BRRR, WINTER THE TOUGH WINTER DRAGGED DOWN FEBRUARY COMPARABLE-STORE SALES. PAGE 2 WWD FRIDAY, MARCH 6, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY Square Roots Alber Elbaz referenced the shapes and COLLECTIONS proportions of his homeland, Morocco, FALL 2015 in designing a highly personal and multilayered fall collection for Lanvin. Here, he pairs a boxy jacket — whose only embellishment is an elegant, oversize tassel — with an asymmetric navy skirt trimmed in delicate feathers. For more from Paris, see pages 4 to 6. PARIS GETTING INTENSE POLO RED UNVEILS AN EXTENSION THAT IS MORE POWERFUL THAN THE ORIGINAL. PAGE 9 BIGGER MAISON MAISON KITSUNÉ IS EXPANDING INTO ACCESSORIES, STARTING WITH WOMEN’S FOOTWEAR. PAGE 11 BLASTS SITE’S COUNTERFEITS USTR Latest Agency To Review Alibaba By KRISTI ELLIS WASHINGTON — Alibaba’s troubles just keep mounting. While chairman and founder Jack Ma earlier this week said the greatest threat to the Chinese Web giant is itself, government regulatory agencies are putting it under increasing scrutiny. The latest is the U.S. Trade Representative’s Office, which said in a report Thursday that the agency is growing concerned about recent allegations of counterfeiting and digital piracy on Alibaba’s consumer-to-consumer platform Taobao. Trade officials cited several steps the company and the Chinese government have taken to address the concerns, which is why USTR has declined to relist the online marketplace on its annual “Notorious Markets” report and list. The list does not represent findings of legal violations or reflect an analysis by the U.S. government of general intellectual property protections or enforcement activities in a country. Instead, the study is aimed at prodding foreign governments to address intellectual property allegations raised, intensify efforts to combat piracy and counterfeiting and to pursue legal actions where warranted. The report had little impact on Alibaba’s shares, which closed up 0.6 percent Thursday at $86.10. Details about new steps Alibaba plans to take to combat counterfeiting and piracy, including a new rights holder complaint system and a separate penalty system, also came to light on Thursday. In the USTR report, officials pointed to a Chinese State Administration for Industry and Commerce white paper that raised concerns about the sale of counterfeit products on Alibaba’s e-commerce platforms. The white paper was later retracted after Alibaba agreed to cooperate with the SAIC. Another concern cited in the USTR report was the appearance of Taobao in three of the top 10 cases named by the National Copyright Administration of China in its “Sword Net Action Campaign” last year, SEE PAGE 12 Balenciaga’s Wang Era Enters a New Phase By MILES SOCHA PHOTO BY GIOVANNI GIANNONI PARIS — The Alexander Wang era at Balenciaga is gathering steam. Coming off a year of accelerating double-digit growth, the French house with roots in Spain is to officially christen its first boutique in its spiritual homeland this month — and later this year start moving into a spectacular new home: Parent Kering’s forthcoming headquarters in a complex boasting a series of 17thcentury stone buildings in cross formations. “I feel we’re already a globally recognized house, and a top luxury leader. We’re well on our way,” an upbeat Wang told WWD ahead of his Balenciaga show here tonight. In separate interviews, Wang and Balenciaga chief executive officer Isabelle Guichot unfurled a host of development plans, citing men’s wear and knitwear among chief growth opportunities. Wang and Guichot are slated to attend an opening event for the 1,500-square-foot Madrid store on March 13. “We’ve always been a little bit shy in that country,” the ceo acknowledged. In fact, it was Wang who got a bee in his bonnet about Spain. Founding couturier Cristóbal Balenciaga opened his first boutique in Madrid in 1933, making Wang’s retail statement — with the marble-heavy concept done in collaboration with Ryan Korban — a significant homecoming. Guichot said the minute the hoarding went up, she received a call from the founder’s nephew, Agustín Medina, asking: “When is it opening?” SEE PAGE 7 2 WWD FRIDAY, MARCH 6, 2015 WWD.COM Comps Soft in February DIGITAL BRIEFING BOX FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE. By ARNOLD J. KARR Caption ON here INSTAGRAM @WWD Instagrams from Paris Fashion Week. PHOTO BY GEORGE CHINSEE RETAILERS CAN’T MOVE on to spring fast enough. For the small sample of publicly held companies that still report monthly comparable sales as well as the broader U.S. retail market, numerous blasts of bitter winter weather severely limited sales in February, the secondlowest sales month of the year behind January, even under better climatic circumstances. But virtually the entire eastern half of the U.S. felt winter’s wrath during February and the result was a month marked by disappointing sales. Only two of the 10 retail brands tracked by WWD beat the sales estimates of analysts surveyed by Thomson Reuters — Victoria’s Secret with its 7 percent comp increase and Zumiez Inc. with its 6.9 percent gain — while seven came up short and only one, Victoria’s Secret’s sister brand at L Brands Inc., Bath & Body Works, met them. Gap Inc., expected to post a 1.4 percent comp increase, instead registered a 4 percent decline, with all three of its nameplates falling below estimates. Even its hot Old Navy brand, expected to post a 5.1 percent increase, only managed a flat finish, while Banana Republic and the struggling namesake brand were down 5 and 7 percent, respectively, against expectations of a 1.7 percent increase and a 1.1 percent decrease. “Recognizing that February is a relatively small sales month, we’re focused on the spring shopping months ahead and delivering on our full-year goals,” said Sabrina Simmons, Gap Inc.’s chief financial officer. Thomson Reuters expected a 2.1 percent median gain among the comp reporters, but instead saw the group post a 1.2 percent increase. Stein Mart Inc., up 2.6 percent versus an expected gain of 3 percent, reported that its sales were strongest in the three states not touched by winter’s fury — California, Arizona and Florida — where comps were up Bad weather around the country took a toll on store traffic in February. at a rate three times the overall company figure. Expected to register a 5 percent gain, Cato Corp. instead tallied a 10 percent decline, both the biggest “miss” and the worst result among the retailers reporting results. The company is based in Charlotte, N.C., with a concentration of its 1,346 stores in the Southeast. John Cato, chairman and chief executive officer, said sales were “significantly impacted by winter storms during the last two weeks of the month.” Digging into more than 14 million shopping trips to an array of brick-and-mortar stores last month, retail analytics firm RetailNext measured a 10.4 percent drop in sales and a 12.5 percent decline in traffic, among the worst results of the past year. The second week of the month — perhaps the one least affected by inclement weather — was probably the weakest of the period, according to Shelley Kohan, vice president of retail consulting. “By just about every metric — conversion, sales, traffic, sales per shoppers — week two, even with Valentine’s Day at the end, was just bad across the board,” she said. “And there’s no way you can make up a traffic decrease like that online.” Once committed to a shopping trip, consumers elevated certain metrics, Kohan said. Conversion rates rose 0.5 percent from year-ago levels while average transaction value and sales-per-shoppers had their best marks in recent months, growing 2.3 and 2.8 percent, respectively. By region, sales declines for the month, like the weather, were mildest in the West, where they dropped 10.6 percent. Sales in the Midwest, South and Northeast were down 13.5, 13.4 and 12.7 percent, respectively. Kohan noted that March sales will derive a calendar benefit with the earlier timing of Easter this year versus last, as well as to the clock shift coming this Sunday. “Sales frequently improve with the arrival of daylight saving time,” she added. “It’s one of the signs of spring and people are very anxious for those right now.” Bloomingdale’s Outlet Set for Manhattan By SHARON EDELSON NEW YORK — Bloomingdale’s on Thursday confirmed that it will open a 25,000-square-foot outlet store at 2085 Broadway, on the northwest corner of 72nd Street. The Bloomingdale’s Outlet, which will open in the fall, will be the company’s first in Manhattan and the first in a major urban center. Bloomingdale’s, which operates 13 outlets in the U.S., lags behind competitors such as Nordstrom, Saks Fifth Avenue and Neiman Marcus in the sector. Nordstrom plans to grow its Rack off-price chain from 100 stores to more than 300 locations by 2022, and will begin opening Rack units in Canada in 2017. Saks Fifth Avenue has 79 Saks Off 5th stores in the U.S. and plans to open up to 25 in Canada. Neiman Marcus, which operates 38 Neiman Marcus Last Call outlets, has another offprice format, Last Call Studio, which is located in urban areas. “We see Bloomingdale’s Outlet as a growth vehicle for our company as we continue to refine and roll out stores based on our learnings over the past several years,” said Tony Spring, chairman and chief executive officer of Bloomingdale’s. “The growing outlet business is an exciting marketplace and part of the overall Bloomingdale’s strategy.” Asked whether the Bloomingdale’s Outlet concept is exportable internationally, Spring said, “Our focus is on the opportunity in the U.S. and in markets where we have opportunity for growth. At 14 stores, we have plenty of room to explore.” Bloomingdale’s Outlets offer 35 to 70 percent off full price for brands such as Michael Kors, Calvin Klein, Coach and True Religion. “The merchandise of the outlets is a composition of great opportunistic buys from the market and from merchandise that is transferred after the regular selling season from our stores,” Spring said. “Ninety percent of our brand and assortment mix in the outlets is comparable to our full-line store. The merchandise is bought directly from manufacturers or transferred from our stores, including Bloomingdale’s own exclusive brands.” Spring said Bloomingdale’s will also manufacture products for the outlets. “We expect over time to be able to offer additional merchandise that is exclusive to the outlets,” he said. The Broadway outlet will be located at one of the busiest intersections in Manhattan, with a major subway located footsteps away. “This is a premier, flagship location for Bloomingdale’s Outlet,” Spring said. FOLLOW OUR FEED FROM #PFW FOLLOW US ON SOCIAL MEDIA @ WWD.com/social TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 209, NO. 47. FRIDAY, MARCH 6, 2015. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, June, August, September, October, November and December, and two additional issues in April and three additional issues in February) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Floor, Los Angeles, CA 90025. 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BEAUTY J U NE SUMMIT 9- 10 , 20 15 PAT H FI N DERS cr e a ting ne w fo r gro wth avenu es T H E C O NR AD SUMMITS.WWD.COM ATTEND: [email protected], 646.356.4722 EVENT SPONSORS H O T EL | NY C SPONSOR: [email protected], 646.356.4718 4 WWD FRIDAY, MARCH 6, 2015 Lanvin Lanvin: Simultaneously working on the Jeanne Lanvin exhibition opening today, in which he refused to include his own designs for the label, and his fall collection, Alber Elbaz pondered his own roots. “It’s the 125-year anniversary of the house. What is my story?” he asked himself. “I went back to the place that’s my [birthplace], which is Morocco. I started to think shapes and squares and volume and the whole idea of dressing there.” Yet Elbaz is a rare breed of romantic pragmatist. “The idea was to start with something totally nomad and urbanize it,” he said. He opened with a boxy navy jacket over tuxedo-striped pants tucked into high boots. Tasseled ropes tied at the waist, the look projected a decidedly military flair, though Elbaz copped to a different uniform designation. “I prefer orchestra to army,” he said. If a soupçon theatrical in its simplicity, he dispelled immediately the notion of costumery with a paneled dress and skirt that were as unassuming as could be. Elbaz has all but rejected the concept of the one-note show, and the ideas came with speed and daring. Moroccaninspired square constructions were a major motif, from wrap skirts worn with lovely blouses or the most arresting version, a simple tank, to trim jackets and shifts. Often, he decorated lavishly, whether via pilings of rich materials and textures or with passementeries and 3-D embroideries on relatively clean silhouettes. Asymmetric leather harnesses gave shape and visual interest to voluminous dresses. Archival prints were reimagined as intricate intarsia furs over languid dresses. Fringe flew off the facing of a big red coat, and feathers, from an intricately constructed navy skirt. For evening, Elbaz showed beautiful fluid gowns in solid chiffon and a glorious patchwork of metallic jacquards. As one might expect of their Moroccan inspiration, these descended from the regal peasantry of Yves Saint Laurent. In fact, this collection was uncharacteristically retro for Elbaz. Yet he handled the direction deftly, embracing and retreating from his body of references as each look demanded, ultimately achieving a balance of au courant chic. Rick Owens — BRIDGET FOLEY Rick Owens: Rick Owens seeks, often successfully, to provoke with his runway. After his most recent men’s fashion show/ peep show, during which several of the models’ genitals were exposed, Owens chose to dial down the shock value for his fall women’s lineup to a mere “surprise”: He used sequins for the first time. “I thought, ‘What the hell? Maybe now’s the time,’” said Owens backstage. “Especially after the men’s show, it was nice to do something sentimental and a little naïve.” Owens displays his softer side from time to time, though it’s often overshadowed by the dark stuff, and it’s worth seeing. Here, the graceful expansion of his decorative scope was unexpected, as he intended, and also quite personal. He did not throw glitter around without purpose. Owens said his work is always autobiographical, but this collection delved into his Mexican heritage on his mother’s side. A key reference was the Mayan Revival style of Frank Lloyd Wright’s Hollyhock House in Los Angeles, prompting the measured use of gold and silver sequins carefully placed in geometric and linear configurations on generously draped wool felt shapes done in mineral colors, both rich and drab. The combination was beautiful, strong and raw. Some of the tops looked like blankets draped around the front of the body and closed into folds in the back, while skirts were crudely cut short in the back and long in the front. Owens stressed the collection’s ease, despite its ample shapes, and the generous proportions did seem comfortable. There were even fairly ordinary puffer jackets amid the nomadic armour, which was shown plain and with the graphic, modern-tribal embellishments enhanced by gold-leaf masks some models had painted on their faces, just like Mayan deities did. — JESSICA IREDALE Carven: Carven was off to a fresh start for fall, both in terms of its new designers, Adrien Caillaudaud and Alexis Martial (although Martial, whose official tenure at the house began Monday after he showed his final collection for Iceberg on Feb. 27, reportedly only helped finalize details for the lineup) and the point of view expressed in their first collection. By the looks of it, they’re the right guys for the job. The duo didn’t reject the aesthetic established by their predecessor, Guillaume Henry — rightly so, it was quite successful — but adjusted its attitude in a sportier, more active direction. They kept alive the Sixties, feminine Parisian spirit favored by Henry with short, neat A-line skirts and nifty psychedelic floral jacquards, but distanced themselves from its strictly ladylike aspect with leaner cuts and one very important idea: “The new Carven girl is wearing pants,” said Martial. Pants are hardly a novel concept, but they liberated the collection. The fit was sharp and modern: high-waisted and worn with skinny belts, with a bit of stretch and tight, streamlined straight legs that hit above the ankle. These were shown in sophisticated trippy colors — lilac, aubergine, tomato red, cobalt blue, as well as black — that electrified the look while grounding it in wearable cool for the contemporary market. On top, there were fitted après-ski sweaters, crisp shirts with graphic gold disks decorating the collars, and an array of great tailored coats, cropped and long, some classic, some in nice textured leather. Here’s to successful succession. — J.I. Par FOR MORE IMAGES, SEE WWD.com/ runway. WWD FRIDAY, MARCH 6, 2015 5 WWD.COM Jeanne Lanvin’s World Carven PHOTO BY FRANÇOIS GOIZE By MILES SOCHA aris Collections PHOTOS BY GIOVANNI GIANNONI Fall 2015 PARIS — When Lanvin owner Shaw-Lan Wang hired Alber Elbaz as artistic director in 2001, she invited the Moroccanborn designer to come wake up a “sleeping beauty.” And when Elbaz began working on the “Jeanne Lanvin” retrospective at the Palais Galliera here, he was reminded of Wang’s words as he plunged into drawers and boxes and gazed at scores of beautiful dresses at rest. He and curator Olivier Saillard opted to display fashion treasures mostly from the Twenties and Thirties flat in mirrored cases propped open like a piano, reflecting the museum’s ornate ceilings, visitors and the couturier’s delicate wizardry. “The exhibition is whispering. It’s so silent,” Elbaz said Thursday morning as he led a tour, pausing at cases to scatter the dresses more haphazardly, as if a woman just tossed them on a bed. The showcase, which opens to the public Sunday and runs through Aug. 23, calls attention to an often underappreciated figure in early French fashion sometimes overshadowed by the “virtuosity” of Madeleine Vionnet and the “artistry” of Elsa Schiaparelli, acA dress cording to Saillard, from who considers 1933 Lanvin a key torchdisplayed bearer for French with a elegance, and an triple innovator with her mirror. “lifestyle” approach to design. More important, her dresses exemplify quiet chic and haute refinement, he said, noting that the couturier housed three internal embroidery ateliers capable of the most delicate beading and metallic filigrees on gossamer silks. “It’s light, very feminine, timeless, never overpowering,” Saillard marveled. While thematic rather than chronological, the exhibition demonstrates how fashion changed markedly after 1910, with Elbaz and Saillard repeating the refrain — “Look at that, it’s so modern” — as the tour alighted on countless looks that could be worn today: A black slip style squiggled with ivory ribbons; an austere T-shirt dress in black silk, or a bohemian caftan in pale green — a shade that reappears frequently — along with black and ivory. “It doesn’t feel like a period exhibition, even though it’s 100 years ago,” Elbaz said. Happening upon a velvet swimsuit from 1924, beaded to the hilt with mirrored embroideries, he remarked: “Beyoncé would love that.” The showcase, part of the house’s 125th anniversary festivities that spilled over into 2015, is also an ode to elite savoir-faire. “Look at the workmanship, look at the fragility,” Elbaz said as he inspected an evening ensemble in silk crepe embroidered with silvered tubes and crystals by Swarovski, a key sponsor of the exhibition. “Of course, we live in a world of computers, but we are still an industry that depends on seamstresses and a needle and thread. We are a human industry and that’s what we show in this exhibition.” Elbaz included none of his Lanvin designs, preferring to leave the spotlight to the founder, an homage that spans dozens of photos, scrapbooks, sketches and even the triptych mirror she kept in her office for fittings. Jeanne Lanvin started out in 1889 with a millinery shop on Rue Boissy d’Anglas, later branching out to women’s wear, children’s clothes, bridal fashions, lingerie, furs, interior decoration and men’s wear. Renowned for her drive and intuition, she died in 1946. About 100 dresses — nearly two-thirds from Galliera, the balance from Lanvin’s archives — are displayed along with hats, perfume bottles and two dolls from her office that represent the house’s mother-and-daughter logo. WWD FRIDAY, MARCH 6, 2015 Roland Mouret Christian Wijnants Manish Arora Balmain FOR MORE IMAGES, SEE WWD.com/ runway. Ann Demeulemeester: Forgetting the downer soundtrack and the mostly black palette, this was a sultry collection from Sébastien Meunier, Mirjam van den Akker and Patrick van Ommeslaeghe, the design trio that succeeded Ann Demeulemeester, with Meunier also acting as the company’s art director. Belts were key: slim ones cinching robelike jackets, blousons and scarflike tops just under the rib cage; and wide, multizip ones uncoiling over jersey gowns or padded bed jackets paired with lapping, full-legged pants. Plunging necklines or backs exposed slivers of flesh; chiffon blouses that whorled over bare torsos veiled it. Variegated pinstripes and a flash of red silk seemed like afterthoughts in a collection that handily moved the house heritage beyond its usual dandy allure. Ann Demeulemeester Paco Rabanne — MILES SOCHA Paco Rabanne: Since taking over Paco DEMEULEMEESTER, MOURET, WIJNANTS AND BALMAIN PHOTOS BY GIOVANNI GIANNONI; ARORA AND RABANNE BY DOMINIQUE MAÎTRE 6 Rabanne a year and a half ago, Julien Dossena has refreshed and reengineered the house’s narrow Space Age focus, establishing a ready-to-wear identity with an edgy athletic currency without abandoning Rabanne’s futuristic codes. Rather, he has savvily pulled the label’s signature circular plastic disk decorations into the orbit of today’s world. The motif was the most interesting thing on his fall runway, well handled on wearable apron shift dresses and tanks in blue, green and gray plastic circles that had a sci-fi hippie vibe when paired with classic tailored outerwear and techy takes on denim. Mastering Rabanne’s language seems to be less difficult for the designer than disassociating with the vocabulary he learned during his time with Nicolas Ghesquière at Balenciaga. The influence has thus far had a mostly positive effect on Dossena’s runway, but its overbearing presence in fall’s rubberized black leather outerwear in exaggerated baby-doll shapes and tough deconstructed tailoring made for an uneven collection. — JESSICA IREDALE Roland Mouret: “How do you make an A-shape as strong as a pencil skirt?” Roland Mouret asked backstage before his show. “With a fold and with a definition of the body,” was his answer. Mouret works within a well-defined vocabulary focused on shapes, noting “it’s always interesting for me to define new silhouettes and make them recognizable as Roland Mouret. The volume of skirts was really important, approaching the A-shape and to make it mine.” He added spark to his figureflattering looks with highly graphic color blocks incorporating shades such as Bordeaux, orange, powder blue and red. Mouret often used a sheer layer of knitted fabric as part of the clothing — either on models’ arms or décolletés — for a cozy contrast. The dresses were especially appealing and wearable, with artful touches such as origamilike folds. nonchalantly wrapped around the body. The idea of wrapping continued on luscious scarves, which the models sported as oversize capes that trailed behind them on the soil runway. Although rural at heart and done in earthy colors, the clothes were surprisingly compatible with an urban lifestyle, especially tank dresses made of various fabrics including plain wool, leopard-print tulle and gingham patchworked to approximate tribal insignia. — PAULINA SZMYDKE Balmain: It’s both daring and dicey to project world events onto the fashion screen. Not that major events don’t impact the mind-sets of creative people, — JENNIFER WEIL but it’s a nuanced relationship that requires deft invocation, especially when Manish Arora: One of the ornately you’re about to present a snazzy-jazzy embellished sweatshirts in Manish collection filled with flamboyant Arora’s fall line featured a rainbow pleats and flying fringe. harlequin motif merged with a Backstage before his photo of an electrical storm. Balmain show, Olivier It might be a pretty accurate Rousteing spoke about “what picture of what was going COLLECTIONS happened [in January],” through his brain as he referring obviously to the designed the collection Charlie Hebdo shootings. — perhaps after binge He noted the importance of watching episodes of FALL 2015 celebrating Paris’ history as “Game of Thrones.” a center for artistic freedom The Indian designer and a melting pot of exotic is known for his no-holdscultures. The city, he said, is barred style, but this was overknown for its “global feeling, the mix the-top even by his standards, of different origins. I wanted to go back depicting the fantasy world of the to that and still keep the richness of the hugely popular HBO series through a Seventies in Paris.” Bollywood filter. Outfits in multicolor Lovely thought from an earnest patterns were piled high with feathers, young man, but it took a wayward turn sequins, pearls, crystals and patches on its way to the runway. Moroccan of fake fur and even artificial grass. palette, orientalism, Seventies flou, Intarsia knits proclaimed “Winter Is Eighties sexpots, florals, color blocks, Coming” in teletype script, while the peekaboo lace, endless renditions soundtrack featured a techno remix of of sparkle and shine, and enough the show’s theme song. foot-long bugle-beaded fringe doing Arora’s eye for detail was precision swings from bodices to extraordinary and extended to his outfit a competitive team of retro glam accessories, which included fur-lined majorettes — Rousteing sent them out backpacks, tribal nose jewels and with dizzying vigor, but to what end? He handbags shaped like life-sized skulls. loves to talk about young women and his It was frenzied, wacky and somehow, generation, but really? These clothes totally fierce. are not young. Nor does one imagine — JOELLE DIDERICH tony, chic adults making a run for them. Paris is a glorious city, and Rousteing Christian Wijnants: Jackie Nickerson and her photos of African agricultural farmers may well contribute to its artistic diversity in a significant way. His more inspired Christian Wijnants to produce immediate concern: tempering his retro a cute and easy collection. Without enthusiasm in a manner that suits a taking the cues too literally, the designer modern luxury customer. reworked traditional African prints on woolen skirts and dresses that were — BRIDGET FOLEY PARIS WWD FRIDAY, MARCH 6, 2015 7 WWD.COM Wang Puts His Stamp on Balenciaga {Continued from page one} The interior of the Madrid store. understand the impulses that fed the late couturier, who closed his house in 1968 and died in 1972. Wang insisted Balenciaga should open a flagship in Spain as it is integral to its “heritage and legacy,” he said. “It’s a beautiful store, and there’s a lot of natural light. It culminates with a small room at the back with a little courtyard section.” Discussing some of the behindthe-scenes work, Wang initially plunged himself into the house’s patrimony to understand its heritage and legacy. “It was important for me at the beginning to explore the archive. Now it’s time to write the next chapter of the story and get into what the brand stands for today and make it a top leader in luxury,” Wang said. A more “irreverent approach” to luxury for a new generation is part of his prescription. “I also feel it has a subversive elegance I like to bring to each collection...a more casual way to wear precious things,” he explained. Beyond his runway shows and pre-collections, Wang delved into a range of categories — jewelry, scarves, eyewear and leather goods among them — to bolster “anchor products,” balance out the offer, and ensure coherence across the brand. He also spied an opportunity with fur, introducing a capsule range for pre-fall, and expanded the footwear category to a “full lifestyle offer” spanning sneakers, sandals and espadrilles in addition to dressier shoes. Given how integral knitwear is to Wang’s signature business, with his T by Alexander Wang subbrand dedicated to slouchy knitwear, tapered track pants and the like, expanding Balenciaga’s offer was a no-brainer. “I started in knitwear, so it’s something I’m really passionate about and something that was not really part of the house archives,” he said, noting the category would be “not only driven by runway concepts” but include a “rollover program of diverse bodies the house can establish. “The core offering of the knitwear has expanded tremendously and it’s something we’ve seen great results in,” Wang added. MILAN — Margherita Maccapani Missoni Amos is about to give birth in two ways: Her second child is due in May and she is unveiling a new children’s wear line, called Margherita, today in Paris. “The world of children is the one that interests me the most now, and I want to build a brand around my life and be able to decide [how to use] my time,” she said. The colorful and fun line is produced by the Los Angeles-based Neige firm and is entirely separate from her family’s fashion business. But there is no conflict: Amos said her mother, Angela Missoni, ventured out on her own before becoming creative director of the Italian fashion house. “She is happy for me and supports me,” she said. Margherita is a collection of easy pieces that combines fabrics and colors, ’’ and it shows in the perception,” Guichot said. Balenciaga counts a dedicated men’s store in Paris, another in New York and several in Japan, and the executive hinted at a further rollout. The brand added about 10 stores in 2014, and also has a program of refurbishments, enlargements and relocations. Guichot said its retail is now “entering a phase where it’s more tactical.” Key openings this year include a boutique in Florence. Dressing celebrities is another strategic focus for the brand, with recent credits including Julianne Moore at the “Hunger Games” premiere in London in November, and Felicity Jones and Naomi Watts at the SAG Awards last January. “We have a special red-carpet team,” Wang said. “We’re developing one-of-a-kind, special pieces.” Guichot declined to give figures but said the “company is profitable.” Market sources estimate the brand generates revenues north of 350 million euros, or $391.5 million at current exchange rates. Meanwhile, the move to Laennec telegraphs its importance to Kering — and it was a natural fit as most of the company was already located on the Left Bank, offices scattered on I like to bring to each collection...a more casual way to wear precious things. — ALEXANDER WANG Guichot said the double-digit gains last year were fueled by “almost all categories, from retail and a very healthy wholesale business.” Balenciaga counts about 500 wholesale doors in the world. More than half of company revenues now stem from directly owned retail, a threshold reached last year, when it closed out the calendar with about 90 freestanding stores and shop in shops — a quantum leap from Margherita Missoni Amos’ New Baby By LUISA ZARGANI the three stores it had seven years ago. “It’s been a change of business model for the brand,” said Guichot, a methodical executive with a fun-loving streak. “We’re becoming a player in women’s footwear,” according to Guichot, also trumpeting progress in the leather goods category, building beyond historic “pillars” like the motorcycle bag, which was launched 15 years ago. such as classic stripes or checks generally used for shirts, Bali-inspired or naïf prints, and cute characters modeled after the logo, a smiling daisy — Amos’ name in English. “I like it when children open up their wardrobe and pick what they want to wear. We, too, as kids were free to dress how we wanted, it helps to be creative, it gives a sense of open possibilities,” she said, adding that she feels the kids’ market is saturated with super-classic or “chic delavé” looks. “I’ve always had a strong attraction for children’s wear; I bought pieces and stored them away, even before I had Otto [her first child, now 18 months]. After Otto arrived, I realized I didn’t know anything about children’s clothes,” Amos said. She believes children’s wear often seems made by “people who don’t have kids, with difficult sleeves, for example.” “It’s still a very important product,” she said, while trumpeting traction with newer styles like the Cable, Le Dix and Nude bags. Besides knitwear, the men’s wear offers expansion potential. The fall collection, unveiled in Paris last January, pointed to a more sophisticated and “elevated” approach that reflects a “better balance” of tailoring and casualwear. “We’ve found our positioning in men’s: It shows in the figures, Looks from the Margherita line. PHOTO BY TIERNEY GEARON PHOTO BY DOMINIQUE MAÎTRE Isabelle Guichot ’’ The company was also flooded with applications in a country where unemployment remains at almost 24 percent, leaving it spoiled for choice for sales associates. In 2017, Balenciaga is to celebrate its centenary, an occasion the Prado plans to mark with a major exhibition. “So it’s a very good moment to come to Spain,” said Guichot, noting the brand is currently present in the country via select distribution and that the boutique would “catalyze the presence of the brand.” Shortly after New York-based Wang was named creative director at the house, succeeding Nicolas Ghesquière, the American designer traveled with his team to Getaria, the seaside birthplace of Cristóbal Balenciaga, where the rugged landscape was a fount of inspiration — for example, spawning the founder’s iconic fisherman hats. Wang also visited the Getaria Museum and Cristóbal’s home to For this reason, soft washable fabrics and comfort, such as batwing sleeves, are priorities in her new line. The collection, which debuts for spring, retails at between $30 and $80. For fall, she is planning to expand the line with more categories and accessories such as bibs, little necklaces, scarves, A soft Le Dix bag from pre-fall. streets in the vicinity of its Rue Cassette showroom, once the site of its fashion shows. About 250 employees are to be based at the new complex, including the design studio, atelier and showrooms, making it “an important company project,” according to Guichot. “The place is quite unique in Paris.” As for Wang, who has been designing his office at Laennec, Guichot said, “I think he’s settled.” gloves, diaper bags or layettes. The collection caters to boys from infancy to two years old, and girls from infancy to seven years old. Margherita will be available to consumers beginning Saturday through two exclusive retail partners, Nordstrom and its online store in the U.S., and Yoox.com globally. The collection will also be carried on Margheritakids.com. For fall, the collection will be rolled out to specialty stores. “The collection’s whimsical prints and wearable fabrics along with the accessible price point make it a great addition to our kids’ wear offering,” said Jennifer Kovacs, divisional merchandise manager for kids’ wear at Nordstrom. “Ever since we heard Margherita was creating her own label, we believed Yoox. com would be the perfect match to globally manage the collection’s e-commerce, a further step in a collaboration which started several years ago,” said Maia Guarnaccia, group global brand marketing and communications director at Yoox. 8 WWD FRIDAY, MARCH 6, 2015 beauty Thia Breen Opens a New Era for PCPC — almost half of the total export of U.S. cosmetics and personal-care exports,” Holleyman said. “We think this agreement would provide accelerated opportunities to sell and export into those markets.” Tariffs as high as 30 percent would be eliminated in some TPP partner countries, he said, and difficult regulatory and customs procedures would be eased. The TPP also has an e-commerce component that will prevent future market access limitations and opportunities to expand in digital trade, he said. “When concluded, the TPP will give the companies in this room greater access to some of the fastest-growing, most dynamic markets and economies in the world,” he said. “The economies that are part of the TPP are the source of 40 percent of the world’s total economic outlook. We think that fact alone is worth getting excited about.” He also pointed out that 95 percent of the world’s consumers live outside the U.S., and that exports have played a crucial role in jumpstarting the U.S. economic recovery over the past six years, generating one-third of the growth of the U.S. economy since 2009 and accounting for nearly record-high 13 percent of the U.S. gross domestic product. Holleyman noted that the U.S. is looking to forge a similar agreement By JULIE NAUGHTON Outgoing PCPC Chairman E. Scott Beattie. PHOTOS BY STEPHEN LEEK PALM BEACH, FLA. — At its 121st annual meeting here last week, the Personal Care Products Council took an enlarged global view of the beauty industry through the eyes of the smallest of companies. Before taking over as chairman of PCPC, Thia Breen, group president of North America for the Estée Lauder Cos. Inc., sat down for a farranging discussion of industry issues. Approximately 461 people, down slightly from 2014’s 497, attended. Breen acknowledged the role played by outgoing chairman E. Scott Beattie, chairman and chief executive officer of Elizabeth Arden, in bringing more of a global focus to the organization. Breen plans to continue that international harmonization while also giving every business, large or small, an equal voice in her regime, and sharpening the industry’s digital focus. Queens,” Breen said. “Wherever she Before her speech, Breen discussed sees it, she’s involved in it, whether she’s challenges and opportunities for the walking through the aisles of Duane market as she assumes her new role, notReade and sees lipsticks or whether ing that 14 countries, including the U.S., she’s walking through Bergdorf ’s. In Canada, Australia and the European many other businesses, you compartmenUnion, were represented. talize — where you get your shoes, for “As we look at the global beauty busiinstance. In beauty, you don’t stop ness, and the growth engines of it, being involved in the category.” we know our products are safe, Thia Breen A hot legislative topic domestibut the regulations that we have cally was related to microbeads, on a global basis have to be unwhich are used in products such derstood by all of our members,” as facial scrubs and toothpaste. Breen said. “And we have to have a About 19 states to date have introcoalition to collaborate on some of duced legislation regarding this these important issues, because it ingredient. When products conisn’t just our federal government, taining microbeads are used in the because this is many governments. home, the beads are rinsed down And I want to make sure we’re the drain and into the sewer sysserving small companies as well tems. Because of their small size as large companies. It’s very imand buoyancy, microbeads escape portant in this industry and in this treatment by sewage plants and country that we realize the power are discharged into rivers, lakes of small businesses. Their innovaand oceans, say advocates of elimition has changed how some beaunating them. They were banned ty categories do business — and first in New York State in May, with plenty of them are not going to stay New York State Attorney General small.” This is particularly imporEric T. Schneiderman’s Microbeadtant in an era where indie upstarts Free Waters Act. Advocates say are proliferating rapidly. that when seabirds and fish ingest Breen would like to see all comthem, they are often contaminated panies be able to capitalize on the with PCBs. growing global market, the topic of a speech by Ambassador Robert Digital is also changing the landscape of the beauty industry, Holleyman, Deputy U.S. Trade and PCPC members must adapt Representative, who oversees to move forward, Breen assertU.S. trading in China, India and ed. “These days, it’s about your Central Asia. “We are looking at iPhone,” she said. “The consumer the most ambitious market openuses her iPhone even when she’s ing agenda in at least a generation standing in the aisle in front of the or more,” Holleyman said. “The product, because she’s compariU.S. currently exports in excess son shopping. That’s just of $11 billion a year for the new normal in shopcosmetics and personping.” This is a seismic shift al-care products interfrom the beauty industry nationally.…There are of the late Nineties, she new agreements that noted, when many compawill allow you to capinies were afraid of selling talize on those market online and on TV shopping opportunities in the channels. “You have to be years ahead.” in all the channels and you The Trans-Pacific have to provide a different Partnership is at the sort of experience, because top of Holleyman’s list. the consumer is going to be “It’s the foundation on — THIA BREEN, ESTÉE LAUDER COS. INC. in all those channels — dewhich we’re building partment stores, specialty much of our current activity,” he said. The TPP, he noted, is an across the Atlantic, and is in discussions stores, online. The most recent numinitiative that the U.S. has been involved with the European Union for a trans- bers we’ve looked at indicate that if a with for the past five years that would Atlantic version of the TPP. Once that consumer has a dozen beauty products expand America’s free trade opportuni- agreement is worked out, the U.S. would in her cart, maybe eight of them will be ties with 11 countries, including Japan, have access to two-thirds of the world mass and four prestige. If she were to lay out everything she has in her handbag Australia, Malaysia, Vietnam and Chile. population, he said. And the world is increasingly more today, she doesn’t see it as mass or pres“In 2014, the U.S. exported more than $5 billion in essential oils, perfumery and global. “We’re dealing with a traveling tige. She looks at it as she has a lipstick, cosmetics to the TPP countries alone consumer, from Shanghai to Flushing, an eye shadow or whatever. She may see ’’ ’’ We’re dealing with a traveling consumer, from Shanghai to Flushing, Queens. Wherever she sees [beauty], she’s involved in it. Ambassador Robert Holleyman a difference between a $16 and $60 product, but to her it’s not quite as compartmentalized as we [in the beauty industry] would see it.” One of Breen’s first priorities is meeting with the heads of global beauty associations to identify the key issues in their particular markets. “Working together globally is a critical component to the future success of the industry,” said Beattie, noting that recent global collaborative successes have included sharply increasing the number of ingredients on China’s safe ingredients list and the International Cooperation on Cosmetics Regulation. The ICCR is a voluntary partnership among the health authorities of Canada, Europe, Japan and the U.S., with participation and technical support from the cosmetics industry as- $11B ANNUAL U.S. EXPORTS OF COSMETICS AND PERSONAL-CARE PRODUCTS. sociations of the four jurisdictions. The multilateral framework provides a forum for discussions on alignment of cosmetics regulations within the member jurisdictions, said Lezlee Westine, PCPC’s president and ceo. “These provide a strong foundation for improved global regulatory harmonization,” said Beattie. The effort is also bearing fruit domestically, he said. “Over the last 10 months, we have worked with Sen. Dianne Feinstein [D., Ca.] and multiple stakeholders on proposed cosmetic legislation that would update the 1938 law that currently governs our industry. While the bill has not yet been introduced, we will continue to work collaboratively with Senator Feinstein and key groups on appropriate legislation. At the state level, the Council prevented over 200 state bills that would have had a negative impact on our industry. We can all agree that one strong national standard is better than 50 individual state laws.” “It is imperative that our industry continue to drive the conversation about the issues affecting our companies,” Westine said. “We must come together to set priorities and to collaborate on ways we can continue to provide safe, innovative products that families around the world use every day.” WWD FRIDAY, MARCH 6, 2015 9 WWD.COM ’’ Ralph Lauren Bets Big on Polo Red Intense and African-Americans. With its more powerful juice, Intense is expected to appeal more strongly to Hispanics, he added. Another trend is being driven by the emergence of “statement” fragrances that are designed to satiate customers looking for a stronger, more pronounced scent, and Intense is meant to fit the bill. “A lot of people are asking for stronger, more robust fragrances,” de Lesquen observed. In a nod to the new generation of artisanal indie brands, de Lesquen added, “we see worldwide a very strong trend behind those fragrances driven by ingredients.” PHOTO BY JOHN AQUINO Polo Red Intense By PETE BORN Polo Red Intense is more than Polo Red with a racing stripe on the fragrance’s bottle. Intense, a line extension of the briskly selling Polo Red men’s fragrance, embodies a number of trends now percolating through the men’s fragrance market. First, the new version of Red, which is due out next week, is an eau de parfum, a more powerful concentration than the eau de toilette of the original scent. Intense’s formula has a 14 percent juice strength, compared to Polo Red’s 10 percent. “The idea is to supercharge,” said Guillaume de Lesquen, president of Ralph Lauren Fragrances Worldwide at L’Oréal USA. The intensity is built into the formula, which was created by Olivier Gillotin of Givaudan. The new fragrance is an oriental spicy, a more aggressive version of the original, which is a woodsy spicy scent. “For us, it’s the first oriental juice [for Polo] that we have done,” de Lesquen said. Gillotin added three ingredients to the Red olfactive architecture — ginger, leather and coffee — to create a “supercharged sensation of red ingredients,” the perfumer said. Top notes include grapefruit, cranberry and ginger, followed by saffron, sage and orange flower in the midrange. Woods, roasted coffee and leather notes comprise the base. The grapefruit, saffron and cedarwood notes were borrowed from the original fragrance. The line-up includes a 125 ml. edp, priced $86; a 75 ml. size for $69, and a 40 ml. version for $50. De Lesquen described the new scent as “sweeter, warmer and rounder. It has a little bit of a gourmand feeling,” he said, noting that those characteristics constitute a new trend in men’s fragrances. “It will help us to create new users. We want to gain market share.” Alex Choueiri, president of the International Designer Collections Division at L’Oréal USA, noted that Polo Red had done well with both Caucasians ’’ The original Polo Red, launched is expected to be done in the U.S., Middle East and Asia, plus the duty-free channel. in 2013, is the largest of the Polo a 20 percent increase. Intense is expected to shadow L’Oréal is betting so heavbrands, ranking third among men’s ily on the juices of the fragrances in the U.S. detwo scents that they are partment stores, behind launching an aggressive L’Oréal’s Acqua di Gio campaign of scented Pour Homme and Bleu strips, amounting to 14.5 de Chanel. According to million strips through industry sources, Polo Red June, often featuring generated $33 million at dual strips on a doubleretail in it first year and page magazine spreads, gained 30 percent last year. in a total of at least 11 While Polo does not — GUILLAUME DE LESQUEN, fashion and lifestyle break out projections, L’ORÉAL USA publications. The list insources estimate that Red cludes ads in Hispanic and Red Intense together could generate as much as $130 Red’s distribution pattern around magazines, like Glamour Belleza million in worldwide retail sales the world — throughout the U.S. and Latina, which are expected to for 2015. Of that total, $60 million and the Americas, Europe, the break next week. A lot of people are asking for stronger, more robust fragrances. 10 WWD FRIDAY, MARCH 6, 2015 Adidas Proclaims U.S. ‘a Priority’ for 2015 PHOTO BY JOHN AQUINO PARIS — Adidas ended a tough 2014 on a negative note, posting a loss in the year’s final quarter. Yet the German activewear giant is in a combative mood, wanting to take on America in 2015, where it’s been outplayed by rivals Nike and Under Armour. “We want and we need to win in that market. It’s our competitors’ home turf, and we have not been spending enough Herbert here. We will inHainer vest more into advertising and young athletes, and we will grow again in 2015,” said the firm’s chief executive officer Herbert Hainer, declaring the region his key priority for the year. Discussing the brand’s financial results for the full year on a ’’ By PAULINA SZMYDKE conference call with journalists on Thursday, the ceo was overtly optimistic about the company’s future, predicting net income from continuing operations to grow at a rate of 7 to 10 percent in 2015. He said “the Adidas group is and will remain a growth company. In 2015, we will see sales increases across all our The sporting goods firm’s loss in the fourth quarter amounted to 139 million euros, or $173.6 million, due to goodwill impairment losses of 79 million euros, or $101.9 million, and discontinued operations related to the planned Rockport divestiture, as the company is refocusing on sports as its core activity — much like nextdoor neighbor Puma. All dollar rates are calculated at average exchange rates for ’’ While we grew our business by almost 20 percent in local currency in 2014, we lost all of it in currency translation. — HERBERT HAINER, ADIDAS brands, despite tough comparison with the 2014 World Cup year as well as the geopolitical crisis in Ukraine.” Adidas shares closed up 3 percent on Thursday. tion of North America, where sales slipped 4 percent, mostly strained by double-digit declines in the golf category. For the full year, net profit stood at 496 million euros, or $659 million, down 37 percent, though double-digit sales increases at Adidas and Reebok drove total sales up 2 percent, or 6 percent in currency-neutral terms, to 14.5 billion euros, or $19.3 billion. “While I am as disappointed as you are that we did not reach all our financial goals set out at the beginning of last year, there were many bright spots in our performance throughout 2014,” contended Hainer. He pointed to the group’s core brand Adidas, which set a new sales record of 11.8 billion euros, or $14.3 billion; he singled out the soccer business with its record of 2.1 billion euros, or $2.5 million, in sales, and said Reebok advanced for the seventh consecutive quarter. At the same time, he acknowledged that “2014 was a year with ups and downs,” identifying three key weaknesses: the period concerned. Sales advanced 6 percent in the fourth quarter to 3.6 billion euros, or $4.5 billion, driven by a strong performance in all geographies with the excep- the ailing golf-market, where TaylorMade Adidas-Golf is a global leader; depressed consumer sentiments in Russia and currency headwinds. While the golf category is expected to return to profitability in 2015, following measures to clean inventory and lower the cost base, in Russia, “the political and macro-economic situation caused us to be victims of our own success,” Hainer lamented, adding: “While we grew our business by almost 20 percent in local currency in 2014, we lost all of it in currency translation.” The group is now banking on the upcoming 2018 FIFA World Cup to boost sales and defend its pole position in the region, which it holds ahead of Nike and with Reebok as “a strong number 3.” Currency movements negatively impacted the brand’s top-line result by more than 550 million euros, or $731 million, in 2014. Hainer, whose contract expires in March 2017, is to present a new strategic business plan at the end of this month. Carrefour Makes Progress Italian Industry Sees Gains in ’14 By ALEX WYNNE PARIS — Carrefour SA is continuing to see the fruit of its turnaround plan implemented two years ago. Recurring operating profits for the retailer, the world’s second largest behind Wal-Mart Stores Inc., saw a 6.7 percent rise year-on-year in 2014 to 2.39 billion euros, or $3.18 billion, in line with previous guidance. “[The year] confirms Carrefour’s dynamism,” chief financial officer Pierre-Jean Sivignon said at the firm’s annual results conference here Thursday. “The group saw its best progress in five years.” Carrefour said improved profitability in France and the rest of Europe stemmed from its efforts to enhance its multiformat offer to be less reliant on hypermarkets, as well as from an improving economic climate in Spain. “France illustrated the dynamism of the multiformat model,” Sivignon continued. “In Europe, the recovery is encouraging. In emerging markets, our performance, carried by Latin America, is remarkable. In China, we are evolving our model in order to adapt to the context of frugality in consumption.” In France, the firm’s recurring operating income increased 6.1 percent to 1.27 billion euros, or $1.69 billion, while in the rest of Europe, it grew 9.6 percent to 425 million euros, or $564.9 million. In Asia, recurring operating income fell 25.5 percent to 97 million euros, or $128.9 million, largely due to wage increases and a weak environment for consumption in China, where the retailer is reviewing its model. In Latin America, operating income grew 9.4 percent to 685 million euros, or $910.4 million, thanks to improved profitability in Brazil and resilient business in Argentina, and despite the strong impact of currency depreciation in both markets. While net income from continuing operations surged 22.9 percent last year to 1.3 billion euros, or $1.73 billion, the firm’s overall net income grew just 0.2 percent to 1.37 billion euros, or $1.82 billion. Carrefour registered sales excluding VAT of 74.71 billion euros, or $99.3 billion, a 0.2 percent decline in reported terms but up 2.9 percent at constant currency. Non-food sales, including textiles, have been a key part of the turnaround effort, Sivignon said. Carrefour is focusing its apparel offer on basics, rather than seasonal items, he continued, and is seeing this strategy pay off with increased sales. Sivignon added that the company would increase its investments in 2015 and was planning to spend between 2.5 billion and 2.6 billion euros, or between $2.78 billion and $2.9 billion at current exchange, compared with 2.4 billion euros, or $3.19 billion, in 2014. Dollar rates for 2014 are calculated at average exchange rates for the period. Much of the investment will be dedicated to the continuing remodeling its stores, he said — some 60 hypermarkets in China will get a revamp this year. Carrefour also plans to transform French Dia stores, which it acquired last year, to its existing banners, abandoning the discount channel. Further priorities for the retailer include the rollout of clickand-collect services, the relaunch of e-commerce in Brazil, plus improved logistics and IT systems. Sivignon confirmed that the firm would be ready to launch an IPO for its Brazilian activity, its second largest, this year. “We have never said we will launch an IPO in Brazil in 2015, but we will be ready to,” affirmed Sivignon. In a separate announcement, Carrefour said that its chief executive officer Georges Plassat, widely described as the architect of its turnaround, will be back at work before late April. He is recovering from surgery, as reported. The market responded well to the results, with shares closing up 2.4 percent at 30.36 euros, or $33.81 at current exchange, on the Paris Bourse on Thursday. By LUISA ZARGANI MILAN — Exports continue to boost Italy’s textile and fashion industry, which is turning to the U.S. to help offset a decrease in the Russian market. In 2014, industry sales were up 3.3 percent to 52.4 billion euros, or $69.7 billion at average exchange, and exports climbed 3.9 percent to 28.5 billion euros, or $38 billion. According to textile and fashion association Sistema Moda Italia, sell-out figures in Italy dropped 3 percent, while “apparent spending” rose 2.5 percent. “This refers to business-to-business demand,” explained president Claudio Marenzi, of the figure. After losing almost 96,000 jobs in the industry in the 2008 to 2013 period, the rate of job losses decelerated in 2014, with a 0.3 percent drop, or 1,200 employees. Last year, 780 companies closed down. According to SMI, in the first half of 2015, textile and fashion sales are expected to grow 2.8 percent: the textile industry is forecast to gain 2.5 percent and fashion is expected to grow 2.9 percent. In the first six months of the year, exports are forecast to grow 3.3 percent, slightly down compared to a 4.3 percent increase in the first half of 2014. “Over 2015, the European Union is expected to continue to grow, as well as China,” Marenzi said. Significant demand is seen coming from the U.S., and an “even bigger growth” is expected in 2015. Marenzi said that, between 2015 and 2016, there “will be a big promotion of Made in 3.9% INCREASE IN INDUSTRY EXPORTS FOR ITALY IN 2014. Italy” in the U.S. in collaboration with a department store. He declined to name the retailer as negotiations are still going on. In 2015, Japan will be stable, while it will take at least two years for Russia to exit its Cesare Paciotti to Show in Paris MILAN — Cesare Paciotti is returning to Paris. The Italian footwear brand will hold a presentation in the French capital on Saturday and chief executive officer Marco Calcinaro said the move marks the next stage for the company, after a financial setback. “This will show that nothing has changed,” said Calcinaro during an interview at the Paciotti showroom here. After filing a petition for composition with creditors, the company, which was founded in 1948 in Civitanova Marche, has set up a new strategic plan, reorganized its structure and streamlined its wholesale accounts. Calcinaro underscored that the family is behind the relaunch and that the namesake designer remains president, with 50 percent of its shares, while his sister, Paola, holds the remaining stake, and that a new board has been set up. Calcinaro said the firm was overexposed to the Italian market, which had grown to account for 65 percent of sales. Now, sales in Italy account for 33 percent of revenues. The company is “strongly represented in Europe and Russia. Despite the crisis, Russia remains important,” said the executive, noting that wholesale is “working well” in the Far East, where retail “must be strengthened.” economic crisis. In 2013, exports of textiles and fashion to Russia totaled almost 1.5 billion euros, or $2 billion, up 4.4 percent compared with 2012. In the first 11 months of 2014, exports to the area decreased 12.2 percent. Marenzi underscored that Russians “are very loyal to Made in Italy labels.” Establishing a stable ruble is now the country’s main concern, he added. Given the sociopolitical issues today and the crisis in Russia, among other issues, the “flexibility that characterizes the companies in the industry, their speed and skills in setting changes in motion, will once again be a crucial success factor that will be able to guarantee growth in 2015,” he noted. Marenzi urged cooperation between the country’s leading trade fairs, citing examples such as Chic, Unica and Micam banding together for an exhibition in Shanghai. One of the main goals going forward is to add eyewear and jewelry to ready-to-wear, textiles and shoe fairs. Paciotti entered the Middle East in 1998 in Dubai, and the region continues to be important for the brand. Calcinaro also pointed to Bal Harbour and Los Angeles as two key markets in the U.S. for the brand. The company has stores in Milan, Rome, London, Paris, Miami and Los Angeles, as well as 26 franchised units. In terms of product, the executive said the company has refocused on its design guidelines. “There had been some dispersion. We can’t be liked by everyone,” he explained. The firm also has a strong men’s business, which accounts for 65 percent of total revenues. An expansion in handbags is also a major project for the company, he said. — L.Z. WWD FRIDAY, MARCH 6, 2015 11 WWD.COM MEMO PAD MILLION-VIEW MAN: Olivier Rousteing did it: Balmain’s artistic director hit the onemillion mark on Instagram, becoming the most-followed French fashion designer on the social media platform. Rousteing, who famously posts videos of himself wishing his followers good night, says people are drawn to the reality factor of his Instagram account. “I’m young, I’m black, I’m a designer, I have famous friends, but I also eat hamburgers and have both feet on the ground. It’s real life and reality always excites people,” he offered as an explanation for his success. Asked whether this meant more fun or more pressure, Rousteing said: “I feel like being myself.” After four years at the helm of the Parisian house, he finally understands who he is, Rousteing added, willing to share his personality with fans and followers. Rousteing did not think posing nude for the cover of French Tetu magazine helped his score, but rather what was inside the magazine, where he got personal. “I was honest and sincere — I didn’t hide anything,” he said. “I’m not getting naked to sell but to express myself. For me, that’s a sign of maturity.” The 28-year-old has also been voted fourth-most influential French person on Instagram, according to French media reports. — PAULINA SZMYDKE CHANGES AT ARMANI AND BRIONI: The Giorgio Armani company has tapped Claudio Calò to coordinate the company’s communication activities. He will be based in Milan and will report directly to Giorgio Armani. paraphrasing chief executive Smith, who relayed his company’s credo in a 2013 New Yorker profile as laid out by Vice magazine cofounder Gavin McInnes. (“McInnes told me, ‘My big thing was I want you to do stupid in a smart way and smart in a stupid way,’” Smith said). For Broadly, that mantra will translate to originally reported stories on political issues that include abortion, rape on college campuses and in the — ALESSANDRA TURRA military, reproductive policy and other women’s issues. BROADLY SPEAKING: Vice Media is “I don’t want to just focus on rape starting a new chapter of expansion, and abortion,” said Morrissey, catching following its September infusion of $500 herself. “Women million from minority aren’t just the investors, and it’s consequence of sh-looking to an unlikely -y sex that happens target for growth — to them. We’re going women. Last week, to do humor pieces the Brooklyn-based that harken back to company said it hired the old days of Vice, Jezebel veteran Tracie but not in a raunchy Egan Morrissey to head way. We’re bringing up its new femaleback nuance.” (Not centric channel, exactly a word Broadly — a new site associated with a site that was her idea. whose headlines on Morrissey told Thursday included WWD that she “Tattooing Away approached Vice the Pain” and “The cofounders Shane Smith Money Shot: Product and Suroosh Alvi six Placement in Porn is months ago with her Now a Thing.”) “special vision.” Morrissey said Vice It included would fold in fashion speaking to women on and beauty coverage, issues in a very Vice but not from a way, which, for those Tracie Egan Morrissey product-centric stance not familiar, is part of (unless it’s talking the company’s “ethos,” about porn, presumably). Morrissey explained. For clarity, she Although she didn’t elaborate how, added: “It’s smart done in a stupid way she explained: “I would rather talk and stupid done in a smart way.” about people than things. The people The editor, who started at Jezebel who make the clothes, not the clothes, when it launched in 2007, was (smartly) Previously, Calò was marketing director at Emilio Pucci, a position he has held since 2012. Changes are also taking place in Brioni’s communications department, where, according to industry sources, Paola Milani, after a little more than a year, has left her role as global communications director. The position has not been filled yet. not the reviews of fashion week — it’s less on the product and more on the cultural implications.” Broadly, which will debut at a yetto-be determined date in the spring, is the fourth channel launch for Vice in 12 months. The three prior channels include News, Sports and Munchies, a food-centric site. With Broadly, Vice continues on its path of “evolving” beyond a media company targeting testosterone-fueled young men. A spokesman was unable to provide a gender breakdown of audience by presstime, but he did not deny that Vice still serves a largely male viewership. Although Vice frequently reports on gender issues on its site and in its HBO series, the media company is just now making a more overt grab for female followers. Case in point: recently, WWD learned that Vice, which owns British fashion title i-D, was in the process of expanding its presence in New York and Asia. This came shortly after Vice tapped Ellis Jones as the namesake magazine’s first female editor-in-chief in its 20-year history. Earlier this year, the company hired former White House deputy chief of staff Alyssa Mastromonaco as chief operating officer — a move that was viewed by many as a deliberate step to help transform its image. The moves at Vice, the magazine, mirror a similar strategy at Maxim, which also has named its first female editor in chief, Kate Lanphear, as it attempts to reinvent itself from a lad mag filled with bodacious babes into a more “mature” title. The goal in both cases is to gain more upmarket advertising and perhaps capture the thirtysomething reader who deserted the titles as they grew up. — ALEXANDRA STEIGRAD Maison Kitsuné Explores Accessories They have employed a veteran of Tila March and Delvaux to steer production. The first collection will be manufactured in Italy, though Loaëc said that MAISON KITSUNÉ, a clothing and the brand is also looking into producmusic label that prides itself on strong ing in Portugal for future accessory outParisian roots, is applying its classic ings — which will soon follow. A Maison Gallic persona to accessories, beginning Kitsuné handbag is in the works — with with footwear for fall. a Boston bag early prototype appearing The inaugural collection features four in the brand’s fall look book. Shown in women’s styles — two flats, one boot, and navy leather with minimal gold hardware one pair of heels — and will retail excluand a diminutive “Maison Kitsuné” logo sively in Maison Kitsuné stores starting in stamp, Loaëc said a finished design will October. The label’s previous footwear ofmake its retail debut in early 2016 and will ferings — aside from a single tennis-style be priced around $1,000. A small range of sneaker — were produced in collaboramen’s shoes will also launch around that tion with French brands including time, he added. Pierre Hardy and Michel Vivien. By the time the “It’s really completing the brand’s shoes make their look and giving a wider perspecretail debut, Loaëc and tive to the brand. I think you Kuroki will be operating are a true clothes label when eight freestanding stores you have shoes — they are worldwide — counting really important,” said the forthcoming openGildas Loaëc, who coings of a Hong Kong lofounded the brand with cation, a second store in Masaya Kuroki. New York and a fourth in The shoes are exParis, all opening by sumpected to retail bemer’s end. The brand tween $350 and $600, also operates a small enand they reflect the refined, clave of branded cafés in collegiate style the brand is Paris and Tokyo. known for. A pair of ankle For Loaëc, Kitsuné’s boots, furnished with a modest, entry into the women’s pedestrian-friendly heel, will accessory realm repbe offered in leather or pony resents a larger push hair. There’s also an anklefor the label’s women’s strap heel with a curt pointed line. Currently, women’s toe, and two flat styles — a laceready-to-wear accounts up oxford and a penny loafer. for 40 percent of the “We wanted to make Maison Kitsuné fall looks, brand’s business. “A something that is not trendy, including shoe designs women’s shoe line is that we could work with between giving us more credit different seasons and follow-up on and a bag prototype. in the women’s industry instead of being the concept, it’s something we do with the largely seen as a men’s brand,” he said. women’s [apparel] line,” said Loaëc. Kitsuné’s apparel business had sales A former artistic director for Daft of $16 million last year, and the aim is to Punk who also oversees the development increase that figure to $18 million in 2015. of Kitsuné’s in-house music label, he The label says it is interested in taking on said that he and Kuroki decided to enter investors to help further growth. the accessories space nearly a year ago. By MISTY WHITE SIDELL REACH THE FASHION INDUSTRY’S TOP TALENT WWDCAREERS.COM PRINT & ONLINE PACKAGES AVAILABLE Contact Christen Cosmas, WWD Classified/Careers at 212.630.3937 or [email protected] 12 WWD FRIDAY, MARCH 6, 2015 Alibaba’s Taobao Under USTR’s Spotlight {Continued from page one} involving pirated movies and other audiovisual products and software. “USTR is concerned about these developments but does not relist Taobao at this time,” the agency said. “USTR encourages the company to continue working with all stakeholders to address ongoing complaints [and] will continue to monitor the situation.” USTR removed Taobao from its report in 2012 in what it said was a “recognition of efforts to address rights holder and consumer complaints.” Alibaba has been under intense scrutiny in the past several months for its business practices, most recently drawing attention from the U.S. Securities and Exchange Commission. According to Alibaba, the SEC has asked for information about a meeting the company had last summer with a Chinese regulator over allegations of selling counterfeit goods, before it made a public offering in New York last fall. The Chinese government has taken a carrot-and-stick approach recently to Alibaba — criticizing its business practices on the one hand and then praising them on the other. Ma has responded by adopting a humble approach, at one point admitting that Alibaba wasn’t “too big to fail.” U.S. trade officials, who briefed reporters under the condition of anonymity on Thursday, said they have been encouraged by Alibaba’s stakeholder engagement as well as the assurances the Chinese company has provided, noting that the group has reportedly removed millions of listings of counterfeit and pirated products from its ecommerce platforms. One U.S. trade official said the USTR list is intended to prod foreign governments to address IPR challenges and praised the Chinese government for being actively engaged with Alibaba. Meanwhile, Alibaba is going on the offensive to combat counterfeiters. “Alibaba Group is dedicated to the fight against counterfeits. We work closely with our government partners, brands and industry associations to tackle this issue at its source,” a spokesman said in an e-mail in response to the report. “We also utilize technology like data mining and big data to scrub our platforms of counterfeits.” James Wilkinson, senior vice president and head of corporate international affairs at Alibaba Group, submitted public comments to USTR on Oct. 24. “Taobao continues to engage in dialogue with U.S. rightsholders both with respect to individual take-down requests and on ways to refine and streamline the notice and take-down system,” Wilkinson said in a letter to Susan Wilson, director for intellectual property and innovation at USTR. He told U.S. trade officials that Alibaba will introduce a new “three-strike” penalty sys- FASHION SCOOPS PHOTOS BY STÉPHANE FEUGÈRE BLONDE SALADE: Kim Kardashian’s first Paris Fashion Week appearance did not go unnoticed at the Balmain show on Thursday, visible as she was with her newly blonde hair and entourage that included hubby Kanye West and mum Kris Jenner. Jared Leto, on the other hand, slipped into the front row almost unnoticed due to his short, blonde Billy Idol-esque crop. “Who’s that?” Alessandra Ambrosio asked backstage, when Leto greeted her from behind his mirrored aviators. “What the f--k,” squealed the model, when she realized who it was. Leto said he cut and dyed his hair two days ago for a film role. “I’m playing the Joker,” explained the actor, who is to start filming supervillain movie “Suicide Squad.” He is certainly enjoying the shock factor of his dramatic new look. “It’s kind of fun, Kim you can walk down Kardashian the street incognito,” Leto said. Solange Knowles arrived in style — that is, early. The multihyphenate was operating on a strict agenda with one goal on top of her list: “Dance the way I want to,” she said. “I always enjoy myself when I come to fashion week in Paris, but there’s definitely never that sweaty hot dance moment.” Knowles said she would try to get a chance later, DJing for Eleven Paris, whose new campaign she’s fronting. Meanwhile, Knowles’ next footwear collection with Puma — where the musician said she was hired to produce campaigns and actively recruit designers for the brand — is due in May. — MILES SOCHA AND PAULINA SZMYDKE BLONDE AMBITION: Things got a little frenzied at the Lanvin show in Paris on Thursday, as photographers jostled to get pictures of guests including Kanye West, Kim Kardashian, Kris Jenner, Kelly Rowland and Solange Knowles. Words were exchanged with security guards, and French Vogue photographer Saskia Lawaks was attempting to maneuver into the fray to get a shot of Rowland and Knowles, who greeted each other with a warm embrace. Observing the scene, Jared Leto decided it was time for some crowd control. “Excusez-moi!” he hollered at the pack of snappers. “Look at the one lady here. Come on! The one lady. Let her get in The USTR said in a report that it is concerned about recent allegations of counterfeiting and digital piracy on Alibaba’s platform Taobao. tem and a new tiered complaint system for expedited takedowns on Taobao some time in the first quarter. Under the “three-strike” system, a merchant will accrue one strike each time a justified complaint about a listing on the merchant’s storefront is submitted. If a merchant accumulates three strikes stemming from complaints from the same rightsholder for the same intellectual property right, the merchant will be banned from the Taobao platform. Wilkinson said the new penalty system will supplement Taobao’s existing point-based penalty system, which could potentially “ban merchants from the platform for repeated sales of counterfeit products that infringe on multiple intellectual property rights.” The new tiered complaint system will be accessible to rightsholders that have a track record of making “justi- fied requests,” which he described as “either uncontested or that are resolved in the rightsholder’s favor.” Rightsholders will need to register their IP with Taobao to submit take-down requests, an existing requirement under the current system. They must also sign a commitment letter pledging to cooperate with Taobao, “dedicate the resources necessary” to submit “justified” requests and work with Taobao if legal action results from a take-down. Under the new tiered system, rightsholders will be grouped into tiers, including an A-plus tier, he said. Rightsholders in this tier must have a “very good” record of submitting justified requests and will only need to “identify allegedly infringing listings and provide an explanation justifying the allegation,” including choosing an explanation from a drop-down list. there.” Lawaks moved into her spot and took the picture, but not before executing a little celebratory fist pump. Rowland was in town without her husband Tim Weatherspoon and keeping warm in a corner of La Grenouille. She cut through an intimate space heaving with a distinguished crowd — Carolina and Reinaldo Herrera, Mercedes Bass, Mica Ertegun, Mark Lyall Grant, the British ambassador to the United Nations — to reach her destination, right by the side of Nicky Haslam. The interior designer has just published another coffee-table book — a collection of reminisces, clippings and sketches titled “A Designer’s Life” — and so it was time again for another gathering of his long-devoted fan club, New York chapter. The leader of this cheering squad is, indisputably, Radziwill. “He’s terribly witty, terribly well-read,” she said, sounding like she could have gone on for a lot longer. They first met in London and Haslam later stayed at her home in Sicily during the summers, one of several memories he revisits in a book covering 75 years of his life. Radziwill herself couldn’t remember where or when they first met, though she does recall those Italian summers, but it was clear that the reason for their long friendship is a mutual admiration for each other. “He’s stayed with me for many, many summers, and he adores my dogs and he adores me,” she said. “I’ve seen him go through many, many, many different phases.” “Remember the punk phase?” the writer Bob Colacello added, helpfully. Finally, it seemed, he had joined her ranks as an éminence grise. “Absolutely,” Radziwill said. — ERIK MAZA Solange Knowles and Kelly Rowland son Titan. “I do miss my baby. He’s back in Los Angeles with his dad, but I’m good and I’m here with [Solange]. Thank God she’s here, because I feel like I’m good, I’m balanced now,” said the former Destiny’s Child singer, who recently lost her mother. After snapping a selfie with Leto, Jenner dished on her daughter’s dramatic new platinum hairstyle, unveiled earlier that day at the Balmain show. “I think she just wanted to experience being a blonde and wanted to have a great look for the week. I’m not really sure. I was as surprised as you when she showed up in Paris today. I was very excited, I think it looks fantastic,” she said. — JOELLE DIDERICH CHEERS FOR NICKY: On a cold night in New York City, Lee Radziwill, regal, resilient, impeccably coiffured, was Taobao will conduct a review and expects to remove allegedly infringing listings within one to three working days, where warranted. This top tier will also include rightsholders with few takedown requests until they “develop a track record that would justify placing them in a different tier,” Wilkinson said. There is also a “common complaint tier ” for rightsholders that do not have a strong record of submitting “justified” requests, who must provide proof of alleged infringement. Those listings, if deemed the take-down request is justified, will be removed within about five to seven working days. The third tier is a “special complaints” tier that all other rightsholders will be placed in. Wilkinson said Taobao took down 99.2 million allegedly infringing listings between Januar y and September 2014. Of those, 33.1 million were removed as a result of “special campaigns” Taobao conducted with 1,208 U.S. rightsholders, which resulted in the imposition of penalties on 200,000 sellers, he said. In addition, Alibaba and several major U.S. brands worked in conjunction with authorities in China targeting eight counterfeiting rings during that time period. To date, 21 suspects have been arrested and nine counterfeiting rings have been disbanded, Wilkinson said. JACK OF ALL TRADES: Jack Huston is adding a new title to his CV: eyewear designer. The British actor serves as the face of Oliver Peoples, and for spring will increase his involvement by codesigning a pair of frames. “I’m a sunglass fanatic,” Huston told WWD, calling from set in Italy, where he is filming the upcoming “Ben-Hur” remake. “They approached me about collaborating on a frame and I was like, ‘Are you kidding? That sounds awesome.’” The one-off style, which is named after the actor, features a thick acetate frame with three pin detailing along the front temples, and will be available as both a sunglass and optical frame. The frames will be available in four colors: Ebonywood, Raintree, which is a light brown, Cocobolo — which is a reddish-brown — and black. The Ebonywood and Raintree glasses will feature a new style of lenses for the brand: the VFX Plus, a polarized glass lens that features rare earth materials and infrared coating, which aims to keep eyes cool and less strained than with typical lenses. The Jack Huston sunglass frame, which retails for $475, will be available for purchase at Oliver Peoples boutiques and additional select stores beginning later this month, with the optical frame coming to retail for summer. Additionally, the sunglasses will be available on oliverpeoples. com beginning Monday. — LAUREN MCCARTHY
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