June 2012 by FOCUS ON FASHION RETAIL

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EDITOR’S LETTER

Fashion is Passion! Business of Fashion is tough. Since Focus’ launch in 2002, I’ve witnessed countless new brands and companies popping up, making some noise, making some sales and disappearing soon after. The same may, and does, happen with well-established brands also. There are numerous reasons why businesses crash, but I want to focus on only one issue, which surely plays a role in failure and that bothers me, and I want to shout about it- FASHION is about PASSION, damn it! It is my job and personal pleasure to meet and to communicate with the designers and their offices. Interestingly, the guys responsible for building successful companies are approachable, respectful, nice people. Kenneth Cole, Steve Madden, Donald J. Pliner, Robert Greenberg to name a few, are always kind and friendly with me and I appreciate that. We share the same passion. No, it’s not about the money. It’s about that we love what we do. However, I cannot say the same about (some) people who work for Big Guys, people with Diva attitude and employee mentality- they don’t care, they never would be/ will be successful on their own. They bring their companies down. Once at the trade show, Pliner said this to me: “Alex, I always enjoy seeing you so happy and cheerful at work, you clearly love what you do. Such a pleasant contrast with most other people here, whose faces read “I work from 9 to 5”, it’s so sad… bad for business.” I take his words as an encouragement and suggest you do too. The way of life we’ve chosen requires passion and perseverance to be successful. And the Focus on Fashion Retail is here to help you to better yourself in this business. The Fashion editorials highlighted in this issue present you the trends in fashion clothes, shoes and accessories for the upcoming Fall/ Winter season. And the Forecast of trends in colors and materials for the following Spring/ Summer 2013 will extend your awareness of the styles to come. If FASHION is your passion (and I hope, it is!), you will like the Fashion one of a kind, featuring wonderful creations of talented designers with great fearless imagination. Get your private Top 5 lessons from J. C. Penney and if you’re interested in attending the trade or fashion events soon, please review the Trade shows calendar with FFR’s star ratings, to find the most appropriate show for your needs. These and other editorials in this issue are for you to learn, to use and to enjoy, as fashion business is and better be your PASSION!

“It’s hard to tell with these Internet startups if they’re really interested in building companies or if they’re just interested in the money. I can tell you, though: If they don’t really want to build a company, they won’t luck into it. That’s because it’s so hard that if you don’t have a passion, you’ll give up.” -Steve Jobs And, as always, I’d love to hear your thoughts. Please feel free to contact me at editor@focusonshoes.com with questions, comments, suggestions or topics you’d like to see covered in future issues. Serving you better is our goal and privilege. Sincerely,

Alex Geyman Editor 4

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June 2012

BUSINESS MAGAZINE FOR SHOE, APPAREL & ACCESSORIES STORES

FASHION RETAIL EDITOR: Alex Geyman GENERAL MANAGER: Dmitry Nelipovich ART DIRECTOR: Allison Moryl GRAPHIC DESIGNER: Pay Fan GRAPHIC DESIGNER: Laurie McAdams FASHION EDITOR: Francesca Trippoli SUBSCRIPTION: Sandra DaSilva RESEARCH: Shawn Lancaster SALES: Claudia Perez COVER PHOTO: Fashion by Hannibal Laguna at the Mercedes-Benz Madrid Fashion Week Spring-Summer 2012

table of contents: 4 Editor’s letter 6 Fall/Winter 2012-13 Fashion Trends 14 10 Top Things To Think About And Do To Open A Store 16 Trashy Fashion Show Winners Vs Glamorous Highlight 18 Top 5 Lessons From J. C. Penney 22 Trends in Colors & Materials For Spring/ Summer 2013 24 Trade Shows Calendar (June- July 2012) 26 The Demonstration: Secret For Success 30 Empowering Women Through The International Fashion IndustrySales 34 Celebrities and Fashion 38 Retail Truths That Stand The Rest Of Time 43 Subscription 44 Your Opinion Counts Survey All images and editorials in this issue are subject to copyright law and are the property of FFR and/or the owners/contributors. No images, designs or texts may be reproduced, copied, used whole or in part without written permission.FFR magazine disclaims responsibility for the statements, claims made by either advertisers or contributing authors. FFR magazine is not responsible in whole or any part of advertisement or typographical errors.

FOCUS ON FASHION RETAIL 25924 Viana Avenue, Suite 19 Lomita, CA 90717 USA Tel. (310) 784-0790 fax (310) 202-6027 General E-Mail: info@focusonshoes.com Web: www.focusonshoes.com © FFR- Focus On Fashion Retail

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N Y C s h o w r o o m : 1 3 7 0 Avenue of the Americas 3rd floor New York, NY 10019 212.977.8355 Corporate offices: 5252 Bolsa Avenue. Huntington Beach. CA. 92646 Tel.714.934.8800 Fax.714.934.8005 Visit us at upcoming FN Platform August 21-23 South Hall Level 1 "Like" us on Facebook: www.facebook.com/titanindustries Follow us on Twitter: @titanshoes Follow us on Instagram: @titanshoes

www.titanindustriesinc.com

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FASHION TRENDS Marc By Marc Jacobs

Styles Wrap-around coats tuxedo styles, fur collars, drainpipe slacks, and narrow long skirts. Tunic tops that wrap around in layers. Baggy woolen double-breasted coats with stand-up collars; wide sleeves and padded shoulders. Oversized blazers, flared short jackets, plain tunics and mini-dresses with belts and button facings, mini and balloon skirts. Pants are stretchable with slim silhouette.

Betsey Johnson

Colors Dark nocturnal tones of blue, green, gray, burgundy. Bright colors of orange, green, cobalt blue, gold, copper, red or neutral shades, like ecru. Fabrics Silk and wool, satin, lace, jacquards with reliefs, velvet, hairy and furry materials, oxidized coatings, lacquer, leather, embroideries with foil and mirror effects, sequins. Double sided hairy wool, colorful combinations of various materials at once, crĂŞpe de chine, dense jersey and double knits, piques, geometric embroideries, crochet and optical patchwork. Designs Stardust designs with mirror, light and foils effects; feather, paisleys and tapestries patterns. Coarse stripes, tweed checkers, dots, geometric patterns, color blocks, colorful stains.

Giovanni Fabiani

Trend

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Fall/ Winter 2012

DKNY

2013

Lacoste

Casadei

Michael Kors

Custo Barcelona

Taccetti

Gardenia ÂŠ FFR- Focus On Fashion Retail

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Invitto

Jeannot’s

Mario Fabiani

Vera Wang

BCBG Max Azria

Herve Leger By Max Azria

Tommy Hilfiger

Nicole Miller

Ralph Lauren

Marros

G&G

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Meira T Tiret

Clara Kasavina

Fossil

Azria

• Lace-up boots and shoes • Shoes with details in gold and multicolored gemstones • Belts with colorful gemstones and fur details • Oxfords and sporty wedges with high heel • Boxy Bags • Bags made out of embossed leather and snakeskin designs, exotic leathers • Bags with gold and decorative gemstones, multi-colored • Fur bags and bags with fur trimmings • Elegant pearl and diamond jewelry

Pure Insanity

Fossil

Jessica Grant

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Tom Ford

Diesel Diesel

Roberto Cavalli

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Fall/ Winter 2012

Tom Ford

2013

DSquared2

DSquared2 Diesel

• Cat eye/ Butterfly shapes • Neon/ Fluorescent Colors • Oversized round/ Wide square shapes • Wayfarer/ Pilot shapes • Brow line Tom Ford DSquared2

Diesel (featured on previous page)

Roberto Cavalli (featured on previous page)

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Diesel (featured on previous page)

Tom Ford

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Fall/ Winter 2012

2013

Brecos

Designs The theme thrives on single-colors and material mixes, complemented by masculine wool and needle stripes, checks, micro and tie designs, digitalized baroque patterns, ornaments and kaleidoscope designs. At the top we find masculine wool fabrics, grainy leather, structures, fur, micro patterns. Needle and regiment stripes, shadow and blanket checks, dark tartans, graphic prints and color blocks. Styles Print shirts, boot-cut trousers, and denim combinations. Bright-colored parkas, zipped lumbers, duffle coats, coats with standup collars, leather coats in blazer styles, blousons with materialsâ&#x20AC;&#x2122; mixtures, slim wool vests, tuxedo types with contrasting lapels, double-breasted designs; checkered jackets worn with slim short trousers, wide trousers, checkered leather pants; shirts with color blocks, bright spots, T-shirts with baroque prints. Knits in bright single colors with structured color blocks, checkers; cardigans with contrasting colors, round and V-necks. Colors Dark colors: black, sepia and brown shades with red and honey accents, various light effects. Other popular colors: red, pumpkin, maize, pea, oil, purple, cobalt blue, sand, brown, gray, black, cement and white.

Miguel Marinero

Barracuda

Fossil

Fabrics Colorful wool with double-sided prints, stretchable fabrics, coated denims, smooth leather (nappa).

Madaf

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Fossil

Montblanc Vintage Tachydate

Soldini

General Idea

Rock & Republic For Kohl’s

Joseph Abboud

Marc By Marc Jacobs

Nero Giardini

Mac Dugan

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T i p s Fo r B e g in n e r s

10 Top things to think about and do to open a store By Mercedes Gonzales for Focus on Fashion retail, excerpt from a 6hrs class

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.

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.

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 backbone 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.

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.

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 cannot 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 ads 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.

About the Author:

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

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FA SH IO N O N E O F A K I ND

Trashy Fashion Show Winners

Ripley’s “Trashy Fashion Show” produced three winners and three new exhibits that will go on display at Ripley’s museum in St Augustine, Florida.

Analise Barnards/ Amani Grant created a dress made from coffee filters.

Kennedy Trugter’s party dress made entirely out of newspaper.

Masha Sardari won for her used paint brushes and paper bags gown.

Teen and “tween” designers swept the competition, winning all three categories. Analise Barnard and co-designer Amani Grant won first prize in the twelve and under division for their dress entitled “High Energy.” The party dress and headband were created entirely from coffee filters. The over-the-shoulder mini dress model entered the catwalk partially concealing the gown with a cape made of trash bags. The cape was shed and the amazing dress revealed. The two won $100 for their efforts

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and Ripley’s paid them another $100 to acquire the dress. Kennedy Trugter, age 15, won the student prize of $100 for her party dress made entirely out of newspaper. The sleeveless top was adorned with newspaper flowers and ruffles, while the skirt was triple-tiered with hundreds of pleated paper sections. Ripley’s also acquired this dress for an additional $100. The 17 and up category was won by Ma-

sha Sardari, who had two entries. The first was a formal, knee length gown made from used paint brushes and paper bags. Her second entry was a cocktail dress made from a used shower curtain. Ultimately, it was her first gown that took the prize. She too won $100 and Ripley’s acquired the dress for display for another $100. Other entries included dresses made from magazines, bottle caps, grocery bags, paper cups, snack wrappers, trading cards and magazines.

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Mercedes-Benz and ELLE present IrIS Van HErpEn

The absolute highlight on the penultimate day of the Mercedes-Benz Fashion Week Berlin was Iris van Herpen’s show in the venue at the Brandenburg Gate, presented by Mercedes-Benz and ELLE.

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The Dutch designer, already a rising star in her native land and one of the most celebrated performers at the Paris haute couture fashion shows, presented a true firework of originality and avant-garde beauty. Iris van Herpen’s style is inspired by the combination of craftsmanship and innovative materials. Metallic silk, polyamidic powder and smoked leather are the ingredients of her sculptural and futuristic silhouettes which are startingly rich in contrast. The Spring/Summer collection 2012 seems to defy gravity in its play with amorphous shapes, which truly seem to originate from another planet.

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

5 Business lessons from J. C. Penney

a P c fi d c s p c c h d m H t o m

“Do unto others what you would have them do unto you.”

c h e w f P a a l d s

Lesson 1: A Happy Customer Is Your Walking Advertisement “When this business was founded, it sought to win public confidence through service, for it was my conviction then, as it is now, that nothing else than right service to the public results in mutual understanding and satisfaction between customer and merchant,” said Penney. “It was for this reason that our business was founded upon the eternal principle of the Golden Rule.” When Penney started his first business with the butcher shop, it was a fast flop. But, it was not because Penney had bad business sense. Rather, it was because of his conscience. Penney’s biggest customer at the time was the local hotel. When the hotel’s meat cutter demanded a bottle of whiskey weekly as a bribe, Penney at first gave in. However, he forever regretted it and from then on, refused to give the bribe. As a result, the hotel withdrew its business and the butcher shop folded. It was with this attitude of doing the right thing that Penney was able to create one of the largest retail chains in America. Penney’s parents had always preached to him the Golden Rule: Do unto others what you would have them do unto you. It was a lesson Penney would apply well in the business world. 18

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When Penney first took over total ownership of the Golden Rule Stores, he operated in a completely different environment than that which we know today. Back then, store owners paid little attention to their customers. They were often treated rudely and sold poor-quality goods. Store managers would also routinely change their prices according to each customer, charging more to poorer people because they might not have known better. Penney decided to change all of that. “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstantial,” he said. “You can’t take them with you. But they work for good beyond your power to measure their influence. It is the service we are not obliged to give that people value most.” He took the store’s slogan – that of practicing the Golden Rule – with strict literalness. Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.

“In setting up a business under the name and meaning of the Golden Rule, I was publicly binding myself, in my business relations, to a principle which had been a real and intimate part of my family upbringing,” said Penney. “Our idea was to make money and build business through serving the community with fair dealing and honest value.” To this end, Penney himself would often stop to help a customer on many of his random store checks. Penney’s strategy worked as word of mouth helped the company earn a profit margin of 29 percent in its first year. “The store that sells its wares for less but pays little attention to the service it renders does not meet with the success of the store with courteous employees,” said Penny in 1954. “The public is not greatly interested in saving a little money on a purchase at the expense of service. Courteous treatment will make a customer a walking advertisement.”

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Lesson 2: Business Is Not All About The Profits “Business is not longer a matter of profits alone,” Penney said. “Profits must come through public confidence, and public confidence is given to any merchant in proportion to the service which he gives to the public.” As much as he focused on providing superior customer service in all of his stores, Penney also understood that service meant more than in-store courtesy. He believed that organizations such as his should be used for the betterment of society, not only because it could but because it made sense from a business point of view as well. As he approached his later years, Penney became one of the most generous philanthropists of his time. In 1923, he established a 120,000-acre experimental faming community in Florida, which was divided into plots for down on their luck farmers. Two years later, Penney created the J.C. Penney Foundation to help fund such groups as adoption agencies, homeless shelters, youth clubs, and health clinics. He also established the $1 million Memorial Home Community, a 60-acre residential community for retired ministers and missionaries and their families. It was not only in the company’s stores that Penney sought to increase his ability to serve the public. He dedicated much of his time and energy to giving back to his communities and encouraged store managers and associates to do the same. He wanted his employees to take an active role in their communities and participate in all of their worthwhile activities. “Business never was and never is anything but a public service,” said Penney. “We told store managers that, unless they knew their communities and unless they were prepared to enter sympathetically into community life, they could not make a success of their stores.” The goodwill of Penney and his associates boosted the company’s reputation in the public’s eye. J.C. Penney stores were becoming known not only for their friendly and personal service, but now for their active participation in their communities. J.C. Penney stores were often so highly regarded that it was not uncommon for towns to actually petition the company to open a store in their community – a tradition that continues to live on to this day. Penney had created such a positive image of the company in the public mind that he had in fact © FFR- Focus On Fashion Retail

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after the success of his first Golden Rule store in Kemmerer, Penney was placed in charge of a second store in Rock Springs, Wyoming. It was here that Penney’s managerial skills were largely tested. After discovering the clerk would often close the store early so he could perform an instrument in local dances, Penney immediately fired him. A replacement with a much stronger work ethic was subsequently hired.

created a market for his products before they were even on the market. The J.C. Penney Foundation went under with the stock market crash and the depression of the 1930s, but Penney’s dedication to charity did not. After rebuilding part of his fortune, he opened the James C. Penney Foundation in 1954, which continues to address issues of community revival, world peace, and the environment today. “A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition,” Penney once said. Serving the public for Penney meant more than providing quality in-store customer service; it meant going out on the streets, into the schools, onto the fields and lending a helping hand. For it was there that the company would make the biggest difference in the lives of its customers, and there were they would be noticed the most.

Lesson 3: Hire Good People and Take Good Care of Them It was not only Penney’s focus on the customer that drove his success. With the same amount of energy and dedication he gave to each and every visitor that entered one of his stores, so too did Penney give to his employees. Penney was a visionary; he wanted his store to have a national reach, which he knew meant ensuring long-term growth. Superior customer service alone would not be enough to achieve that. Instead, Penney understood that it would be the people behind his company that would help push it to the top. It was to this end that Penney took the time to choose his staff shrewdly. He understood that the future of his business rested in the hands of his associates, and thus spent much time and energy devoted to finding and training them. In 1903,

Penney did not take the hiring process lightly. He placed advertisements in newspapers across the American Midwest and personally interviewed all of the prospective trainees. He wanted his stores to be staffed by the best. But Penney was astute enough to recognize that it took more than a strict hiring regime to ensure a strong team. Once people were brought on board, he knew he had to take good care of them. To this end, Penney established an employment department, which immediately set out to create a company newsletter. In 1917, “The Dynamo” was launched, to which Penney himself regularly contributed articles about his own life and personal experiences. Initially, the newsletter was meant to train and educate its readers, but it would quickly become a uniting force that instilled loyalty and pride amongst the associates. Penney understood that many of his employees came from the same humble beginnings as he did, and thus established an Education Department within the company. In 1921, the company’s first free Business Training Course was shipped to all of its stores, offering a free correspondence course for up-to-date business training. Over 90 percent of the company’s 2,500 employees had enrolled within the first year. Penney also made sure his staff was motivated. When any of his store managers had saved enough money, he would offer him one-third ownership in a new store. The manager was responsible for raising one-third of the necessary startup capital, while Penney would supply the remaining two-thirds. The manager would also agree to help train someone to take his place at the existing store. This not only helped motivate younger trainees, but also helped facilitate the company’s early expansion. When he was 85 years old, Penney traveled more than 80,000 miles to visit 67 stores and continue giving the pep talks for which he had become famous over the years. He encouraged his workers with phrases such as “No man can climb the ladJune 2012

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E N T R E P R E N E U R O F TH E MO NTH der of success without first placing his foot on the bottom rung,” and “The profit is in the last shirt in the box.” Penney was so devoted to his associates that he even turned down two major merger offerings from Montgomery Ward and Sears Roebuck in the 1920s. If it meant laying off some of his personnel, Penney just could not see how such a deal would be worth it.

Lesson 4: Cutting Costs Can Save Your Company Penney was born and raised on a small Missouri farm. His father, a Baptist minister, was a well-respected member of the community. But, as it was an unsalaried position, the family rarely had the wealth to accompany that status. As a result, Penney grew up in a household that stressed the importance of self-reliance and self-discipline, especially when it came to financial matters. Penney took that attitude with him into the business world. Indeed, much of Penney’s success can be attributed to his willingness to penny pinch wherever he needed to.

thus increase the amount of savings that could be passed on to customers. “Basically the stores were places where the folks of a town and its outlying regions could buy needed goods,” said Penney. “For us to stay in a position to sell always at the lowest possible prices, we had to work constantly. We had to save, not only in prices paid in the wholesale markets, but on costs all along the line, right to shelves and over the counter. Stocks must turn over down to the last paper of pins a given number of times a year.” Penney wanted to do whatever it took to keep his costs low in order that his customers did not have to bear the burden of higher prices. To this end, Penney also did such minor things as using the blank side of envelopes as scrap paper. In the early days, he also used old packing crates as shelves and counters in many of his J.C. Penney stores. While Penney might have been completely focused on cutting costs where he could, he refused to do so at the cost of quality or service. To this end, Penney would frequently pop up in one of his many stores to do a spot check. In one particular Milwaukee outlet of J.C. Penney, Penney

ing money wherever he could, but he knew where to draw the line.

Lesson 5: Set Goals No Matter How Unreachable They May Seem “Give me a stock clerk with a goal and I’ll give you a man who will make history,” said Penney. “Give me a man with no goals and I’ll give you a stock clerk.” Penney understood the importance of deciding where he wanted to go, and striving to get there no matter how difficult it may have seemed at the time. His career is characterized by his ambition, his focus, and his refusal to give up in the face of difficulty. Penney’s strategy for success may seem all too obvious today, but at the time, he was facing an uphill battle. Kemmerer, the town where Penney opened his first Golden Rule store, was a mining town, where workers were paid by the mining company in coupons instead of cash. They would then use their coupons to shop at the local store, which was also owned by the mining company. For the most part, miners tended to spend their income immediately and later rely on credit from the mining company. Because of this system and the loans they received, miners would usually stay put in the town. Penney wanted his store to operate on a cash only basis and that was exactly why many people thought he would fail. When he sought out the advice of others, he was told that such a store would close in little time. After all, three other cash-andcarry stores, similar to that which Penney wanted to open, had folded in the same city just some time before. Even the local bank cashier had strongly warned Penney against opening a cash only store because no one before him had been able to compete with the strongly rooted credit based mining companies.

To begin with, Penney always made sure his stores were all located in inexpensive areas of small communities. He took the time to scout out various locations and determine which was the most cost effective. Penney had no use for elaborate fixtures or displays, and thus saved money by focusing on creating simple store interiors. He also went to great efforts to determine precisely which merchandise his customers wanted, carrying only that much so as to ensure a rapid inventory turnover. No detail was too small for Penney to examine in his effort to reduce operating costs and 20

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was making one of his surprise visits and strolling down one of the aisles, when he came across the display of men’s corduroy pants. They had been erroneously marked $3.98. Penney immediately called over the store manager and said, “These pants sell at $2.98!” The store manager pleaded with Penney, insisting that the pants were an excellent buy even at that higher price. Penney exploded saying, “You violate company policy! You must give the customer the best value and make a reasonable profit!” Penney’s number one focus was always on sav-

He knew that in order to achieve his goal, defy his critics, and make his cash only store profitable, he would have to differentiate himself from the store of the mining company. He did not care that people did not believe in his dreams; he just knew he had to prove them wrong. Penney began opening his store at sunrise as part of the promotion for the store as being different from the competition. Penney’s regular hours were from 7 am until the streets were empty. On Saturday nights, that would often mean working until past midnight. “No business can succeed in any great degree without being properly organized,” said Penney. He had a clear focus on his goals, organized himself accordingly, ignored the naysayers, and set out on his to achieve his dream. Reprinted with permission from www.evancarmichael.com © FFR- Focus On Fashion Retail

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FSL-WS3

STEP UP TO STYLE Our shoes are the perfect combination of vintage inspiration and of-the-moment design. Discover our entire collection at

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TRENDS FORECAST

Report from Lineapelle:

TRENDS in

Prepared for FOCUS ON FASHION RETAIL by Ellen Campusano president of the Committee for Colour and Trends

Colors & Materials

for 2013 Spring/Summer

Lineapelle, the leather and materials trade fair held in Bologna, Italy this April provided an early glimpse of what will be fashionable next Spring/ Summer in footwear, handbags and accessories. Obviously, color played a key role with yet another dose of bright colors including

fluorescent shades. But more importantly and newer, finishes and textures provided the trends of the season with discreet shimmer and shine, transparent and pearlized finishes, and a return to simple chic and all things natural.

Pale Shimmer

The BIG color direction of the season was pale and pretty and white. Pearlized finishes, discreet metal washes and “under glass” coatings showed off the beauty of the leather in a luminous way. Sometimes there was just a hint of color on white, other times there were sweet sorbet tones. These softer shades were presented across all textures, from sportive grains, to washed out snake and glossed over croco. Subtle floral scroll patterns on white leathers seemed the right feminine look for more than just brides.

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L o s

Another Touch of the Flu

Just like the flu: one thinks its over and then there is a relapse. That was definitely the case at Lineapelle. Fluorescent patent leather and non-leather materials were shockingly noticeable, and in all fairness partial fluo patterns on snake looked great for juniors and kids, particularly when used sparingly as a touch. The general consensus though was that this look was a one shot deal to be brought into the stores as early as possible.

Neutral Core

Despite the obvious focus on all things colorful and shimmery there was a parallel natural story, less glamorous perhaps but of equal importance. Sustainable production techniques were on the agenda, and one Dutch tannery promoted leathers that were 100% biodegradable. Eco shades of stone and grey, camel and tan, saddle and luggage as well as earthy brown tints were clear favourites. These vegetable tanned and washed leathers had a soft, supple hand ideal for unlined summer casuals and bags.

Added Benefits

Surface treatments put a fresh spin on the season. Optical raised patterns were new, somewhat reminiscent of 60â&#x20AC;&#x2122;s op art yet in a more industrial, contemporary mood. Punch outs and perforations, form pin dots to large holes also tapped into this clean, industrial look making these materials an ideal choice for light weight urban footwear. Embossed designs and woven leathers resurfaced in updated patterns. Reversible leathers, either from neutral to bright or from pearlized to matte were summer material suggestions for unlined shoes and bags alike.

Committee for Colour & Trends - The complete forecasting source for shoes and accessories - www.colourandtrends.com ÂŠ FFR- Focus On Fashion Retail

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TRADE SHOWS CALENDAR JUNE - J

JuLY

June

DATE

June 2012

EVENT

LOCATION

W C

May 31-June 3rd

Dallas Apparel & Accessories Market

Dallas, TX

•

3-5

Denver Apparel & Accessory Market

Denver, CO

•

6-8

The New York Shoe Expo (FFANY)

New York, NY

•

7-10

Atlanta Apparel Market

Atlanta, GA

•

11-13

SeLeCT- The Contemporary Trade Show

Los Angeles, CA

•

11-13

Focus- Apparel & Accessories Show

Los Angeles, CA

•

11-13

Transit- The Los Angeles Shoe Show

Los Angeles, CA

•

11-14

LA KIDS MARKeT

Los Angeles, CA

11-12

The Metropolitan new York Shoe, Apparel & Accessories Market (B&STA)

Secaucus, nJ

•

16-16

expo Riva Schuh

Riva del Garda, Italy

27-29

• •

•

BIFF & BIL Bangkok International Fashion Fair Bangkok, Thailand

•

19-22

Pitti Imagine uomo

Florence, Italy

•

19-22

Pitti W Woman

Florence, Italy

13-15

The Atlanta Fashion Shoe & Accessory Market

Atlanta, GA

23-27

Milano Moda uomo

Milan, Italy

21-24

Hong Kong Jewellery & Gem

Hong Kong, China

28-30

Pitti Immagine Bimbo

Florence, Italy

26-29

Francal

Sao Paulo, Brazil

•

24-26

Shoe Market of the Americas (SMOTA)

Fort Lauderdale, FL

•

30- July 3rd

Premiere Classe

Paris, France

•

30- July 3rd

FAMe

Paris, France

•

30- July 3rd

Mr. Brown

Paris, France

30- July 3rd

Private

Paris, France

30- July 3rd

Le Cube

Paris, France

•

30- July 3rd

Mess Around

Paris, France

•

2-5

Mode à Paris- Haute Couture

Paris, France

3-6

Hong Kong Fashion Week

Hong Kong, China

•

4-6

Premium Men

Berlin, Germany

•

4-6

Bread & Butter

Berlin, Germany

•

4-7

Mercedes-Benz Fashion Week

Berlin, Germany

22-24

enKnYC

new York, nY

•

22-24

MRket new York

new York, nY

•

28-31

Premium Dusseldorf

Dusseldorf, Germany

•

22-24

Project

new York, nY

•

19-23

Mercedes-Benz Fashion Week Swim

Miami, FL

Fashion Show

21-24

SwimShow

Miami, FL

•

• •

•

Fashion Show •

•

• •

•

• •

•

• •

•

Fashion Show •

•

Fashion Show

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• •

•

5/21/12 9:26 PM

•

NE - JULY 2012 W C

PHONE

WEB SITE

This issue is broughT To you by: FOCUS' RATING

•

(214) 655-6100

www.dallasmarketcenter.com

★★

•

(303) 292-6278

www.denvermart.com

★★

•

(212) 751-6422

www.ffany.org

★★★

•

(404) 220-3000

www.americasmart.com

★★★

•

(213) 630-3616

www.californiamarketcenter.com

n/A

•

(213) 630-3616

www.californiamarketcenter.com

★

•

(213) 630-3616

www.californiamarketcenter.com

★

•

(213) 630-3616

www.californiamarketcenter.com

n/A

•

(212) 564-1069

www.marketplaceny.com

★★

n/a

www.rivadelgardafierecongressi.it

★★ n/A

• • •

•

66 (0) 2507 8363

www.biffandbil.com

•

39 05536931

www.pittimmagine.com

★★★

39 05536931

www.pittimmagine.com

★★★

(706) 923-0580

www.atlantashoemarket.com

★★

Fashion Show

+39.02.7771081

www.cameramoda.it

★★

•

(852) 2516-2158

www.ubm.com

n/A

•

39 05536931

www.pittimmagine.com

★★★

• •

•

• •

•

55 11 2226-3100

www.feirafrancal.com.br

n/A

•

(786) 331-9000

www.smota.com

★★

•

n/a

www.whosnext.com

★★★

•

n/a

www.whosnext.com

★★

•

n/a

www.whosnext.com

★★★

n/a

www.whosnext.com

★★

•

n/a

www.whosnext.com

★★★

•

n/a

www.whosnext.com

★★

0142 66 64 44

www.modeaparis.com

n/A

• •

•

• •

•

Fashion Show •

•

(852) 2240-4323

www.hktdc.com

n/A

•

+49 (0)30-629-085-78

www.premiumexhibitions.com

n/A

•

49 (0)30 400 44 160

www.breadandbutter.com

★★★★

(212) 489-8300

www.mbfashionweek.com

★★★

Fashion Show •

•

(212) 759-8055

www.enkshows.com

★★

•

(212) 686-4412

www.mrketshow.com

★★

•

+49 (0)30-629-085-78

www.premiumexhibitions.com

n/A

•

(877) 554-4834

www.projectshow.com

★★★

Fashion Show

(212) 489-8300

www.mbfashionweek.com

★★★

•

(305) 596- 7889

www.swimshow.com

•

n/A

Show dates and locations were ★ Awful accurate at the time of printing and subject ★ ★ OK to change without ★ ★ ★ GOOD notice. Please contact venues directly for ★ ★ ★ ★ Awesome the latest information. FFR’s ratings are based on reports from our correspondents, contributors, vendors and retailers who attended these events. Ratings reflect people’s opinion of show organization, traffic, convenience and value for attending /participating businesses.

LEGEND

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R e ta i l S e llin g

The Demonstration: Secrets for Success By Harry J. Friedman, Founder/CEO, The Friedman Group

he demonstration: that’s when it really all happens. It’s your opportunity to show your customer that you’re truly the expert they expect you to be. The demonstration is the crucial step that gets customers to say, “I’ll take it!” It’s the moment of truth. Customers buy for two reasons: trust and value. Trust is established during the probing process, but the demonstration is where you establish value. Value can be defined as the total benefit the customer derives from making the purchase. Prestige, comfort, economy, durability, style, etc., are all types of value. Keep in mind, that what is of value to one customer may hold no value to another. 26

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Regardless of whether the customer likes or dislikes you as a salesperson, value is the key ingredient to making the sale. Even if you have the customer’s trust, and they love you, they still have to see the value an item brings them before they will buy it. So, it is in your presentation that you establish the value of an item. You must match your customer’s wants, needs and desires that you learned through probing, with the features, advantages and benefits of the item. People don’t buy what the item has, they buy what the item will do for them. For this reason, during your demonstration you must be able to explain not only the features of an item but how those features will benefit the customer. We use a tool called the Feature-Advantage-Benefit-Grabber when describing mer¬chandise. This technique involves

translating the item’s features into reasons for the customer to buy. Although the Feature-Advantage-Benefit system has been around for a long time, let me explain it briefly. The feature is something important or outstanding about the item. For example, if you are selling a hula hoop, one obvious feature is that it is round. The advantage is why it’s better to have the feature as opposed to not having it. Well, a round hula hoop is certainly easier to spin than a square one, so the advantage is “easier to spin.” The benefit is what this advantage will do for the customer. A hula hoop that is easier to spin would be more fun than one that required a lot of effort. The grabber is a restatement of the benefit in the form of a question to gain agreement from the customer that this would indeed be a benefit. So here’s how one might sound: “One of the nice things about this hula hoop © FFR- Focus On Fashion Retail

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is that it’s perfectly round, so it’s easier to spin and you’ll have lots more fun. And you do like to have fun, don’t you?” FABGs are very effective, and with some practice, simple to create and adapt to any industry. The following examples will help to illustrate this point: “One of the nice things about this shoe is that the upper is made from genuine kidskin leather, which molds to the shape of your foot giving you a custom-made feel. It would be nice to walk around in custom-made shoes at half the price, wouldn’t it?” “One of the terrific things about this pearl necklace is that it’s opera length, so it can be worn long or as a double choker, giving you two different looks with one piece of jewelry. And, that kind of versatility is nice, isn’t it?” “Another nice thing about this video camera is that it has a fade option. This means that when you’re taping, you can fade to black gradually instead of just chopping it off, giving you a much more professional final product. And, making your audience ooh and aah over your video would be great, wouldn’t it?” There are also some very subtle points to take note of to make sure you succeed in the demonstration. Besides showing the value of an item, you may need to inspire the customer to want to own it. It’s an essential part of any dem© FFR- Focus On Fashion Retail

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onstration in any industry. For example, a woman might appreciate the value of a mink coat, but not necessarily want it...until she tries it on, that is. A person might appreciate the value of a Mercedes, but not really want one until they drive it. Your merchandise isn’t any different. Looking at it is one thing, wearing, holding, experiencing it is another, which leads into another important part of your demonstration. Each industry has its own ways to make the demonstration more effec¬tive. For example, in the shoe industry, measuring feet has become a lost art. Veterans in the shoe industry know, however, that measuring does little to help you actually fit a customer better. We still advocate offering to do it. Why? Well, number one, it gets the customers’ shoes off so they are less likely to run off while you’re in the backroom! But more importantly, it is perceived by the customer as great customer service and an example of professionalism. Customers are pleasantly surprised and impressed ev¬ery time. Shoes should also never be put immediately on the customer’s foot, but instead pre¬sented to the customer with both hands. An FABG on the shoe prior to trying it on creates value immediately. Remember, present the shoe to the customer, not the customer’s feet. Feet don’t make the decision to buy, the mind does. This same theory applies to the apparel industry in a big way. A woman may try on a garment

in the fitting room and after having it on about two seconds, takes it right off. Her first impression isn’t good, and she doesn’t even give it a chance. And what’s worse is that she never comes out of the dressing room to give the salesperson the chance to give it some value. If you give an FABG on the item before she takes it into the dressing room, the value established may be just enough for her to take a second look and make it work because she may already want it. There’s another trick for the apparel business, especially in menswear. I call it the nine-point frump! When a man is standing in front of a threeway mirror with a suit on, the salesperson does my nine-point frump fit test. He tugs, adjusts buttons, unbuttons, smoothes the shoulders, pulls on the sleeves, etc., giving the impression that he’s “Sam the Tailor.” The salesperson is now perceived as a professional who is con¬cerned about how the customer looks and feels in the suit. In effect, every salesperson becomes a tailor! Walking around with a tape measure around your neck would only enhance that image. In the jewelry business, I’ve always liked to create some mystery to enhance the value of a piece of jewelry. For instance, before I put a ring on the customer’s finger or a chain around her neck, I pull it out of the case and lay a polishing or svelte cloth over it. Then, as I am polishing away, I give an FABG on it. Meanwhile, the customer is go¬ing crazy wanting to try on the piece. June 2012

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When demonstrating bicycles, I suggest putting the bike on a stand and having the customer pedal away. You let the customer know that you’re observing their riding style and checking for the right fit. This type of attention to detail is bound to set you apart from the rest of your competition.

blanks, you simply insert FABGs. For example, one spa might have a special seat with extra jets for individ¬ual therapy. Another spa might have a conical shape built for comfort and would need

When you sell merchandise such as furniture, spas, carpet, window treatments and the like, I always ask the customer to take a seat after the probing process and right before the demonstration, or actually during the probing process. Have the customer make a rough sketch on graph paper of the room or area they are making the pur¬chase for. This will help you visualize right along with them, but also clue you in to possible add-ons.

Instead, explain that many different factors affect the price: type of materials used, quality of workmanship, attention to aesthetic details, warranties, or even brand name. All of these factors, and extra features that may be included on the item, are all re¬flected in the price. It’s as simple as that.

As one last example, let’s look at the electronics industry. Always let the customers push the buttons and turn on the knobs. For example, if you are making a presentation on a television, let the customer work the remote con¬trol instead of you. Just tell them which buttons to push. It gets the customer involved and alleviates their intimidation about being able to operate the item once they get it home. As you get further along in your demonstration, one situation to watch out for is cus¬tomers asking you to compare two different items. Don’t let yourself get trapped. The rule in this case is: sell each item on its own merit; never compare. If you describe one item to be better than another, you’re likely to lose the sale when the customer realizes they can only afford the one you just beat up. If the customer presses you for comparisons, simply explain that it’s not a matter of one being better than the other, but a matter of each having different features. Answer by saying, “this item is terrific because it has...” and “this other one is great because of...” Naturally, to fill in the

A similar dilemma occurs when the customer is asking you to justify the price difference between two items. Again, don’t get yourself in trouble. The thing you don’t want to do is insinuate that the more expensive item is better because it has better fea¬tures. You’ll only succeed in convincing the customer that they don’t want the item if they can’t afford those better features.

less heating. By pointing out these differences, yet avoiding saying that one is better, you can now guide your customer in the decision-making process based on what fea¬tures and benefits would best suit their needs. If the spa would be used more for enter¬taining than relaxed family time, then the first model would be out, or vice versa.

If necessary, you could draw a parallel to get the point across. For example, you might look at two sweaters that on the surface appear very similar, yet one is $100 more than the other. The higher-priced sweater might be hand-knitted versus the other, which is woven by a machine. That doesn’t mean the lower-priced sweater isn’t any good. Or, think of the difference in price between a Mercedes and a Honda. If the Honda was no good based on the price difference, everyone would be driving a Mercedes or riding the bus. No one would be driving a Honda! And, let’s face it, of course you’d rather sell the Mercedes of merchandise, but you would also rather sell the Honda than sell nothing at all! So, don’t kill the customer’s enthusiasm for either item if you get caught in two different price ranges. There’s a lot to think about during the demonstration. Remain in control, attach benefits to all of those great features, and add some creativity to your presentations. And remember, you’re not there because you love all the merchandise; you’re there to sell it!

About the Author:

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

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Soci a l I ssue s

Creating Sustainable Futures: Empowering Women through the International Fashion Industry

l s t t i p l 7 p f t m t j r a e o t c p

By Christine S. Pomeranz, assistant professor and chairperson, Department of International Trade and Marketing, Fashion Institute of Technology; and Janiece B. Greene, social impact consultant

eet Shondhya Rani. Until recently, Shondhya had spent her entire life living in poverty, without education, and with barely the ability to read and write. Shondya is married, has two children, and for most of her marriage, was abused by her husband. Five years ago, everything changed for Shondhya. She started working for Aarong where she learned how to weave textiles. Aarong is the manufacturing arm of of the largest social enterprise of BRAC, an international development organization founded in 1972 in Bangladesh, whose mission is to alleviate poverty by empowering the poor to bring about change in their own lives. Richa Agarwal, project leader for Aarong, tells the story of how, with the assistance of Aarong, Shondhya gained market access, working capital, fair market prices for her goods, and was able to take advantage of social services, such as healthcare and legal aid for herself and for her family. Shondhya is now a successful and respected member of her community and her story is the embodiment of a holistic approach to poverty alleviation. Through investment and the development of new production techniques, Aarong is helping women like Shondhya create market-driven crafts that are appealing to the modern consumer taste.

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Shondhyaâ&#x20AC;&#x2122;s story represents one of the many examples shared by panelists during the guest lecture on Creating Sustainable Futures: Empowering Women through the International Fashion Industry held February 23, 2012 at the Fashion Institute of Technology (FIT). The program launched the 16th season of the Talking Trade @ FIT series, whose mission is to serve as an outreach program for students of international trade and marketing and to promote the Department of International Trade and Marketing as the premier source of talent and academic leadership in the industry. The occasion brought together an impressive roster of industry leaders and C-suite executives to further the understanding of social impact models within the international fashion industry and their role in alleviating poverty.

The event was moderated by Chrissie Lam, senior concept designer of American Eagle Outfitters and founder of The Supply Change and Fashion Designers Without Borders, organizations that foster closer relationships and collaborations between the design community and artisan social enterprises around the world. The panel was comprised of leaders from the for-profit and development sectors, including Agarwal, Mary Ellen Iskenderian, president and CEO of Womenâ&#x20AC;&#x2122;s World Banking; Craig A. Leavitt, CEO of Kate Spade New York; Deborah Lloyd, president and chief creative officer of Kate spade New York; and Benjamin Stone, president and CEO of Indego Africa. The panelists discussed the business opportunities and challenges associated with alleviating poverty for women in developing and emerging markets through the lens of the international fashion industry. Through a critical examination of social impact programs targeting women, the panelists highlighted ways in which the international fashion industry could take the lead in building sustainable, innovative business models that help to solve key social issues and achieve long-term business success.

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Fashion is Big Business

Financial Inclusion

Fashion businesses typically require relatively little capital or infrastructure and are often the first step for industrializing economies, which means that there is great potential for the fashion industry to play a leadership role in the global fight to reduce poverty. In Bangladesh, a little developed country, 70% of the gross domestic product is derived from the fashion industry. Oxfam, the international development organization devoted to poverty eradication and justice, notes that, “If Africa, East Asia, South Asia, and Latin America were each to increase their share of world exports by 1%, the resulting gains in income could lift 128 million people out of poverty.”

A majority of garment workers in developing and emerging markets are young women with little to no work experience; who have emigrated from rural areas, and whose propensity for financial exclusion typically exceeds that of men’s. Women’s economic potential and their unequal access to capital to create and expand their businesses are two fundamental reasons Iskenderian argued for the need to increase women’s access to finance. Greater access to financial services, including loans, savings accounts, and insurance services, complemented by products that address social needs, will allow women to develop and scale fashion businesses that are both sustainable and profitable and improve the well-being of their families and communities.

The purchasing power of key markets around the world is yet another reason to take notice of the fashion industry’s tremendous capacity to help alleviate poverty. According to Marketline’s February 2012 Industry Profile on Global Apparel Retail, the world’s consumers spent approximately $1.2 trillion on clothes. Approximately 35% of sales were in Western Europe, 36% in the Americas, and 25% in Asia.

Why Focus on Women Led by Iskenderian of Women’s World Banking , Leavitt of Kate spade New York, and Stone of Indego Africa, the panel championed the importance of focusing on women as an effective means of poverty alleviation as they constitute a majority of the world’s 1.3 billion poor. Women are also more likely to focus their earnings on improving the health, education, and nutritional status of their households. Targeting women can improve a company’s financial performance and can strengthen consumer loyalty and brand trust. Iskenderian said, “…by investing in women, companies are able to play a critical role in creating a long-term, multiplier effect on the lives and well-being of poor families and their communities.” While the fashion industry has been a powerful force in helping to reduce poverty and to create sustainable livelihoods for some disadvantaged communities, more must be done to ensure that the impact is scalable and sustainable, and that employment opportunities bring about greater economic independence for women and take strides toward gender equality.

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Trade, not Aid Many fashion brands have taken the lead in creating cause marketing initiatives that are designed to solicit charitable giving from consumers in order to address a social issue. However, the panelists stressed the need for the fashion industry to be at the forefront of changing the status quo by creating innovative business models that are designed to solve systemic development issues, like poverty using the whole of the business—from supply chains, to alternative sourcing strategies to market penetration—in order to make a long-term, sustainable, and profitable impact. It is trade, not aid, which is essential to building economies that economically empower disadvantaged populations and communities. Stone of Indego Africa warned that trade can inadvertently become a form of aid unless it is executed in a transparent and ethical manner, and artisans are taught the skills necessary to become independent suppliers. Ultimately, having a social impact is more about running a successful, profitable business than it

is about charitable giving and cause marketing campaigns, as asserted by Leavitt. Agarwal stated that profitability and the development of products responsive to the market are key to ensuring that the social impact program is sustainable, can fund itself, and can be used to improve the program overall while preserving the craft.

Expanding the Supply Chain The nature of the industry makes it possible for fashion companies to work with community organizations that directly benefit the poor, while at the same time influence the community benefits of larger scale and factory production. For fashion businesses that are social enterprises, sourcing from Fair Trade or smaller scale cooperatives to design and sell handicraft collections can help to overcome some of the operational complexities that many larger brands face with sourcing from less developed markets. Minimum order requirements that can limit production opportunities for small to large scale fashion brands are not an issue for these types of organizations. Such is the case with Indego Africa, a social enterprise that provides women with access to markets, fair trade prices for their products, and skills and capacity building to ensure the growth and expansion of their businesses. Stone stated that his company partners with some 400 women artisans in Rwanda on a fair trade basis and exports, markets, and sells its partners’ contemporary accessories and home decor products at major high-end retailers across the U.S., such as J.Crew, Nicole Miller, Anthropologie, Stevan Alan, shopbop.com, and Madewell; on its online store, shop. indegoafrica.org; and in 70 boutiques and museum shops in the U.S. and Europe. Indego Africa then pools 100% of its profits with donations to fund longterm skills training programs for its artisan partners in areas such as financial management, entrepreneurship, and financial education. By fair trade, Stone means that Indego Africa complies with strict criteria set by the Fair Trade Association to create a more equitable and sustainable trade system for producers. Indego Africa’s long-term goal is to transition out of the role of intermediary to that of

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Soci a l I ssue s advisor, allowing for artisan cooperatives to directly engage with the global market. It is an ambitious goal, but one that has come to fruition more quickly than the team imagined. In October 2011, designer Nicole Miller visited Rwanda and executed a purchase order with one of Indego Africa’s artisan partners, marking the first purchase order ever made between a Rwandan cooperative and a major U.S. brand. Indego Africa helps to further its artisan partners’ independence through a commitment to “extreme transparency” as noted by Stone. This means measuring the impact of its work on the lives of its artisan partners, publishing the study and each financial document on its website, and ensuring that its artisan partners are kept abreast of everything impacting a product’s journey through the supply chain--from the cooperative to the customer. Because of its products and unique business model, Indego Africa was the subject of a Harvard Business school case study and has garnered a great deal of media attention in industry and news publications like Vogue, The New York Times, WWD, InStyle, and Elle magazine. In the case of Aarong, the company’s marketing savvy and its large number of retail outlets has made indigenous products fashionable and spawned a massive cottage industry in Bangladesh, helping to position the handicraft sector on the world stage. What began in 1978 as a fair trade organization to provide livelihood development opportunities for rural artisans, has now become the largest retail chain in Bangladesh, generating roughly $10 million in profits last year, with 12 outlets throughout the country employing approximately 65,000 rural Bangladeshi artisans, most of whom are women.

Rwanda, and Afghanistan where women are usually hit the hardest. Through the personal involvement of Leavitt and Lloyd, who themselves have sponsored WFWI sisters, these communities are being transformed into thriving economies. Rather than write a check for a charitable donation, kate spade is actively engaged in integrating its social innovation strategy into its core business strategy, which helps to improve the lives of poor women by providing them with steady employment and a consistent income. For example, in Bosnia kate spade has employed 350 women who complete a year-long jobs skills and rights awareness training course from WFWI. Once the training is complete, under the creative direction of Lloyd’s team in New York, the women in Bosnia create cold weather goods, such as crocheted hats, scarves, and mittens; artisans in Rwanda make jewelry, hand-woven baskets and bags; and in Afghanistan, hand-knitted cashmere pieces.

A Socially Conscious “High-end” Label

While the team from kate spade noted that it still continues to source from more developed textile manufacturers like China, it recognized the positive social and economic impact that producing uniquely handcrafted accessories in less developed markets can have on the lives of poor women. Lloyd said, “Work can save lives.”

kate spade New York (“kate spade”) has partnered with Women for Women International (WFWI) since 2005 to create the Hand in Hand accessories collection, a high-end label comprised of unique handcrafted products sold exclusively in kate spade stores and on the company’s e-commerce site throughout the year to provide jobs for women worldwide and raise awareness of WFWI. The partnership spans projects in post-conflict, war-torn countries like Bosnia and Herzegovina,

As a result of their investment, more jobs have been created in Kosovo and Rwanda and the partnership has expanded to Afghanistan, where kate spade is investing capital to produce 5,000 units of accessories a year (with a goal of 15,000 by 2013) to provide sustainable employment to women who are vital to the country’s stability and growth.

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Entering New Markets, Strengthening Customer Loyalty, and Eradicating Poverty: A Win-Win Strategy Fashion is a business whose focus is on the bottom line. Yet, despite the fact that profitability is king, the fashion industry has an extraordinary ability to engage consumers with shared values on the issue of poverty while at the same time achieving core business goals. Such were the sentiments of the presenters summed up by Leavitt, who called for the industry to take the lead in developing profitable social impact models integrated into a company’s core business; investing in women as a means to revive economies and build stronger markets; and building fair profit distribution models to ensure workers at the end of the supply chain are able to share in the success of the products sold.

Think Globally, Act Locally There are many ways for the public to play an active role in the fight against poverty. In addition to donating funds or arranging for corporate matching, one can participate by volunteering, interning, sponsoring a sister, becoming a member of these organizations, attending events, or by simply signing up for newsletters. Wo m e n’s World Banking, a global network of microfinance institutions and banks, has a Young Professionals Network and offers immersion trips so that participants can see the work of the WWB network. At Indego Africa, one can join a regional board to promote the organization’s mission and model and help plan events These initiatives show that there are boundless ways to interlace fashion with transforming the lives of communities by providing steady employment to the neediest of mankind and by recognizing that the women, who benefit from these humanitarian undertakings, also have the creative skills to enrich the fashion industry. It is up to us to take advantage of this remarkable opportunity.

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From the Red Carpets

CELEBRITIES

Fashion

Top: Singer Lionel Richie and boxer Muhammad Ali at the Muhammad Ali’s Celebrity Fight Night XIII. Top right: IWC’s limited edition white gold the Big Pilot’s Watch to honor the Muhammad Ali. Bottom left: Boxer Evander Holyfield presenting The Big Pilot Edition Muhammad Ali in white gold IWC watch. Bottom right: Actor Tom Hanks and wife actress Rita Wilson at the Muhammad Ali’s Celebrity Fight Night XIII.

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Director James Cameron, wife Suzy Amis Cameron and actress Kate Winslet attend the world premiere of TITANIC in 3D. Suzy Amis Cameron is wearing 100% sustainably designed gown by Prophetik.

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lanc Montb g n i r a ” va we e onaco erzigo race de M let, necklac H a v G e E c l e a s e r s d e b s, mo nc . Super lection Pri ng, earring timepiece e i r e l “Col e motif ri l i te Joa os e Hau s de R Petale and a uniqu © FFR- Focus On Fashion Retail

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Singer K aty Perr y honorin g Paul M at the 2012 Mu siCares c Cartne white go b ld with d y, is wearing th enefit gala, e maxi r iamonds ing in an by Carr era y Ca d rock crystal rrera.

Top: Carmen Chaplin and Dolores Chaplin attend a celebration for the 40th anniversary of Sir Charlie Chaplin’s honorary Academy Award in Los Angeles. Both are wearing watches by Jaeger-LeCoultre. Left: Actress Katherine Heigl wearing Sutra earrings and Maria Lucia Hohan gown to the Paris Premiere of One For The Money Bottom left: Singer Taylor Swift wearing a Maria Lucia Hohan dress to the 2012 Nickelodeon Kids’ Choice Awards Bottom right: TV Personality Kelly Osbourne wearing a Tony Ward Couture dress and Arunashi Jewels to the Nickelodeon 25th Annual Kids’ Choice Awards

Actor Max Von Sidow wearing Paccioni chronograph “Noir” at the 2012 Oscars GBK gifting suites.

Actress Melissa McCarthy wearing diamond Paccioni “Fantasia” watch at the 2012 Oscars GBK gifting suites. © FFR- Focus On Fashion Retail

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WE Actor Peter Saarsgard, designer Giorgio Armani and actress Maggie Gyllenhaal (all wearing Armani) at the opening the new Armani Hotel Milano party in Milan.

Top: Actress Penelope Cruz wearing a custom Giorgio Armani organza evening gown at the 84th Annual Academy Awards. The color of the dress is an ethereal combination of blue and grey that blends like a stormy sky. The look features dramatic off-the-shoulder straps and a fitted bodice. The waist is enveloped by a drape of fabric that cascades into gathered pleats, causing an understated, luminescent liquid effect. Bottom left: Actress/Model Olivia Palermo wears a black Emporio Armani jacket with Mongolian lamb’s wool trim at the London Fashion week 20. Bottom middle: Actor Keanu Reeves wears a Giorgio Armani classic suit for the premiere of ‘Side by Side’, at the 62nd Berlin International Film Festival. Bottom right: Actress Jessica Alba is wearing Armani at the opening the new Armani Hotel Milano party in Milan. 36

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! Left: Roberta Armani and Clive Owen in Armani at the opening the Armani boutique in Berlin. Bottom left: Singer Lana del Rey wore a sky blue Giorgio Armani silk satin bustier dress to the ECHO Awards in Berlin. Bottom middle: Actor Tom Cruise wears a custom designed Giorgio Armani midnight blue one button wool and cashmere peak lapel tuxedo with a classic white evening shirt and a navy blue neck tie at the 84th Annual Academy Awards. Bottom right: Supermodel Karolina Kurkova wearing an Armani Prive long-sleeved champagne-colored jumpsuit, featuring a plunging V-neck and open back at the Oscar 2012 after-party. The entire look is made with delicate netting and embroidered with silver detail, creating the illusion that the outfit is tailored onto the body.

Top: Actress Glenn Close wore a custom designed navy blue velvet Giorgio Armani PrivĂŠ evening gown at the Golden Globe 2012. The strapless dress features a crystal-embedded bust detail and falls into front and back velvet panels. The gown is cushioned by a flowing pleated chiffon underskirt that peeks out at the hem and through dramatic side slits. The look is completed with a matching velvet bolero, that outlines the shoulders and features oversized satin cuffs on three-quarter length sleeves.

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R e ta i l 1 0 1

RETAIL TRUTHS THAT STAND THE TEST OF TIME Street-smart insights on retailing

By Chip Averwater Excerpts from the book “Retail Truth” for Focus On Fashion Retail

Retail has too many facets and intricacies to ever be mastered. There are thousands of lessons to learn—some critical to a store’s survival, many valuable for improving customer service or increasing the store’s profits, and others that simply make operations run smoother. For small businesses to outlast big box stores, they’ve got to up their game. Chip Averwater is a third-generation retailer and chairman of Memphis-based Amro Music Stores, now one of the nation’s largest musical instrument dealers. He believes there’s plenty of room in the market for small retailers with energy and enthusiasm, and he offers some of his ideas and insights in his new book, Retail Truths: The Unconventional Wisdom of Retailing, excerpts from which we are offering the Focus’ readers.

Good isn’t good enough; only best gets the sale. Second-best among competitors isn’t a consolation, it’s a catastrophe. Our customers never choose the second-best value for their money; they choose the best (in their eyes) every time. No matter how close the contest, when we’re deemed second-best we get nothing. Customers evaluate many criteria in each sale—product quality, price, store convenience, location, sales help, hours, displays …. And each customer weighs each factor slightly differently (creating an opportunity for perceptive retailers to exploit the niches). But ultimately only the store the customer judges best overall gets the sale. Coach Lombardi had it right, “Winning isn’t everything, it’s the only thing.” When you stop trying to be better, you stop being good.

It looks so easy to be so hard. Rent a space, order some merchandise, run an ad, and operate the cash register. Anybody can do that! Apparently not. Estimates of the retailing failure rate range as high as 95 percent. And for those who fail, not only are their hard work and long hours unrewarded but, in most cases, their precious bets—usually their life savings—are lost. Easy work and guaranteed returns are not in the description of retail.

A company is known by the people it keeps. Lots of components make up a retail store: a building, inventory, products, policies, systems, décor, organization, marketing, and a thousand more details. But none of these is as important or as defining as its people. A great store can only be built with great people. Their quality is visible in every aspect of the store’s facilities, methods, and operation—indeed the store is the product of the people. No other element is as critical and no other element can make up for a store’s people.

Profit is not immoral. Some people feel that selling something for more than was paid for it is somehow dishonest—that a company can be profitable only by ripping off its customers. They view every transaction as a zero-sum game: one party wins only when the other loses. They don’t recognize that in a good transaction both parties benefit—both get something they would rather have than what 38

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they gave to get it. A shopper chooses the best value available to him to meet his particular need. The store that anticipated the need and met it more attractively than its competitors gets the sale. The store’s profit isn’t due to ripping the customer off; it’s the store’s payment (and incentive) for anticipating and meeting the customer’s need. Profit is far from immoral. It’s the most effective and efficient economic incentive yet devised and has created for all of us the highest standards of living the world has ever known. “Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handful see it for what it really is—the strong horse that pulls the whole cart.” —Winston Churchill

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Décor is marketing too. The message our décor sends isn’t just about organization and cleanliness; it should be a strong statement about selection, quality, pricing, friendliness, dependability, trustworthiness, and professionalism. The message should be consistent with and reinforce the image we’re working so hard and spending so much to build. If the image we want is low prices, perhaps we need sparse décor with simple fixtures, open fluorescent lighting, piled-high displays, plenty of sale signs, and bustle and commotion. But that design works hard against us if the image we want is almost anything else—fashion, leisure fun, trustworthy expertise …. We tend to ignore the message our décor sends because we see it every day, but our customers cannot. They have trouble imagining fashion as the latest when our wallpaper is twenty years old, carpet is worn, and our fixtures are dilapidated. Design and décor should be a careful and emphatic expression of our marketing message. Straddling the fence or being non-committal not only misses a valuable opportunity, it muddles customers’ understanding.

Low wages aren’t a bargain, good people are. A low payroll is virtually always more than offset by low production, poor performance, mistakes, inefficiencies, lack of motivation, and poor retention. Retail has no jobs for which the quality of the employee is unimportant. Top salespeople create high sales; poor salespeople waste opportunities. Good managers develop long-term employees; bad managers create turnover. Smart buyers find saleable products; poor buyers waste resources and accumulate dead stock. Skilled office workers provide timely and accurate information; less competent workers make mistakes that require hours to unravel and render information useless. Even a parking lot guard must be dependable, vigilant, and honest—hardly universal traits. The bargain is not in paying less, but in employing better people.

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Love your products, but only for their sales.

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We should get to know our products well, use or wear them whenever we can, recognize and appreciate their quality and benefits, believe in them, and talk them up. But we should love them only as merchandise.

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JUNE 6–8 AUGUST 1–3 Wednesday–Friday Hilton New York Hotel & Member Showrooms

View exhibiting brands and plan your appointments at FFANY.ORG

FFANY Launches iPad App • Reference the show directory in digital format prior to the show • FREE at the App Store, easily downloadable • Use at the show instead of paper directory • Links to websites and email addresses with a simple tap on the screen • Plan buying appointments in advance • Reminders for new directory editions prior to FFANY shows • Bookmark FFANY.ORG on your iPad today!

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R e ta i l 1 0 1 Many of us were attracted to our areas of retail by the products, but we can’t let our personal attractions influence our merchandise selection. We’re stocking a store, not a trophy case or museum. Best is seldom best seller. Our customers are rarely as infatuated with the product as we are.

Customer experiences are the product of people skills. Good people skills can turn difficult situations into compliments; poor people skills can turn agreeable situations into complaints. Pleasant experiences are most often the result of making the customer feel welcome and important, even if products and services are less than they should be. Bad experiences, despite what the customer cites as the problem, are usually the result of making him feel slighted and unimportant. The concept is simple, but its implementation is easy only to those with innate people skills.

You’re not in business if you’re not in show business. Potential customers who aren’t aware we have what they’re looking for drive right by us to a store they believe does. As a result we can’t afford to waste any opportunity to show our product in its best light and impress upon customers the breadth and depth of our selection. Superstores have proven the value of showing a lot of product. Most shoppers are willing to put up with crowds, distant parking, impersonal service, and long lines in exchange for the improved odds of finding what they’re looking for. The essential of good display is making strong, well-planned and favorable impressions of what our stores stock.

Employee training is retailing’s easiest competitive advantage. Retail employees are notoriously untrained. Who hasn’t encountered a retail employee who knew almost nothing about his products and didn’t seem to care? Many shoppers would say they’re more rule than exception. And that makes training one of the greatest opportunities in retailing. Standing above our competitors is easy; we simply have to train our people— on products, salesmanship, systems, methods, customer interaction, display, merchandising, and anything else that matters in the operation of our businesses.

Salespeople sell what they know. Salespeople like to show products they understand and appreciate. They enjoy sharing their knowledge, and they demonstrate enthusiasm for products they believe in. Their attraction to a product is not so much its superiority but rather their understanding of its features and how they can benefit the user. One of the most effective ways to enhance sales of a product is to teach the salespeople about it. Smart retailers (and smart manufacturers) understand this and provide training at every opportunity.

If it’s important to know, certify that it’s known. Salesmanship and product knowledge are essential training, but many other aspects of retailing can benefit from training and certification as well—display, security, handling complaints, accounting, inventory control, computer software, telephones, purchasing, management, delivery, etc. Whatever is important for smooth operation of the store can and should be certified. Certification can be as simple as a written test, or it can include an oral exam, role-playing, videotaping, a written assignment, etc. 40

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Good people management is an attitude, not a technique. The difference between good and bad managers is really one simple perception: good managers understand that people are not only willing to work, but want to be on the team and contribute to its goals. That attitude more than any other characteristic or ability defines the world’s inspirational and effective managers. They treat their people like willing, capable, and valuable team members, and they help them get involved and contribute. In an adult recreational basketball league, players run and jump as long as their lungs and legs allow, fight for rebounds and loose balls, cover themselves in sweat, and exert themselves to the point of exhaustion. They yell, cheer, and exchange high fives, celebrate their wins, and mourn their losses. Why? The game pays nothing—in most cases they have to pay to play. All they get is sore muscles and dirty clothes. Yet they replay the games in their minds, relive (and brag about) their good plays, and eagerly await the next game. Because they want to be on a team, work toward a goal, participate in the challenges, and enjoy the respect and recognition of a job well done. That’s enough to generate extraordinary effort.

Employees treat customers as managers treat employees. Attitude and tone emanate from the top. They filter down gradually and often imperceptibly, but their ultimate effect is undeniable: people treat others as they are treated. If we’re tough, cold, rule-bound, and uncaring with our employees, our customers will get the same treatment. And our employees will believe they have done exactly as we expect—indeed as we would have done ourselves.

The measure of a manager is the situations he can handle amiably. Getting things done is the basic requirement of management; getting things done willingly and enthusiastically is the high art of management. The difference is significant—it determines how much and how well work is done, as well as the quality and longevity of employees. Impatience and frustration are in the definition of manager, but they should never show a public face. A good manager can deliver even the most difficult messages with respect and consideration.

A manager is not a referee. A manager can’t resolve disputes between employees. Whatever solution he imposes will inevitably be resented by at least one side, and hard feelings not only remain but are ratcheted up by his involvement. The battle continues, only clandestinely, where damage runs deeper and is harder to resolve. A dispute is over not when we say it is, but when the two parties decide they want to get along. The solution is often in “asking” them to work it out: “It’s not good for the company for the two of you to be fighting. Please get together and resolve this.” (Such a request includes implications that need no elaboration.)

Growth doesn’t produce cash, it consumes it. Retailers love growth. When we ask, “How’s business?” we mean, “Are sales up or down?” Up a little is good; up a lot is better. Like gluttons and addicts, we crave all the sales we can get. Turning sales away is irrefutable © FFR- Focus On Fashion Retail

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R e ta i l 1 0 1 evidence of retail insanity. Ironically we’d be in deep trouble if we got all the sales we wanted— helpless victims of compulsive suicide. Retail growth is expensive. Additional inventory must be purchased, sales and office facilities expanded, fixtures added, leasehold improvements made, employees hired and trained, receivables expanded …. Cash rarely flows in with retail growth—it flows out. Added sales seldom repay their investments quickly; growing is a long-term investment. Meanwhile leverage creeps up, making the expanding retailer increasingly vulnerable. More than a few profitable retailers have been victims of their own success, growing themselves into financial trouble and occasionally even extinction.

Managers don’t create motivation —employees bring it. New employees are excited about their jobs. They’re eager to learn their parts, hone their knowledge and skills, make their contributions, and become valuable team members. We don’t create that motivation; employees have it on their first day. Our role is simply not to kill it. We explain the objectives to them, assure that they get the necessary training and tools, provide ongoing information and feedback, and recognize and respect their efforts and contributions. When we do that well, their enthusiasm and commitment build with their abilities, and they’re able to play increasingly important roles.

Bankers want you most when you need them least. According to Mark Twain, “A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain.” We have to make a convincing case that the sun is shining, we can easily pay back, with interest, what we propose to borrow, and that we have financing alternatives. Confidence and an air of independence (along with a realistic plan) go a long way. We don’t tell a banker we “need a loan;” we say we’re “considering our financing options.” We don’t say another bank turned our loan down; we say we’re “talking to other banks, too.” And we don’t say we need a new banking relationship; we say we already have a bank “but it never hurts to talk.”

Two stores don’t make twice as much. Opening more stores is just in the DNA of retailers. It’s irresistibly logical that a successful store—a proven and profitable retail concept—could be easily replicated. The same products, methods, and operating systems should yield similar results in another location, only with enhanced economies of scale. It makes so much apparent sense that the question “How many stores do you have?” is almost equivalent to “How successful is your company?” or even “How profitable is your company?” Ironically they often have the opposite meaning. Second and third stores are rarely as profitable as the original, and often they’re losers. Many store owners with adequate profit breakdowns recognize the source of their reduced profitability and retreat in a few years. Unfortunately most don’t have the necessary numbers or aren’t willing to swallow their pride; they drag their mistakes behind them like a ball and chain. Only a few come to grips with the specific differences and added challenges of operating multiple stores, expand their management abilities, and devise methods and formats that will work across multiple locations. In one of our business sharing groups, those with high profits are sometimes jokingly advised, “You’re making too much— you need to open another store.” 42

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A little success creates a lot of overhead. When times are good we tend to add people, give raises, lease more space, add more inventory, upgrade equipment, create new bonuses, and increase benefits. The moves make sense when sales are growing. But they are also long-term commitments to continuing expenses that are hard to shed if necessary later. And they set precedents and establish an operational philosophy that becomes entrenched. When we hire more people, work expands and we soon wonder how we ever got it done without them—indeed we often can’t again. Making leasehold improvements, replacing computers and software, and buying new equipment are paid for with today’s cash, but the depreciation expenses drag down profitability for some years into the future. Good results also allow us to overlook weak departments and locations, excuse poor performance, and put off needed but unpleasant changes. Fat and happy is often dangerous and temporary; many retailers prefer lean and mean as both safer and more efficient.

Leadership is a role but not a job description. A leader chooses the direction and goals for his company, then organizes the company to best pursue them. Organization entails structuring jobs and functions to fit the abilities and personalities available to him. And such job design includes his own; he must shape his job to make use of his own special skills and abilities, and delegate wherever he perceives as his weaknesses. Retailers who are charismatic often serve as the public faces of their stores; many others shun the spotlight and appoint staffers to public roles. Some retailers like formulating detailed plans; others prefer broad strokes and strategies, relying on staff to work out the details. Some enjoy making deals and working out compromises; others lack the patience and diplomacy for negotiation and assign it to more social personalities. The essential of leadership is choosing what’s to be done and organizing the company to do it—not necessarily doing it ourselves. Neither Benjamin Franklin nor Thomas Jefferson was a good public speaker. Franklin rarely gave speeches at all, often asking colleagues to read what he had written; the few speeches he gave were memorable mostly for his weak delivery. Virtually all the influence he exerted was with a pen or printers’ ink. Jefferson seldom uttered more than a few sentences in public meetings. Despite doing most of the writing of the Declaration of Independence, he hardly spoke while the Continental Congress debated and mangled his work. His inaugural address could barely be heard beyond the first few rows. Yet the leadership of these two giants guided the U.S. through its most tentative and vulnerable period, shaping not only the U.S. government but subsequent democracies around the world.

If at first you do succeed, try not to believe you’re infallible. Success is not a good teacher. Failure provides more useful lessons. When success comes easily, we tend to underestimate future challenges and risks. We mistake good fortune for intelligence and invincibility; we forget that our time is limited and luck occasionally turns against us. Periodic failures keep us realistic and help us appreciate our victories.

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Focus on Fashion Retail is a direct mail business magazine, distributed ONLY to targeted audience. If you have received this copy of FFR with the mail, it’s because your business’ description matched the criteria set by our advertisers. Please fill out the marketing survey below to be included in our database for a consideration to receive FFR occasionally, regularly (or never again) - depending on marketing preferences of our advertisers (US retailers only).

If you wish to receive FFR regularly by subscription, filling out the Marketing Survey portion is optional

sUBsCrIpTIoN Send a check/money order ($30 for USA subscribers) along with your address and contact information to our office. International orders- please contact office for rates. To pay online using your credit card, please send your payment via www.paypal.com to subscription@focusonshoes.com Advice for a FREE SUBSCRIPTION: Ask our advertisers or your vendors to pay for your subscription! If your business is important to them, they may agree to by pay for your subscription from their marketing funds.

Business Name: _______________________________________________________________________________________________ Mailing Address: _______________________________________________________________________________________________ City: ___________________________________________________

State:______ Zip: _____________________________________

Phone: _________________________________________________

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MARKETING SURVEY

Please fill out this form completely, answering ALL questions. Incomplete or inaccurate entries will not be considered. I certify that I am: oA Retailer__________________(signature) / oNot a Retailer

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

Age Group: oInfants And Kids oTeens o20-30 o30-45 o45+ Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+) Store Type: oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations Merchandise:

oShoes Only oApparel Only oAccessories Only oAll

Lifestyle:

oDress oCasual oAthletic oComfort oSpecial Occasions oWestern oDance oUrban oEthic oBeach oGothic/Alternative/Other __________________________________________________________________

Best Selling Brands _____________________________________________________________________________________ Notes About Your Store __________________________________________________________________________________

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Your Primary Business Sources (describe): o Trade Magazines __________________________________________________________________________________ o Consumer Magazines _______________________________________________________________________________ o Trade Shows ______________________________________________________________________________________ o Internet oCatalogs How Do You Find New Merchandise?: oAt Trade Shows oResponding To Ads oSellers Contact You At Trade Shows You: o Know Exactly What You Need And Who Sells It o Know Exactly What You Need But Don’t Know Who Sells It o Just Looking How Frequently Do You Purchase Merchandise For Your Store?: o Every Month oEvery 3 Months oEvery 6 Months Your Average Purchase Is: oLess Than $1,000 o$1-5k o$5-10k o$10k+ Your Priorities Are (Please RATE, 1 is most important): oPrice oFashion oBrand o‪Quality oOther _____________ RETAILER: Please name your 3 biggest headaches to which you want to find a solution: 1. ________________________________________________________________________________________________ 2. ________________________________________________________________________________________________ 3. ________________________________________________________________________________________________ Any Suggestions/ Comments to help FFR to become more helpful to your business? __________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

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YOUR OPINION COUNTS ! As a service to our worldwide audience, Focus on Fashion Retail regularly conducts surveys to determine satisfaction with the various footwear, apparel and accessories trade shows and to rank our readers’ favorites. Being an independent media outlet not affiliated with any trade show, we believe that peoples’ opinion must be heard, it adds up to the value of our services as well as serves the needs of the industry. As always, in the closing issue of the year (November) we will be announcing and reviewing the TOP 10 TRADE SHOWS of 2011. For that purpose, we will be conducting this survey throughout the year, offering to rate performance of various shows. Events collected the maximum score will make it to the final list.

Show

Organization, Planning, Promotion

Attendance, Traffic

If you have attended any of the shows listedbelow and would like to submit your opinion, please do so according to these rules: • Rate the shows you have attended on the scale of 1 through 10, where 1 is awful and 10 is awesome; • You must identify yourself (see opposite side); • Your opinion must be fair and objective; • You must be an independent observer, not employed by not affiliated with any trade show; • Please rate only those events that you have attended within last 6 months. Upon completion, please send this form to FFR. Your personal information will not be disclosed, nor shared with anybody.

Convenience

Services offered at the show

Cost of attending/ exhibiting

Value for your business

Atlanta Apparel Market BIFF & BIL Bangkok International Fashion Fair Bread & Butter Dallas Apparel & Accessories Market Denver Apparel & Accessory Market ENKNYC Expo Riva Schuh FAME Focus- Apparel & Accessories Show Francal Hong Kong Fashion Week Hong Kong Jewellery & Gem LA KIDS MARKET Le Cube Mercedes-Benz Fashion Week Mercedes-Benz Fashion Week Swim Mess Around Milano Moda Uomo Mode à Paris- Haute Couture Mr. Brown MRket New York Pitti Imagine Uomo Pitti Immagine Bimbo Pitti W Woman Premiere Classe Premium Dusseldorf Premium Men Private Project SELECT- The Contemporary Trade Show Shoe Market of the Americas (SMOTA) SwimShow The Atlanta Fashion Shoe & Accessory Market The Metropolitan New York Shoe, Apparel & Accessories Market (B&STA) The New York Shoe Expo (FFANY) Transit- The Los Angeles Shoe Show 44

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