RALPH BUILDS HIS TEAM FURRY FRIENDS FASHION BRANDS ARE TURNING TO DOGS AND CATS TO HELP BOOST THEIR SOCIAL MEDIA PRESENCE. PAGE 9 WWD RALPH LAUREN PROMOTES CHRISTOPHER H. PETERSON TO PRESIDENT OF GLOBAL BRANDS. PAGE 2 BEAUTY ON THE BLOCK EUROPEAN PERFUMERY CHAIN DOUGLAS IS FOR SALE AND COULD FETCH MORE THAN $4 BILLION. PAGE 8 AUGUSTO MAZZOLARI MAZZOLAR, BALDELLI AND FERRARI PHOTOS BY PAOLA PANSINI; L’ORÉAL AND KOREA PAVILION BY DAVIDE MAESTRI; ALL OTHERS BY ANDREA DELBÒ FRIDAY, APRIL 3, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY AGONIST AT UNSCENT CINZIA BALDELLI THE KOREA PAVILION AT COSMOPROF BEAUTY IN ITALY March Madness THE L’ORÉAL PROFESSIONAL PAVILION AT COSMOPROF March may be known for the NCAA men’s basketball tournament in the U.S., but late March in Italy is synonymous with another sport — the game of beauty. For a two-week stretch, the attention of the Italian cosmetics and fragrance industry turns to three expositions, first the huge Cosmoprof trade fair opens in Bologna, then it is time for the Esxence and Unscent exhibitions of niche and artistic perfumery in Milan. For more, see pages 4, 5 and 8. Belk Eyes Strategic Alternatives By ARNOLD J. KARR and DAVID MOIN BELK INC. SAID Thursday its retention of Goldman, Sachs & Co. is part of an open-ended, five-year strategic planning process, but market sources are already playing “The Match Game” by speculating over prospective buyers or merger partners. Macy’s Inc. and Dillard’s Inc. might have too many overlapping locations to make sense and Hudson’s Bay Co., owner of Saks Fifth Avenue and Lord & Taylor, “has plenty on the table already,” said one source. There is also a lot of talk about private equity jumping into any possible bidding for the Charlotte, N.C.-based Belk. “But it’s not a fixer-upper; it’s a very well-run company that doesn’t lend itself to being bought, optimized and sold,” said Antony Karbus, chief executive officer of the HRC Advisory unit of Hilco Global. “The third generation of family management under [ceo] Tim Belk has been very forward-thinking, looking to create value for shareholders with big investments in omnichannel, infrastructure and the differentiated marketing and merchandising strategy of its “Modern. Southern. Style.” campaign. SEE PAGE 3 DARIO FERRARI UNE NUIT À BALI AT ESXENCE NEW CHIEF AFTER 15 MONTHS Major Changes at Saks: Metrick In, McKee Out By DAVID MOIN IN A SURPRISE shake-up at Saks Fifth Avenue, Marc Metrick on Thursday was named president, replacing Marigay McKee, who is leaving the company. Metrick was executive vice president and chief administrative officer of the Hudson’s Bay Co. McKee was president of Saks Fifth Avenue for just 15 months, joining from Harrods in London. Unlike McKee, Metrick is not a merchant. But he takes the Saks reins as a former insider who understands its people and culture, having spent 15 years at the store before joining HBC three years ago. Current and former colleagues characterize Metrick as very analytical with a deep understanding of merchandise allocation and planning processes, data mining, financial controls, business development and marketing, though he has experience in merchandising. He is also very witty. Getting the right brands and the right amount of merchandise has been a challenge for Saks, which has fleet of stores of varying sizes, demographics and merchandise needs around the country. Saks also competes most directly for brands against the stronger Neiman Marcus. “Marc is really a fantastic guy,” said Richard Baker, governor and executive chairman of Hudson’s Bay, told WWD. “He worked his way up at Saks for last 15 years and about three years ago we hired him and he has been a top part of our team. He was very involved in the process we went through to acquire Saks [two years ago] and has been very involved in the operations of the Saks business. We are excited to let him do his magic.” McKee’s magic didn’t work, but sources said her early departure was SEE PAGE 12 2 WWD FRIDAY, APRIL 3, 2015 WWD.COM Peterson Elevated at Ralph Lauren By LISA LOCKWOOD NEW YORK — Ralph Lauren Corp. has promoted Christopher H. Peterson to president, global brands. The position is a new one, and reporting to Peterson will be the global brand presidents, the chief financial officer, global real estate and investor relations. Peterson joined the company in 2012 from Procter & Gamble Co., where he held several senior corporate and operational roles. He will continue to report to Ralph Lauren, chairman and chief executive officer. Peterson’s promotion was one of several management changes aimed at more effectively aligning senior leadership roles with its previously disclosed organization shift to a global brand management business model. According to the company, Peterson’s experience in strategically transforming business and operating models from regional- and market-driven organizations to global brands during his tenure with P&G will enable him to play a key role in directing Lauren’s organizational transformation. Jackwyn Nemerov remains president and chief operating officer and a member of the company’s board of directors. Reporting to Nemerov will be the group presidents for Europe, Asia-Pacific and the Americas, in addition to wholesale, retail, ecommerce and licensing. Nemerov joined the firm in 2004, was named to the board in 2007 and will continue to report to Lauren. Valérie Hermann remains president of Ralph Lauren Luxury Collections, also reporting to Lauren. She joined the company in April 2014, having worked at Reed Krakoff, Christian Dior and Yves Saint Laurent. Reporting to Hermann are the Ralph Lauren Luxury and RRL Global Brand teams and U.S. Luxury and RRL Retail formats. Mitchell A. Kosh, previously executive vice president of human resources, has been elevated to executive vice president and chief administrative officer. He will lead the integration of key functional areas to align with the new organizational structure. Reporting to Kosh will be the global heads of human resources; information technology; legal, corporate services and facilities; internal branding and communications, and corporate social responsibility. Kosh, who joined the company in 2000, will continue to report to Lauren. Robert L. Madore, previously senior vice president of finance, has been promoted to senior vice president and chief financial officer. During his tenure at the company, he has held several key financial and operational roles. Reporting to Madore will be the accounting, finance, treasury, tax and internal audit functions. In addition, he will share oversight and management of divisional financial operations. He joined the company in 2004 and will continue to report to Peterson. “I have tremendous confidence about the future of this company and the opportunities for our brands around the world,” Lauren said. “We have an experienced and proven management team in place. As we move to a new global organizational structure, these ex- ecutive leadership changes will allow us to maximize the potential of our brands and drive global growth.” Omar Saad of Evercore ISI wrote in a research note Thursday that he viewed the key management changes “positively” as Lauren continues to radically change its operating structure. “We are very encouraged by the moves, as they signal acceleration in the company’s critical organizational transformation which we believe is necessary to succeed in today’s global omnichannel environment,” the note said. He wrote that Lauren was shifting to a platform centered around brands and consumer segments from one built around channels and regions, “and it reminds us of the transformation Nike began eight to nine years ago, shifting from product categories to sport-specific divisions. “We are fully confident in Chris Peterson’s ability to execute and lead this transformation and position the company for a renewed phase of growth,” Saad wrote. He pointed out, “We recognize that we are likely to see a couple of quarters of relatively choppy performance as these changes are implemented, particularly as Ralph is confronting some significant macro and company-specific headwinds. The company is undergoing a significant amount of change at a time when the business has slowed and is facing increased volatility as a result of FX headwinds, weaker factory outlet traffic, and sluggish U.S. fullprice retail comps. Ultimately, these organizational changes are critical to properly aligning the company with the future of consumer behavior and should meaningfully accelerate shareholder value creation over time, but the positive impacts may take a few quarters for the market to see and fully appreciate.” Christian Buss, an analyst at Credit Suisse, said, “I think Ralph Lauren has been engaged in a multiyear rationalizing of their organization. We think what they’re in the process of doing is taking a regionalized business and turning it into a centralized business, with brand and back office control in New York.” He believes it will unlock operating margin in the business. Buss considers Peterson’s elevation a good move. “It’s important to appreciate he was a part of one of the largest SAP implementations” at P&G. “He has experience managing a rationalization of a corporate organization,” Buss said. During its conference call in February, Lauren revealed a few details about its new global brand management operating model, which it said could yield $100 million in annualized savings once fully implemented. The move was said to help offset external issues down the road, especially if currency pressures continue and store traffic remained a risk for the company. For the third quarter ended Dec. 27, the company posted a rare miss on profits and revenues, and lowered the fourth-quarter bar with its second guidance revision downward in the past year. Peterson said the company bought back a number of licenses — both by geographic region and product category — and had begun investing in systems to view its data on a global basis. He said the new structure would unleash the power of the company’s different brands and provide brand consistency. DIGITAL BRIEFING BOX FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE. Top Men’s wear Instagrams of the Week: See our picks for the best posts from the world of men’s wear. Jil Sander ON WWD.COM Kate Spade Fall 2015 Accessories: WWD scouted the season’s best shoes, handbags, jewelry, eyewear and more — direct from the runways and designers’ showrooms in New York, London, Milan and Paris. Mary Katrantzou Valentino The Kooples Said to Be Drawing Interest By MILES SOCHA PARIS — Hot French fashion chain The Kooples is the latest “affordable luxury” property to get private equity players into a lather. According to sources, General Atlantic’s chief executive officer William E. Ford met with Kooples executives in Paris last month, and private equity fund Permira has also kicked the tires. Reached on Thursday, Kooples ceo Nicolas Dreyfus told WWD he has met with many private equity funds that are attracted by the retailer’s strong results and growth prospects, confirming the meetings with General Atlantic and Permira. But he said there is no official sale process and no bank has been given a mandate to explore a possible sale. Founded in 2008 by brothers Alexandre, Laurent and Raphael Elicha, The Kooples is ramping up expansion in the U.S. and tracking double-digit growth. In a recent interview, Dreyfus said the brand was logging same-store sales growth of 9 percent in the U.S. and the brand was on track to finish its fiscal year ending Aug. 31 with sales of $28 million in the U.S. and Canada. The company is forecasting total sales of 220 million euros, or $267.4 million at current exchange, this fiscal year, which represents 20 percent growth year-on-year in reported terms and a same-store sales increase of 9 percent. Dreyfus predicted earnings before interest, taxes, depreciation and amortization of 38 million euros, or $46.2 million, for the period, and this will help fund the firm’s expansion. In 2011, the Elichas sold a 20 percent stake in the company’s capital to private equity fund LBO France, the first of many transactions involving fastgrowing French labels with a high fashion quotient and an “affordable luxury” positioning. LBO declined to comment Thursday. It is understood the fund has also received expressions of interest, but not launched any formal process. TA Associates acquired a 30 percent stake in Zadig & Voltaire in 2012, and Kohlberg Kravis Roberts & Co. bought a 65 percent stake in SMCP, parent of the Sandro, Maje and Claudie Pierlot chains, in 2013, signaling heightened investor interest in the segment. Alongside BDT Capital Partners, General Atlantic made a minority investment in Tory Burch, an American fashion brand with attainable positioning, in late 2012. The Kooples recently opened its fifth American boutique on SoHo’s Mercer Street, its second store in New York. The brand — whose preppy clothes have a rock ’n’ roll slant and are aimed at couples — is also carried by Saks Fifth Avenue and Nordstrom, as well as specialty stores. The Kooples operates about 150 wholly owned stores in Europe and boasts a total of 360 sales points worldwide. CORRECTION The Louis Vuitton cruise collection will be shown in Palm Springs, Calif., on May 6. This was incorrect in a Fashion Scoop on page 6, Thursday. 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. 68. FRIDAY, APRIL 3, 2015. 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WWD FRIDAY, APRIL 3, 2015 3 WWD.COM Isetan Salone Opens in Tokyo Ruffian Designers Launch Wolk Morais TOKYO — As it continues to shift its focus to include not only traditional department stores but also smalland medium-sized concept shops, Isetan Mitsukoshi Holdings is opening a new multibrand boutique in Tokyo’s Roppongi district. The store, called Isetan Salone, is set to open Friday at the Tokyo Midtown luxury mixed-use complex and is about 9,700 square feet of selling space on two levels. It will stock a selection of women’s fashion, accessories, beauty products, jewelry and gift items from about 90 brands. Hiroshi Onishi, president and chief executive officer of Isetan Mitsukoshi Holdings, said while, product-wise, the store is almost like a mini version of one of its large-format department stores, the company hopes to use it to attract new customers. “There actually aren’t that many people from this area who go to our Shinjuku store,” Onishi said. “So this time we wanted to create a store where people from around here who like fashion can come to find things that fit into all aspects of their lifestyle.” The Roppongi neighborhood was seen as mostly an entertainment district until just over a decade ago, when the Roppongi Hills complex opened, bringing the area its first luxury shopping destination. Tokyo Midtown followed a few years later, and the area is now known not only as a retail center, but also as a business and cultural hub. It is home to many wealthy residents, from business people and diplomats to artists and creative types. The interior of Isetan Salone was designed by well-known photographer and architect Hiroshi Sugimoto. It was his first retail project, which he said was challenging because the standards and requirements are so exacting. Sugimoto used mainly traditional Japanese materials, but applied them in unexpected, modernized ways. The wall behind the staircase, for example, is covered in overlapping round pieces of galvanized tin, which was used on the exterior of buildings at the beginning of the 20th century due to its fireproof properties. Another wall is covered in hammered aluminum, which was traditionally used to make Japanese kettles. Other elements include Japanese rice paper; natural, unfinished Japanese cedar, and tiles baked specially by a centuries-old workshop that normally fills orders from Buddhist temples. The product selection at the store is eclectic but luxury focused. Sportswear by Adidas Originals By MARCY MEDINA PHOTO BY YUKIE MIYAZAKI By KELLY WETHERILLE Inside Isetan’s new boutique. hangs near clothing by Carven and Sacai. There are shoes by Valentino, handbags by Fendi, casual tops by No. 21, perfumes by L’Artisan Parfumeur and Penhaligon’s, cosmetics by Nars, and jewelry by Franck Muller and Georg Jensen. Onishi said he hopes to open more of these smaller-format, fashion-oriented boutiques, ranging in size from roughly 10,000 to 50,000 square feet. One such store is being planned for the central Japanese city of Nagoya, with a targeted opening of next spring. At about 32,000 square feet, Onishi said the store is large enough to include not only fashion and beauty products, but also interior and lifestyle goods. He added if the company finds the right locations, it could open up to 10 of these kinds of stores over the next three years. The opening of Isetan Salone coincides with a handful of other store openings within the Tokyo Midtown complex, including Aesop, Tasaki and Bamford. DESIGNERS BRIAN WOLK and Claude Morais are still in the honeymoon phase of their Los Angeles love affair. Inspired by their recent move from New York, the Ruffian designers will launch a new line called Wolk Morais on April 13, which marks the one-year anniversary of their arrival in Hollywood. Focused on the pre-seasons rather than spring and fall, the line will offer a dressier take that Wolk calls “luxury sportswear with evening elements” meant to be worn year-round. It will be shown in October and April annually. All pieces are sourced and produced in Los Angeles and will retail between $795 and $4,995. “When we moved here there was a dramatic climate change in our native New York and it gave us a new perspective on the way women dress. The pre-seasons make {Continued from page one} investments in stores, e-commerce and infrastructure reduced net income by 7.8 percent to $146.1 million. Fourth-quarter profits grew 8.4 percent to $104.4 million while quarterly sales rose 5 percent to $1.39 billion, with comparable sales up 4.8 percent and half of 8.4% BELK’S FOURTH-QUARTER RISE IN PROFITS. that increase coming from a 42.2 percent rise in online sales. “That’s a pretty good track record in a retail environment you’d have to be generous to call ‘choppy,’” said one retail source. But even with sales growth, the challenge of keeping up with the competition in an increasingly tough retail environment is formidable. and activewear and more by Old Hollywood designers like Adrian and Norman Norell. “We saw a need for luxury sportswear and what better place to flex a new muscle? Women here aren’t afraid of color so you’ll see that as well,” Wolk said. “We’re also starting to dress a whole new world of celebrity that we’ve never explored before.” The designers worked with stylist Elizabeth Stewart on the collection, and count Stewart’s daughter, Ivy Bragin, as one of their muses. They also just dressed one of Stewart’s star clients, Jessica Chastain. “We live in a world of Instagram where news comes out quickly, and we wanted to ensure we were 100 percent ready with this line,” said Wolk of the short-lead announcement, “But we’re still about two weeks ahead of resort season.” As for Ruffian, the designers said they haven’t decided where to show the spring 2016 collection come September. Apparel Tops Fed Counterfeit List By KRISTI ELLIS WASHINGTON — Federal officials made 7,922 seizures of counterfeit apparel and accessories — making it the top commodity classification — valued at $113.6 million, in fiscal year 2014, a year-end report released Thursday showed. The number of seizures was down 5 percent compared with fiscal year 2013, when officials snagged $116.1 million worth of bogus apparel and accessories, according to the report by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “Protecting intellectual Belk Inc. Exploring ‘All Options’ The Bon-Ton Stores Inc., which itself expanded through acquisitions in the last decade and had sales of $2.76 billion but a loss of $7 million last year, is struggling to return to profitability. Still, one department store executive said its regional reach across the Middle Atlantic and Midwest “would be a perfect fit” with Belk’s Southern presence and pedigree. “There is no geographical overlap and they are so similar in terms of the type of customers they appeal to,” the source said. “They’re very middle market. They have similar matrixes. All the major vendors at Belk are major vendors at Bon-Ton.” Belk has distinguished itself through disciplined management that has generated excellent profits and lots of cash, despite major investments in infrastructure, ecommerce and both the building and renovation of flagships. Last year, Belk’s sales rose 1.8 percent to $4.11 billion, even as the most sense because they have the longest shelf life and been most financially successful for our retailers.” The duo says they moved West to have creative freedom outside of the traditional New York fashion system, and showed Ruffian’s spring 2015 collection at Gavlak Gallery in Hollywood. This time, they’ll debut Wolk Morais at Kohn Gallery, fitting because it was the minimalist West Coast painters known as the “Cool School” who inspired the collection. “Like painters, we work on various canvases simultaneously. We find the gallery scene really inspiring and the city has a wonderful art scene that has really migrated out here. That freshness, and the youth culture really inspired this line,” Wolk said. Morais described the line as “youth couture. It’s unfussy and useful, very appropriate for a young modern woman.” Unlike many of their contemporaries, the designers are inspired less by street “Macy’s and Nordstrom are big competition and Kohl’s appears to be coming back,” said one former retailer who’s now engaged in retail consulting, “and Penney’s would still be a challenge if not for its detour a few years ago. You know the members of the Belk family like to go to work in a place that has their name on it, but you do wonder if they’re thinking that maybe it’s time to harvest what they’ve planted, or at least take some money off the table.” Gilbert Harrison, chairman of Financo, commented, “The Belks have done an outstanding job competing in a difficult environment where the large players dominate the retail landscape. There are a host of companies that certainly we believe would be proud to partner with them. Today, to survive in this world, you need volume, and the quickest way to get volume is to buy.” Sources mentioned the possibility of an overseas buyer es- property rights is a critical part of CBP’s trade enforcement mission and critical to protecting American consumers,” said commissioner R. Gil Kerlikowske. “In 2014, $113.6M VALUE OF COUNTERFEIT APPAREL SEIZED IN 2014. strong partnerships with our federal enforcement counterparts, effective targeting of high risk shipments and frontline interceptions of cargo at America’s ports of entry produced more than 23,000 seizures of fake products worth an estimated $1.2 tablishing a U.S. beachhead with Belk. They also pointed to less conventional strategic alternatives, all facing obstacles, such as a public offering; the acquisition of another retailer, possibly one deeply involved in e-commerce or a smaller regional operation like Stage Stores Inc., or the sale of its real estate assets to a real estate investment trust, as retailers such as Hudson’s Bay Co. and Sears Holdings Corp. have recently explored. Belk owns about a quarter of its fleet of 297 stores stretched across 16 Southeastern states, owns buildings under ground leases for another quarter and leases slightly more than half. When Belk confirmed Thursday that it had retained Goldman, as Reuters had reported earlier in the day, the retailer noted that its five-year plan would be assembled as it competed in a “rapidly changing industry. We are coming off a successful fourth quarter, have a strong financial position and are enthusiastic about our future. We also believe that we have an obligation to consider billion that could have cheated or threatened the health of American consumers.” The apparel and accessories segment includes clothing as well as hats and belts. In categories that are broken out separately, CBP and ICE officials seized $375.3 million worth of counterfeit watches and jewelry in the year. Officials also seized $342 million worth of fake handbags and wallets. Seizures of bogus footwear were valued at $49.5 million. China continued to be the number-one source of counterfeit and pirated goods, accounting for 63 percent, or $772 million of the value seized. Hong Kong ranks second with $310 million or 25 percent. whether there are alternatives to our current plans that would provide a better return for our shareholders. “As such, we are performing due diligence for our stockholders,” the company said, “to carefully explore all options for our future.” One retail consultant noted, “When I think about Belk, what really strikes me is the combination of their respect for the past as well as their respect for the future. They’ve never resisted the changes in retailing and new management under Tim Belk brought a very solid modern view of the retailing to a business with more than a 125-yearold heritage.” Tim and his brothers John and H.W. McKay Belk are the sons of Thomas Belk, former president of the company and the son of William Henry Belk, who founded the company in 1888. “I never thought they’d sell the company, and I’m still not sure they’re going to,” the retail source said. “But you don’t get involved with the people at Goldman unless you’re serious.” 4 WWD Friday, april 3, 2015 beauty Beauty Blooms Once Again in Italy BoLoGna, italy — after nearly a decade of balance sheets squeezed by highly unfavorable currency translations, italy, along with the rest of europe, is breathing more easily, thanks to the current devaluation of what was once termed “the super euro.” that was evident during a series of interviews with attendees and exhibitors at the Cosmoprof trade show that ran from March 19 to 23 here, as well as with key beauty industry players in Milan and fragrance exhibitors at that city’s esxence and Unscent fine fragrance shows. Whether in corporate showrooms and offices, on selling floors or in the cavernous pavilions of the Bologna fairground, there was talk of expanding, adding factories, investing in licenses, opening stores and cranking the export machine to a higher pitch. a perceptible sense of confidence was beginning to emerge in late March, which has become beauty time in italy, thanks to the confluence of industry events. “europe is back,” declared Dario Ferrari, founder and president of intercos, speaking at company headquarters in agrate Brianza, italy. “We do have an incredible opportunity because of the [strength of the] dollar, [dropping price of] oil, because we are finally doing what we should have been doing for the last five years — quantitative easing.” speaking of the president of the european Central Bank, he said: “Mario Draghi is finally printing money and buying bonds. and so the first two, three months of this year — wow, everybody is making money. everybody is more optimistic.” roberto Martone, vice president of itF and president of iCr, said he was adding 100,000 square feet to his 466,670-square-foot iCr factory in Lodi, italy, by the end of 2016, and keeping an The Nail Pavilion at Cosmoprof. del Duomo closed 2014 with a “very positive” performance in beauty sales, up 7.5 percent on-year, according to Cinzia Baldelli, La rinascente’s head of home, media and travel, beauty and children’s wear. and that’s despite the floor having lost 2,222 square feet of selling space to watches and jewelry. exports have been driving this newfound optimism. in 2014, sales abroad were up 4.9 percent over 2013, comprising 35.6 percent of total italian cosmetics — Dario Ferrari, intercos care and coloring company Framesi, said: “We need to work on the identity of the event for the new millennium.” “it’s a little bit more geared toward the salon professional sector, [whereas] i’m a retailer and looking for brands,” said Greg tappan, senior buyer for skin care at hsn, who was returning to the show after an eight-year absence. “they’re looking for a distributor…and find out i’m a retailer and are not as interested.” Cosmop rof ’s p ackaging arm Cosmopack was making a strong push, and the nail pavilion was easily the liveliest part of the fair — mobbed to the tune of amped up rock music. L’oréal made a startling comeback in Cosmoprof ’s main central hall. the French beauty giant returned with all of its professional product brands, a hairstyling competition in conjunction with Vogue and a showcase of its salon emotion concept that is meant to help the growth of europe’s hairdressing industry. it involves three main steps, including training and raising awareness of services; personalized advice and guidance to modernize salons, and simplified financing. at Cosmoprof, L’oréal was showcasing “the perfect journey” for people in salons — including the welcome, diagnosis and back-bar experiences. in italy, the company inked a partnership with samsung for hyper-creative, multidimensional digital components. these include a flat screen in salon windows, which functions as an interactive touch point for the consumer. Connected with an application, the screen allows people to book appointments, see products available at the salon and what looks it can create, for instance. L’oréal was not the only one thinking about the future. intercos recently opened an office in Culver City, Calif., and an innovation center in Korea, said Ferrari in agrate Brianza. “We are in the middle of this big change….We identify more than 130 emerging brands [that are] very successful globally, but [in the West Coast of the U.s. alone] you have 35,” he said. “and they are really creating some problems for the big guys, which are suddenly too slow.” ’’ ’’ Europe is back.…Wow, everybody is making money. Everybody is more optimistic. eye out for new fragrance licenses. in January, spanish Gruppo angelini completed its acquisition of itF, having already bought a 60 percent stake in 2013. While silent on the subject, another fragrance powerhouse, euroitalia — which registered 2014 wholesale revenues of 679.3 million euros, or $902.8 million at average exchange — is rumored to be shopping for another major designer brand to add to its portfolio of licenses that includes Versace and Moschino. augusto Mazzolari, owner of Milan’s Mazzolari premier perfumery, said he aims to open a new unit in another choice section of the city “by the end of this year or next year,” working with one of his daughters. noting business this year was off to a solid start, Mazzolari said in addition to his long-standing Milanese clientele, a steady stream of Middle eastern customers were now outnumbering the russian and Chinese visitors at his store. “People want quality, they want experience, they want to feel good inside a store, with service on a silver platter,” he said. La rinascente is at work on a new flagship in rome, slated to open in February 2017. the existing Milan flagship in Piazza Photo by DaviDe Maestri By Cynthia Martens and Pete Born industry revenues of 9.36 billion euros, or $12.4 billion at average exchange for the year, according to Cosmetica italia. Fabio rossello, president of the italian cosmetics industry trade association, tied the fate of the italian beauty industry to the task of retooling the Cosmoprof trade show. as far as he is concerned, the fair needs to ignite exports. For companies, “there needs to be a minimum return on investment in terms of capability to export,” rossello said. “each company that comes here comes not for the internal market, but for the exports.” in all, 248,000 visitors attended Cosmoprof this year, a 20 percent jump over 2014. of that, 79,000 people came from outside italy, representing 30 percent more than the prior year. seventy percent of Cosmoprof ’s 2,493 exhibitors were foreign, with many of them presenting their products in the fair’s 27 country pavilions. While show organizers have gone to great lengths recently to add features such as panel discussions, seminars and expanded visits by retailers, some industry leaders maintain that more needs to be done in renewing Cosmoprof ’s purpose. Fabio Franchina, president of hair Ferrari also singled out Koreans as new market leaders. “the game is speed. What do the Koreans do very well?” Ferrari continued. “they are fast, and at the same time, they have a lot of creativity and they work on concept.” “the Korean wave is really, really big right now,” agreed anita yuen, director of beauty at harvey nichols’ beauty division in hong Kong. she attributed the success of Korean beauty products to their slick public relations links to popular culture, such as Psy, the singer who put “Gangnam style” on the map. Myun W. Lee, a professor of ergonomics in seoul, experienced an epiphany when Koreans were shunned from tradeshow exhibition halls because they had the reputation of being “copycats.” “Money made by copying things doesn’t get any respect,” he said at his Cosmoprof booth. “We need to contribute.” Lee’s contribution was the creation of four innovative hair-related machines, the most recent of which is the patented WinkMagic for eyelash extensions, applying lashes with 0.1-millimeter precision. “it’s our turn to let other people copy us,” Lee said. Korean brand it’s skin was making its debut at the trade show and seeking to boost its european distribution, according to Cheol-Woong Lee, a member of the company’s global business development. the skin-care company with 700 stockkeeping units retails in freestanding stores, shops-in-shop and travel retail. another Korean label seeking increased european distribution was ami Cosmetic, which has five skin-care lines. the company was trying to push its Pureheal’s brand in pharmacies, said sunny Lee, assistant manager in the firm’s overseas business division. hanwoong was featuring its masks to be used in three-step treatment processes for different parts of the face. Jungyeon Lee, deputy general manager of the company’s sales and marketing team, explained hanwoong primarily manufactures private-label masks. hsn’s tappan highlighted another trend he had detected: mesotherapy, WWD FRIDAY, APRIL 3, 2015 5 WWD.COM Fabio Rossello Rekha Chaudhari Anita Yuen Roberto Martone David Moràn Sunny Lee Peter Yang Fernando Fischbach Davide Bollati Myun W. Lee Paolo Bevegni and Daniela Sarcedote Cheol-Woong Lee Enrique Arturo Lerma Cordero and Christian Cuadra Estrada JungYeon Lee Greg Tappan Eli and Samy Saadia MARTONE AND BEVEGNI PHOTOS BY PAOLA PANSINI; ALL OTHERS BY DAVIDE MAESTRI typically a medical procedure practiced going retailers’ program. She distributes by doctors and trained beauticians, which luxury brands in the country’s spas and educates their staff. was being offered in home-use versions. Chaudhari noted salons in India are “They make tiny little injections, and it’s hyaluronic acid and multivitamin concoc- growing quickly, with a 25 percent increase tions, and they inject it into the skin,” he in the past three years, and both the men’s explained. “The idea is they’re stimulating and antiaging categories are on the rise. “This was not in the Indian culture at the fibroblast to produce collagen. But it’s different from dermal fillers, where they’re all, but now it has developed very well,” filling a wrinkle. Everyone’s trying to get she said. Other segments are gaining steam this deeper-penetration story in skin care.” One professional brand, called Fusion in Mexico. “A lot of women are changing their Mesotherapy, is produced by Spain-based Oxynergy Paris. Its treatment, often used lifestyle and turning to dermo-cosmetic in sports medicine, consists of injecting brands” that are supported by medical a cocktail of 70 active ingredients and vi- research, said Enrique Arturo Lerma tamins into the mesodermis, located be- Cordero, senior buyer for dermatologic pharmacies and spa at Liverpool, where tween the dermis and the epidermis. “It’s skin rejuvenation,” said Raphael bestsellers include Vichy, La RocheDuérinck, director of Oxynergy, which is Posay and Avène. The retailer’s top seller in masstige is distributed primarily to doctors’ offices in Europe, Russia, the Middle East and U.S. NYX, added Christian Cuadra Estrada, The brand sells one million treatments a senior buyer personal care at Liverpool. For Group Uniderma, banner brands inyear, which can cost $100 to $150 each, and a half million vials of preparation, which go cluded Dr. Murad, DDF and Tweezerman. “Sun protection is very big in for 10 euros, or $10.70 at current exchange. The palpable presence of California Mexico,” said Samy Saadia, director labels at Cosmoprof underscored Ferrari general of Uniderma. Like elsewhere, Sephora is on a growth of Intercos’ assessment of the West Coast track in Mexico, according to David Morán, as a new hot spot. Among the Golden State brands was marketing and merchandising director at Emani, an eight-year-old wholly vegan Sephora Mexico. He said within five years beauty company whose products are sold or less the retailer would like to have 25 in upscale drugstores, spas and through stores. There are now 10 units operating, with six of them in Mexico City. Another home shopping in 13 countries. “I wanted to create a makeup range unit is now being opened in Maya Riviera. At Sephora Mexico, about 60 percent of that is an extension of your skin care,” said Michelle Doan, founder and creator business is rung up by makeup, 25 percent of the brand. She also sits on the board of skin care and 15 percent fragrance. In color cosmetics, best-selling brands include the the California Trade Alliance. “I think California really does embody a Sephora private label, Urban Decay, Make different state of mind and a different state Up For Ever and Benefit. For skin care, of beauty,” she said. “When we come to the Peter Thomas Roth, Dr. Murad and Dr. fair, we want to raise the awareness of what Perricone figure among top sellers. Back in Italy, the current beauty renaiswe do. It would be nice to get new distributors, but we really want to bring green cos- sance is largely driven by the spurring of exports with a massive “Made in Italy” metics to the forefront.” Most California brands hoped to ex- campaign, and the stabilization of the dopand their European retail reach while mestic market. At Cosmoprof, Davide Bollati, foundat Cosmoprof. Free Your Mane, a prestige er of the Davines and line of health and beauComfort Zone profesty products positioned FOR MORE COVERAGE OF sional brands, was showto celebrate the beauty ITALY’S BEAUTY BASH, casing his newest range, of diversity, was lookCHECK OUT WWD.COM FOR: Essential Haircare. ing for distribution in Composed of nine prodGermany and the U.K. ■ New faces in the uct families, it culls inAfter hair care, the Extraordinary Gallery gredients from around Los Angeles-based brand at Cosmoprof. Italy, working with smallwas launching its body■ New innovations from scale farmers in a deal care line and gearing up the Cosmopack section of with the country’s Slow to premiere a bathing the sprawling Bologna fair. Food Foundation for range in Anthropologie’s Biodiversity. upcoming expanded ■ The Unscent exhibition In Italy, “there are as beauty concept. The in Milan. many as 400 [small-scale dozen sku’s will first be ■ The highly regarded farms], but we picked introduced to the recosmetics trend forecast only the ones that have tailer’s top five locations by Intercos. some sense in the beauty before rolling out in all ■ The latest with Cosnova. industry,” Bollati said. of its stores. ■ Cosmoprof’s hot spot: “It’s not new that the “The whole concept beauty industry takes of the line is bringing the nail pavilion. plants, but here the selecbathing rituals from tion has been done, and the four corners of the world,” said Israel Segal, founder of Nola everything has been done, under the prinIndustries, the parent of Free Your Mane. ciple that biodiversity is increasing the rich“It will be a very holistic experience” and ness of the planet.” In Milan, a timid but growing sense include items such as tea, incense and of confidence is given life by the coming bath salts. La Femme Cosmetics, of El Monte, Calif., of the World Expo, which is expected to was at Cosmoprof for the first time and attract 20 million people to the city besearching for new European clients, as well. tween May and October. The Milanese are “Our product lines are geared toward betting this will be a boon for business: professional makeup artists,” said Peter Collistar, for instance — Italy’s numberYang, owner of the company and also its one makeup and treatment brand in the resident chemist. He said most of his selective market for 12 years running — is customers, including Disney, are part of creating a special welcome campaign for California’s entertainment industry and visitors in English, Russian and Chinese. As it holds on to the pole position in interested in La Femme’s blushes, lip stain and semipermanent lip liner be- difficult economic conditions, the firm cause of the products’ lasting, high-sat- has managed to increase its share of exuration intensity, which is important on ports to 40 percent of sales. “Even in the worst moments, beaucamera. La Femme also offers refills. “We’re not really in Europe yet, which ty had an appeal. We hope to get to the is why we are at the show,” said Fernando levels of a few years ago,” said Paolo Fischbach, vice president of sales for Bevegni, the company’s international diCalifornia Mango, a professional salon rector, referring to the domestic market. Said the firm’s chief executive officer vegan hand and body care brand with all Daniela Sacerdote: “It seems that a betof its products boasting a mango scent. Buyers from around the world were ter period is beginning; I’m optimistic, certainly on the prowl. Rekha Chaudhari, and I think we can do better.” spa and wellness expert for JCKRC in — WITH CONTRIBUTIONS India, was at Cosmoprof as part of its onFROM JENNIFER WEIL 2015 CEW INSIDERS’ CHOICE Acne TreATmenT eye ProducT mAss hAir coloring ProducT c Borghese Fango Purificante Purifying Mud Mask c coty inc. 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The Niche Roars: Esxence in Milan and Pasiòn Choco, a fruity, oriental scent with a touch of dark chocolate. Among the Italian exhibitors, My Inner Island MILAN — Artistic fragrances have grown so was back for the fourth year. “In Italy we’re quite well distributed; we’d like to become betpopular, they’ve outgrown their niche status. “I don’t think that it still is niche — it’s ter known abroad,” founder Valentina Giordano something parallel. We have old luxury, and we explained, citing the Middle East and Russia as areas of interest. have new luxury,” said George With a lab near Pisa, Davidov, chief executive ofTuscany, and natural inficer of the Giorgio perfumery gredients from places like in Rostov on Don, Russia. He Madagascar and Zanzibar, was cruising the stands at the Africa, Giordano said My Inner seventh edition of Esxence, Island fragrances are highly Milan’s annual artistic perconcentrated — at 30 percent fumery show, held this year juice — and meant to be soothin a roughly 64,580-squareing on the skin. In Italy, a 50-ml. foot space in the trendy Porta bottle sells for 85 euros, or $92. Nuova district. Palmiro Péaquin, cofounder Nearly 6,500 people visited of Uèrmì Fragrance Collection Esxence this year, almost a six (pronounced “wear me”) said percent uptick over 2014. About the brand interpreted “the conhalf were retailers and distribunection between textiles and tors, and 51 percent were from perfume, through smell.” outside Italy. Of the 165 exhibHe and partner Aurora iting brands, 30 percent were Carrara brought three experiItalian; 82 had been at Esxence enced noses on board — Philippe before; 74 were considered Bousseton, Jean Jacques and “emerging”, and nine were Antoine Lie — to develop olfacpart of Esxkin, the first area Nishane’s Wùlòng Chà fragrance. tory definitions of suede, velvet, dedicated to niche skin-care denim and cashmere, among and cosmetic products — a catother textiles. Each 75-ml. eau de egory Maurizio Cavezzali, ceo of parfum sells for approximately Equipe International, which or115 euros, or $125. ganizes Esxence, said is booming. “Our ideal retailer is either “The serious brands could a clothing store, or a selective see significant expansion,” he perfumery,” Péaquin said, addsaid. “In three or four years, ing he has his eyes on Japan this could become a dual fair.” and the U.S. He added that while the spotStefania Squeglia left a calight often shines more brightly reer in entertainment induson large-scale Italian trade try event planning to create shows, niche fairs respond to Mendittorosa, a fragrance line the needs of a specific audience, she called “beyond niche,” with and are irreplaceable. ingredients from Grasse and Noting that mass market handmade artisanal packaging fragrances are subject to countfrom Italy. less rounds of testing before Fewer than 100 specialthey reach stores, Alexandra ized stores carry the brand, in Cubizolles, ceo of Une Nuit Europe and the Middle East. à Bali, a French brand at One of Mendittorosa’s scents, Esxence for the first time, said called Le Mat, is a tribute to consumers were tired of this the unnumbered fool’s card in formulaic approach. “If you the Tarot of Marseilles deck; it want something a bit original, features ceramic caps made by in niche what’s great is people sculptor Alessandro Reggioli. can say ‘I like it’ or ‘I hate it,’” At Esxin, Philab, a unisex she noted. “If everyone likes Laboratoires Didier Rase's Integrall Greek skin-care label, was something, it’s not a good sign.” all-in-one premium men's treatment. showcasing a complete line of Une Nuit à Bali began as antiage creams, cleansers and a line of all-natural skin-care scrubs — the most expensive products and has since exof which sells for 130 euros, or panded to include three fra$140 — in dark packaging degrances: Fleur des Fleurs, signed to prolong product shelf Suma Oriental and Mr. Vetiver. life after opening. Fabio Rulli The first retails for 85 euros, De Simone, sales director for or about $92 at current exStefano Saccani Retail Europe, change, and the other two sell which distributes Philab, for 95 euros, or $103, at consaid it was performing well in cept stores such as Colette Eastern Europe and Germany. and Nose in Paris, as well as Barcelona-based Ami Iyök Liberty in London. Ecosmetics, launched in 2014, “The idea of the brand is also favored dark packaging ‘one night in,’ and maybe we’re for its line of eco-friendly prodgoing to change destinations [in ucts. Founder Elena Alarcòn the future],” Cubizolles said. Pueyo said the brand is presNishane, a Turkish brand ent in Spain, France, Germany, also new to Esxence, was gearHong Kong and Macau, and taring up for its domestic debut geting new “niche perfumeries, this month at Harvey Nichols concept stores, luxury spas and and other department stores, some pharmacies” worldwide. said cofounder Murat Katran, Uèrmí Fragrance Collection’s Laboratoires Didier Rase, a adding that the line of 16 uniLatex scent. French men’s brand primarily sex scents sprang from an idea available at upscale spas and salons, was preof Istanbul “as the bridge between cultures.” Spice Bazaar, for instance, is composed of senting its Integrall all-in-one treatments for juniper, yuzu, rosemary, ginger, cedarwood, the face and hair, which contain a patented molcinnamon, cumin, black pepper, saffron and ecule that prevents the loss of testosterone. The fair, said Integrall sales director Dali vanilla — evoking a stroll through the Istanbul marketplace for which it is named. Other juices Khiri, was an excellent place “to get better visiinclude Wùlòng Chà, inspired by Chinese tea; bility,” because of overlap in the target for niche Afrika Olifant, a tribute to the savannah wilds; fragrance and premium skin-care treatments. Advent Seeks Buyers for Douglas By JENNIFER WEIL PARIS — Douglas, one of the biggest perfumery chains in Europe, could change hands soon, perhaps by midsummer. The German retailer has been put on the block, said Isabelle Parize, general manager of Southern Europe at Douglas Group and chief executive officer of Nocibé, which was acquired by Douglas in February 2014. Speaking at a press conference here Thursday, she said Douglas’ valuation is upward of 10 times its earnings before interest, taxes, depreciation and amortization, which in 2014 was more than 300 million euros, or $398.9 million at average exchange for the year. That values Douglas at more than 3 billion euros, or $3.25 billion at current exchange. “The shareholders would like to exit,” said Parize, con- ’’ PHOTOS BY ANDREA DELBÒ By CYNTHIA MARTENS player — either a retailer or a beauty manufacturer. “Many people are looking at Douglas,” said Parize, who added a deal could be closed by the end of July. She did not say specifically which players have been actively studying the retailer. But she hinted at the type of companies that might, mentioning U.S. drugstore giants such as CVS and Walgreen Co., L’Oréal, Marionnaud and Sephora — although a marriage with the latter two is seen by numerous sources as particularly unlikely, especially due to competition issues. LVMH Moët Hennessy Louis Vuitton — Sephora’s owner — does not comment on rumors, a company spokeswoman said. In France, Nocibé — which has integrated Douglas’ domestic units under its own name — is the first-ranked perfumery chain doorswise, with 617 units. It places second behind Sephora in terms of market ’’ There are numerous options. Today everything really is very, very open. — ISABELLE PARIZE, DOUGLAS GROUP firming reports that circulated in March. Private equity firm Advent International acquired an 80 percent stake in Douglas in 2012 and is seeking to get out of the firm definitively. Under Advent, Douglas Group has been busy spinning off noncore assets. Last year it sold the Hussel confectionary business and Christ jewelry chain. The German press has speculated that Thalia, the group’s book retailer, and AppelrathCüpper, its fashion chain, are also headed for divestment, as Douglas is focused ever more tightly on its perfumery activity. Meanwhile, Douglas’ founding Kreke family, currently with a 20 percent stake, plans to remain a shareholder and possibly invest further in the company. “There are numerous options,” Parize said of Douglas’ future. “Today everything really is very, very open.” She outlined three main possibilities looking ahead. These include an initial public offer for the company, which already was listed before, on Frankfurt’s DAX until December 2012. Douglas could also be sold to another fund or to an industry share with about 25 percent, versus 32 percent, according to NPD Group. Nocibé’s sales last year rose 3 percent at constant parameters to 980 million euros, or $1.3 billion at average exchange for the period. That’s compared with France’s overall perfumery sales, which were estimated to gain 0.5 percent. Nocibé most recently integrated 43 franchised Douglas perfumeries formerly run by Clin d’Oeil and sold 13 stores to the company Athénaïs. In Europe outside of the U.K., Douglas boasts a 16 percent market share; Sephora, 11 percent, and Marionnaud, 7 percent, industry sources said. Douglas has 1,700 stores in 19 European countries. Douglas Holding posted net sales up about 2 percent to 3.3 billion euros, or $4.48 billion at average exchange, in its fiscal year ended Sept. 30. Those revenues do not include sales from Hussel or the Swiss section of Thalia that operates as a joint venture. Banks involved in a possible sale or listing of Douglas include J.P. Morgan and reportedly Goldman Sachs. WWD FRIDAY, APRIL 3, 2015 9 WWD.COM Social Media’s Best Friend Target, Pulitzer Tandem Gets App campaign for April Fool’s Day, promoting the launch of the “Man’s Best Freds” menu at its restaurant, Freds. The retailer BRANDS LOOKING FOR a boost are tapped some of social media’s most wellturning to four-legged talent and, appar- known dogs to celebrate the arrival of ently, man’s best friend is good at con- dog-themed delicacies “for canines with good taste.” The photos hit the retailer’s necting with consumers online. In some cases, pets are even more pop- Instagram account and Web site. Images of pups like Chloe the Mini ular than their masters, including Marc Jacobs’ bull terrier Neville, who has 122,000 Frenchie (@chloe_theminifrenchie), Fred followers on Instagram (although to the de- (@livefredtastic), Pumpkin Sunshine (@ signer’s defense, he only joined the picture- ps.ny), Pica the Pom (@pica_the_pom) and Lulu Nasty (@lulunasty) were photographed with dishes from the highbrow menu for pups that included “Tuna Arfarfe,” “The Fido Wedge” salad, “Bark’s Madison Avenue Salad” and “Polletto Alla Muttone.” Barneys started posting images from the shoot on April 1, as did many of the dogs involved in the faux menu launch. Pumpkin Sunshine has the most followers of the group — over 66,000 — followed by Chloe with 27,400 Fred @livefredtastic and Pica with 26,300. in a photo for Barneys Working with animals New York’s “Man’s Best poses its own challenges. Freds” campaign. “Booking celebrity animals is as hard if not harder sharing social media network last week and than booker actual celebrities and models. It was almost easier to book Karlie already has 59,000 followers). “I see more and more brands reach [Kloss],” Lucky Magazine editor in chief out about animals. You’ve got the Mr Eva Chen said, recalling a shoot the Porter editorial that just used animals. publication did last year with Toast and They are fairly top of mind,” said blogger Grumpy Cat, who has 639,000 Instagram directory Fohr Card cofounder James followers. “There’s the logistics — and Nord about the increase in demand for non-human talent online. “The pet food and supply industry is a $53 billion dollar a year industry.” Today, Fohr Card is rolling out “Fur Card,” the first service designed to help brands work with the most influential animals on social media. Just like their human counterparts, each animal will have their own profile page, ranked by Instagram followers (stats from other social networks will be added soon). The directory contains almost 400 animals that have a combined total reach of 30 million followers per month. Four pets in the directory have over one million followers. Siamese and Tabby cat Nala, @nala_cat, is the top animal influencer, boasting 1.87 million followers. The other three that have surpassed one million fans are all dogs: Maru (@marutaro), a Shiba that has nearly 1.49 million followers; Tuna (@ tunameltsmyheart), a Chiweenie with 1.3 million followers, and Marnie (@marniethedog), a New York City-based Shih Karl Lagerfeld’s cat Choupette. Tzu with 1.2 million followers. Jacobs’ dog, Neville, is ranked 28th in the directory and The Fat Jew’s Cavalier you have to stagger the arrivals of the King Charles Spaniel, Toast (@toast- animals because they can’t all be in the meetsworld), is ranked 16 with 211,000 fans. room at the same time. You can’t have a Brands are finding increasingly creative parrot and a cat on the set.” Animals were the subject of Lucky’s ways to work with famous pets online. Barneys New York rolled out an online April’s Fools prank as well. Chen teased a Lucky Magazine “100+ Stylish Animals” issue on Instagram at Chanel’s Salzburg-set Métiers d’Art show in New York Tuesday night. Posing alongside Karl Lagerfeld and his famous cat Choupette — also the “cover girl” of the issue — Chen told followers the issue would hit newsstands on April 8. While the Stylish Animals issue might be a joke, Choupette’s celebrity is not. Choupette rose to social media stardom in 2012 after Ashley Tschudin started the Twitter account @ ChoupettesDiary. The cat now has almost 47,000 followers on Twitter and 53,000 on Instagram. It’s been reported that Lagerfeld has been on board since the beginning. In addition to updating Twitter and Instagram regularly, Tschudin writes blog posts in Choupette’s voice and supToast, The Fat ports all of the cat’s projects digitally, Jew’s Cavalier from clothing collections to a make-up King Charles pup. line to a book launch. By RACHEL STRUGATZ TARGET IS TURNING to technology to promote its upcoming collaboration with Lilly Pulitzer. The retailer has created its first-ever app for the initiative that will launch in stores on April 19. A television, digital and social campaign will hit on April 12. Print ads started running in April magazines, but they feature some of the exclusive Lilly Pulitzer prints from the collaboration, not the actual product. Target x Lilly is the company’s largest designer collaboration to date. It will feature more than 250 items, ranging in price from $2 to $150, and will include apparel, accessories, home goods, beach gear and travel pieces for women, men and children. The campaign, created by Chandelier, recreates one of Lilly Pulitzer’s legendary Sixties-era parties in Palm Beach, Fla., and features actor Chris Noth, Los Angeles Laker Nick Young, actress Bella Thorne and model Alek Wek. The 60-second video shows women and girls in the bright dresses and swimsuits as well as the colorful glasses, tea sets, nail polish and chairs created for the collaboration. Todd Waterbury, senior vice president, creative at Target, said the campaign “was inspired by Lilly herself ” and expresses “a sense of style that is optimistic, accessible and inventive — creating a feeling of inclusivity where everyone is invited, feels welcome and surprises happen.” Scenes from the commercial will be used for the app, which will be accessible through desktop computers and mobile devices. It allows customers to click on scenes from the party to get more information about the merchandise offered. Although the app is not shoppable, the merchandise can be purchased An ad from the campaign. on the Target Web site once it becomes available later this month. The digital component of the campaign was created by Olson. “We invite viewers into a fun-filled party that starts on television and extends into a digital experience where parallax views allow the guests to explore the party from their vantage point and connect them directly with the Lilly product in each room,” Waterman added. Richard Christiansen, founder of Chandelier, said: “Lilly lived life to the max. She also believed that life was a party, and was very democratic and allinclusive, like Target. We worked with Target to bring her legacy to life on television, print and mobile with a wink.” — JEAN E. PALMIERI WWD PRINT SUBSCRIBERS: PLEASE GIVE US YOUR EMAIL ADDRESS DON’T MISS OUT ON THE NEW DAILY DIGITAL EDITION! On April 29th, the print edition of WWD will re-launch in a weekly glossy format. The final edition of the daily newspaper in its current format will be on April 24, 2015. Beginning with the April 27th issue, we’ll produce a curated Daily Digital edition of WWD that will reflect the top stories of the day. It will be emailed to you before you wake up each business day! In order to ensure that you receive the Daily Digital, please go to wwd-email.com or call 1-866-401-7801 to provide or update your email address. WWD_QuarterPgAd3.indd 1 3/27/15 5:02 PM 10 WWD FRIDAY, APRIL 3, 2015 Four-Alarm Tommy Rita Ora in Tommy Hilfiger. Behati Prinsloo and Olivia Palermo Tommy and Richard Hilfiger PHOTO S BY STÉPHANE FEUGÈRE Virginie Ledoyen a wailing alarm. “It’s a four-alarm party,” Tommy Hilfiger smiled as he greeted French actresses Ludivine Sagnier, Leila Bekhti and Marie-Ange Casta, plus model Behati Prinsloo. Later, a smaller pack repaired to Les Bains Douches for more cocktails and a three-course dinner. Hilfiger noted he has a lot of history with the famous nightclub, which he described as the Studio 54 of the French capital. “When Dee was modeling in Paris, she used to go there all the time,” the designer said. “Every single weekend,” Ocleppo piped in. Virginie Ledoyen said she recently wrapped the film “Rabid Dogs” in Canada, in which she plays “a young woman taken hostage by bank robbers” opposite Lambert Marie-Ange Wilson. Next up is a role Casta in Spanish director Koldo Serra’s “Gernika.” The 7,800-square-foot flagship store at 43 Boulevard des Capucines opened in late February, and sits bang across the street from landmark concert hall L’Olympia, dovetailing nicely with Hilfiger’s rock-influenced collections. Gang’s All Here “JACK AND LAZARO asked me if I would come have dinner with them,” Liv Tyler purred from her hideout, a darkened corner of the Down Town Association’s sprawling home on Pine Street. Of course, this wasn’t your typical Tuesday night dinner party. It was Art Production Fund’s annual gala, which this year was “Gangs of New York”-themed and honored Proenza Schouler designers Jack McCollough and Lazaro Hernandez as well as the artist Haim Steinbach. The event spanned four floors of the building, built in 1859 as a club for maritime lawyers — which explained the stained glass windows with images of boats and the sea. For the social set, who have partied at nearly every venue in the city, the unfamiliar space was like unearthing a hidden gem. “Actually Yvonne [Force Villareal] came here for a Burning Man event,” said Art Production Fund director Casey Fremont. Come again? “My husband is a big Burner, and I am, too,” explained Villareal, the fund’s cofounder. “About a year ago we came to this crazy party here. And I thought if they allow an outrageous Burning Man party they’ll certainly allow an art party.” Even an art party that involved S&M-like tassels hanging from light fixtures and a temporary tattoo station by the artist Sean Landers. Tyler adhered to the “On the Fringe” dress code in a Proenza Schouler skirt with cascading fringe down the front — an item she repurposed from the brand’s spring 2015 film, though in that go-round she wore it as a top, letting her very pregnant belly poke through. (She added that new baby Sailor is “so cute, very cute.”) Claire Distenfeld paired a lace-up Givenchy bodysuit with a Rosie Assoulin skirt. “I think everyone started with Googling the movie,” she said, referring to the Martin Scorsese film. “Then once you got past Cameron Diaz, I basically clicked out of the Google image page and I closed my eyes and I was like, what do I remember?” “We like to give themes that are sort of easy to interpret many different ways,” said Fremont. “We were thinking about being on the fringe of society. There have been whips, there have been hard core gangsters and then there’s just straightforward fringe. Anything goes.” Also spotted in the crowd: A feather headpiece, a couple of lace eye masks and a handful of harnesses. Artists including Rachel Feinstein, Cindy Sherman, Marilyn Minter and model Jacquelyn Jablonski snaked past Will Cotton’s makeshift photo studio, where he shot Polaroids of people in his candy crown creations. On the second level, Steinbach had installed a metal structure with a poem affixed to the front (“I went looking for peaches and came back with a pair”) and Proenza Schouler shoes resting on the shelves. “Fashion designers are very much involved with all the visual aspects of experience, materials and appearance, and invention and play. I mean, this is totally what artists do. They are just working a different side of the field,” said Steinbach, who also worked with the designers in 2009 for a special project at Pitti W. “[His art] is just so sophisticated and so restrained and so conceptual and hard to wrap your head around, you don’t quite understand what’s going on but something about it kind of pulls you in,” said Hernandez, bronzed after a recent getaway in Cuba. “But I don’t know, he’s just one of those people we’ve always looked Lauren Santo at and admired.” Domingo in And with that, Proenza dinner was served. — ALLY BETKER Schouler. — MILES SOCHA Liv Tyler in Proenza Schouler. Lazaro Hernandez, Yvonne Force Villareal, Doreen Remen, Casey Fremont and Jack McCollough. FOR MORE PHOTOS, SEE WWD.com/eye. Sofia Sanchez Barrenechea with Victoria Traina in Proenza Schouler. Jacquelyn Jablonski in Proenza Schouler. PHOTOS BY LEXIE MORELAND eye WITH HIS ARRESTING green hair and famous girlfriend, Richard Hilfiger made quite an entrance at the cocktail Tuesday night to fete his father Tommy’s second Paris flagship store. Photographers and selfieseekers mobbed him and Rita Ora as they posed as a couple and family style with Tommy Hilfiger and his statuesque wife Dee Ocleppo. “It was my favorite look from the collection,” Ora said, spinning around to show off her dramatic, red leather parka, as roomy as a boxing robe. She noted she would be releasing a new single next month — and heading to Disneyland Paris in the morning. Ocleppo remarked on the exceptionally synthetic tinge of Richard Hilfiger’s cap of hair. “I change it all the time,” the rapper, who is also learning to play the guitar, said of his shamrock locks. Are they hard to take care of? “Well, sometimes when my hair gets wet, the color drips down my face,” he shrugged. The thumping music had a strange accompaniment: WWD friday, april 3, 2015 11 WWD.COM Fashion scoops World Cup finals in Las Vegas, the HORSING AROUND: Hermès is to host the Hermès event is expected to attract sixth edition of its Saut Hermès event in riders such as world number-one Scott Paris. The three-day event, held under the soaring glass-and-steel roof of the Brash, Edwina Tops-Alexander and firstGrand Palais, is scheduled for April 11 timer Jessica Springsteen. to 13, with the Saut Hermès competition — LAURE GUILBAULT (featuring mixed pairs of riders) and the prestigious Grand Prix Hermès show CAROLINA BOSTON-BOUND: Carolina Herrera jumping competition being broadcast in is gearing up to open a CH Carolina replay and live respectively on April 12 Herrera store in Boston this summer on a giant screen in front of in Copley Place. The new For more Paris City Hall. The broadcast location will be the label’s scoops, see will be accompanied by a mini first in New England. pony club set up on the square. are 124 CH Carolina WWD.com. There In addition to the Herrera stores worldwide competition, this year’s including 20 in the U.S. The edition will feature an Boston boutique will be equestrian display by Alexis Gruss of near Stuart Weitzman in the 75-store tony shopping center which houses Cirque National. outposts for Neiman Marcus, Barneys Forty of the world’s top riders are New York, Tiffany & Co. and Jimmy to vie for prize money totaling 665,000 euros, or $715,600 at current exchange, Choo, among others. Another newcomer to Copley Place including the Grand Prix Hermès on will be Moncler, which plans to bow April 12. Set to run just three days this fall. In the meantime, a few of the before the dressage and jumping MeMo pad RUBENSTEIN SIGNS ON AT AD: Architectural Digest is bringing Hal Rubenstein and Cynthia Frank on board. Rubenstein, who was a founding editor of InStyle, where he later served as fashion director and editor-at-large, joins the Condé Nast-owned title as a special projects editor. Meanwhile, Frank, who was poached from Elle Décor, will join the magazine as contributing design editor on April 20. Editor in chief Margaret Russell said Rubenstein would bring a mix of content, video and print, to the AD Web site and magazine. She pointed to a recent video, in which Rubenstein gave his favorite picks at AD’s Design Show. “He will be doing [video] shoots and writing for the Web,” Russell told WWD. “He’s a huge foodie. His videos will be about lifestyle topics. He will do one on a Ralph Lauren project coming up, too.” While Rubenstein will help lead the charge into video, Frank will bring her experience as an editor to the magazine’s pages through visuals. “Frank loves being behind the camera. She’s been doing this 50 years as an editor,” Russell said. “She’s so well connected and has more energy than half of my staff.” The editor in chief, who will fete her fifth year on the job in the fall, said she’s focusing on video and bringing stories that help people “live better,” which differs somewhat from the magazine’s high society bend. Russell said online stories include information on home renovations, decorating and celebrity. The May issue hits newsstands in New York and Los Angeles on Tuesday. The issue is up 37 percent in advertising pages with a total of 110 pages over last year, which according to a company spokesman, marks the AD’s best May issue since 2008. — ALEXANDRA STEIGRAD FASHION TECH FORUM PART DEUX: Karen Harvey’s Fashion Tech Forum is gearing up for its second conference on June 11 at Pier 36 in New York City. Speakers lined up so far include Theory cofounder and chief executive officer Andrew Rosen; Coach ceo Victor Luis; Into the Gloss and Glossier’s Emily Weiss; Sheree Watson, ceo of Nasty Gal; Lisa Gersh, ceo of Gwyneth Paltrow’s lifestyle site Goop; designer and retailer Steven Alan; Jodie Fox, founder of Shoes of Prey; Nikki Kaufman, ceo of Normal; Amber Venz Box, president of LiketoKnow.it; Yael Aflalo, ceo of Reformation; Thomas Thurston of WR Hambrecht Ventures, and CNN anchor Poppy Harlow. — WWD STAFF ALLURING NAIL POLISH: Allure is no longer content to simply write about beauty — now editor in chief Linda Wells and her team want to create it, too. In the ever-expanding world of magazines as brands — and attempts to find new revenue streams beyond advertising and circulation — Allure has linked up with Butter London to develop a limited-edition nail color collaboration launching in August. Called the Arm Candy collection, the assortment will include seven stockkeeping units. Six, each 0.4-oz for $15, are individual shades; a seventh sku is a set of four shades, each 0.2-oz. and sold together for $30. All will bear both the Butter London and Allure names. “We’ve done collaborations before, but they were very much one-offs for anniversaries and such,” Wells said. “What we wanted with this collaboration was really to have a partnership, not just put our name on something for a moment and have it disappear.” The six freestanding shades are Nude Stilettos, a sheer pink-nude; Statement Piece, an opaque orange-red; I’m On The List, a metallic rose-gold; It’s Vintage, an opaque rust; Disco Nap, a glittery charcoal, and Lust or Must?, an opaque charcoal-brown. The set lacquers are So Major!, a shimmery loden green; The Sweet Spot, an opaque dusty pink; Violet’s Revenge, an opaque blue-purple, and Front Row, an opaque wine. The lineup will be sold in about 2,500 doors, including Sephora, Ulta, Nordstrom, Macy’s and butterlondon. com, from Aug. 1 through March 2016. Wells declined to discuss sales projections — or how beauty brands might feel about Allure not just covering them, but also competing with them. Industry sources estimated that the lineup could do $2 million at retail in its six months on counter. — JULIE NAUGHTON NEW AT FERRAGAMO: Michela Ratti will join Salvatore Ferragamo as director of communications on Tuesday, filling the role formerly held by Andrea Tremolada, who is now at Roberto Cavalli. Ratti’s hire was confirmed by Ferragamo chief executive officer Michele Norsa. Ratti had worked for Procter & Gamble since 1995. She began her career there as a product engineer, and worked her way up to global director of communications for the P&G Prestige beauty unit, overseeing strategic management for a sizeable portfolio of brands, including Dolce & Gabbana, Gucci and Alexander McQueen. In her new role at Ferragamo, Ratti will be based in Milan. — CYNTHIA MARTENS existing tenants will be busy expanding their locations there. Tory Burch, LK Bennett and Eileen Fisher will each be in larger units in the coming months, according to a Copley Plaza spokeswoman. — ROSEMARY FEITELBERG CRYSTAL CLEAR: British fashion label Blaak is getting into the science of healing denim — launching jeans with crystals attached to the interior of the waistband. It starts with lapis lazuli. “Lapis lazuli makes you feel more grounded,” explained cofounder Aaron Sharif. A look from And more mundanely, Blaak denim these stones don’t featuring break in the washing lapis lazuli. machine, unlike crystals such as coral, he noted. “We wanted to go back to the root of when we started Blaak,” explained Sharif, who cofounded the label in 1988 with Sachiko Okada. Initially a denim label, the brand changed its offer to ready-towear, presenting during London Fashion Week between 2001 and 2004 and in Paris between 2004 and 2011. “We stopped rtw in 2012 and started researching the stones’ technique.” While the company is based in London, the jeans are developed in Switzerland, woven in Japan and made in Portugal. There is on style for men in three colors — indigo, black denim and overdyed black denim — retailing for 250 British pounds, or $371 at current exchange (and 225 British pounds, or $324 for the version without stones.) Blaak denim is to be sold on the label’s Web site at the end May — coinciding with its relaunch with an e-commerce component — as well as in Wrong Weather in Porto, Portugal and Head Porter in Tokyo, before rolling out to other stores. — L.G. SPACE SCARVES: Slow Factory and the World Wildlife Fund have joined together to release a limited-edition set of sustainably produced silk scarves. Each “Petit Atlas” scarf, hand-printed and finished in Como, Italy, features highresolution NASA imagery of some of the earth’s most unique endangered wildlife and natural land formations. Slow Factory has committed to donating 10 percent of the proceeds from the 1,000-scarf collection to vital WWF ocean and forestry projects, timing the project to coincide with Earth Day on April 22. All Slow Factory scarves are made by a fair trade, family-owned Italian business using 100 percent silk twill. All dyes and inks used in the printing process are eco-friendly, and all imagery is sourced and licensed exclusively from NASA image files. Slow Factory is part of Manufacture New York, a hybrid fashion incubator and factory for independent designers that’s housed in the Manufacturing Innovation Hub for Apparel, Textiles & Wearable Tech in Brooklyn. REACH THE FASHION INDUSTRY’S TOP TALENT WWD CAREERS.COM PRINT & ONLINE PACKAGES AVAILABLE Contact Tiffany Windju at 310.484.2537 or [email protected] — ARTHUR FRIEDMAN 12 WWD FRIDAY, APRIL 3, 2015 WWD.COM McKee Replaced After 15 Months at Saks the door opens for attracting new talent. The search for the a new chief merchant has already begun. “A more comprehensive and detailed approach [to the search] will begin in full rigor tomorrow,” Metrick said. He also said he would immediately begin developing relationships with designers and vendors to give them a sense of “comfort” that Saks would “remain steadfast” in elevating the image. Marc Metrick and fierce and unfiltered in the office. When she joined Saks, attracted lots of media attention with her rapid-fire, upfront and often refreshing observations about anything and everything — from the appeal of the Rockettes, which she hired for last year’s Christmas windows unveiling, to her Azzedine Alaïa outfits and the costs of massively upgrading the Saks fl agship. She’s been candid and, by her own admission, “usually too honest for my own good.” At Harrods, she headed up the beauty division and ascended to chief merchant, where she transformed the emporium into an international, au courant attraction. Between the cap and gloved doormen she stationed at the Saks flagship, and the Champagne bar she installed on the fifth floor, she did bring some showmanship to the setting with lots of visual changes. She’s leaving without seeing the fruits of her labor or some big projects take root. The retailer’s owner Hudson’s Bay plans to spend $250 million for a thorough renovation of the Saks flagship, though some people familiar with previous renovations at the site believe it will cost more. In an interview marking a year on the job, when asked what’s been the biggest surprise, McKee replied, “It hasn’t been the long hours — New York never sleeps. I get that. It wasn’t that the work is hard. It wasn’t the size of the pie. I definitely thought getting new brands would be among the toughest things, the brand matrix. But as a Brit coming to America, it’s the culture. Fitting into the culture. Having people understand you. Not second guessing. Trying to understand. How to best fit in. We speak the same language, but we are separated by an ocean and a different sense of humor.” The first year, she acknowledged, was “not as much fun,” but it was beginning to become fun, and that she believed she was understanding the culture and trying very hard on the job. With Metrick on board, the atmosphere will change. “Marc has a strong background,” said Steve Sadove, the former Saks chairman and ceo. “He knows the company and now there’s the opportunity to marry him and the skills he has with a new merchant.” Sadove noted Metrick’s skills would be complementary to those ’’ ’’ It just wasn’t a good fit.… In the final analysis Marigay, Jerry and I really believed it was time for us all to do something different. — RICHARD BAKER, HUDSON’S BAY “I’ve got to get out there and get to know them, so they could get to know me as well,” he said. McKee had been spearheading a significant culling of vendors that generated little or no profit for the business, which did shake up the industry. She once called the Saks matrix of 2,227 brands “impossible,” and said merchants would cut 35 percent. McKee was never one to mince words, and projected an aura of being both luminous and charming in public, Marigay McKee PHOTO BY STEPHEN LEEK {Continued from page one} less about how Saks was performing or the direction she was taking the business, and more about her management style. The flamboyant and often outspoken former Harrods chief merchant set out to reinvent Saks with greater aspirational and luxury product. Nobody doubted her taste level or sense of showmanship. She believed Saks had to be more experiential and distinctive and not just a landlord for brands. “Retail has always been about theater, excitement and fantasy,” she said last year. Considering her short run, it’s unclear whether she was taking Saks in the right direction. “If anything, the strategy will only accelerate,” stressed Jerry Storch, chief executive officer of Hudson’s Bay Co. “We will continue to elevate the brand, continue with the significant investment in New York with the flagship store, continue with entry to Canada next and all the work on the digital paradigm.” Metrick will report to Storch. With McKee, “There was never a question of taste level or where she wanted to take the business. She is a very smart, talented lady,” said a source close to Saks. “Culture and fit were the challenge. They saw that almost from day one.” “I’m sure she’s devastated, but this is probably a relief in the organization,” said another retail source. “It just wasn’t a good fit,” admitted Baker, who was very involved in recruiting McKee. “Marigay brought great vision to the company and really helped upgrade our experience and move up our luxury platform. In the final analysis Marigay, Jerry and I really believed it was time for us all to do something different.” Leadership was McKee’s Achilles heel. Her tenure saw a significant turnover of staff. “She was tough on talent,” said a source. “A lot of very good people, merchants and other functions, left. Stylistically, it just didn’t work.” Another source said sometimes people would come out of meetings with McKee crying. She once acknowledged she’s been called crazy lots of times and that she doesn’t scare easily. Among the departures were Jennifer De Winter, the retailer’s chief merchant, who joined Tiffany earlier this year. With McKee gone, effective Thursday, of a chief merchant. “Saks is extremely complicated and every store has a different matrix,” Sadove added. “Getting the right product to the right store, and having the right mix of ‘good, better best’ is extremely complicated. Certainly, that’s a challenge for every retailer, but Marc has a good sense of it.” Asked what his primary areas of responsibility will be, Metrick replied, “I will focus on everything from a customerfacing standpoint.” Most recently, at HBC, Metrick developed corporate strategies for all of the company’s banners — Saks, Lord & Taylor and Hudson’s Bay — and sat on HBC’s executive committee. Metrick has long been a key player on Baker’s team, playing an instrumental role in HBC’s 2013 acquisition of Saks for $2.9 billion and subsequently focusing with and McKee on developing the retailer’s strategic plan, which entails elevating the brand experience, building saksfifthavenue.com as part of a seamless all-channel offering; expanding the Saks store base in the U.S., as well as Canada beginning next year; and integrating Saks into the HBC business to realize more than $100 million in synergies. He joined HBC in 2012 as executive vice president and chief marketing officer, where he oversaw both the marketing and the e-commerce businesses for Hudson’s Bay and Lord & Taylor. Metrick spent the first 15 years of his career at Saks, rising to chief strategy officer. He began his career in Saks’ executive training program in 1995 before moving into senior roles in both merchandising and strategy. Sandro Prepares to Expand Retail Presence in China By PAYAL UTTAM BEIJING — Paris-based label Sandro is ramping up its retail presence in China, one of its fastest-growing markets. The brand will roll out 10 stores across the country this year and plans to open a large flagship in Hong Kong’s Causeway Bay district by September. “Considering the success we have had in the Mainland we want to continue to invest,” said Jean-Philippe Hecquet, Sandro’s recently appointed chief executive officer. “Everywhere we opened we are in line with [projections] or above.” The brand kick-started its expansion plan by opening two stores last month in Beijing’s Shin Kong Place and Chengdu’s Daci Temple, bringing its total number of stores in China to 17. “Chengdu is, of course, a huge market. Even though it was a soft opening, it’s already very successful,” said Hecquet. “It’s our largest store in Asia and almost in the world.” Spanning 2,153 square feet, the boutique carries the men’s and women’s ready-towear lines as well as accessories. The Hong Kong flagship will also carry both lines, with a new focus on the brand’s men’s collection, which has been well received in the region. While Hecquet stressed the ongoing significance of the city as “a vitrine, or window, into Asia,” with a sophisticated customer base, he observed that the Mainland clientele is catching up. “The first-tier cities in China are a bit more like Hong Kong. They know [different] brands quite well,” he said. “Now you see more people mixing brands from mass to luxury. And that’s Jean-Philippe Hecquet where we have a card to play.” He has noticed that in both men’s and women’s wear, many customers in China are taking risks instead of defaulting to safe looks. “But what they still ask for is help with styling,” Hecquet said. “So they go to your store for your product but they also go for the advice.” He believes there is a growing need for skilled store teams that can guide clients, and cites such services as a way that Sandro differentiates itself. Currently, the brand is concentrating on opening in firsttier Chinese cities. Macau is also top of mind: “It’s a booming market as well to reach the Mainland,” he said, revealing that boutiques in the Galaxy hotel, the One Central Macau mall and The Parisian Macao resort are in the pipeline. Southeast Asia is another target market where he has noticed potential. Sandro will cut the ribbon on a second store in Singapore in Marina Bay Sands by the end of the year. Hecquet is also eyeing Korea and the Middle East, which he describes as a “healthy and wealthy market.” Earlier this month, the brand made its first foray into Australia with shops opening in Sydney and Melbourne, and he is looking to open 10 new stores in the country by mid-2016. While more than 70 percent of Sandro’s business was once conducted in France, global expansion has been a major focus since 2013 when private equity firm Kohlberg Kravis Roberts & Co. acquired a majority stake in SMCP Group, which owns the brand. Last year, 41.5 percent of the group’s revenue came from outside France and they plan to further speed international growth. Asked what’s next, Hecquet said the brand is bumping up its accessories range, particularly its shoe and bag offerings. “It’s a big decision for us,” he said. “The full rollout with a strong collection will be summer 2016 and fall/ winter 2016 but we are already getting the ball rolling.”
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