of Women in ogy (FIT) on October 3 that China is “shifting measures being taken to curb inflation, and an inInternational Trade from the ‘factory of the world” to the “mall of the creasing role in technology development, China world.” Participants at this lecture also included With its economy growing by an average of is poised for a momentous leap into an era of unMark Greiz, faculty member, FIT International 10.5% over ten years and its trade increasing by precedented local consumption. Trade and Marketing Program and chief consultwice that in the same period, much fanfare has This view is supported by the following facts: tant, Mark Greiz Consulting; Byron Lee, director, been made over China’s prowess as a production • China alone is expected to account for about Hong Kong Trade Development Council; and powerhouse, prompting zealous politicians to 16

December 2011

Prepared exclusively for Focus on Fashion Retail by Christine S. Pomeranz, assistant professor and chairperson, Department of International Trade and Marketing, Fashion Institute of Technology.

20% of global luxury sales by 2015 (According to McKinsey & Co.) • China is expected to be the fastest growing luxury market this year, expanding by some 25%, and is expected to be ranked third behind the United States and Japan in five years. (According

to the research group Bain & Company, in an article written by Dr. Isaac Mostovicz published in Janus Thinking (May 18, 2011)) • Study by Bain & Company has indicated, that the Chinese spent over RMB 68 billion or US$10.7 billion on luxury purchases in 2010 with over 50% of that spent overseas including Hong Kong. • According to the Hurun Luxury Consumer Price Index, the price of luxury products sold in mainland China rose by 7.7% in 2009 and by 11.3% in 2010 and, according to the World Luxury Association, the age of China’s youngest luxury consumer has fallen from 35 to 25. Also, according to the Hong Kong Trade Development Council, retail prices of international cosmetics brands in China have risen by 5% to 8% since July 2011. China is now the number one apparel and number two accessory market in the world (According to Technomic Asia).

Challenges China continues to face issues relating to piracy, intellectual property rights, uneven economic development, job creation, corruption, human rights, financial transparency, significant environmental challenges, scarcity of key resources relative © FFR- Focus On Fashion Retail

Role of Women: According to “Luxury Brands in China Revise Marketing Tactics in Response to Growing Number of Female Entrepreneurs” which appeared in The Next Women magazine (June 16, 2011), a study by McKinsey & Company revealed that female purchases accounted for more than half of China’s luxury sales in 2010, up from 45% in 2008. Female luxury goods consumers also increased their spending by 22% in 2010, compared with 2008, and in contrast to 10% by men. In addition, the article indicated that China is expected to become the world’s largest luxury market by 2020.

Growth Sectors: Cars, watches, and luxury travel are expected to drive growth in sales over the next five to 10 years. For example, China’s luxury car sales are forecasted to reach 600,000 units in 2011 and to more than double to 1.4 million by 2015. If one asked a middle-income Chinese person what his or her first luxury purchase would be, the answer would most likely be a Swiss watch, Patek Phillipe, Rolex, or Omega. Technomic Asia also estimates some 100 million Chinese travelers by 2020. In the cosmetics, beauty care, and fragrance sector, skin care, which made up 45% of China’s overall cosmetics and toiletry sales in 2010, is triggering growth. For instance, Wal-Mart is said to be selling moisturizers to reduce wrinkles, and spas are offering seaweed wraps. Sales of moisturizers, whitening agents, and advanced therapy treatments are expected to grow by at least 12% per year for the next five years. The new middle and higher income consumers are demanding foreign December 2011

CHINA: THE NEW MALL OF THE WORLD

color cosmetics and skin care products and are willing to pay a premium for them as shown by strong sales at Estee Lauder, L’Oreal, and Sephora. It is estimated that women spend between 10 to 15% of their income on cosmetics and skin care and, while there is no traditional market for fragrance, it is growing by more than 10% each year.

Distribution Channels: China’s current distribution channels are department stores and shopping malls, as well as single brand stand-alone stores. Uniqlo opened its largest flagship store in Shanghai’s Nanjing Lu shopping district in April 2010. Hermes introduced its Chinese Shang Xia brand and opened its first China flagship store in Shanghai in September 2010. Hennes & Mauritz (H&M), the Swedish fast fashion company, opened a fourth store at the LiXing Mall in Hangzhou in April 2011. Within the past 18 months, jewelers De Beers, Wellendorf, and Lan, created by Chinese television host Yang Lan and Canadian diva Celine Dion, opened their first China boutiques in Beijing and Shanghai. E-commerce, multi-brand retailers, and multi-brand boutiques are emerging as key channels of expansion. Upscale department stores like Austen Brands City from China and Takashimaya from Japan, as well as L’Avenue, a new firstclass retail and office complex being developed by Shanghai Luxchina Property Development Company Limited, have arisen or are being developed. Chinese expert Michael Zakkour recommends that companies look to invest at tier two and three cities in China using multiple channels, including stand-alone stores and e-commerce. In 2010, China had 457 million internet users, with 35.1% of those shopping online through mobile devices rather than computers. Byron Lee, director of the Hong Kong Trade Development Council, said that Emporio Armani opened its online store in China this year and added that Shangpin. com obtained exclusive rights to the luxury brands Van Cleef & Arpels and Montblanc from the Richemont Group.

Case Studies on Marketing Strategy In providing a case study of successful entry and marketing strategies in China, Mark Greiz explained that there is a pyramid of brands, with mass market at the bottom, middle market specialty in the middle, and premium prestige names at the top. He pointed out that L’Oreal is pursuing a multibrand strategy, with brands in each of these tiers, 18

December 2011

and he believes that, depending on their marketing objectives, companies are best positioned either at the bottom or the top tiers, because of the lucrative potential of China’s mass and luxury markets. In order to succeed in the Chinese market, Greiz recommended that companies localize marketing strategy either through acquisition of local brands or localization of the firm’s product offerings. Product localization is evident in brands like Hermes and Johnson and Johnson, which bought Beijing Dabao Cosmetics Co. Ltd. In 2008, Shiseido and Levi’s are creating offerings suited to Chinese consumer buying behavior and taste preferences. Companies that do not localize, run the risk

Source: China Internet Network Information Center Statistical Report on Internet Development in China through Technomic Asia.

of alienating the Chinese consumer by not offering brands that suit their preferences. For example, American Apparel could do a better job of localizing the Chinese language pages it created on its global web portal. A person entering its Chinese website at http://americanapparel.net/intl/china. html in October 2011 would find that clicking on a link such as “Legalize LA” on the homepage would redirect them to a page written in English. According to Greiz, rather than simply crafting several Chinese language pages on a corporate site, foreign brands can create more meaningful marketing communications in China by using advertisements which identify more closely with their target Chinese market; establishing Chinese language blogs to engage and interact with them; and focusing efforts on Chinese social media sites. Utilizing effective creative treatment and designing appropriate media mix strategies are needed to meet the linguistic, cultural, consumption, and behavioral patterns of the market. The other key element stressed by Greiz is to strive to connect emotionally with the Chinese consumer. For example, Adidas’ advertisement during the 2008 Olympics invoked nationalism when it

depicted Chinese athletes hoisted above the crowd, making it a favorite of Chinese locals. Adidas demonstrated in this campaign that, by understanding the dreams and aspirations of the Chinese consumers, identifying with their needs and wants, as well as empathizing with them, brands can develop an emotional connection with them. It is through such localized marketing that brands will become meaningful to Chinese consumers. Lee also described Levi’s launch of its successful “Modern Original” campaign that specifically targeted the young Chinese-Asian markets, encouraging them to express their own originality.

Hong Kong’s Role as an Entry Point to Mainland China As a business center long recognized for its resilient economy, ideal location, and dynamic people, Lee pointed out that Hong Kong attracted L-Occitane, Prada, and Samsonite to launch their initial public offerings there. Swiss watchmaker Les Montres DeWitt, and German jeweler Wellendorff debuted their first flagship boutiques in premier area shopping malls as both their testing ground and launch base for future expansion into the mainland market. Gap, Forever 21, American Eagle Outfitters, and Apple Inc., are the latest retailers to plan or open outlets in Hong Kong. Lee continued that Hong Kong is a lifestyle trendsetter for China as well as a shop window to the world of brands for the Chinese, noting that 23 million Chinese mainland tourists visited Hong Kong in 2010, that 87% of the mainland’s middle class follows Hong Kong’s latest trends, and that more than 70% learn about the latest products, fashion, and fads through this metropolitan city. Through trade shows, online marketplaces, product magazines, world-class facilities, Asian trend makers, and partnerships with international companies, Hong Kong has the platforms to foster the development of the fashion and creative industries and prepare these industries to enter mainland China. In view of China’s emergence as the world’s engine of growth, the ascendancy of its middle and upper classes, increasing discernment of luxury goods, efforts to develop and mature its local economy, budding modern infrastructure, asset in Hong Kong as a gateway to mainland China’s market, embrace of new distribution channels, and eager response to effective promotions, China is well-positioned to nurture its blooming consumer market. © FFR- Focus On Fashion Retail

December 2011

ENTREPRENEUR OF THE MONTH 1986, when he decided to open his new flagship store in New York’s famous Rhinelander Mansion, a huge French Renaissance Revival mansion built in the 19th century. Called “the best boutique in America, probably the world,” by one critic, Lauren undertook a large-scale overhaul of the building in order to have it ready for his lines. By showcasing his clothes here, Lauren wanted to give his customers an extraordinary experience, and share his dreams with them. It was called fashion retailing history. Lauren continued his trend of creating excitement around his products in the fall of 2003, when he went against custom in launching his

cars, and what brought the people to his clothes.

Do Not Try to Please Everyone All the Time “Your vision is very important. You should know whom you’re selling to, what your marketing and advertising says about you, and whom it’s speaking to,” says Lauren. “Me personally, I don’t try to please everyone. I understand who I am selling to and I work towards that vision all the time.” Having grown up in a traditional Jewish

Lauren is an avid car enthusiast. His rare and classic car collection has won numerous best in show awards and has been featured at the Boston Museum of Fine Arts. But for Lauren, spending money on expensive cars was never just about driving fast or looking good. “At some point in my long relationship and love of cars, I became aware of a powerful degree of admiration for these highly creative individuals such as Ettore Bugatti and Enzo Ferrari, and David Brown at Aston Martin and Jaguar’s William Lyons,” he says. “These men were spiritually connected to the cars they were developing. They were their brands. Their origins were based in something I look on or beyond as exciting sensibility. And that ‘exciting sensibility’ is an important part of what it takes to make people connect with what these automotive innovators were creating.”

latest collection. He could have shown his latest line in his uptown New York showroom. That was what it was made for after all. But that would have been too boring for Lauren. Instead, he chose to present his new line of autumn classics in the Chelsea studio of Annie Liebowitz, a photographer who is herself known for pushing the boundaries and creating edgy pictures. Lauren’s collection of white and silver gowns, showcased against the backdrop of a red brick wall, was meant to shock and excite. “My goal in design is to achieve the best reality imaginable,” says Lauren. “I believe in design that has integrity, design that lasts, and whatever it is, it must be part of the lifestyle and become more personal with time.”

Understanding what it was that attracted him to cars – that “exciting sensibility” – was a key part of Lauren’s formula for his own success. Much like the innovators who designed his cars, Lauren wanted to create clothes that people could connect with. He wanted to do more than just cover people’s bodies; he wanted to design clothes that would excite their senses.

By mixing innovation with tradition, Lauren has been able to not just give people good quality clothing, but also to give them an experience, filled with an excitement that will not be soon forgotten. It is what brought Lauren to his

That was what Lauren had in mind in December 2011

His first stop was Bloomingdales. Lauren knew that landing an account with Bloomingdales would take his business to the next level. But executives at Bloomingdales were less than thrilled with his neckwear collection. They said they would agree to sell Lauren’s ties on two conditions. First, they wanted Lauren to make his ties narrower. To Lauren, that meant completely altering their design, the very thing that made them unique to all the other ties out there, and he would have none of that. Their second condition was that Lauren remove his own name from the ties’ labels and replace it with a Bloomingdales tag. Lauren was not about to make that change and give up credit for his products. With that, he was forced to look for other buyers. But it was not long before Bloomingdales’ competitors took an interest in Lauren. A number of other stores agreed to stock his ties – as they were – and soon, sales were booming. Lauren had the last laugh when Bloomingdales returned to him to ask for a second chance.

Do Something that Excites the Senses

wide ties and were often flashy and always expensive. But, he was happy to try anyway.

family, Lauren’s mother wanted her son to grow up to be one thing and one thing only: a rabbi. Lauren never took an interest in his mother’s wishes, instead deciding to follow his own passion. And still today, despite all of the success Lauren has achieved, despite becoming one of the best-selling designers of all time, and despite having given away millions of dollars to charity, Lauren’s mother is unsatisfied. She still wishes he had become a rabbi. There are some people you can never please, Lauren has learned, and it is not worth his effort to try. Doing so would not only make him unhappy, but it would cost him time and energy on the path to achieving his own goals. Whether it was his mother, his employer or anyone else, Lauren made sure to stick to his guns and do whatever it was he wanted to do. Such was the case in the late 1960s, when Lauren first began designing his own ties. It was a conservative time, fashion wise that is, and Lauren knew he was pushing the boundaries by creating

Today, Lauren continues to be his own best customer, and is not afraid to let everyone know it. “I’m totally involved with all of my products,” he says. “Everything I make is my message and for years my goal has been to make the things I love.” If Lauren wants a suit with a sharper silhouette for his next gala event, he will design it and put it into his next collection. Lauren designs for himself; he designs clothes that he would actually like to wear, and he does not let anyone else tell him what to do.

Build a Brand that will be Around Tomorrow “I am not looking like Armani today and somebody else tomorrow,” says Lauren. “I look like Ralph Lauren. And my goal is to constantly move in fashion and move in style without giving up what I am.” When Lauren first named his company Polo, it set the stage for things to come. He was laying the first building blocks to the kind of brand that he wanted to stand for. “I’ve always loved sports but it didn’t make much sense to call my brand ‘Basketball’ or ‘Baseball’ so I decided on ‘Polo.’ Of course I didn’t play polo but I liked that it represented a feeling of being international, European and yet very healthy American,” says Lauren. “It was the sport of kings. It was December 2011

cars, and what brought the people to his clothes.

That was what Lauren had in mind in December 2011

Do Something that Excites the Senses

wide ties and were often flashy and always expensive. But, he was happy to try anyway.

ENTREPRENEUR OF THE MONTH began sporting hooded sweatshirts, bracelets, and even dreadlocks – all, of course, beneath his classic tweed jackets and the like. He also created a new line of clothing called Rugby. “I felt we were not connecting as much to young people from 14 to 29, so I created Rugby, which is more irreverent and schoolboy in feel than Polo,” said Lauren. He was not going to let that demographic escape him any longer. Lauren often likes to think back to Steve McQueen’s classic line in 1968’s “The Thomas Crown Affair.” “I did it once. I can do it again,” he says. By tuning in and paying attention to the tastes of different generations, Lauren has managed to stay one step ahead of the game – and always on top.

A Strong Work Ethic is A Work Essential

glamorous, sexy, and international.” From that day, Lauren has built his company around that image – an image of class, power and prestige. And he has been sure to take it beyond just his clothes. “What I do is about living,” says Lauren. “It’s about living the best life you can and enjoying the fullness of the life around you - from what you wear, to the way you live, to the way you love.” Lauren has taken his company from being a way of dressing to a way of living. He has marketed his brand as a lifestyle. Now, not only can you wear Lauren designs, but you can buy Lauren paint, Lauren towels, Lauren furniture, and more. In designing his products, whether the clothes or house wares, Lauren says he always strives for one thing: consistency. “What matters the most to me are clothes that are consistent and accessible,” he says. “When I look at the people I’ve admired over the years, the ultimate stars like Frank Sinatra, Cary Grant and Astaire, the ones who last the longest are the ones whose style has a consistency, whose naturalness is part of their excitement.” The challenge of remaining consistent is one that Lauren believes plagues much of the fashion industry. “When you think of the blur of all the brands that are out there, the ones you believe in and the ones you remember, like Chanel and Armani, are the ones that stand for something,” he says. “Fashion is about establishing an image that consumers can adapt to their own individuality. And it’s an image that can change, that can evolve. It doesn’t reinvent itself every two years.” Despite his conviction, becoming a lifestyle brand has threatened his business on more than one occasion. In the late 1990s, the Lauren 22

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name and logo had begun to appear on too much low-end product. Lauren had tried to build such a large brand that he overextended himself and ended up devaluing the business. In response, Lauren hired a new team of fashion and finance executives who helped him bring the company back to life. Polo was now no longer a company of licensing, department stores, and factory outlets. Now, it was back to being a luxury retail business. Lauren learned the hard way that not all business is good business when you’re building your brand. By changing his business model, he was able to refocus and add more value to his brand. He continues to partner with department stores such as J.C. Penney to reach what Lauren feels is a large untapped market that wants quality goods at moderate prices. But this time, he is careful not to go too far, and to ensure excellence at every price point.

Tune In and Pay Attention “It’s about broadening your scope through history and living your life,” says Lauren. “Tune in and pay attention.” Lauren never went to any fashion schools. He took a few business courses at City College in Manhattan, but his professional qualifications were not like those of his competitors. What Lauren did have, however, was the ability to read the market and sense future trends. It was by tuning into his market and paying attention to his consumers that he was able to give them exactly what they wanted – and more.

“There is something exciting about buying something you have to save for, as opposed to people who have had these things all their lives,” says Lauren. “There is more of a discerning taste that you develop.” That is how Lauren explains his fashion sensibility: he did not have much money growing up, so he made sure to spend it wisely. If he was going to throw away his money, he was going to do it on something really special, and something that was going to last. Now that Lauren is in charge of a billion dollar empire, he takes the time to listen to whoever he has to – whoever he can – to inform him of where the market is headed. At company meetings, he offers his interns the opportunity to speak out. He wants to hear the opinions and tastes of the up and coming generation; they are the ones who will be deciding his fate down the road. So, too, does Lauren pay attention to his children. His son David recalls, “When my friends and I used to walk into the store on 72nd Street, there was a feeling that this was for an older person. But my dad said, ‘Okay, watch, I can make Polo really hip to you. Some place that you and your friends will want to shop. I’m not just about mahogany paneling.” Lauren also does some stealth spying in his own stores, watching customers and observing their shopping preferences. One particular fall day, Lauren visited a Polo store in Connecticut and made a striking discovery: mothers were leaving with full shopping bags while their daughters were leaving empty-handed. After that, Polo was no longer just about English country houses. Lauren’s runway models © FFR- Focus On Fashion Retail

Lauren grew up in the Bronx, a far cry from the fashion capital of New York. He never went to fashion school, never graduated from college, and never lived the life of class and luxury. So how did this boy who shared a small bedroom with his two older brothers go on to become not only a billionaire, but also an ambassador for a world he never knew? The answer is that he worked hard for it.

“The best thing you can do is go away from this saying, ‘I can do this too,’” says Lauren, “because it’s all possible and I’m living proof.” Ever since he was a young boy, Lauren was instilled with a strong work ethic. After watching his father work long hours as a house painter to be able to pay the bills, Lauren knew what it was to work – and work hard. “I didn’t play finance as a kid,” recalls Lauren. “I played basketball.” Still, by the time Lauren was in high school, he began his first business venture. While other boys his age were worried about homework and girls, Lauren was thinking about how many ties he would be able to sell that day at school. After graduating from high school and finding work, Lauren was not content to work the 9-5 lifestyle. He wanted to work even more. He enrolled in City College and began taking night classes in business. He knew that if he was going to succeed in fashion, he was going to need a strong business mindset to do it. So, while many other fashion designers today leave the business up to someone else, Lauren is as hands on as it gets. From managing his brand to marketing his product, Lauren is involved in every step along the way.

There are several reasons why should you visit a trade fair: They are useful for obtaining information on the hottest new items. Fairs enable you to attend live demonstrations and view new product and/or service presentations.

•

They allow you to pre-select the sellers that interest you the most and to arrange face-to-face purchasing encounters with them.

•

Trade fairs are ideal for making direct check-ups on product characteristics, prior to purchase.

•

They enable you to compare prices and terms of sale across the range of specialized offerings.

•

They give you the opportunity to solve problems and discuss your needs with qualified technical personnel.

•

They are the ideal forums for maximizing exposure to market trends.

•

They allow you to contact current and potential suppliers and to draw up comparisons.

•

They provide an opportunity of attending congresses, seminars and parallel events ¬ unquestionable sources of information on industry evolution and trends. They are one of company’s key tools for projecting a given purchasing-power image.

•

They enable you to change the way sellers perceive your company.

•

They allow you to assess your possibilities of participating in the future as an exhibitor.

Despite never sketching a design, Lauren comes up with the ideas in his head and drives his design team hard until they produce what he wants. Still, Lauren knows that hard work is not always enough. When his company began to suffer during the recession of the 1990s, Lauren knew that he needed help. No matter how strong his work ethic, he was forced to admit to himself that he could not run things all on his own. “For 30 years I had run a very successful private company,” recalls Lauren. “We went public at a very high number; then the market changed. And I was in a new game. I was in a world I didn’t know. I could control everything else I did. I could work hard. I could run the company, and I had a good team, but they weren’t Wall Street savvy.” As his stock began to sink, Lauren brought on a new team of executives to help him through it. Working hard, he knew, did not mean he had to work alone. Reprinted with permission from www.evancarmichael.com

Did you know that ...?

•

That is all a result of the time he took to work during the day and go to business classes at night.

• •

•

• • •

•

Trade fairs are ranked second in terms of their impact on the sales process, surpassed only by direct sales. The average cost per visitor is 45% less at a trade fair than in a direct sale operation. In 91% of the cases, participation at trade fairs is a key factor in the purchasing decision process and ranks first in relation to other sources of information (publications, associations, directories, salespersons, etc.). For 85% of companies, participation at fairs represents significant cost savings thanks to the concentration of product and/or service purchasers and suppliers at a single venue. According to these analyses, 80% of companies believe that trade fairs provide the only opportunity for discussing problems and current trends with other industry players. Around 52% of the prospective customers contacted at fairs do not require subsequent visits in order to wrap up a sale. On the contrary, first contacts on prospects’ premises require an average of 4.3 visits before operations may be closed. 71% of visitors share the information obtained at fairs with 1 to 6 other persons upon returning to their companies. 83% of leading businesspersons express their confidence in trade fairs as tools for keeping in tune with industry trends. In general terms, around 50% of visitors are first-timers at any given trade fair. Considering that new players enter every business scenario on a daily basis, fairs are ideal places for establishing contact with them. Close to 80% of fair visitors wield purchasing-decision power in their companies or bear influence on such decisions in relation to the products and services on show.

Source: Spanish Trade Fairs Association (AFE) © FFR- Focus On Fashion Retail

December 2011

A Strong Work Ethic is A Work Essential

December 2011

•

They allow you to pre-select the sellers that interest you the most and to arrange face-to-face purchasing encounters with them.

•

Trade fairs are ideal for making direct check-ups on product characteristics, prior to purchase.

•

They enable you to compare prices and terms of sale across the range of specialized offerings.

•

They give you the opportunity to solve problems and discuss your needs with qualified technical personnel.

•

They are the ideal forums for maximizing exposure to market trends.

•

They allow you to contact current and potential suppliers and to draw up comparisons.

•

They enable you to change the way sellers perceive your company.

•

They allow you to assess your possibilities of participating in the future as an exhibitor.

Did you know that ...?

•

That is all a result of the time he took to work during the day and go to business classes at night.

• •

•

• • •

•

Source: Spanish Trade Fairs Association (AFE) © FFR- Focus On Fashion Retail

December 2011

FEATURED REPORT

The Top 10 trade shows of 2011 s always, the last issue of the year features the results of our annual survey determining our readers’ favorites among international fashion industry trade shows. Throughout the year, we’ve offered to rate the performance of various marketplaces, and based on returned responses, we’ve selected the Top 10 Trade Shows of 2011.

the data of how many exhibitors, buyers attended the show, size of the venue, cost of participation, etc. I’ll leave it up to you to decide why. I’ve tried really hard to squeeze the necessary information out of the shows, and in most cases, the officials cooperated fully and I appreciate their efforts. The reason you won’t see any information about the ENK show is simply because the management never responded to my numerous phone calls, messages and emails. Yet, the show has made it to our list and we’re making it known regardless, for the sake of the truth.

In making our selections, we considered events fully rated by at least twenty different people. Ratings were based on a scale of 1 to 10. The shows with the highest scores made our list. We asked for fair and objective opinions from reviewers who were neither employed by nor affiliated with a trade show. Next, we contacted the featured shows’ organizers for official facts and figures, which we’ve published here exactly as furnished. The most important criterion for the survey was overall satisfaction, and all Top 10 shows have earned satisfaction ratings of at least 50% and above.

Without even looking at the provided (or, not provided) stats, I can say that most, if not all the trade shows in 2011 have experienced downsizing and decline in attendance. This is my personal observation. Just the reality of the world we live in today- the turbulent worldwide economies foremost, but also such factors, as the growing number of competing events often taking place almost simultaneously at different locations, increase in volume and quality of Internet trade, just to name a few. Retailers have become very selective and careful placing even small size orders and therefore, tend to attend only those events that potentially can deliver better value for their businesses. Issues in consideration: variety of goods and services at the show, convenience, cost, and personal satisfaction- if the show appears boring, too stressful, they choose to go elsewhere. These all are the objective factors that define today’s situation and I believe, this trend will continue into the future.

The purpose of this survey is to give you, our readers, the information you can use. I’ve had countless endorsements from both wholesalers and retailers, that a complete editorial like this would help greatly in planning the future trade shows participation. It is unfortunate, that for some reason many of the surveyed shows have decided not to disclose

TRADE SHOWS RATING BY FOCUS READERS

AVG. BOOTH COST

2011

ENKWSA

EXHIBITORS 2011, avg per show

2011

DURATION, DAYS

Undisclosed

free to trade

Undisclosed Undisclosed

Undisclosed

free to trade

480 brands

Undisclosed

free to trade

Undisclosed Undisclosed

500,00 sq. ft (55,440 sq. m)

from €135/m2 and up

Undisclosed

150,000 sq.ft

Undisclosed

free to trade

630,000 sq. ft (70,041 sq. m )

€166/m2

free to trade

Project

Undisclosed

free to trade

Undisclosed Undisclosed Undisclosed

TASM

230,000 sq. ft

$650 (10' X 10') furnished

free to trade

Undisclosed Undisclosed

Undisclosed

free to trade

Undisclosed Undisclosed Undisclosed

Traffic/ Attendance

Convenience

Services offered at the show

Cost of attending/ participating

Value, Importance for your business

SATISFACTION, %

voted, %

MAGIC

66%

90%

FN PLATFORM

MICAM ShoEvent

66%

35%

GDS

62%

50%

TASM

60%

25%

Project

60%

50%

FN Platform

58%

90%

FFANY

58%

50%

ENKWSA

58%

25%

ENK

50%

60%

#10

Atlanta Apparel Market

50%

December 2011

FREQUENCY / YEAR

FFANY

over all score, 60 max

have demonstrated above average satisfaction with their performance throughout the year, offering a comprehensive selection of footwear in all categories. The ENKWSA (#10), once a leading American shoe event, has practically eliminated the high-end and luxury segments on 2011, while establishing itself as the most successful venue for budget to moderate price points collections. The Atlanta Apparel market (#9) is a comfortable shopping event, a smaller version of the MAGIC show, quiet complete and exciting. The buyers get to see all types of merchandise (yet, very few of fashion forward and high-end collections) all under one roof, accompanied by fashion demonstrations, seminars and free food/ snacks, drinks, etc. Again, it has been a very tough year for the trade. The overall satisfaction and/or value for the business ratings have dropped for all shows without exception, comparing with the surveys years before. Yet, all the events that made it to the Top 10 list have demonstrated, that they are important and appreciated in their efforts to connect buyers and sellers. We’d like to congratulate shows organizers and extend our good wishes for their continued success. And to all trade show buyers and sellers, we wish you Happy Trading!

ADMISSION COST (buyers)

Organization/ Planning/Promotion

THE TOP 10 TRADE SHOWS OF 2011

EXHIBITING AREA, NET

EVENT (in alphabetical order)

READERS SATISFACTION WITH ... (on the scale of 1 to 10)

Nevertheless, based on the results of our survey, the top 10 shows listed in this article have provided the most value for the businesses under given circumstances and I hope, they will continue their efforts to bringing together both buyers and sellers for a better trade in 2012. The #1 trade show of 2011 on the list is MAGIC. The show has earned its highest score for delivering the most satisfaction over all. Huge selection of goods and services, educational seminars, fashion presentations and entertainment. The show’s portfolio comprises a cluster of different semi-independent shows under MAGIC’s umbrella, each devoted to specific lifestyles and price points (for example, the Project show, which is the # 5 on our list, specializing in high-end and fashion forward), or footwear only area (the FN Platform, #6), or sourcing. All of these shows have demonstrated solid better than average performance throughout the year. The MICAM show (#2) is the most influential shoe event when it comes to high quality and fashion footwear. The show is comfortable, well-planned, featuring a multitude of mostly Italian shoes at moderate to luxury price points. I’ve never visited GDS show (#3) in Germany and therefore, can’t provide my opinion, but heard it’s a worthy event for the shoes and supplies, confirmed by our readers’ continuous higher than average approval. Speaking of the shoe shows, the FFANY (#8) and TASM (#4) also

GDS MAGIC MICAM ShoEvent

The Atlanta Apparel Market

DOMESTIC

317

INTL

120 brands

947

Undisclosed Undisclosed 1,014

595

VISITORS 2011, avg per show

TOTAL

comparing with 2010

1,000 brands

-10%

600 brands

1,000

Undisclosed

1,264

+6%

3,800

+8%

1,609

+1%

1,800 brands

Alex Geyman

Undisclosed 0% Undisclosed

DOMESTIC

INTL

comparing with 2010

TOTAL

Undisclosed Undisclosed Undisclosed 3,600

400

4,000

Undisclosed Undisclosed Undisclosed 47%

53%

24,460

Undisclosed Undisclosed Undisclosed 20,321

20,278

40,599

Undisclosed Undisclosed Undisclosed 3,900

400

Undisclosed

4,300

Undisclosed -20% Undisclosed -4% Undisclosed +8%

Undisclosed Undisclosed Undisclosed

Undisclosed

December 2011

The Top 10 Trade Shows Atlanta Apparel Market #10

LOCATION: Merchandise Mart, Atlanta, GA PRODUCER(S)/ ORGANIZERS: AmericasMart ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: Expanding Prom and Bridal categories SHOW DATES IN 2012: February 2-6 April 12-15 June 7-10 August 16-19 October 18-21 WEB SITE AND CONTACT PHONE: www.AmericasMart.com (800) 285-6278

FFANY NEW YORK SHOE EXPO

FFANY

ENKWSA

Atlanta Apparel Market AmericasMart is a marketplace connecting buyers and exhibitors from around the globe. Through accessibility, value and convenience, AmericasMart delivers the ultimate market experience, delivering the products that buyers want and need. FEATURED MERCHANDISE: Apparel, Footwear, Acessories. CATEGORIES: Womens, Mens, Children PRICE POINTS: Moderate to High-End FREQUENCY: 5 times/ year DURATION: 4 days

ENK International provides the forum for the fashion world to conduct business. ENK’s portfolio of 29 + events include ENKWSA, an event featuring women’s, men’s and children’s footwear and accessories. ENKWSA continues set a precedent for footwear shows, as the turnout for its July 2011 exhibition proved it has re-established itself as one of the industry’s premier events for shoe people, by shoe people. From members of the press to retailers and exhibitors alike, the show’s floor, events and after-parties radiated an energy that has everyone talking about what ENKWSA will do next. FEATURED MERCHANDISE: Footwear, Sourcing

CATEGORIES: Womens, Mens, Children PRICE POINTS: Moderate to High-End FREQUENCY: 2 times/year DURATION: 3 days LOCATION: Merchandise Mart, Atlanta, GA Sands Expo Center. Las Vegas, NV PRODUCER(S)/ ORGANIZERS: ENK International Trade Events ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: February 6-8 August 7-9 WEB SITE AND CONTACT PHONE: www.enkshows.com (818) 379-9400

The FFANY New York Shoe Expo, conveniently held at the Hilton New York Hotel, features approximately 600 fashion footwear brands exhibiting in booths, hotel show rooms and FFANY Member showrooms. FEATURED MERCHANDISE: Footwear, Handbags and Accessories CATEGORIES: Womens, Mens, Children PRICE POINTS: Off-Price/Budget/Moderate/High-End/ Luxury FREQUENCY: 4 times/ year DURATION: 3 days LOCATION: Hilton New York Hotel and FFANY Member Showrooms, New York, NY PRODUCER(S)/ ORGANIZERS: FFANY – Fashion Footwear Association Of New York ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: February 1-3 June 6-8 August 1-3 November 28-30 WEB SITE AND CONTACT PHONE: www.ffany.org (212) 751-6422

FN PLATFORM

FN PLATFORM, presented by MAGIC and in collaboration with Footwear News, it showcases the most comprehensive assortment of footwear brands at any tradeshow in North America. Featuring over 1,500 new and emerging labels in efficiently merchandised lifestyle environments,

ENKWSA

FN PLATFORM delivers the full range of branded footwear for men, women and children. FEATURED MERCHANDISE: Footwear CATEGORIES: Womens, Mens, Children PRICE POINTS: Budget/Moderate/High-End FREQUENCY: 2 times/ year DURATION: 3 days LOCATION: Las Vegas Convention Center Las Vegas, NV PRODUCER(S)/ ORGANIZERS: Advanstar Communications ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: February 13-15 August- TBD WEB SITE AND CONTACT PHONE: www.magiconline.com (310) 857-7500

GDS

GDS is a leading international footwear trade fair featuring a comprehensive selection of the progressive and classic styles, the best-selling sports and urban active collections, well-established and new brands. Some 840 exhibitors from about 35 countries present their footwear, bags and accessories collections to the international trade audience. To cater to just about every exhibitor, GDS has created a unique trend concept: eleven different themed worlds offering visitors varying focal topics and innovations. FEATURED MERCHANDISE: Apparel, Footwear, Accessories, Services CATEGORIES: Womens, Mens, Children PRICE POINTS: Off-Price/ Budget/ Moderate/ High-End FREQUENCY: 2 times/ year DURATION: 3 days LOCATION: GDS

December 2011

Fairgrounds, Düsseldorf, Germany PRODUCER(S)/ ORGANIZERS: Messe Düsseldorf ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: March 14-16 September 5-7 WEB SITE AND CONTACT PHONE: www.gds-online.com Tel. (312) 781-518

MAGIC

MAGIC brings together the entire industry to create the world’s foremost fashion marketplace, hosting global buyers and sellers of men’s and women’s apparel, footwear, accessories and sourcing resources. MAGIC is where new trends surface and develop into what will be seen on the consumer. The show’s goal is to connect and inspire the fashion community, fuse diverse trends, while offering unbeatable service to its customers. MAGIC also offers an impressive seminar series with world class speakers. MAGIC consists of several shows · WWDMAGIC: The showcase of women’s, juniors’, tweens’ and kids’ apparel, footwear and accessories. · MENS/WEAR: The definitive event for men’s fashion, featuring a fresh representation of weekend casuals, denim-driven sportswear, tailored clothing and stylish outerwear and golfwear collections. · FN PLATFORM: The industry’s united forum for footwear professionals, showcasing the entire spectrum of men’s, women’s, juniors’ and children’s branded footwear amidst all the trends of the season. · S.L.A.T.E: A curated gathering of the best in progressive streetwear and sport-fueled lifestyle brands—fusing subculture, art and music. Featuring RIDE Unltd., the new MAGIC

December 2011

The Top 10 Trade Shows Atlanta Apparel Market #10

FFANY NEW YORK SHOE EXPO

FFANY

ENKWSA

FN PLATFORM

ENKWSA

GDS

December 2011

MAGIC

December 2011

The Top 10 Trade Shows destination for action sports at MAGIC. · STREET: The destination for global street style, representing every trend and influence in today’s young men’s market: from athletic sportswear to hip-hop culture, California lo-fi and everything in between, reflecting a bold, brash and in-your-face lifestyle. · PROJECT: features the most directional brands and attracts the most influential retailers in the global marketplace uniting them in a dynamic and community-focused atmosphere. · POOLTRADESHOW: The leading art and design-driven fashion tradeshow for emerging brands—where the visionaries of retail come to scout hot new items for the boutique market from 200 contemporary men’s, women’s and accessory brands. · SOURCING at MAGIC: Sourcing event, featuring fabric and design resources from 40+ countries, along with trend forecasting and industry seminars. FEATURED MERCHANDISE: Apparel, Footwear, Accessories, Services CATEGORIES: Womens, Mens, Children PRICE POINTS: Off-Price/Budget/Moderate/High-End/ Luxury FREQUENCY: 2 times/ year DURATION: 3 days LOCATION: Las Vegas Convention Center and Mandalay Bay Convention Center, Las Vegas, NV PRODUCER(S)/ ORGANIZERS: Advanstar Communications ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: February 13-15 August- TBD WEB SITE AND CONTACT PHONE: www.magiconline.com (310) 857-7500

MICAM

MICAM ShoEvent

MICAM Shoevent, the leading international footwear fair, is organised by A.N.C.I., the National Association of Italian Footwear Manufacturers, through its service company ANCI SERVIZI Srl. The event is held twice a year in Milan, the fashion capital, in the modern and functional fair grounds of Rho Fiera. In March and September, a sneak-preview of the autumn/winter collections and those for spring/ summer of the following year are presented. The result is a complete and wide range of goods featuring quality, design and innovation, a unique platform that successfully combines business, glamour and communication. The fair occupies an exhibition area of over 70,000 square metres and plays host to around 1,600 companies, of which 1,000 are Italian and 600 foreign. Together they represent over 30 different countries. Given the attendance figures of over 42,000 visitors, of which 21,000 come from abroad, the MICAM Shoevent confirms its role as a privileged showcase for promoting new collections. At the same time, it is also a decisive opportunity to do business and establish tangible commercial contacts. innovations. FEATURED MERCHANDISE: Footwear

CATEGORIES: Womens, Mens, Children PRICE POINTS: Off-Price/ Budget/ Moderate/ High-End/ Luxury FREQUENCY: 2 times/ year DURATION: 4 days LOCATION: Rho Fiera, Milan, Italy PRODUCER(S)/ ORGANIZERS: ANCI Servizi Srl ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: March 4-7 September 16-19 WEB SITE AND CONTACT PHONE: www.micamonline.com +39 02 438291

PROJECT

Held bi-annually in New York and Las Vegas, PROJECT is the world’s preeminent contemporary fashion trade event. PROJECT features the most directional brands and attracts the most influential retailers in the global marketplace; uniting them in a dynamic and community-focused atmosphere designed to drive commerce, creativity and connectivity 365 days a year. FEATURED MERCHANDISE: Apparel, Footwear, Accessories CATEGORIES: Womens, Mens

PRICE POINTS: High-End FREQUENCY: 4 times/year: 2 times in New York, NY and 2 times in Las Vegas, NV DURATION: 3 days LOCATION: New York, NY and Las Vegas, NV PRODUCER(S)/ ORGANIZERS: Advanstar Communications ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: N/A SHOW DATES IN 2012: January 16-18 (82 Mercer Street, New York, NY) February 13-15 (The Mandalay Bay, Las Vegas, NV) WEB SITE AND CONTACT PHONE: www.projectshow.com (877) 554-4834

The Atlanta Shoe Market (TASM)

The Atlanta Shoe Market is held in Atlanta, Georgia twice a year at the Cobb Galleria Centre and The Renaissance Waverly Hotel. This show is held “Under One Roof” and is managed by Southeastern Shoe Travelers Association which is a non profit association for manufacturer’s representatives. Their purpose is to foster cordial relationships between manufacturers, retailers and salesmen in the shoe industry and related fields as

well as providing trade shows and educational seminars to their members and retailers. FEATURED MERCHANDISE: Footwear, Accessories CATEGORIES: Womens, Mens, Children PRICE POINTS: Off-Price/Budget/Moderate/High-End/ Luxury FREQUENCY: 2 times/year DURATION: 3 days LOCATION: Cobb Galleria Centre and The Renaissance Waverly Hotel in Atlanta, GA PRODUCER(S)/ ORGANIZERS: Southeastern Shoe Travelers Association, Inc ANTICIPATED ADDITIONS/ CHANGES/ ADDITIONS TO THE SHOW IN 2012: The Atlanta Shoe Market will have extended hours of the show to accommodate the growing number of retailers that are attending the show. In addition additional space is being used to accommodate the growing number of exhibiting companies. We have added The Shoe Court. This space will accommodate additional booth space as well as renting permanent mall stores for exhibits during the shows. The Kids Shoe Box” held in the Grand Ballroom features over 110 children’s brands. The Fashion Collection in the main ballroom in the Convention Centre featuring over 200 brands High End Brands. The Third Floor of the Renaissance Waverly Hotel which connects to the convention center is the home of the Luxury Brands SHOW DATES IN 2012: February 18-20 August 17-19 WEB SITE AND CONTACT PHONE: www.atlantashoemarket.com (706) 923-0580

PROJECT

December 2011

TASM

December 2011

MICAM

MICAM ShoEvent

PROJECT

The Atlanta Shoe Market (TASM)

PROJECT

December 2011

TASM

December 2011

Occasionally Predictions

Silly For 2012

by Mike Thimmesch. Used by permission of Skyline Exhibits • www.skyline.com You’re probably aware of the major trends about trade shows: More exhibitors measuring their ROI; doing more with less, perceived competition from virtual trade shows; the shift to fabric graphics and custom modular exhibits, more interactive technology in booths, yadda, yadda, yadda. Yeah, we know those big trends. But what other trends are happening that will affect the trade show world? Trends that are perhaps less obvious and hopefully less serious? Gaze along with me into my crystal ball and we’ll see:

SHOWS GROW: United States trade shows will return to growth for the entire 2012 for multiple reasons: • Exhibitors will be past their smaller 2011 budgets set during the harsh 2010 conditions, and will have their replenished 2012 budgets ready to go. • Companies awash in cash will invest in marketing to compete with aggressive competitors and spur growth. • Larger number of new products developed during the less scary 2011 need to be introduced at 2012 shows. • The weaker U.S. dollar (“quantitative easing”) will boost U.S. manufacturing sales (who are most of the larger exhibitors), and also make travel and exhibiting at U.S. shows less expensive for foreigners. • B2B marketers impatient with their inability to demonstratively drive enough sales volume with harder-than-it-looks social media will re-allocate more dollars back to proven trade shows. • Recently hired entry-level professionals will be sent to get training at industry shows.

2 PICTURE THIS:

Almost all exhibitors will finally have attention-getting mural graphics on their 10-foot pop-up displays because Front Runner fabric (that carpet-like fabric popular in the 1980s and 1990s) has been discontinued.

3 GREEN WITH ENVY:

Sustainable exhibiting will be the trend of the future … again.

4 WHADDYA INK?

Booth staffers will start favoring pens that write with blue ink over pens that write with black ink. You saw it here first.

5 COLOR ME FASHIONABLE:

Lime green and bright orange on trade show exhibits will start to go out of style.

6 I WANT IT NOW!

Literally waiting to the last minute, a disorganized exhibitor will demand from an exhibit house a spec design for a 30 foot by 40 foot exhibit…for a show happening later that day.

December 2011

TRADE SHOWS 7

SLEEPING WITH THE ENEMY: Rather than fear social media, almost all show producers will embrace it to get more attendees to their events. And it will work, increasing attendance and interactivity.

8 CRACKING THE CODE:

Editor’s Pick OF THE MONTH

QR Code use by exhibitors on their trade show graphics will multiply fourfold … going from .25% of exhibitors up to 1%. (Yes, I made those numbers up.)

9 CHOICES, CHOICES:

More new shows will launch as show producers feel confident enough in the economy to experiment with growing niches.

10 I AM NOT A CROOK:

Exhibitors will stop saying “Can I swipe your badge?” and instead say, “Can I scan your badge?”

11 TRASH CHIC:

Grey plastic wastebaskets will become so last season. In 2012, stainless steel wastebaskets will be all the rage.

12 FLOWER POWER:

Trade show floral trends for 2012: Mum’s the word!

13 NI HAO:

U.S. exhibitors will be more attentive to international trade show attendees who visit their booth, because their foreign economies are growing faster, and more U.S. exhibitors will exhibit internationally.

14 SWEET TWEET:

For the first time, an attendee will converse strictly through Twitter with a booth staffer — while they are both standing in the very same tradeshow booth.

15 NO-GROPE ZONE:

Regional trade shows will get an unexpected boost from people who drive to shows closer than their national conventions to avoid TSA body scanners and aggressive pat-downs at airport check in.

16 MARTER THAN SMART PHONES:

Conference presentations will improve as presenters create more interactivity to better compete with attendees’ ever-present smart phones.

17 TECHNICALLY SPEAKING:

Thanks to their portable size and touch screens, I-Pad use in booths will explode, used for presentations, lead retrieval, demos, and catching up on the latest Justin Bieber videos.

Remember, when the original Crocs came out, the public’s opinion was- the most comfortable, but the ugliest shoes ever? Well, I was one of those Crocs owners, loving the comfort and practicality, and hating the look. Since then, I have been impatiently waiting for the Crocs to come up with a new design that would satisfy my cravings for a winning combination of style and comfort. And only now, when a Norwegian company SWIMS has sent me a pair of their loafers for a review, I saythis is it! The shoe looks very cool and even dressy, with the outer shell made from the same material as Crocs- flexible and durable TPU, adorned with a breathable nylon mesh, and anti-bacterial EVA insole with ventilation system. Extremely lightweight, SWIMS shoes come in variety of styles and colors and I am very impressed with everything about the shoe: superb comfort, practicality and great European styling! The retail price starts from $149, this is the only negative comment, but with today’s prices- still thumbs up!

18 WHILE YOU’RE HERE:

More exhibitors will shift their budgets from pre-show to at-show promotions.

19 XHIBITING 2.0:

More exhibitors will effectively use social media for trade show promotions.

20 FREE PRIZE INSIDE:

The iPad will replace the iPod as the most offered trade show contest giveaway prize.

21 HAVE WE MET?

At the world’s most micro-targeted regional trade show, an exhibitor will sit in front of a mirror and talk to himself. What do you predict will happen in the world of trade shows in 2012?

December 2011

Actress/Model Olivia Palermo presents Atenea collection jewelry by Carrera y Carrera (cover photo)

CELEBRITIES

Fashion

Why do people all over the world wear the clothes that they do? Is it because they saw them on a famous person walking the red carpet? Or, they saw it in a magazine that said it is the latest trend and this is a must have item for the season? According to numerous studies, it is likely that all these strategies are influencing women and men today. The fashion industry has almost unlimited resources at its disposal. Information and photographs that appear on the Internet instantaneously reach millions of women. Immediately, they know which fashions are in and which are out. They find out very quickly what they should be wearing and what they shouldn’t. A long-established tradition used by the fashion industry to set trends and market their designs has been to work with famous people to model their clothes. With the arrival of various reality and music shows, the multiplicity of award shows, the public is bombarded with a flood of designs to choose from. However, the ultimate message from the fashion industry is; “if a famous person wears this – it must be cool and therefore you must have it too!” TV and movies have taken center stage when it comes to both entertainment and fashion. This strategy proves to be a win-win situation for both the fashion industry and celebrities as they cash in on the free items that various designers throw their way. A constant theme in fashion marketing is to create ideas or themes for what it means to look good or look attractive. That is, part of marketing strategy is to generate ideas in people’s heads about what kinds of clothes they need to wear in specific situations – the work environment, social situations, special occasions, etc. The fashion industry continues to use a number of strategies to set trends. These include using celebrities to model their clothes/ accessories at popular events, featuring that in magazines, websites and broadening the demographics they design for and market to. - A.G.

Far left: Actor John C. Reilly at the 68th Venice Film Festival Middle: Actor James D’Arcy, director/writer Madonna and actor Oscar Isaac pose at the ‘W.E.’ premiere at the 68th Venice Film Festival

Left: Actress Kirstie Alley walking the runway wearing Zang Toi dress during Mercedes-Benz New York December 2011 33 Fashion Week Spring 2012

Actress Olivia Wilde is posing with Carrera y Carrera jewelry at the Berlin Premiere of Cowboys & Aliens

Actor Willem Dafoe wears a Jaeger-LeCoultre Grande Reverso 976 watch at the 68th Venice Film Festival

Designer Vera Wang walks the runway at the Mercedes-Benz Fashion Week Spring 2012

December 2011

Actor Al Pacino wears a Diving Navy Seal Jaeger-LeCoultre watch at the 68th Venice Film Festival

ÂŠ FFR- Focus On Fashion Retail

Actress Stacy Keibler wearing a Maria Lucia Hohan gown to The Ides of March Premiere at the BFI London Film Festival. She accessorized with Le Vian earrings and a Hellmuth ring.

Actress/Singer Jennifer Lopez wears Brumani earrings, a Le Vian snake ring and Amrapali stackable rings to the BAFTA Brits to Watch 2011 Designers James Mischka and Mark Badgley walk the runway at the Mercedes-Benz Fashion Week Spring 2012

Actor James Woods wearing Margo Petitti cashmere scarf at Emmys gifting lounge ÂŠ FFR- Focus On Fashion Retail

D e c eDmebceerm2b0e 1r1 2 0 1 135 35

CELEBRITIES & FASHION

Actress Audrina Patridge is posing with Ice-Watch at the Academy Awards gifting lounge

Singer Beyonce Knowles during Mercedes-Benz Fashion Week Spring 2012

December 2011

Model Franziska Knuppe wearing Montblanc Haute Joaillerie PremiĂ¨re Rencontre (earstuds and necklace) and LeVer Couture gown at the Montblanc New Voices Awards 2011

Singer Rihanna at the Rock in Rio 2011

Model Kate Moss attends the Rimmel & Kate Moss Party in London. Kate wears shade No. 1 from her new collection

Singer Christina Aguilera attends The Montblanc John Lennon Edition writing instrument in New York

ÂŠ FFR- Focus On Fashion Retail

RETAIL 101

VISUAL

by Tony Morgan

merchandising Excerpts from the book. Reprinted with permission.

Signage It is worth noting that too much information can be confusing and text should be used cautiously. It is rather arrogant to expect shoppers to read reams of text in a window. It is always best to keep any text simple and explanatory; punchy oneliners always work best. Window signage should be planned at the same time as the scheme or themeâ&#x20AC;&#x201D; it should never be an afterthought. Always consider how the signage interacts with the window scheme or products, and question whether the text enhances the window or if it is unnecessary. Any signage used in a window should always be prioritized in order of importance. A tag showing the price of an item of furniture may be more important to its sale than a sign stating its location in-store, while a banner offering a discount may overrule both. Either way, too many tags, signs, or graphics can lead to visual overkill. The positioning of signage and the choice of color must be thoroughly planned beforehand. A green message carefully placed on the glass will not stand out against a green back wall; a contrasting color would work better. The same sign placed directly in front of the main grouping can either hide it or, if positioned correctly, draw the eye to it. Many retailers still place signage far too high in a window and expect the public to look up to read it. Positioning signage high in a window encourages the viewerâ&#x20AC;&#x2122;s eye to leave the main focus of the window and trail off to the ceiling grid instead. The most common and conventional place for signage is at eye level from the street. Graffiti, neon, TV screens and projected images may all be used to send messages to the public, and the same general rules apply. To get the message across, text must be clear and easy to read and digest.

Window signage Window signage has progressed considerably over recent years. The once handwritten signs hanging from ceiling grids have been replaced with vinyl machine-cut letters that are usually stuck to the window glass. These state-of-the-art letters are accurately cut to a predetermined design by machine and can be produced in any color or typeface. Applying the text to the window, unfortunately, still has to be done by hand. There are many companies that will not only cut the signage for you but also apply it. The task itself is not difficult; however, patience will be required. One small slip and the lettering can fold back on itself and become ruined. The vinyl letters can be positioned on the outside of the window or inside. Both are suitable, although bored customers have been known to pick the letters off the outside of the glass. To apply the letters, a piece of masking tape is placed on the nonsticky side of the text. This holds the text in its correct format and makes the whole line or word easier to handle. Before placing the text onto the glass, many professionals will spray the glass with a weak soapy liquid; the vinyl lettering is then placed on the glass and the soapy water allows the 38

December 2011

lettering to be adjusted. When the text is positioned in the correct place, a plastic squeegee the size of a credit card is used to press down the letters and force the water from between the adhesive and the window glass. Finally, the masking tape is carefully pealed off, leaving the text firmly stuck to the glass. When the text is no longer required, it can simply be scraped away with a sharp blade. The same vinyl treatment can be applied to the entire glass, thus blocking off the window completely. As strange as it may seem that a book teaching the art of window dressing should encourage such an idea, there may be times when a retailer needs to spend days, not hours, redressing a window. Many large department stores will use this opportunity to maximize the value of their window space and inform the public of the new window scheme or promotion at the same time. The windows act as a temporary billboard and hide the disarray inside.

Descriptive signs Descriptive signs are used to inform the customer of prices, location of products, or discounts. While many retailers prefer to be discreet and not inform the shopper of the price of an item, others proudly list the prices adjacent to the merchandise. When pricing the clothing on a mannequin, the sign should always read from top to bottom, listing the prices starting from the top as the mannequin is dressed: i.e. hat, shirt, trousers, shoes. The lettering should be large enough to be seen from outside the window and be positioned to the right of the mannequin. Each pricing sign in the window should be the same size and format. Some retailers use a Perspex stand to hold the sign, which can be purchased from display companies. Because of the static electricity in Perspex, however, such stands can act as a dust magnet and will need to be cleaned daily. Merchandise can be priced in other ways, too. Smaller price tags may be pinned to clothing items, or housewares may have small signs placed among the groupings. Some items may need a description of the item ÂŠ FFR- Focus On Fashion Retail

to help the sale. An antique chair may require a brief history and list of the materials used in its construction; however, an edited version will suit most customers. Handwritten signs are definitely frowned upon in the visual merchandiser’s world; even the smartest handwriting will look unprofessional. A printed sign will always look better and be easier to read.

Graphics Photography, either displayed within or applied to the window itself, is now a common tool of the visual merchandiser. Modern digital technology has made large-scale photographic prints affordable and accessible. As well as being used in conjunction with the retailer’s advertising campaign, images are often created specifically for a window scheme. Such graphics have the advantage of being easy to install—

A colorful window in Topshop, Westfield, London. Giant pansies decorate the two-story facade of the store. The large plinth in co-ordinating colors with neon trim elevates the mannequins.

Store guides and other navigational signs Part of a sequence of windows entitled “Spring Beauty” at Selfridges, London. The text is the theme that runs through each window, each caption relating to a recognizable quotation or colloquialism.

and, as they don’t have to be stored, easily thrown away. Photographic images can be applied to heavy-duty paper or card and hung from the lighting grid, printed on vinyl and applied to the window, or printed on paper and stuck on the back wall. They can create an immediate window scheme that needs little advance planning and is quick to install. More than one skilled person will be needed to apply large-scale vinyl graphics to the glass. Care should be used in positioning them in the window. Ideally, they should not be applied to the side walls as they will only be seen by customers passing the window in one direction. Positioned on the back wall, however, they can be used to attract the eye into the window.

Signage and Tagging Nowadays, signage is not just limited to handwritten or printed information. Neon, plasma, and LED displays are some of the more modern innovative ways of communicating with the customer. Whichever style of signage a retailer chooses, it is important to understand that, whether the store is large or small, customers need to have explanations, directions, and information made clear to them. © FFR- Focus On Fashion Retail

Before customers begin a shopping experience, they often wish to orient themselves. A large store with many floors needs to have detailed store guides and product locations. Often, this information is posted just inside the main entrance or at an information desk so that the customer has time to study the store’s layout before entering. Complicated store guides will only confuse consumers; it is advisable to keep the directions simple but informative. A scaled-down plan of each of the floors with key destination points such as elevators and escalators will best aid the customer. Highlighting entrances, fire exits, restaurants, and restrooms can also orient and reassure the shopper. A printed leaflet of the store guide can also be either handed to customers on entering or placed close to each entrance for shoppers to pick up themselves. Once inside, the customer may need extra help to navigate the store. Often, signs— commonly referred to as banners— are hung above walkways. Banners are usually screen-printed or have vinyl text applied to them. They can either be cut from foam board or wood or made from coated fabric. Freestanding signposts placed at the beginning of walkways, escalators, and elevators are an effective way of telling customers where they are and what else is available in-store. Departmental signage will help the customer plot a course around and through the merchandise. A strong supplier brand can act as an anchor to reinforce the department’s product category. Used correctly and as a focal point, a strong brand on a wall will pull the customer into the heart of the department. Wall signage is an integral part of store design and visual merchandising. When used correctly, it not only directs but also attracts the customer. Plasma screens and neon are a quirky way of creating theater, yet confirming a message; they both can be used to add movement to bland wall fixtures. Freestanding signs that are used to inform the customer of promotions, events, or prices should always be printed on card and ideally be displayed in a Perspex holder. Sign-holders can be made to any size, but one universal size is usually more effective. Where the sign may be viewed from both sides, two can be placed back to back, or the sign may be printed on both sides. Signs in Perspex holders should sit with the product and be an integral part of the presentation, not an afterthought. Customers often move freestanding signs, and an easy solution is to fit the sign-holder to flat surfaces with double-sided tape. December 2011

RETAIL 101

Backlit transparencies Most perfumery counters around the world prove how effective backlit transparencies can be. Simply put, the box that houses the transparency consists of a lightbox with four sides and a row of fluorescent lamps at the back. A Perspex or glass sheet at the front supports the transparency. More often than not, the frame supporting the Perspex or glass will unclip,

Quirky but effective, Topshop’s visual merchandisers in London have used original 45-rpm records to spell out the name of the vintage department.

The success of this sign in Heal’s store in London lies in its simplicity. The size of the lettering means that it is easily spotted across the shop, enabling customers to find the department easily and also drawing them across the floor.

making it easy for the image to be replaced. The image is produced as a transparency by a photographer and, like the digital graphic, can come in various sizes. Often brands will supply their own transparencies. Backlit transparencies are cost-effective and very low-maintenance. Once the unit is fixed to a wall or fixture, it needs little attention. They are a great tool to brighten up a dull corner of a store as well as send an important message to the consumer.

The store guide for a department store needs to be simple and easy to read because of the amount of information that it has to carry, given that such stores will have many floors to describe. Peter Jones in London is a good example, as shown here.

Visual Merchandising (2nd edition) by Tony Morgan is a timely illustrated guide featuring clever visual merchandising that can dramatically help to increase sales. This much-needed reference offers user-friendly guidance to all aspects of visual merchandising, covering both window dressing and in-store areas. Using examples from a range of shops, from fashion emporia to small outlets, the book offers practical advice on the subject, supported by hints and tips from established visual merchandisers. It zeroes in on the world of fashion retail only—the largest and fastest growing industry in today’s world. This book reveals secrets from the toolkits of experts throughout the industry, as well as information on the use of mannequins, the latest technology, how to construct and source props, and it explains the psychology behind shopping and buyer behavior, making it an essential handbook for anyone working in this exciting area of retail. Tony Morgan teaches Visual Merchandising at the London College of Fashion and also at Sir Philip Green’s Fashion Academy. He worked as Head of Visual Merchandising at Selfridges for 18 years, where he traveled the world examining their different store concepts. He is the author of Window Display: New Visual Merchandising. 40 December 2011

Rise for Holiday Retail Sales,

Most Shoppers Still Seek Sales, Value-for-Dollars Rules etailers will have to provide even greater value this holiday season if they want their share of a small increase in holiday spending, according to Brand Keys, Inc. www.brandkeys.com, a New York City-based brand and customer loyalty research consultancy. In the face of a much slower economic recovery than expected, Brand Keys projects the average increase in consumer holiday spending will match last year’s – up only 3%.

Methodology Brand Keys interviewed 16,000 consumers in the nine US census regions during the first-half of October in regard to their anticipated holiday spending activities.

1. Holiday Spending 70% of interviewed consumers indicated that they are going to be extremely conservative, saying that the economy is still impacting their holiday spending plans. An on-going trend Brand Keys has observed is that no matter how much consumers spend, “the time-honored ‘price-value’ equation retailers have relied on for decades has been transformed by the economy, in-market experience, and consumer expectations into a ‘value-for-dollar’ doctrine,” noted Brand Keys president Robert Passikoff. “The retail brand, and what it stands for, has become a surrogate for added-value. If retailers really understand consumer expectations and actually know how to address them they’ll see higher profits. Unfortunately, most don’t. Most think lower prices will do it.” Two-thirds of Shoppers Seek Sales... Deals before Brands As in past years, retailers are expected to focus on inventory control, discounting, sales, and promotions. “But as discounting has become price-of-entry. Shoppers are looking for deals before they are looking at brands. 65% percent of shoppers indicated that they’ve already begun looking for sales. 60% indicated they were using on-line shopping and price comparison applications to find the best deals. More than half (56%) indicated that they were going to rely on coupons and customary promotions to keep spending down,” noted Passikoff. Over the past decade retailers have taught, and consumers have learned, there are always lower prices available someplace. Smart retailers that want a larger piece of a smaller holiday pie will have to leverage their own retail brands and the shopping experience. Here’s how consumers responded when asked if they were gong to spend more, less, or the same this holiday season as they did last year: Spending 2011 % Change From 2010 More 10% - 2% Same 70% + 6% Less 20% - 4% Consumers Don’t Want to Ignore the Holidays “While it’s the same increase over last year, it’s moving holiday spending in the right direction, and with one critical factor amplifying the consumers’ desires to spend,” said Amy Shea, Brand Keys executive vice president of Global Brand Development. “The holidays provide a traditional ‘reason to buy,’ and act as a relief valve for pent-up desire for some good old fashioned discretionary spending, and it’s showing up in the products and services they have on their shopping lists.”

2. How Much Will They Spend? Customer spending intentions were at the same level seen last year. On average consumers indicated that they were intending to spend about $824.00, or about 2.9% more than last year. 42

December 2011

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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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Best Selling Brands______________________________________________________________________________________ Notes About Your Store___________________________________________________________________________________

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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_ _____________

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December 2011

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If a retailer, please tell about your store: Specialty: oMen oWomen oChildren

oShoes Only oApparel Only oAccessories Only oAll

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December 2011

HO L I D A Y S A L E S P R E D I CTION Brand Keys Predicts Small Rise for Holiday Retail Sales, Most Shoppers Still Seek Sales, Value-for-Dollars Rules

3. Where Will They Spend Their Money? Consumers indicated that they would use the full range of retail channels available. “More shoppers say they’ll go online to shop this holiday season,” said Passikoff, “but that’s been a continuing trend.” Given that consumers are being careful, when it comes to bricks-and-mortar stores, consumers will be looking for higher levels of customer service. “Retailers have already made free shipping a price-of-entry offer. Free returns too. But shoppers expect a lot more. What once ‘delighted’ shoppers has now become an ‘expectation,’” noted Shea. “Retailers need to deliver delight this season.” 10% of shoppers indicated customer service could be a real retail differentiator, a continuing trend we’ve seen. “They want more service and an enhanced shopping experience. Retailers who can deliver will see more sales, higher loyalty, and increased profits.” 2011 % Change From 2010 Discount Dept. Stores 90% + 3% Traditional Dept. Stores 70% - 2% Online 97% --Specialty Stores 35% + 5% Catalogue 70% - 2% Location and Value are still the key engagement and loyalty drivers for the retail category at all levels. “But even with tighter budgets, Merchandise Range, Store Reputation, and especially Shopping Experience, play a larger role in engaging customers and generating sales,” said Shea. “Specialty stores have somewhat greater control over those elements, and they’ve learned how to discount and promote competitively like other platforms without significant loss of brand values, which is why more consumers indicated they were going to use that channel this year.”

4. On What Will This Money Be Spent? “Shopper responses were similar to last years’ intended purchases. There’s always an increase in gift cards,” noted Passikoff. “Jewelry and personal care products and services still appear on this year’s list, a good indicator that the desire for discretionary spending, is there even if the money isn’t.” All other traditional purchase categories are either flat or slightly down. 2011 % Change From 2010 Gift Cards 92% + 2% Clothing & Accessories 70% -0Electronics/Computers/Phones 50% - 10% CDs/DVDs/Video Games 40% - 5% Jewelry 18% - 10% Personal Care Products/Services 22% -0Food & Wine 20% -0Books 10% - 5% Home Décor 10% - 2% Travel 1% -0Two-thirds of the consumers surveyed (66%) indicated that they would begin their holiday shopping earlier this year, looking for deals and sales before ‘Black Friday’ or ‘Cyber Monday.’ “But you only have to walk through the stores,” noted Passikoff, “to see that sales are underway. It’s only going to ratchet up.” Brand Keys (www.BrandKeys.com) is the only research consultancy that specializes in customer loyalty, providing brand-equity measures that accurately predict future consumer behavior. These measures enable companies to anticipate every shift in a rapidly changing marketplace and to better engage customers. 44

December 2011