FOCUS ON FASHION RETAIL, December 2014

from the editor

HAPPY HOLIDAYS! EDITOR: Alex Geyman GENERAL MANAGER: Dmitry Nelipovich GRAPHIC DESIGNER: Pay Fan GRAPHIC DESIGNER: Laurie McAdams GRAPHIC DESIGNER: Nadine Alvillar FASHION EDITOR: Francesca Trippoli SUBSCRIPTION: Sandra DaSilva RESEARCH: Shawn Lancaster SALES: Claudia Perez

Dear friends, The busy Holiday season is upon us and I'll spare you from both my lame attempts at words of wisdom and the pretentious harrumphs of a jaded magazine editor guiding you through this issue, which you will flip through anyway. Instead, I'll keep this short and sweet. I want you to get in a good mood and smile.

Smile and be HAPPY! This issue is for you to enjoy. It's filled with practical information, dazzling imagery and good intentions to make your life as a fashion professional easier and more interesting. And, our sponsors will be happy to send you a lovely (and not cheap!) gift, as described on p. 6, just because you are so beautiful, well-mannered and hopefully, smelling good! Be happy today, because tomorrow may never come.

On behalf of all at the 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. I want to thank you for your continuous support and appreciation of our efforts to make this magazine worthy of your interest.

As always, I would like 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.

And, please visit and LIKE us on Facebook!

It's www.facebook.com/focusonfashionretail

Best Wishes for a wonderful Holiday Season and a very Happy New Year!

Yours sincerely,

Alex Geyman Editor 4

december 2014 | Focus on Fashion retail

Table of ConTenTs: 4 5 6 7 10 12 18 24 26 28 30 31 32 34 38 40 42 44 46 47 48

FROM THE EDITOR: Happy Holidays!

ON THE COVER: Designer Andrés Sarda Spring/ Summer 15 GIVEAWAYS! JEWERLY TRENDS Spring/Summer 15- Report from BIJORHCA RETAIL 101: Top 10 Things To Think About And Do To Open A Store FASHION TRENDS Spring/Summer 15 MARKET ANALYSIS: US Footwear Distribution And Sourcing FASHION TRENDS: from Giorgio Armani Spring/ Summer 15 TRADE SHOWS CALENDAR: December ‘14January ‘14 MANAGEMENT: A New Year and a Fresh Start TIPS: 5 Lies Most PR Agencies Tell ADVERTORIAL: Asia’s largest Fashion Event ROAD TO SUCCES: A Roadmap of Manners Coast To Coast CELEBRITIES & FASHION: From the Red Carpets TIPS: 5 Things a GOOD PR Agency SHOULD Say MARKETING CLASS: Stop Chasing Customers- A Five- Day Plan HOLIDAY SALES FORECAST: Top Trends FASHION TRENDS: from Emporio Armani Spring/ Summer 15 STYLING TIPS: Do’s And Don’ts Of Patterned Hosiery SUBSCRIPTION SURVEY: Your Opinion Counts

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

on the cover

ANDRÉS SARDA

Spanish brand ANDRÉS SARDA has been creating designer luxury lingerie and swimwear in Barcelona since 1962. The new Spring/Summer 2015 collection is designed for a demanding woman with a mind of her own who is looking for luxury, quality and comfort but at the same time for innovation, sensuality and a surprising color palette. Exclusive prints on fabrics of the highest quality show the feminine forms to their best advantage.

The animal and floral prints bring natural voluptuousness from exotic locations, while the navy stripes and the deep blues allude to the brightness of spots lapped by crystal-clear water. The elegance and special sense of color of far-eastern cultures and the volumes and sensuality of the countries of the Mediterranean succeed one another with the beauties arriving from the cold, all beautiful and unique like the fascinating muse to which AndrĂŠs Sarda dedicates all his collections: the contemporary woman.

The pattern has been specially conceived and designed to show off the female form, ensuring that the garments hug the body like a second skin, while the design plays with the forms and combinations of colors to stylize the lines of the body. The result is a seductive collection inspired by the contemporary woman, inviting you to release the best of herself.

Focus on Fashion retail | december 2014

5

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Retail value: $139 Available at www.JordanaPaige.com No purchase necessary. To enter the raffle simply come to the booth of any featured advertiser with this announcement, write a word "Raffle" on your business card and leave it with the person in charge. If you win, our friends from Dermarose (www.DermaroseSkincare.com), Jordana Paige (www.JordanaPaige.com) and Isabelle Grace jewelry (www.isabellegracejewelry.com) will send you one of the listed items absolutely FREE. Only one item per recipient, no duplicate entries. The mailing address must be within continental U.S.A. Protecting your privacy FFR magazine does not share your information with any outside parties or individuals. * While quantities last. Each vendor will supply one to four items for this promotion, while quantity last.

This raffle has been fully sponsored by Dermarose (www.DermaroseSkincare.com), Jordana Paige (www.JordanaPaige.com) and Isabelle Grace jewelry (www.isabellegracejewelry.com). Each winner will receive one of the above mentioned pieces directly from the Sponsor, free of charge. The winners will be determined on January 2nd, 2015 and the prizes will be sent to them within 6-8 weeks. Focus On Fashion Retail is not responsible for the content of this announcement approved by the Sponsors.

6

december 2014 | Focus on Fashion retail

Spring/Summer 2015 Trends

TRADE FAIR REPORT from BIJORHCA, PARIS

by Ellen Campuzano, Committee for Colour and Trends

B

ijorhca, the trade fair for jewelry held in Paris early this month was officially billed as a Fall/Winter 2014-15 fair with trends representing the current season. However, most exhibitors stepped it up and showed Spring/Summer 2015 collections as well, which we’re happy to present to you.

BIG, BOLD & BEAUTIFUL: The large statement necklace evolved into bead and stone clusters, long drop offs, and floral motifs.

TARATATA

ATELIER DE MONTSALVY

SPRING IS IN THE AIR:

ATELIER DE MONTSALVY

Creative summer mishmash with a miscellaneous assortment of beads and tassels, birds and coral branches…all in happy brights.

SIXTIES MOOD: Colorful Disks, sticks and strips and paint splashes evoke sixties psychedelic nostalgia.

BOKS & BAUM PITI

OANA MILLET

FOCUS ON FASHION RETAIL | DECEMBER 2014

7

FEATHERS, FRINGE & FABRIC: Unconventional materials continue to invade jewelry in most creative ways, from the usage of silky fringe and wispy feathers to ruffles and ruches and pleated grosgrain.

SHOMOOD

JICQY LES MIRETTES

SHOMOOD MBEX

CONTEMPORARY NECKWEAR: Neck wires, chockers and short necklace feature round disk motifs, buttons and beads for a modern look.

SATELLITE

LIMEMAKERS

CECILE & JEANNE

BURST OF FLOWERS: Flowers are in bloom everywhere, on necks and wrists and fingers‌ bees and butterflies included.

ZOR

ONIROLITHI

ONIROLITHI

8

DECEMBER 2014 | FOCUS ON FASHION RETAIL

PHILIPPE FERRANDIS

Spring/Summer 2015 Trends

PEARLS GET A CONTEMPORARY SPIN: Whether clean and simple or intricately combined with crystals, pearls are experiencing a major revival in necklaces, rings and bracelets.

LOOXE JEWELRY

MAODUN

LOOXE JEWELRY

PHILIPPE FERRANDIS

PRETTY IN LACE:

BETTY GABRIELLE

Silk ribbons and lace make feminine bracelets and cuffs.

Silk threads wrap rings in a pretty pale necklace look.

MA&SHA BETTY GABRIELLE

SANDRINE DE MONTARD

LARIATS: A new again necklace silhouette made an appearance in several guises, as an elegant Y-necklace, as modern or nature-inspired pull-through lariats with floral or leaf motifs.

FRED BEAU

SAMUEL CORAUX

LO AND LO

Prepared for Focus on Fashion Retail by Ellen Campuzano, President of the Committee for Colour and Trends

NODOVA ZANIA

Credits: Committee for Colour & Trends FRED BEAU

The complete forecasting source for shoes and accessories www.colourandtrends.com FOCUS ON FASHION RETAIL | DECEMBER 2014

9

retail 101

By Mercedes Gonzalez

10

10

TOP Things to think about and DO To Open a Store

1

Choose your location very carefully You want to be in an area where there is shopping traffic.

It is too difficult and costly to be a destination location. The money you think you are saving on rent you will be spending on advertising and running sales. This is the number one reason why stores go out of business.

7

Floor plan Draw out the floor plan of your store so that you know which displays and merchandise will go where. This will also help you create your shopping list for fixtures.

Remember to organize your floor space according to how merchandise will be sold, and not just how to make it pretty

2

Study your target market Before you start anything, you need to know who your target customer is going to be. Having a good idea of who your customers will be, will help you determine what your concept should be, the goods you need to carry, the look of you store, and so on. Remember that you are NOT buying the things you like but the things that sell, which is a very hard lesson for a new buyer to learn.

8

Technology Do your homework on technology. POS systems and loss prevention are the two major areas to do your research in.

9

Market Yourself The power of social media can not be ignored! Set up your Facebook and Twitter accounts. Even if you are not selling through your website, you need to have one for online presence. Make sure everything is linked together. Though social media has cut the cost of marketing significantly, traditional print ad’s every now and then are also important.

Once you build up your customer database, you’ll need to get involved with email marketing as well. Don’t forget having nice reusable shopping bags. They act as mini billboards when people are walking around.

10

Think of the big picture The mantra of any business owner should be: how do I work as little as possible for the most amount of money. Set your operations procedures when you are planning the store. The business must run without you involved in every tiny detail. ❖

3

Be aware of your friends and family They are the first to encourage you and the first to ask for discounts. Consult with an industry professional and get a different point of view.

4

Know your retail math This business is 90% math 5% fashion and 5% good luck.

Know your turn over, sales per sq. foot, sales to stock ratio and margins. Consumers price resistant and their spending values are also important to understand when doing your costing and mark-up.

5

When and where to buy There are certain times of the year that you should be attending shows and placing orders for goods. Set your OTB and stick to it. Know the lingo and bring a concept book to show the new brand who you are and what your plans are.

6

Put together the ultimate sales team Your sales team is the back bone of your store. Recruit your sales team carefully and train them to be affective salespeople. Don’t think about personally working on the sales floor. Not having staff is not an option.

december 2014 | Focus on Fashion retail

Mercedes Gonzalez is the director of Global Purchasing Companies, a full service buying office that specializes in the independent retailer and young designers. GPC offers consulting, buying and training services. www.globalpurchasinggroup.com

layers

cutwork

FASHION

trends spring/summer 15

Burberry Prorsum

stripes

Tommy Hilfiger

Custo Barcelona

Custo Barcelona

Desigual

shirt dresses

John Galliano

A Degree Fahrenheit

metallics

Tommy Hilfiger

Hannibal Laguna

Tommy Hilfiger

Christopher Raeburn

Daks

A Degree Fahrenheit

florals

Carolina Herrera

Kaviar Gauche

House of Holland

Tommy Hilfiger

FASHION

trends spring/summer 15

Vintage-inspired Highwaist bottoms swimwear; XTG

One-pieces with cinched-in waists, sweetheart necklines and cute pockets; Playful prints – kaleidoscopic, geometric; Shirred sides that accentuate the waist and hips; Minimalist accents and sophisticated cuts.

Dolores Cortes

Desigual

Auria London

House of Holland

Irregular Choice

Marino Fabiani

14

deceMber 2014 | FOcuS On FaSHiOn retail

Montblanc Meisterstruck

Winston Sun by GLCO

Fornarina

Gianmarco Lorenzi

Oye!

Miss Bikini

OndadeMar Linea Marche

Luca Nencioni

Mama Maria

Gottex

XTG Focus on Fashion retail | december 2014

15

FASHION

Lacy strap-up sandals;

trends spring/summer 15

Metallics, Buckles and hardware; Tommy Hilfiger

Psychedelic, geometric, floral prints; Animal, reptile prints; Sporty look

Jeannot

Baldinini Baldinini

SIV Milano

Tommy Hilfiger

Formentini

16

december 2014 | Focus on Fashion retail

Artioli

Brimarts

Linea Marche Marino Fabiani

Gianmarco Lorenzi

Tommy Hilfiger

Fiorangelo

Le Babe

Focus on Fashion retail | december 2014

17

MARKET ANALYSIS

US Footwear

Distribution and Sourcing

By Peter T. Mangione

The following is adapted from the report to its global clients made by Global Footwear Partnerships LLC (GFP) in September 2014. Many of the trends suggested by the data seem to be playing out in the latter part of this year and portend developments into 2015. This report has been prepared exclusively for Focus On Fashion Retail magazine.

Main Takeaways at Mid-year

Modest Overall Growth. The US GDP grew at rate of 4.0% in the April-June period following a decline of 2.1% in the Jan-March period. The upward spurt was attributed to pent-up demand following the harsh weather of the first quarter. The outlook for all of 2014 is for no more than 2% growth, the same sluggish pace as 2013— no growth breakout is in sight. Despite somewhat better employment data, overall growth remains subdued.

Consumers seem to be holding back (with the exception of new cars) and there is a lack of business expansion/investment, likely the result of the many uncertainties weighing on the economy, at least some which are due to lack of confidence in President Obama.

Most Retail Still Challenged.

General US retail business remains weak, especially in the mass market, with nearly all of the plus performances in the better and higher end of the market.

Mixed Shoe Sector Performance.

Wholesale shoe sales continue to be robust for athletic types but are more subdued for street items, and, with the exception of athletic specialty stores, most shoe retailers continue to struggle.

China Still Leads Shoe Sourcing. On the footwear supply side, China continues to hold its own as the main provider to the US

18

december 2014 | Focus on Fashion retail

although its pair’s market share has fallen to 80.2% down from 82.2% in the first half of 2013.

Vietnam leads the group that has taken China’s market share, especially in athletic types, while a group of niche players has taken leather business from China including India, Italy, Dominican Republic, Spain, Mexico, Bangladesh, Portugal, Ethiopia and Nicaragua. Overall, US first half shoe imports were just about the same level as the same period in 2013, while average import shoe prices were 3.6% higher this year against last year.

consumed 2.8 billion pair and the US 2.4 billion pair.

The Annual GFP Worker Cost Survey for 2014 shows that China, at some $2.10 per hour, is the most expensive place in Asia to make shoes, while Ethiopia, at $0.36 per hour, is the lowest.

While they have much lower hourly worker costs than China, the following had large year on year worker cost increases: Bangladesh (61%), Cambodia (41%) and Vietnam (26%).

Better Employment but… The employment picture is improving this year, as some 200,000 new jobs have been added to the worker pool each month and the unemployment rate has fallen to 6.1%.

Nevertheless, the employment pickup is not impressive.

There are still some 9.0 million unemployed and at this stage of the recovery, based on the pace of past post-rescission rebounds, the US should be adding at least three or four hundred thousand jobs per month.

Also worrying is the decline in participation in the work force by many working age individuals. Indeed, the overall size of the workforce has not expanded beyond the peak before the Great Recession (2007-09) and the percentage of working age persons that are employed is the lowest in decades. The job

The GFP Global Supply and Demand Footwear Survey for full year 2013 shows the following—China’s shoe production at 14.2 billion pair and exports at 10.6 billion pair dwarfs all other producers, and is more than all other major shoe producers and exporters combined. China is also the world’s largest consumer market for shoes with some 3.7 billion pair consumed in 2013 or about 2.8 pair per person; the EU

Details behind the Takeaways

Overall US Business. Following a GDP decline of 2.1% in the first quarter of 2014, US GDP rose to 4.0% growth in the second quarter, reflecting pent up demand frustrated by the inclement 1st quarter weather. The outlook for the remainder of 2014 is not too optimistic and the US is likely to finish the full year at around 2% growth, the same sluggish performance as 2013.

Leading US Department Stores Sales Change 2014 Same Store Sales 2/1/Q, %

2013 Same Store Sales 4/3/2/1/Q

Average Sq Ft

Shoes Sales of Total Sales

Store Count

Total Sales 2013/2012 in Bln USD

Nordstrom

+3.3/+3.9

+2.2/+0.1/-0.7/+3

130,000

21%

169

$12.3/$11.8

Macy’s

+3.4/-1.6

+2.3/+3/-0.8/+4

182,000

36%*

850

$27.9/$27.7

Dillard’s

+1.0/+2.0

+2.0/+1/+1/+1

171,000

14%

315

$6.5/$6.6

Walmart

0/-0.8

-.4/-.3/-.3/-1.4

180,000

1-2%

4,203

$279/$274

Target

0/-0.3

-2.5/-.9/+1.2/-.6

160,000

2-4%

1,793

$71.3/$72.0

Kohl’s

+1.3/-3.4

-2/-1.6/-.9/-1.9

100,000

4-5%

1,160

$19/$19.3

Note: *Includes women’s accessories, cosmetics, and intimate apparel as well as shoes. Note that sales percent of change is based on comparable sales for the entire store, not just shoe sales. Comp store sales excludes units opened/closed during the year.

market is so tough that many take retirement, go on government disability, or just drop out of the worker pool and are no longer seeking employment (and are, thus, not counted as ‘unemployed’).

Moreover, the so-called ‘under employment’ rate (which combines the unemployed and those in part time jobs but who are seeking full time employment) is still about 10%.

It is no wonder that retail sales at the lower end of the market continue struggle with so many workers not able to find well paying full time employment.

No Help from Washington. One reason the economy remains sluggish is lack of investment and business expansion. One driver of this is uncertainty, some of which is rooted in lack of reform from Washington on business taxes, health care costs, immigration, environmental regulation and international trade. There is widespread lack of confidence in the Obama administration – the president’s approval rating is only about 40%.

With the mid-term Congressional election in November, there is virtually no chance that any of the key issues will be resolved this year.

While the conservative Republicans, who already control the House by a large margin, may take control of the Senate from the Democrats, much paralysis is likely to continue until Obama leaves office in January 2017.

The good news is that this ‘grid lock’ in the Congress has ended the runaway spending

❝Broad economic factors, especially the sluggish job growth and stagnant wages at the middle and low economic levels are no doubt responsible for the weaker performance of the mass-market sector.❞

and social program expansions of Obama and the Senate Democrats. This has helped bring down sharply the US federal governmentspending deficit, which has helped keep interest rates and inflation at low levels.

General Retail Sales. US department stores overall did not perform well in the retail quarter that ended July 30, although the vendors in the better space like Macy’s, Nordstrom’s and Dillard’s, outperformed the mass market leaders like Walmart.

Nordstrom’s and Macy’s each reported respectable sales increases of some 3.3% excluding stores opened or closed during the past year (so-called ‘same store’ sales).

Walmart, Target and Kohl’s all were just about flat on a same store sales basis

– continuing the trend of many quarters in a row with poor sales performance.

Broad economic factors, especially the sluggish job growth and stagnant wages at the middle and low economic levels are no doubt responsible for the weaker performance of the mass-market sector. Moreover, this sector seems to be the hard hit by the slowdown of customer traffic through retail stores, which was down 8% in May and 10% in June.

The better department stores have also experienced reduction in foot traffic, but ➜

U.S. Footwear Retail/Brands Percent of Change 2014 — 2013 2014 4th/3rd/2nd/1st Q

2013 4th/3rd Q

2013 2nd/1st Q

Total Stores

Sales 2013 (Mln)

DSW*

0.8/-3.7

0/-0.7

4.4/-2.4

410

$2,400.0

Famous Footwear*

1.6/1.3

-1.8/4.9

6.8/1.1

1,129

$1,527.5

Genesco*

4.0/1.0

0/-2.0

-1.0/-2.0

2,550

$2,604.8

Finish Line*

1.5/5.0

6.3/0.9

2.4/0.7

1,167

$1,670.0

Footlocker*

7.0/7/6

5.3/4.1

1.8/5.2

3,473

$6,505.0

Company

Brand Stores Nike +

15.0/10.9

13.0/8.0

8.0/7.0

384

$25,300.0

Adidas +

10.0/-6.0

12.0/-7/0

-4.0/-2.0

3,446

$19,564.2

Brown Shoe (&)

7.7/5.6

13.5/4.5

12.0/-3.0

306

$763.7

Steve Madden +

0.0/9.2

9.0/11.0

3.0/5.0

121

$1,300.0

Skechers +

37.0/21.0

14.0/20.0

11.0/28.0

204

$1,846.0

WWW +

4.4/-2.8

14.0/9.0

6.0/8.0

444

$2,690.0

Note: 1.) *Comparable stores sales for retailers. 2.) (&) Wholesale only. 3.) + Wholesale and retail. 4.) Retail year ends January 30, while brands have various closings.

Focus on Fashion retail | december 2014

19

MARKET ANALYSIS have powerful e-commerce sites and tech savvy customers who use the Internet increasingly for everyday shopping – something the mass market players have not yet mastered. Macy’s and Nordstrom’s have Internet sales of about 12% of total business (luxury leader, Neiman Marcus’ is more than 23%), while mass-market player, Sears, has only 5%.

With some 20% of all shoe sales in the US now done on line, it means that the massmarket players will be enjoying a lot few shoe sales unless they catch up on line.

Footwear Sales. The leading sports brands, Nike, Adidas and Skechers performed quite well in the second quarter of 2014, with Skechers leading the pack with a 37% sales increase. Non-athletic brands also performed well for the most part with Brown Shoe wholesale reporting a near double digit increase and Wolverine showing a respectable plus performance.

As to shoe retailing, Footlocker continues its top performance run with a near double digit same store increase in the second quarter of 2014, while Genesco’s Journey’s store, which is heavy on athletic and funky, also did well.

Once again, as in the first quarter of 2014, Designer Shoe Warehouse (DSW), the selfservice leader in branded women’s and men’s shoes at discount (each store has some 25,000 pair displayed for customers), reported disappointing same store sales in the second quarter, as did its rival, Famous Footwear.

In many ways, these companies are suffering from the same weaknesses affecting the mass-market department stores (declining foot traffic and tapped out customers). They are also quite vulnerable to the continuing pressure from the wide selection offered on the internet by other retailers and pure internet operators like Zappos – all of which feature the added ease of home shopping. The principal attraction of these big box stores is their wide selection of branded shoes. It is now clear that the Internet offers even larger and more convenient access to mega selection options for branded shoes.

Footwear Suppliers to the US. For the first six months of the year, US imports of shoes were essentially flat in units compared to the same period in 2013, reflecting a cautious but still optimistic outlook for shoe sales for the rest of 2014. With average prices increasing 20

3.6%, brands and retailers will continue to experience pressure on their margins.

seems to have succeeded and is now ended.

A weaker USD vs. the RMB now seems assured, but in slow, incremental moves, although the occasional pull back to a weaker RMB cannot be ruled out.

China. The largest supplier to the US in pairs saw its market share fall to 80.2% in units, down from 82.2% in the same period in 2013.

Average price grew by only a small percentage, 1.7%. China continues to be the dominant leader in many footwear segments including women’s fashion and low priced items.

On a value basis, China’s share of the US leather shoe import market was 56.3% in the first half of 2014, down from 58.6% during the same period in 2013, reflecting a decline of 1.5% in leather shoe pairs shipped by China to the US in the first half of 2014 compared to the same period in 2013. Clearly, other suppliers are gaining most of the increase in leather shoe sales to the US, which grew by some 3% in value during the first half.

After declining by some 3.5% against the US dollar during much of 2014, the Chinese yuan (RMB) has resumed its march to higher values. It is now about where it started the year at about 6.1 RMB per USD. The exercise of lowering the value of the RMB vs. the USD to rattle speculators and to send the message that the RMB is not a ‘one way’ bet

Gaining at China’s Expense. Vietnam continued its rapid expansion in shoe sales to the US, up 16.1% in units and 18.5% in value in the first half of 2014 compared to the same time in 2013.

The violent attacks on China businesses in Vietnam that followed China’s oilrig action in the disputed islands in the South China Sea have ended and China/Taiwanese entrepreneurs are aggressively rebuilding. Much like China, when it has unleashed public anger against Japan, Vietnam seems to be able to ‘turn the tap on and off’ as it needs to and seems to be in control of the situation. It appears that the battered confidence of China investors has been restored and that growth seems poised to re-accelerate.

It must be kept in mind, however, that there is limited available labor in Vietnam to accommodate all the expansion that seems to be planed and not just in shoes but in garments, electronics, etc. Land is also

US Footwear Imports January — June 2014 Pairs, Mln

Change, %

Value (Mln USD)

Change, %

Unit Value (USD)

Change, %

1,003.10

-2.90%

$7,988.90

-1.20%

$7.96

+1.70%

Vietnam (10.8%)*

135.70

+16.10%

$1,666.90

+18.50%

$12.28

+2.10%

Indonesia (3.7%)*

46.10

-6.70%

$627.10

-2.30%

$13.63

+4.90%

India (0.7%)*

9.30

+0.17%

$158.80

+22.90%

$17.07

+4.20%

Italy (0.7%)*

9.00

+11.10%

$703.50

+15.40%

$78.17

+4.40%

Mexico (0.7%)*

8.90

-4.90%

$197.40

-7.70%

$22.18

-2.10%

Brazil (0.7%)*

7.10

+8.10%

$97.00

+6.70%

$16.66

-12.80%

Cambodia (0.5%)*

6.50

+143.40%

$53.20

+81.60%

$8.19

-24.50%

Dom Rep (0.4%)*

4.40

+4.3%

$110.40

+5.30%

$29.09

+0.60%

Thailand (0.3%)*

3.90

-7.60%

$58.60

-2.20%

$15.03

+5.40%

Spain (0.2%)*

2.10

+7.60%

$107.40

+15.40%

$51.14

+4.80%

Bangladesh (0.1%)*

1.10

+57.60%

$24.50

+105.90%

$22.27

+27.40%

Portugal (0.1%)*

0.94

+37.50%

$44.50

+30.50%

$47.24

-5.10%

Ethiopia (0.1%)*

0.87

+36.80%

NA

NA

$11.75

NA

Nicaragua (0.1%)*

0.35

+311.60%

NA

NA

$15.00 (Est)

NA

1,251.40

-0.40%

$12,101.80

+3.10%

$9.67

+3.60%

Country China (80.2%)

World Total

Note: 1. * Increase in market share from the same period a year ago.

december 2014 | Focus on Fashion retail

Shoe Worker Cost Comparison 2014 Cost per Hour 2014/2013 (USD)

Change of Cost (%) 2014/2013

Exchange Rate USD 2014/2013 (% of change)

Ethiopia

0.36/0.32

12.5%

19.4/18.8 (3.2%)

Bangladesh

0.71/0.44

61.4%

76.25/78 (-2.2%)

Cambodia

0.85/0.61

41.0%

3,988/3,945 (1.1%)

India

0.85/0.75

13.3%

58/59 (0%)

Vietnam

1.14/0.90

26.0%

21,218/21,223 (0%)

Nicaragua

1.27/1.22

4.1%

25.5/24.7 (3.3%)

Thailand

1.34/1.32

1.5%

32.48/31.27 (3.8%)

Indonesia

1.60/1.75

-9.4%

11,800/10,200 (15.7%)

Dominican Rep.

1.88/1.81

3.5%

42.61/41.89 (1.7%)

China

2.09/1.90

10.0%

6.25/6.1 (2.5%)

El Salvador

3.05/NA

NA

1.00/1.00 (0%)

Brazil

3.48/3.59

-3.1%

2.25/2.22 (1.4%)

Mexico

3.75/3.87

-3.1%

12.93/12.69 (1.9%)

Portugal

6.37/6.35

0.0%

1.36/1.32 (-3.0%)

Italy

18.68/18.26

2.3%

1.36/1.32 (-3.0%)

Japan

25.66/32.48

-21.0%

100/79 (26.6%)

Country

Bangladesh, and women’s fashion from Italy, Spain, and Portugal, are slowly chipping away at China’s leather shoe dominance. Casuals from Ethiopia and Nicaragua are also part of the emerging alternatives to China.

2. The cost in the table includes all costs to the factory for one hour of work by a typical worker including wages, social benefits, etc.

at a premium and is expensive, yet another negative for new projects. It therefore seems likely that most of the increase in Vietnam shoe exports in the near term will come from increased leverage of existing investments and not from large new projects.

The labor and land cost issues will likely curb extensive new expansion. With a head start on both issues, it is no wonder that China investors are aggressively rebuilding their burned out factories.

Indonesia reported a decline in US imports of some 6.7% in pairs for the first half of 2014 compared to the same period in 2013. The fact

that average prices rose by some 5% (compared with increases of 1.7% for China and 2.1% for Vietnam) may explain the shipments decline, at least in part. Vietnam, the other leader in branded athletic shoe production, has no doubt been the beneficiary of the Indonesia’s decline, along with Cambodia (whose US shipments increased by 143% in the first half of 2014).

In the leather, non-athletic space, big gains were recorded for India, Italy, Dominican Republic (DR), Spain, Bangladesh, Portugal, Ethiopia and Nicaragua. Their various niche items, like outdoor/work boots from DR and

Shoe Worker Cost Comparison 2014. The annual GFP Confidential Worker Cost Survey was recently completed. The survey solicits the cost to the factory of a typical worker including all costs such as wages, social costs, transportation, food/lodging, bonus, etc. and divides the cost by the typical hours worked to arrive at an hourly cost expressed in US dollars. (All data was obtained from shoe manufactures in each locale and only aggregate data is used. The final cost chosen for each country is the most representative number from the survey and often reflects the average of the various inputs provided to the survey.)

China continues to have the highest hourly worker cost of any major shoe producing country in Asia, at some $2.10 per hour compared to $0.71 in Bangladesh, $0.85 in Cambodia, $0.85 in India, $1.14 in Vietnam, and $1.60 in Indonesia. Ethiopia has the lowest cost by far at $0.36 per hour, although ➜

Focus on Fashion retail | december 2014

21

MARKET ANALYSIS that reflects an increase of some 12% over 2013. Large year on year increases were also recorded for Bangladesh (61%), Cambodia (41%) and Vietnam (26%).

Global Footwear Supply and Demand.

GFP’s Annual Survey of Global Footwear Supply and Demand is complete.

China increased its shoe output by some 5%

in 2013 compared to 2012, reaching some 14.2 billion pair. Significantly, it increased exports also by some 5% to 10.6 billion pair or some 500 million pair more than in 2013. By way of comparison, China’s growth in exports is more or less equal to the entire shoe production of the EU or the total shoe production of Mexico and Thailand combined.

Only Vietnam with a 10% increase in

World Footwear Supply, Selected Countries 2013 Country

Production, Mln Pairs

Export, Mln Pairs

Import, Mln Pairs

China

14,200 (+5.2%)

10,577 (+5.0%)

56 (+12.0%)

India

2,065 (0%)

130 (+10.0%)

90 (+10.0%)

Brazil

900 (+4.1%)

123 (+8.5%)

39 (+9.6%)

Vietnam

800 (+10.0%)

700 (+10.0%)

30 (+10.0%)

Indonesia

725 (+3.6%)

229 (+7.0%)

33 (+10.0%)

EU

600 (+1.4%)

217 (+6.0%)

2,381.7 (+4.1%)

Mexico

245 (-7.5%)

26 (0%)

85 (+10.4%)

250 (0%)

100 (-9.0%)

45 (0%)

Korea

85 (+6.3%)

30 (+22.0%)

169 (+30.0%)

Japan

69.2 (-6.5%)

1.2 (0%)

629 (+1.6%)

Taiwan

40 (0%)

17.2 (+3.6%)

75 (+5.6%)

Thailand

Source: Industry estimates, ( ) % of change from 2012

World Footwear Consumption, Selected Countries 2013 Country

Consumption, Mln Pairs

Pairs per Person

China

3,680 (+1.0%)

2.9 (0%)

EU

2,765 (+3.8%)

5.8 (0%)

USA

2,360 (+2.1%)

7.6 (+4.3%)

India

2,029.1 (0%)

1.7 (0%)

Brazil

816 (+3.7%)

4.2 (+5.5%)

Japan

697 (0%)

5.5 (0%)

529 (+10.0%)

2.2 (+10%)

304 (-3.8%)

2.8 (0%)

Korea

224 (+20.0%)

4.6 (+21%)

Thailand

195 (+5.0%)

3.0 (+10%)

Canada

164 (0%)

5.2 (0%)

Vietnam

172 (+15.0%)

1.9 (+12%)

Australia

100 (0%)

4.6 (0%)

98 (+3.2%)

4.3 (+4.9%)

Indonesia Mexico

Taiwan Source: Industry estimates, ( ) % of change from 2012

22

december 2014 | Focus on Fashion retail

output and a similar uptake in exports did better on a percentage basis than China. At some 800 million pair produced, Vietnam’s output of shoes is less than 6% of China’s total production. Brazil’s 900 million pair output is just 6% of China’s.

While India claims to produce some 2.0 billion pair annually, or about 14% of China’s total, it must be noted that half or more of India’s output comes from small workshops and street shops that cater to local customers only, and are not of the same character of China’s products that are mostly made in industrial factories.

On the consumption side, China is the world’s leader at some 3.7 billion pair distributed annually in China, with the EU at 2.7 billion pair, and the US at some 2.4 billion following. Significantly, China presently consumes some 2.9 pair per person annually, far below the US pace of 7.6 and the EU of 5.8.

If China doubles its per person consumption over the next decade, its local demand consumption would rise to some 7.0 billion pair.

One wonders how exporters will fare in such an environment. ❖

Copyright@Global Footwear Partnerships LLC. All rights reserved. No reproduction without written permission.

verbal and policy missteps like the ones some ‘tea party’ GOP hopefuls committed in the last election. (In fact, the tea party, the far right wing of the GOP, seemed to play little role this time.)

Stock Democrat campaign issues like the ‘war on women’, wealth of the 1%, global warming, etc., failed to win voters in the face of anemic economic growth, lack of well-paying full time jobs on offer, and deficit spending

by Washington.

Voter turnout, as is typical for mid-term elections, was off by about one third compared to the presidential election in 2012, as many ethnics, young voters and women, the key constituencies for Democrats, chose not to visit the polls – in effect a silent rejection of the Obama platform and of its supporters who were seeking reelection.

Impact on Business: THE LATEST UPDATE

U.S. Mid-term Election:

Republicans Sweep Congress – What does it mean for business?

The Results:

Republicans (‘GOP’ for short) seized control of the Senate from the Democrats with a stunning net gain of 7 seats, and now rule 52 to 46 (two seats are too close to call but both are likely to wind up on the GOP side).

In the House of Representatives, the GOP widened its control, adding some 15 new seats and now rule about 250 to 185, as some races are too close to call.

The Reasons:

While he was not on the ballot, President Obama’s dismal record, especially on the economy and foreign policy, loomed as the biggest issue in many contests. His performance and agenda were rejected across the country.

Learning from their mistakes in 2012, the GOP fielded strong candidates, who avoided

Ever the optimists, business is hoping that the new GOP control will facilitate a constructive dialogue between the GOP Congress and the White House that will result in action on the compelling issues facing business and the country that will spur growth and stimulate the economy – • Tax reform including a reduction in the corporate tax rate of over 35%, much higher than the average in the developed world of about 20% • Immigration reform that is urgently needed to deal with the more than 10 million’ illegals’ living in the US, as well as expansion of the right of highly qualified workers from overseas to fi ll technical positions that go begging, especially in high tech businesses • Energy policy reform including clearance of the long delayed Keystone oil pipeline connecting Canadian oil with US refiners (blocked by Obama’s environmental lobby), forward movement on off shore oil drilling and energy exports, to name but a few • Trade reform including passage of ‘fast track’ negotiating authority for Obama.

This would facilitate completion of the Trans-Pacific Partnership (TPP) and the similar deal with the European Union (It would greatly strengthen the US in talks.

It provides for a simple up or down vote in the Congress, which could not amend the negotiated deal.)

The Outlook;

For all of Obama’s tenure in the White House, business has been the subject of attacks for its so-called ‘greed’, the alleged cause of the nation’s economic ills – banks caused the financial crisis, insurance companies caused the health care coverage debacle, etc. It will be hard for Obama to jettison this rhetoric.

Indeed, some skeptics hold that Obama will adopt a ‘veto everything’ approach, and position Democrats for the 2016 presidential race as protectors of the ‘middle class’ against budget and tax policies advanced by the GOP, which allegedly only benefit the rich.

(Indeed, Bill Clinton adopted the veto strategy quite successfully following the GOP takeover in 1994.)

Procedurally, the big win by the GOP in the senate still leaves the new leaders, at best, six votes short of the ‘filibuster-proof ’ 60 votes needed to move legislation in the senate. Thus, the GOP would need at least six Democrats to vote with them and this could be an insurmountable barrier.

In the end, both the GOP and Democrats know that the hard message of the 2014 election is ‘stop the bickering and get the job done in Washington for the country.’

So there is real incentive for both to work out differences and move forward to avoid punishment at the polls in 2016, that is all except Obama who will not be on the ballot. ❖ Peter T. Mangione For more than 30 years, Peter T. Mangione has been a leader in the global shoe sector, having served as president of the largest shoe trade association in the US, the Footwear Distributors and Retailers of America from 1981 to 2009, and now as managing director of Global Footwear Partnerships LLC, an international consulting practice with a wide range of clients in Asia, Latin America, and Europe. A lawyer by training, he has extensive knowledge and experience in most aspects of the shoe business including retailing, sourcing, logistics, factory social responsibility, product safety, customs, labeling, and government regulation of the international shoe trade. He can be reached at ptmangione@gmail.com.

FOCUS ON FASHION RETAIL | DECEMBER 2014

23

fashion trends

Headline Size & Font Can Vary Silence, expectation, mystery of nature‌

Wide leg expectation, shorts and trousers, Silence, mystery of nature‌ simplified double sided jackets Wide leg shorts and trousers, simplified in monochromatic fabrics: wool, double sided jackets in technical monochromatic fabrics: double-washed silk, wool, double-washed silk, technical caddy silk caddy silk and lined Georgette. and lined Georgette.

Luminous grays, blues, Luminous grays, blues, whites whites and copper colors. and copper colors.

Spring/ Summer 2015 24

december 2014 | Focus on Fashion retail

SAND COLLECTION

JANUARY

DECEMBER 26

EVENT

LOCATION

3-5

FFANY—The New York Shoe Expo

New York, NY

4-7

JF&A—Jewelry, Fashion & Accessory

Schaumburg, IL

6-8

GTS Gift & Jewelry Show

Greensboro, NC

9-11

Western Winter Sports Retailers Association

Sacramento, CA

4-6

AccessoriesTheShow

New York, NY

4-6

FAME—Fashion Avenue Market Expo

New York, NY

4-6

Moda Manhattan

New York, NY

5-6

Agenda

Long Beach, CA

5-7

Accessorie Circuit

New York, NY

5-7

Intermezzo Collections

New York, NY

8-10

Surf Expo

Orlando, FL

9-12

London Collections: Men

London, UK

11-13

Children’s Club

New York, NY

11-14

Couromoda

Sao Paulo, Brazil

11-14

LA Fashion Market

Los Angeles, CA

12-14

Transit The LA Shoe Show

Los Angeles, CA

13-14

Assintecal (Sourcing)

Sao Paulo, Brazil

13-14

Premiere Vision New York (Sourcing)

New York, NY

13-16

Pitti Immagine Uomo

Florence, Italy

13-16

Pitti Immagine W

Florence, Italy

16-20

WESA—Denver Western & English Market

Denver, CO

19-20

Agenda

New York, NY

19-21

Bread & Butter

Berlin, Germany

19-21

Liberty Fairs NY

New York, NY

19-21

MRket

New York, NY

19-21

PREMIUM International Fashion Trade Show

Berlin, Germany

19-21

PROJECT New York

New York, NY

19-21

PROJECT SOLE

New York, NY

19-21

The TENTS

New York, NY

19-22

Hong Kong Fashion Week

Hong Kong, China

19-22

Mercedes-Benz Fashion Week Berlin

Berlin, Germany

19-22

MosShoes

Moscow, Russia

21-24

Dallas Apparel & Accessories Market

Dallas, TX

21-24

Outdoor Retailer

Salt Lake City, UT

21-24

STRUT—Dallas Shoe

Dallas, TX

22-24

Pitti Immagine Bimbo

Florence, Italy

23-25

Denver Apparel & Accessory Market

Denver, CO

23-26

BIJORHCA

Paris, France

23-26

WHO’S NEXT

Paris, France

25-30

Mode à Paris—Haute Couture

Paris, France

29-2

Atlanta Apparel Market

Atlanta, GA

31-2

Kidz at STYLEMAX

Chicago, IL

31-2

STYLEMAX

Chicago, IL

DECEMBER 2014 | FOCUS ON FASHION RETAIL

M ● ● ● ● ● ● ● ● ● ● ● ●

W ● ● ● ● ● ● ● ● ● ● ● ● ● ●

C ●

●

FO

DATE

O

TRADE SHOWS CALENDAR ● ● ● ● ● ● ● ●

Fashion Show

● ● ● ●

● ● ● ●

Sourcing Sho

Sourcing Sho

● ● ● ● ● ● ● ● ● ● ●

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● ● ●

●

● ●

Fashion Show

● ● ● ● ● ●

● ● ● ● ● ● ●

Fashion Show

● ● ●

● ● ●

OT W EA AP R PA RE L AC CE SS OR I

ES

December 2014 –January 2015

w

● ● ● ● ● ● ● ● ● ●

ow

● ● ● ● ● ●

w

FOCUS’ RATING

www.ffany.org

(800) 323-5462

www.jfashow.com

N/A

(866) 807-0808

www.gtshows.com

N/A

(866) 258-5651

www.wwsra.com

N/A

(212) 686-4412

www.accessoriestheshow.com

(212) 686-4412

www.fameshows.com

★★ ★★

(212) 686-4412

www.modamanhattan.com

★★

● ●

(213) 223-5111

www.agendashow.com

(212) 759-8055

www.enkshows.com

(212) 759-8055

www.enkshows.com

★★★ ★★ ★★

●

(800) 947-7873

www.surfexpo.com

N/A

+44 (0)20-7759-1980

www.londoncollections.co.uk

(212) 759-8055

www.enkshows.com

(11) 3897-6100

www.couromoda.com

(800) 225-6278

www.californiamarketcenter.com

(800) 225-6278

www.californiamarketcenter.com

+ 55-11-4508-1704

www.assintecal.org.br

N/A

+33 (0)4-72-60-65-00

www.premierevision-newyork.com

N/A

055 3693210

www.pittimmagine.it

055 3693210

www.pittimmagine.it

★★ ★★

● ● ● ●

● ● ● ● ● ● ● ● ●

● ● ● ● ● ● ● ● ●

● ●

● ●

● ●

● ● ●

● ●

WEBSITE

(212) 751-6422

ow

w

PHONE

●

● ● ● ●

● ● ●

● ● ●

★★★

THIS ISSUE IS BROUGHT TO YOU BY:

★★★ ★★ ★★★★ ★★ ★★

(800) 295-1041

www.denver-wesa.org

N/A

(213) 223-5111

www.agendashow.com

+49 (0)30-2000-370

www.breadandbutter.com

★★★ ★★★

(212) 473-4523

www.libertyfairs.com

N/A

(212) 686-4412

www.mrketshow.com

+49 (0)30-629-0850

www.premiumexhibitions.com

(818) 593-5000

www.magiconline.com

★★★ ★★★★ ★★★

(818) 593-5000

www.magiconline.com

N/A

(818) 593-5000

www.magiconline.com

(212) 838-8688

www.hktdc.com

(212) 489-8300

www.mbfashionweek.com

★★ ★★★ ★★★★

+7 (495) 781-3411

www.mosshoes.com

(214) 675-2176

www.dallasmarketcenter.com

(312) 527-7759

www.outdoorretailer.com

(214) 675-2176

www.dallasmarketcenter.com

055 3693210

www.pittimmagine.it

(303) 292-6278

www.denvermart.com

+33 (0)1-47-56-52-82

www.bijorhca.com

+33 (0)1-40-13-74-83

www.whosnext-tradeshow.com

+33 (0)1-42-66-64-44

www.modeaparis.com

(404) 220-3000

www.americasmart.com

★★ ★★★ ★★ ★★ ★★ ★★★ ★★★ ★★★★ ★★★

(312) 527-7759

www.kidzatstylemax.com

N/A

(312) 527-7750

www.stylemaxonline.com

★★

N/A

LEGEND ★★★★ ★★★ ★★ ★ N/A

AWESOME GOOD OK AWFUL NOT AVAILABLE

FFR’s ratings are based on reports from our correspondents, contributors, vendors and retailers who attended these events. Ratings reflect people’s opinion of show organization, traffic, convenience and value for attending/ participating businesses.

Show dates and locations were accurate at the time of printing and subject to change without notice. Please contact venues directly for the latest information.

FOCUS ON FASHION RETAIL | DECEMBER 2014

27

maNaGEmENT

A

NewYear

By Harry J. Friedman

and a

Fresh Start

Founder/CEO, The Friedman Group

Santa is usually good to me during the holiday season, but he sure makes me wait until the last moment. Just when it seems like I’m getting too old for this business, a customer comes in and makes it worthwhile again.

I must admit, I do get motivated when business is good. I’m happy, and everyone around me feels good too. Here comes the New Year. I suppose it’s time to make some resolutions and plans for this year.

28

My first resolution is to set up a worthwhile goal. Not only for the store, but for all the people who work here. I realized last year that no one seemed to know where we were headed. Somebody once told me the easiest way to motivate people is to find out what they want and set up a goal—something they can reach for. I’ve decided we need to do about 15% over last year to make some of these things happen.

The second resolution is gaining information. You know, information is power, and I need to start gathering more of it both for me and for the staff. The competition is really getting fierce. I plan on getting my suppliers to help with product knowledge. I might even invest in some educational materials on salesmanship and customer service for the staff. It couldn’t hurt. I was reading about some of the Japanese companies. It appears that they train their people one day of each week. I definitely need to do a better job of training than I have been.

My third resolution is writing down some of the policies and procedures here at the store. I don’t relish the idea of writing all that information down, but each time we hire someone new, we are burdened with trying to remember everything there is to know about working here. One time last year there was an argument with one of the salespeople about a return. He thought it was okay to give cash back on a return without a receipt. Of course, we can’t do that. If it was down on paper somewhere, there wouldn’t have been any confusion. The problem is I only have so many hours in a day!

Advertising is my fourth resolution. My sales staff says they could use a few more customers who come in and buy because of an ad or special sale. I know it would help, but what do I need a sales staff for if all I do is

december 2014 | Focus on Fashion retail

have sales? On the other hand, if people don’t come in, there won’t be anyone for the salespeople to sell to.

My fifth resolution is difficult: setting up a bonus or commission program for my salespeople. I never liked the idea of commission. I don’t want the salespeople fighting over the customers. It would make for a bad situation and reputation if the customers felt the pressure of commission salespeople. I do have a friend that makes it work though. He explained that it is management’s responsibility to control the atmosphere in a store, and it doesn’t have to be pushy.

He says that if you create an equal opportunity for everyone to greet customers, and make it a big offense to take another salesperson’s customers, it can work very well.

I can see my hair turning gray already. But I must admit, I like the idea of rewarding the people who can really sell. It would solve the problem of a store bonus, where we reward the poor salesperson and punish the great salesperson. I have a salesperson who always hides when customers come into the store. With a store bonus, he gets the same as the person who helps a lot of customers. I sometimes wonder why I haven’t sold this business.

My sixth resolution is to clean up the outside and the inside of the store. It’s been four years since I had the outside painted. I guess the building could use a little bit of the brush also. I just came back from vacation, and of course I had to stop in some stores that were in the area. I was in one store where you would’ve thought an interior decorator designed it. I kept thinking that I was an expert, and that my knowledge and service were the important things. Just between you and me, that store sure was appealing. I would have liked to talk with the owner, but the store was too busy to bother him.

My seventh resolution is to purchase one of those point-of-sale computer systems. I think it’s time. It will help with inventory control, payables and payroll. If for no other reason, my wife will be much happier

if I don’t have to work nights and weekends catching up on all the paperwork. It will be so wonderful to know what my stock levels are at the touch of a button, and we won’t have to spend so much time taking physical inventory! This will allow me to buy smarter for the store.

For my eighth resolution, I’m going to take a huge step, and make one of my salespeople the store manager. I’m starting to realize that I have no time to plan for the success of the store. I wind up doing everything, mostly because I haven’t trained anyone to take the responsibility.

If I have a store manager, I’ll be able to implement the other seven resolutions that I’m so excited about. What would it be like to go to a trade show and spend a couple of days rather than a couple of hours? I would also like to see some of the other stores around that I have heard are very successful. There are so many things to do. Yes, I’m going to appoint a store manager to run the store. I hate to admit it, but someone who isn’t all caught up in the past might do a better job for the future.

I’ve avoided resolution number nine long enough. I’m going on a diet.

My tenth resolution was a promise to Harry Friedman that I would wish you all a Merry Christmas, a great holiday selling season, good health and a very prosperous new year. I wanted to, but I didn’t know how.

(You just did.)

Harry J. Friedman is an internationally acclaimed retail consultant and Founder/CEO of The Friedman Group. Since 1980, his retail sales and management techniques have been used by over 500,000 retailers worldwide.

For information on upcoming free retail webinars, seminars, training programs, on-site training or eLearning, call 800351-8040, email info@ TheFriedmanGroup. com or visit www.

TheFriedmanGroup.com.

Focus on Fashion retail | december 2014

29

tips

By Daniel Dunt, CEO & Founder of Caption PR

Working in PR has allowed me to liaise with others who work at companies other than my own, which has given me an honest insight into how the industry works, particularly in fashion. PR is an industry that’s not always honest. Many PR companies constantly lie to the brands they work with or want to work with and the media they’re building relationships with, and I thought it would be insightful for me to share some of my findings with you. If you’re a brand seeking a PR agency to work with or if you’re someone who’s looking to have a career in PR, this is definitely for you.

Here’s just some of the lies that most PR agencies will tell: “We spend any time we have liaising with the media and our contacts to ensure the best results for our clients…”

This is a statement I read recently in an email from another PR agency, and I would like to confirm to you all that this, in most cases, is simply not true. Yes, those who work in PR, including me, do spend an awful lot of time liaising with the press in order to achieve the best results, however it should be know that we also spend a lot of time eating out at nice restaurants with friends, attending nice parties and events where we drink and have fun with our +1’s (usually not in the media), and chatting over coffee to stylists about lots of irrelevant things. 10 minutes of chat about “work” and 50 minutes about crap is usually the way it goes.

It’s not all about business and I don’t mind admitting that. PR is a job with countless perks and that should be clear. It shouldn’t be shameful to want to enjoy what you do!

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5 Lies MOST PR Agencies Tell

“Securing press takes a lot of time…”

Again, in most cases, this is untrue. If a PR agency or someone who works in PR has the right contacts, which they should if you’re paying them (sometimes quite a lot of money) for a service, press features are very quick and easy to secure. In most cases, all it takes is an hour or two (if that) to push a press release out, send some emails and arrange some coffee dates, and you’ve got coverage for a client for the entire month. Not to mention, if you work in fashion PR half the work is done for you just by the simple fact that stylists and editors often email or phone you to directly request samples or images from a client. It’s really not that difficult!

“You won’t find what we offer anywhere else…”

Lies. There are lots of PR agencies who offer the exact same services and do these services just as well as others – it’s just a matter of finding them! PR has a lot to do with how well you get on with the client (and how well the client gets on with the agency) and that is often why a client will choose to

december 2014 | Focus on Fashion retail

stay or leave. You’re not offering a unique, special service – you’re doing what a lot of others are doing, too. It’s definitely not news that a large number of those who work in PR have the same contacts. There’s no doubt that it’s the personality or image of the agency that often determines why a brand will work with that agency.

“We don’t earn as much as we should…”

I charge the majority of my clients between £150 and £250 each month and, for that, they get a service they’re usually happy with and a nice amount of coverage – sometimes what I would consider too much for what they’re paying (in comparison to other companies) – and everyone’s happy. Even with my small team, I average £30 an hour. It’s not a bad amount of money for the time you put in.

However, the vast majority of PR agencies charge between £350 and £700, if not more, for coverage that really isn’t that much different or more effective to what companies who charge much less are able to secure. People are just greedy. Fact.

That being said, this does change when you start paying an

agency thousands instead of hundreds (these agencies are usually the top dogs in the industry and have a lot of pull with the media), but how many new brands can afford to splash out like that?

“We know what’s best for your brand…”

In some cases, this can be true, however it’s the brand who knows their demographic and targets, and it’s the brand who knows how they want to be portrayed. The job of the PR agency is not to change the brand based on what they think – it’s to take the voice of the brand and devise a plan that works well to achieve those brand targets, including relevant media coverage.

Of course you can advise a brand on the quality of their products or their price points, but the brand has the final decision on these aspects. Fact.

Hopefully I’ve given you some insight into what it’s like to work in PR (if you’re looking to do so) or work with a PR agency (if you’re a brand owner). Honesty is the best policy, but in fashion in particular it doesn’t always work like that.

But that’s not news, is it?

Continued on page 38 ➜

AsiA’s LARGEsT FAshion EvEnT

Worldwide Brands Radiate Authentic Charisma Organised by the Hong Kong Trade Development Council (HKTDC), the 46th Hong Kong Fashion Week for Fall/Winter and the 13th World Boutique, Hong Kong will run from 19-22 Jan 2015 at the Hong Kong Convention and Exhibition Centre.

The fairs will showcase a wide array of international top brands and reveal the latest fashion trend, providing an ideal business platform for industry players.

The Hong Kong Fashion Week for Fall/ Winter is the largest fashion event of its kind in Asia. Some 1500 exhibitors from around the world are expected, showcasing latest brand series, various apparel, accessories and trade services. A number of theme zones will attract quality buyers from around the world, including Fashion Gallery, Infant & Children’s Wear, Men in Style and Packaging & Design. The inaugural Thermal Clothing zone will feature apparel suitable for extreme weather. With high-recognition from global buyer, Activewear & Swim Wear and Salon of Scarves & Shawls zones will return to cater different market needs. The fair have also secured group pavilions from the Chinese mainland, Taiwan, Macau and India.

Held concurrently is World Boutique, Hong Kong, which is a consortium of international fashion brands and designer collections.

The fair will showcase more than 600 worldrenowned brands from 18 countries and regions, including first-time participating countries Finland and South Africa. Fashion brands and designer such as MOISELLE, Shanghai Tang, Zalora, i.t and IKA BUTONI will also take part. Numerous local and overseas industry associations, including the Hong Kong Fashion Designers Association, Knitwear Innovation & Design Society, Indonesian Fashion Designer Association, Redress, Japan Fashion Leather Designers, Kokusai Fashion Centre, The Finnish Fashion Association and Taiwan Textile Federation will stage catwalk shows or form group pavilions in the fair. World Boutique, Hong Kong will open to public visitors aged 12 or above for free on the final day of fair (22 Jan).

Fair highlight include the Hong Kong Fashion Extravaganza 2015 presented by Audi on the first day of fair (19 Jan), showcasing the latest fashion from internationally celebrated fashion designers: New York haute couture designer Loris Diran; Swedish couture fashion designer Lars Wallin and an awardwinning Chinese fashion designer Wang Yutao from Beijing.

Loris Diran

Lars Wallin

World Boutique and Fashion Week together feature a wide variety of events, including house fashion shows and parades, spotlighting MOISELLE, Shanghai Tang, Zalora, i.t and so on. World’s leading fashion consulting agencies, WGSN from the United Kingdom and Peclers Paris from France, will examine the latest fashion intelligence and trends during fair period.

Wang Yutao

On 20 January, the Hong Kong Young Fashion Designers’ Contest 2015, a nurturing ground for local fashion talents, will be staged. The head designer of Swedish brand H&M, Margareta van den Bosch, is one of the VIP judges of the contest.

Reserve your FREE admission badge!

Web: www.hktdc.com/ex/hkfashionweekfw/58; www.hktdc.com/ex/worldboutiquehk/58 Wap: hktdc.com/wap/fashionfw/T119; hktdc.com/wap/wb/T119 Tel: (1 212) 838 8688; Fax: (1 212) 838 8941; Email: new.york.office@hktdc.org

Come visit the Hong Kong Fashion Event with our Hotel Sponsorship of up to USD270: The HKTDC will sponsor your hotel accommodation in Hong Kong of up to HKD2,100 (about USD270) when you stay at one of our pre-selected hotels during the nights of 18-22 Jan 2015 (inclusive) Email: hkfashionfw.visitor@hktdc.org

paiD aDvErTiSEmEnT

Focus on Fashion retail | december 2014

31

road to success

A Roadmap of

MANNERS from Coast to Coast

by Margaret Page

If you have done any kind of travel, especially for business, you will have noticed there can be huge differences in the way we communicate, ways of dress, leisure activities and business practices from coast to coast. Our cultural norms—how we behave socially or in business from region to region, or age group to age group—can feel as dramatic as visiting a foreign land.

According to social and cultural psychologists, the stereotypes we hear are true – the East is more old and established and the West is more new and free, and this does not change in the business world.

Crossing the Communication Border The way people speak – the words, tone, and dialect they use – is one of the biggest differences we see from coast to coast. This can be especially challenging in business settings.

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How we greet each other is often unique to a region. In the Northeast, people are less likely to greet others with a “hello” while walking to their office, unless they know the person. In the South and the West, however, if you pass someone in the hallway, or are sharing a long elevator ride, it would be odd not to smile or extend a casual greeting to the individual.

And of course, if you are in the South you can expect to be greeted with a cheery “Yes, Ma’am” or a “Hi Ya’ll!” from all levels of the corporate ladder. By simply paying attention to a greeting, you can easily understand where someone’s roots are planted.

Differences within cross-regional communication also apply to indirect communication.

In New York City, busy businesspeople move from home to work with purpose. They are

dEcEmbEr 2014 | FOcus On FAshIOn rEtAIl

accustomed to the busyness around them—to the point where the sounds they encounter from Point A to Point B fall on deaf ears.

Emma Stone solidified this in a recent interview about filming the latest Spiderman movie.

Busy New York office workers hustled along and were so oblivious to the action (where cars were literally being blown up) that they had to hire people to react to the situations. You are less likely to see that kind of reaction on the West Coast. Though just as determined and focused in their business life, if cars are blowing up around them, they’re likely to stop and watch the action.

When it comes to business communication, the most important thing to remember is to be open and flexible—and if you’re unsure of what behaviour is expected or appreciated, just ask.

Dressing for Success Take for example a recent client’s visit to coastal California. In what we would call the business hub of the city, she found businessmen and women dressed in casual attire. Gentlemen rarely wear suits—opting for pressed khakis and a nice polo shirt in its place. Where suits and ties are a rare occurrence in the West, gentlemen seem to shower with them on in the East.

A West Coast businessperson was surprised on a recent business trip to New York City because of how different the corporate culture felt. Men and women in suits scurried from the subway to the office—grabbing a bagel at the local food cart. Said businessperson exclaimed how New Yorkers moved with intention. She, herself, felt that she couldn’t keep up with them, and she wasn’t the one in 3-inch heels!

The atmosphere in the West is definitely more laid back and casual.

In the South where temperatures and humidity are higher, you rarely see women wearing pantyhose to the office unless required by a dress code. An interesting tidbit to note: women who work in the White House or on Parliament Hill must wear stockings or hose and closed toed shoes ALL year round. Though this may be surprising, those that work closely with other cultures must set a high standard and respect other’s cultural beliefs around dress codes.

Since wearing inappropriate clothing to a foreign area can sometimes be awkward and embarrassing, there are things you can do to ensure the comfort of others when faced with cultural and regional differences. Do your homework before your next business trip by making Google your go-to resource. Enter in the address or area, such as Downtown Vancouver, where you’ll be prompted with a street view that allows you to see how people are dressed! Or, simply search for the city’s business attire, such as Business Attire Vancouver, for a host of resources that discuss etiquette do’s and don’ts catered to that city.

Mixing Business with Pleasure It is becoming more and more common to mix “labor” with “leisure” – that is, business with pleasure. Attending a cocktail party at your boss’ home, or gathering the team for a brainstorm session over lunch at a colleague’s apartment is not uncommon nowadays. And if you do visit someone’s home for a businessrelated function, one of the things that can differ from one coast to the other is whether to remove your shoes. Most likely, if you came

from a colder climate where part of the year is under snow, you grew up removing your shoes at the door, before entering someone’s home -- winter or summer. It just became a habit.

And when you enter someone’s home today, no matter where you live, it’s the first thing you do.

Whereas those that grew up in climates where the walkways remain clean all year round are encouraged to leave their footwear on. Bare feet or sweaty socks on carpets or hardwoods can be damaging and is really not a good practice, but in the battle between dirty shoes and stocking feet – socks wins!

Outdoor leisure activities also differ from region to region. Since the weather in the West is moderate, golf is a popular business leisure activity. It’s also not uncommon for businesspeople in metropolitan cities such as Los Angeles to take their clients to NHL, NFL, or MLB sporting events, or to even experience the city’s nightlife. However in the South, you can expect an invitation for something more adventurous, such as hunting. In the Northeast, leisure activities can range from fishing to a night at the theatre.

If you know your business travels will include an activity that’s unfamiliar to you, it doesn’t hurt to do some light research. If you are feeling uneasy about your abilities to do said sport, expressing a light-hearted joke with your company at the start of the day will help ease your tensions.

Culturally Connected We’ve all heard the expression that begins “When in Rome...”; when it comes to travelling for business relations, the expression holds true.

It’s important to be respectful of local customs and traditions. Prior to scheduling your business travels, it is essential to check the region’s observed holidays. Where Jewish holidays are

honored in Southern Florida and the North East, the Midwest and the Southwest are known to embrace the traditions of Cinco de Mayo. However in cities such as New York and Los Angeles, you will likely find that only traditional holidays such as Thanksgiving, Christmas and New Years are observed. These are all important to keep in mind when scheduling business trips.

Respecting cultural boundaries also takes effect in more intimate circumstances such as hugging and cheek kissing. Some things to consider are how long you have known the person and whether you are friends with them outside of the business arena. The setting also comes into consideration here; what if their boss is present? No matter how well you know the person, a handshake may be the better choice in this situation.

Is the Gap Narrowing?

While it’s true that there are definite cultural nuances, it’s also true that these differences seem to be narrowing as younger generations move into the business world. Co-working spaces are opening across the country—east to west. Millennials and Gen Y’ers are slowly changing the way we work and it’s happening everywhere. Working from co-working spaces or coffee shops have become the “norm” for this generation and working traditions are far less formal than what generations before them are accustomed to.

No matter what part of the country you are in, the most important thing to remember is that you are in someone else’s backyard—not yours, so avoid making any judgements. By being respectful, receptive, and inclusive of new cultures and “norms,” it may be a deal breaker for your clients. And when in doubt, let it go!

No one is trying to offend you! ❖

Margaret Page is a recognized etiquette expert, speaker and coach, who helps people and organizations be more professional. She is the author of The Power of Polite, Blueprint for Success and Cognito Cards — Wisdom for Dining & Social Etiquette. She is the founder and CEO of Etiquette Page Enterprises, a leading Western Canadian training organization. To learn more about Margaret follow her on Twitter and Facebook or sign up for her Etiquette blog or Etiquette Edge Newsletter. To contact Margaret, please visit her website at http://etiquettepage.com/, or call 604 880 8002.

Focus on Fashion retail | december 2014

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Celebrities Actor ANTONIO BANDERAS is wearing a Jaeger-LeCoultre Master Control watch at the premiere of “Automata” during the 62nd San Sebastian International Film Festival on September 21, 2014 in San Sebastian, Spain.

Photo: Carlos Alvarez/ Getty Images

Fashion

Actor JEREMY RENNER wears a JaegerLeCoultre Master Grande Tradition Cylindrique à Quantième Perpétuel watch in pink gold at the KILL THE MESSENGER Premiere in New York City on October 9, 2014. Photo: Getty Images Model NIEVES ÁLVAREZ wearing Carrera y Carrera white gold and diamonds earrings from the Jardín de Rosas collection at the party for the ICON magazine on October 8th in Madrid, Spain.

Musician IGGY POP at a party to celebrate the launch of the Sailor Jerry The Flash collection by Iggy Pop. The Collection’s standout piece is a blue-black 50’s style denim vest emblazoned with an iconic Sailor Jerry anchor along with the phrase Death Shall Triumph.

Each vest comes with a pack of 6 patches, chosen from Iggy Pop’s favorite flash designs, allowing people to customize their vests.

Photo taken on October 2014, Miami, FL 34

DECEMBER 2014 | FOCUS ON FASHION RETAIL

Actress ZHOU CHUCHU wore Ruedo earrings in yellow gold with diamonds rose cut and Medium Gardenia ring in yellow gold with diamond and rock crystal, both by Carrera y Carrera.

GEORGIA MAY JAGGER, daughter of Rolling Stones front man Mick Jagger, opened Tommy Hilfiger’s Spring 2015 runway show in the first look from the designer’s latest collection.

Designer STELLA MCCARTNEY, daughter of Paul McCartney, attends the mytheresa. com x Stella McCartney pre-Oktoberfest party on September 18, 2014 in Munich, Germany.

Photo: Franziska Krug

New Generation

Actor/ Model PATRICK SCHWARZENEGGER wore an Emporio Armani black pony hair jacket with a black t-shirt and dark blue jeans at the Teen Vogue party in Beverly Hills, CA on September 26, 2014

Wear: All by Tommy Hilfiger

ELLA RICHARDS, granddaughter of Rolling Stones guitarist Keith Richards, also joined the cast for Tommy’s Spring 2015 show on September 8, 2014 in New York City.

FOCUS ON FASHION RETAIL | DECEMBER 2014

35

Celebrities Actors GERARD BUTLER and DOUGLAS BOOTH both were dressed in bespoke BOSS “Made to Measure” suits. Douglas Booth won the HUGO BOSS Most Stylish Man Award.

Fashion Socialite PIPPA MIDDLETON wore a blush paillette embroidered silk top and chiffon skirt from the BOSS Fall/Winter 2014 runway collection.

Actress EMMA WATSON chose to wear BOSS’ black wool cashmere dress with sheer silk paneling details at the UN Women’s “He for She” after party on September 20, 2014 in New York

At the MEN OF THE YEAR AWARDS in London, September 2, 2014 36

DECEMBER 2014 | FOCUS ON FASHION RETAIL

At the 39th Toronto International Film Festival On September 6th, actress ROSEMARY DEWITT wore a dark green Giorgio Armani long sleeves dress embroidered with sequins.

Actor LIAM NEESON, winner of GQ’s Editor’s Special Award wore a Giorgio Armani two button black suit with a white shirt, a narrow black tie and velvet shoes.

Photo: David M. Benett

On September 7th, actress FELICITY JONES, who received the Breakthrough Award, wore a Giorgio Armani Privé black bustier dress in crinoline and tulle, embroidered with black rhinestones and large sequins.

Actor CLIVE OWEN wore a midnight blue, single-breasted Giorgio Armani peak lapel suit with a classic white shirt and satin black tie at the JaegerLeCoultre cocktail party during the 71st Venice International Film Festival, September 3rd, 2014 in Milan, Italy FOCUS ON FASHION RETAIL | DECEMBER 2014

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tips

5 Things A GOOD PR Agency SHOULD Say

continued from pg 30

After learing the “5 Lies Most PR Agencies Tell“, the question you may ask- how do I spot a good PR agency?

Here are what good PR agencies should say and things to look out for, to give you an equal idea of positive and negative aspects of PR. “You’re not getting in Vogue next month…”

Unless you’re paying a large lump sum every month, it’s worth knowing that it’s unlikely your brand is going to be in Vogue just a few weeks after you’ve started working with a PR agency.

Companies should be honest about this. Yes, they may strike gold and get you a briliant feature just weeks into the process, but the truth is that it does take time. A PR agency has to introduce you to their contacts and start building a foundation before the ball really gets rolling, especially if you’ve never worked with a PR agency before. What you should be hearing from the agency when you first meet with them is something along the lines of, “You’re not going to get Vogue next week, but we’re going to work hard and try to make this happen, but with time.

We’d hope to achieve this level of coverage eventually.”

“You’re not quite the right fit for our agency…”

There’s a lot of companies out there that just want your money, regardless of whether they feel 38

they could do a great job in working with you. A good PR agency should be able to say no. If your brand isn’t right for them and their client portfolio and contacts, they should give you a polite, “It was lovely to meet you and we like your brand, but we don’t feel it fits with our company. Other agencies you could consider that might be more suitable are…” – after all, if they’re not working with you, they shouldn’t hesitate in trying to help point you in the right direction with the knowledge they have of the industry.

“We specialize in PR, not sales…”

Believe it or not, there are countless companies that try and fob brands off by telling them they could provide a sales service for them, which usually involves the agency contacting buyers (who they should know already if they’re offering the service) and trying to get the brand stocked in a particular store. Some companies do offer this as an extra service and they do it well, but there are also lots of agencies that will jump on the phone and try to find buyers AFTER you’ve signed the contract, because they simply don’t have the relationships with buyers already established. A good PR agency should be honest and simply say, “No, we don’t work in

DeCemBeR 2014 | FoCus on Fashion RetaiL

sales but it is something we could look at in the future, however for the time being we’re solely PR focused”. There’s no point in offering a service if you can’t do it well.

“We hope the press we secure you will lead to an increase in sales, however we can’t guarantee anything…”

Obviously every brand and PR agency hope that press coverage will boost sales, however sometimes that isn’t the case. It pays to understand that press is press and is, in most cases, more about building brand image than anything else. Click-through rates that then lead to sales from press coverage alone is very, very low, so it’s not something any agency should guarantee or enforce. They should simply say, “I can’t guarantee that the coverage we get you will generate sales, however we’ll target media that’s right for your brand and will help to build the brand’s image. Eventually, you should begin to see a boost in sales, along with a boost in brand engagement and support, but it takes time.”

“We’re happy to work with and around you and what you can afford…”

This might just be my personal opinion, however I strongly believe that a company who wants

to work with you should be willing to adapt their prices and services to suit what you as a brand can afford. I regularly get approached by brands with just £100 or so to spend each month, and if I like them I’m always happy to work with them and provide them with a slightly reduced service – e.g. they will receive less press coverage than brands spending more.

No agency should have 100% fixed prices that they’re not willing to budge on. If an agency isn’t willing to budge on their prices (within reason), they’re not that crazy to work with you. Fact.

Although, with this point, do note that agencies do have certain costs to cover and therefore when I say “within reason”, I do mean it.

You can’t expect an agency to half their prices and still offer the same service they offer higher paying clients. It’s not fair. Start small and grow – the main focus is getting your brand out there, even in a small capacity.

I hope this gives you even more insight into what to look out for if you’re a brand seeking to work with an agency or if you’re someone working or wanting to work in PR. ❖ - By Daniel Dunt, Founder of London-based fashion communications agency Caption PR.

MARKETING CLASS

Stop Chasing Customers Once and For All:

A Five-Day Plan to Bring Them to Your Door

by Mark Satterfield

I

n theory, if you want to attract new customers, all you need to do is ask for their business, again and again and again. Does that approach work? Well…sort of. Reach out to enough people and eventually someone will say “yes.” But in the process, you run yourself ragged. The time and energy you spend chasing customers could go toward improving other areas of your business. Worse, you end up on a demoralizing “feast or famine” rollercoaster—constantly in flux — where business is either booming or business is a bust.

For this reason, many stores and boutiques largely rely on existing customers to send new business their way. But this strategy subjects you to the whims of fate. You’re at the mercy of your customers’ recommendations, which are great to have, but are only one small piece of an effective marketing strategy.

In my book The One Week Marketing Plan I explain exactly how to end this perpetual pursuit of new customers and bring them straight to your door. I lay out a step-by-step, “set it and forget it” system entrepreneurs and small business owners can put in place in just five business days. And with this five-point philosophy, I dispel what so many business owners think about marketing: 1. Marketing doesn’t have to be expensive, time-consuming, or confusing.

2. You can have a highly effective marketing system up and running, doing what it’s supposed to be doing in a week.

3. The key is to focus on a system rather than a series of unconnected activities.

4. Ultimately, successful marketing is all about developing relationships first and selling things second.

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5. Anyone can do this.

We’re told marketing is hard. That it requires weeks of brainstorming, months of analysis, and years of consistent implementation. To succeed in marketing, you need the fortitude of General Patton, the genius of Don Draper, and the cash reserves of Warren Buffett. Wrong. One week. That’s all it takes for most businesses to dramatically improve their marketing.

If you’re ready to stop chasing customers and get them to come to you, read on to learn more about the One Week Marketing Plan. (Of course, in reality it may take you more than a day to execute each major step. And if it takes a bit longer, that’s not a problem. Just make sure you don’t let inertia place its hold on you.)

DAY 1: Choose Your Niche Market

Darlene Tenes’ company CasaQ designs Christmas ornaments with a focus on the Latin market. At a Latina Style Business Series luncheon, Tenes made a point to talk to the keynote speaker, who was a buyer from Macy’s. She described her products as similar to a successful competitor’s brand—but with a Latino flair. The buyer was intrigued, so Tenes sent her a box of samples and a handwritten note. As it turns out, Tenes’ Latino niche gave her a distinct edge. Eight months later, her products were on Macy’s shelves.

Many businesses resist niche marketing because they think focusing on a niche will mean they’ll miss out on opportunities outside of that particular area. But the truth is,

december 2014 | Focus on Fashion retail

focusing on a niche helps you stand out from your competition and eliminate many of the potential objections shoppers have about doing business with you. In short, the key to attracting lots of new customers is to have a marketing message that speaks directly to a specific group.

When it’s time to choose your niche, the best place to start is with your current customers. Figure out what they have in common.

Is one group spending more in your store than another? Don’t try to be all things to all people. Building on your current strengths is one of the easiest ways to become the go-to establishment in your area.

DAY 2: Create Your Free Offer

Once you’ve chosen which niche market to target, it’s time to draw them in. A great way to do that is by giving them information they want in the form of a free report. Your free report is the first step in the customer attraction process. It serves two purposes. First, it helps you build credibility and trust with prospective customers. Second, it allows you to provide prospective customers with enough information that they understand your value, but not so much that they can, say, choose the product they need without your help and guidance.

The first step to writing your free report

One week.

That’s all it takes for most businesses to dramatically improve their marketing.

is to choose an attention-grabbing subject. Here’s what you want to consider: What’s the biggest area of pain for your target audience? What problems do they come to you to solve? What are they most curious about knowing? As you develop the content of your report, carefully balance how much information you include. The best formula to follow is to tell your readers what to do and what not to do, but not precisely how to do it. Then, top it off with a compelling title.

If you still need proof that this works, consider that it greatly improved the business of an online perfume retailer. What could an online perfume seller possibly give away for free online to draw in customers? After all, you can’t download digital scents! No need, because this business owner knew his customers. He knew most online perfume buyers fear paying for an expensive perfume but being sent a cheap imitation. So, the owner wrote a free report, “20 Ways to Spot a Fake Perfume.”

And it changed his business. He now has an email list with 18,000 subscribers, 5,000 friends on Facebook, and more than 100,000 Twitter followers.

Now, you might be thinking, I’m a business owner, not a writer! There’s no way I can write a compelling free report. For those who feel they can’t do it, I do recommend outsourcing this task to a professional writer. There are great websites, like Elance.com and Guru.com, that can help you connect with professional freelance writers.

DAY 3: Create a Website for Your Free Offer

Now, you need a page on your website where prospects can get your free report. You have a couple of options for where this page appears on your website. It could be the landing page, otherwise known as the home page, on your existing website. Alternatively, it might be a dedicated page that resides within your site.

I recommend that you include a few key elements on your website: • A catchy headline • Bullet points to capture the reader’s curiosity and convey benefits • An opt-in box for gathering email addresses • A thank-you page I recommend heavily promoting your free offer on your website’s main landing page. For example, your headline might say, “What Five Accessories Should Be On Your Must-Buy List This Season?

Click Here to Find Out.” Traditionally, landing pages focus primarily on communicating what the company does. But if we do not get our visitors to opt in when they come to the site, we lose control of our ability to follow up with them. It’s hard to send ongoing messages to people if they don’t tell us who they are.

DAY 4: Develop a Series of Drip-Marketing Messages

While creating your free offer that motivates prospects to “raise their hands” and express their initial interest is important, keep in mind that it’s just the first step. Now it’s time to develop your drip-marketing messages that will convert these prospects into paying customers. These ongoing messages will build trust and credibility and play a significant role in getting you more new clients.

You can send out two types of messages: timed and broadcast. Timed messages are sent out based on the number of days that have elapsed since a person initially signed up for your free report. You might set up a schedule so that immediately after your report is requested, the reader gets a “thankyou” email. Then one day later, email message #2 goes out asking them if they have any questions.

Two days after that, they get email #3, and so on.

Broadcast messages are sent to everyone in your database at the same time, the advantage being that it can be timely. For example, you could send a message out to your entire database connected to a current event.

You can “set and forget” your marketing campaign using an autoresponder system. My wife, Marian, is a clinical hypnotherapist and success coach (MarianMassie.com). When I set up her autoresponder sequence, we bit the proverbial ➜

BONUS TIP:

Create and nurture “joint venture” relationships. A joint venture is simply a collaboration with another business, with the goal of making money for both of you. In order to identify good joint venture (JV) partners, you want to ask yourself, Who else has relationships with the types of people I want as customers?

These are the people you want to connect with to determine if there is some way that you can jointly market your services. For example, if you own a women’s clothing boutique, your natural partners might be local jewelers, day spas and hairstylists.

Once you’ve developed these relationships, there are lots of joint marketing activities you can engage in, including sharing trade show booths, referring business to each other, mentioning each other on social media and in blog posts, etc.

The success of any joint venture relationship ultimately hinges on trust, and that takes time. Simply calling someone and suggesting that you cross-promote each other’s products or services seldom has a positive result. However, if you can develop the right relationships, joint ventures can be extremely effective and add significant dollars to your bottom line.

FOCUS ON FASHION RETAIL | DECEMBER 2014

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MARKETING CLASS bullet and created two years of timed messages that go out approximately every ten days. At the end of two years, we just reschedule the person back to day #1 on the assumption that no one remembers an email they got two years ago. Talk about a “set it and forget it” approach to staying in touch!

DAY 5: Get Traffic to Your Website

One of the fastest ways to attract new customers in your niche is by using “pay-per-click” (PPC) advertising. Payper-click means exactly what it sounds like. The advertiser pays only when someone clicks on their ad. It is probably the best way to get immediate traffic and it can be done with an advertising budget of $50-100.

You can advertise on search engines like Google and Bing or social media sites like Facebook and LinkedIn. With Google and Bing, you advertise by bidding on keywords, which are the words or phrases people type into the search engines when they want to look something up. One big advantage of advertising on the search engines is immediacy. When someone searches for something using the keywords you’ve selected, your ad immediately appears.

Of course, your success will depend on how compelling your ad is. So, when you write your ad, be sure to include one of your keywords in the title line, focus on benefits and forget about features, and use title case. Here’s an example of what an effective ad might look like: Dress for Your Body Type Stop Sabotaging Your Style.

Free Report Shows How. Click Now.

So, there it is. Proof that a marketing campaign doesn’t have to take months to plan and implement or cost tons of money. The One Week Marketing Plan is about gaining visibility in your niche market, educating people about what you can do for them, and having more customers walk through your door. And you can have it up and running in one week. Go get started! ❖ Mark Satterfield is the author of The One Week Marketing Plan: The Set It & Forget It Approach for Quickly Growing Your Business. He is the founder and CEO of Gentle Rain Marketing, Inc. For the past 20 years, he’s advised entrepreneurs, consultants, advisors, and business owners on how to attract consistent streams of brand new prospects and turn large percentages of them into paying clients. To learn more or to receive weekly email tips for growing your business, please visit www.gentlerainmarketing.com.

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december 2014 | Focus on Fashion retail

Holiday Sales Forecast:

Top Digital, Social Media Trends Driving Holiday Sales for Online Retailers Retail industry expected to benefit from mobile commerce, free shipping offers, in-store pickup promotions and e-commerce videos

G

lobal analytics and insights firm Blueocean Market Intelligence predicts for the top digital and social media trends that online retailers will utilize to drive sales this holiday shopping season.

Last year, retailers largely surpassed sales goals despite a relatively short shopping season, poor weather conditions and weak consumer confidence. According to the National Retail Federation (NRF), total online holiday sales grew by 9.3 percent – amounting to $95.7 billion – due to proactive social media campaigns, deeply discounted deals, free shipping and last-minute rushes.

This year, retailers will be challenged by the vast number of strategic choices and digital tactics. Considering the number of social platforms that have mushroomed in recent years, retailers can’t just hop on Facebook with a ‘me too’ strategy. They have to make informed decisions about which networks to invest their resources in to achieve the greatest impact. Social media is no longer about following the mass; it’s about following and converting target audiences.

Based on the analysis, Blueocean Market Intelligence predicts the TOP SIX digital and social media trends that are expected to drive the most holiday sales:

1. Visual content and interactions will play an important role in holiday campaigns. Video is among the most powerful

mediums for communicating information online. Retailers across industries will entice their customers with high quality audio and video.

Video and image sharing will be dominant on Twitter, Facebook, Google+, Instagram, Pinterest, and of course, YouTube.

2.

Social shopping becomes a reality. With the introduction of Twitter’s “buy” button and Facebook’s e-commerce integration, there will be a big push with social shopping. Many e-commerce giants are already piloting programs – a sign that mainstream adoption isn’t far away.

3. Retailers will spend more on social- and geotargeted campaigns. Retailers will direct a significantly

greater portion of their marketing budgets toward social, and especially around geo-targeting customers. Consumers can expect different offers by state and city.

4.

Consumers will shop early. Customers don’t want to wait or only visit stores on select days, so they will take advantage of early offers that retailers push in October. As a result, retailers may eventually opt for guaranteed delivery cutoff dates closer to mid-December, rather than waiting until Christmas Eve.

5. Mobile commerce will experience a big

turnaround. Mobile visits to e-commerce sites have boomed in recent years, and Blueocean Market Intelligence’s SEI for Retailers has confirmed major retailers are making a great effort to push mobile apps. For example, CVS Caremark encourages clients to refill prescriptions with an app. Kroger created an app that generates real-time offers and coupons. Home Depot has

an app providing on-demand, real-time inventory and stock updates. Additionally, the newly released Amazon Fire phone and iPhone push consumers to shop via mobile devices.

6. Online retailers will use free shipping and in-store pickup incentives to drive more sales. A 2014 survey by

UPS and ComScore found 81 percent of online shoppers believe free shipping is important. Complimentary in-store pickup, too, has been found to be an effective promotion in recent years.

Companies that actively communicate theses incentives via social and digital platforms have the potential to drive more sales this holiday.

A major challenge with retailers is finding the best strategy and tactics to convert ‘big social data’ into actionable insights.

It’s not just about collection, interpretation and analysis – but how to convert the analysis into actionable insights and merge them with marketing calendars. Marketers will succeed this holiday by riding on a robust and comprehensive campaign strategy coupled with a coherent and exhaustive content and digital strategy. ❖

To learn more about Blueocean Market Intelligence’s social intelligence services and to download the latest SEI Retail Report, visit www.blueoceansei100.com.

Focus on Fashion retail | december 2014

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fashion trends

Cornflower blue is the core color of the new Emporio Armani collection. Paired with optical whites and grays, it emphasizes sporty look of a feminine silhouettes. Collection features extra wide stripes, voluminous trousers, use of PVC in both the dresses and accessories, accentuate light and heavenly nature of this dynamic collection.

Spring/ Summer 2015 44

december 2014 | Focus on Fashion retail

BLUE COLLECTION

FEBRUARY 3-5, 2015 TUESDAY–THURSDAY New York Hilton Midtown & Member Showrooms

Shop FFANY 365 days a year– visit ffany365.com

SAVE THE DATE:

June 2–4, 2015 (Tuesday–Thursday) Show information and special hotel rates

FFANY.ORG

@ffanyshoeshow

The Do’s & Don’ts of Patterned Hosiery

N

ow that fall has arrived, it’s time to shop for pattern stockings to keep your gams warm and fabulous. To start, we recommend a few patterns for your fall wardrobe: 1) argyle pattern prints, 2) lacy thigh highs, and 3) holes alisea. Your legs offer lots of real estate to make a statement for yourself and pattern is the way to do it. Here are some do’s and don’ts on how to wear patterned hosiery.

1 Do keep it simple

It’s not a good idea to wear the same pattern on top and on the bottom. Some people may like to do this, but we think clashing too much will cause distraction. You want the attention to remain on the most important part of your outfit, which is your hosiery. Therefore, don’t let things get too busy. One way of doing this is wearing black with your favorite pair of printed stockings. Wearing black will neutralize the intricate design of your stockings, resulting in all eyes on you!

2 Don’t wear the wrong shoes

Patterned hosiery and peephole shoes just don’t go together - it’s plain silly! Wearing any type of sandals with hosiery is also not the best idea. Decide what the occasion is and try wearing boots, flats, or stilettos. You want to accentuate your legs, and wearing the right shoes will do that. You now have the perfect look of sophistication!

3 Do wear high quality stockings

Th is tip is meant for lace stockings, and fishnets. By wearing high-quality stockings, you won’t have to worry about stiff and uncomfortable threads that cut into your legs.

You also won’t have to worry about delicate material that rips easily… which can be embarrassing! High quality stockings will defi nitely keep your legs warm during the colder months, while also looking much more fashionable. The beauty of pattern stockings is that they can be worn for every occasion.

Source: VienneMilano www.viennemilano.com

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DECEMBER 2014 | FOCUS ON FASHION RETAIL

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As a service to our worldwide audience, Focus on Fashion Retail regularly conducts surveys to determine satisfaction with the various footwear, apparel and accessories trade shows and to rank our readers’ favorites. Being an independent media outlet not affi liated with any trade show, we believe that peoples’ opinion must be heard, it adds up to the value of our services as well as serves the needs of the industry.

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January 19-21, 2015 Jacob Javits Center | New York

New York’s First Men’s Contemporary Footwear Destination

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For those of us who plan around our shoes...

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December 2 - 5, 2014 bebe Footwear Showroom 1370 Avenue of the Americas, 11th Floor New York, NY, 10019 CONTACT TO SCHEDULE AN APPOINTMENT: