June 2012

F76602.indd 1 5/21/12 9:25 PM

F76602.indd 2 5/21/12 9:25 PM

F76602.indd 3 5/21/12 9:25 PM

creo

NYC showroom: 1370 Avenue o f t he Amer i ca s 3 rd f l oo r New Yo rk , NY 10019 212 .977 .8355Co rpo ra t e o f f i c e s : 5252 Bo l sa Avenue . Hun t i ng ton Beach . CA . 92646

Te l . 714 .934 .8800 Fax .714 .934 .8005V i s i t u s a t up coming FN P la t f o rm Augus t 21 -23 Sou th Ha l l L e ve l 1

"L i ke" u s on Fa cebook : www. fa cebook . com/t i t an indus t r i e sFo l l ow u s on Tw i t t e r : @t i t an shoe s

Fo l l ow u s on I n s t ag ram: @t i t an shoe s

www. t i t an indus t r i e s i n c . c om4 June 2012 © FFR- Focus On Fashion Retail

EDITOR: Alex GeymanGENERAL MANAGER: Dmitry Nelipovich

ART DIRECTOR: Allison MorylGRAPHIC DESIGNER: Pay Fan

GRAPHIC DESIGNER: Laurie McAdamsFASHION EDITOR: Francesca Trippoli

SUBSCRIPTION: Sandra DaSilvaRESEARCH: Shawn Lancaster

SALES: Claudia Perez

All images and editorials in this issue are subject to copyright law and are the property of FFR and/or the owners/contributors. No images, designs or texts may be reproduced, copied, used whole or in part without written permission.FFR magazine disclaims responsibility for the statements, claims made by either advertisers or contributing authors. FFR magazine is not responsible in whole or any part of advertisement or typographical errors.

Editor’s letterFall/Winter 2012-13 Fashion Trends10 Top Things To Think About And Do To Open A StoreTrashy Fashion Show Winners Vs Glamorous HighlightTop 5 Lessons From J. C. PenneyTrends in Colors & Materials For Spring/ Summer 2013Trade Shows Calendar (June- July 2012)The Demonstration: Secret For SuccessEmpowering Women Through The International Fashion IndustrySales Celebrities and FashionRetail Truths That Stand The Rest Of TimeSubscriptionYour Opinion Counts Survey

46

14

16

1822

24

26

30

3438

4344

FOCUS ON FASHION RETAIL25924 Viana Avenue, Suite 19

Lomita, CA 90717 USATel. (310) 784-0790 fax (310) 202-6027

General E-Mail: [email protected]: www.focusonshoes.com

EDITOR’S LETTER

Business of Fashion is tough. Since Focus’ launch in 2002, I’ve witnessed countless new brands and companies popping up, making some noise, making some sales and disappearing soon after. The same may, and does, happen with well-established brands also. There are numerous reasons why businesses crash, but I want to focus on only one issue, which surely plays a role in failure and that bothers me, and I want to shout about it- FASHION is about PASSION, damn it!

It is my job and personal pleasure to meet and to communicate with the designers and their offices. Interestingly, the guys responsible for building successful companies are approachable, respectful, nice people. Kenneth Cole, Steve Madden, Donald J. Pliner, Robert Greenberg to name a few, are always kind and friendly

with me and I appreciate that. We share the same passion. No, it’s not about the money. It’s about that we love what we do. However, I cannot say the same about (some) people who work for Big Guys, people with Diva attitude and employee mentality- they don’t care, they never would be/ will be successful on their own. They bring their companies down. Once at the trade show, Pliner said this to me: “Alex, I always enjoy seeing you so happy and cheerful at work, you clearly love what you do. Such a pleasant contrast with most other people here, whose faces read “I work from 9 to 5”, it’s so sad… bad for business.”

I take his words as an encouragement and suggest you do too. The way of life we’ve chosen requires passion and perseverance to be successful. And the Focus on Fashion Retail is here to help you to better yourself in this business. The Fashion editorials highlighted in this issue present you the trends in fashion clothes, shoes and accessories for the upcoming Fall/ Winter season. And the Forecast of trends in colors and materials for the following Spring/ Summer 2013 will extend your awareness of the styles to come. If FASHION is your passion (and I hope, it is!), you will like the Fashion one of a kind, featuring wonderful creations of talented designers with great fearless imagination. Get your private Top 5 lessons from J. C. Penney and if you’re interested in attending the trade or fashion events soon, please review the Trade shows calendar with FFR’s star ratings, to find the most appropriate show for your needs. These and other editorials in this issue are for you to learn, to use and to enjoy, as fashion business is and better be your PASSION!

“It’s hard to tell with these Internet startups if they’re really interested in building companies or if they’re just interested in the money. I can tell you, though: If they don’t really want to build a company, they won’t luck into it. That’s because it’s so hard that if you don’t have a passion, you’ll give up.” -Steve Jobs

And, as always, I’d love to hear your thoughts. Please feel free to contact me at

[email protected] with questions, comments, suggestions or topics you’d like to see covered in future issues. Serving you better is our goal and privilege.

Sincerely,

Alex GeymanEditor

BUSINESS MAGAZINE FOR SHOE, APPAREL & ACCESSORIES STORES

FASHION RETAIL

COVER PHOTO: Fashion by Hannibal Laguna at the

Mercedes-Benz Madrid Fashion Week Spring-Summer 2012

table of contents:

Fashion is Passion!

F76602.indd 4 5/21/12 9:25 PM

creo

NYC showroom: 1370 Avenue o f t he Amer i ca s 3 rd f l oo r New Yo rk , NY 10019 212 .977 .8355Co rpo ra t e o f f i c e s : 5252 Bo l sa Avenue . Hun t i ng ton Beach . CA . 92646

Te l . 714 .934 .8800 Fax .714 .934 .8005V i s i t u s a t up coming FN P la t f o rm Augus t 21 -23 Sou th Ha l l L e ve l 1

"L i ke" u s on Fa cebook : www. fa cebook . com/t i t an indus t r i e sFo l l ow u s on Tw i t t e r : @t i t an shoe s

Fo l l ow u s on I n s t ag ram: @t i t an shoe s

www. t i t an indus t r i e s i n c . c om4 June 2012 © FFR- Focus On Fashion Retail

EDITOR: Alex GeymanGENERAL MANAGER: Dmitry Nelipovich

ART DIRECTOR: Allison MorylGRAPHIC DESIGNER: Pay Fan

GRAPHIC DESIGNER: Laurie McAdamsFASHION EDITOR: Francesca Trippoli

SUBSCRIPTION: Sandra DaSilvaRESEARCH: Shawn Lancaster

SALES: Claudia Perez

All images and editorials in this issue are subject to copyright law and are the property of FFR and/or the owners/contributors. No images, designs or texts may be reproduced, copied, used whole or in part without written permission.FFR magazine disclaims responsibility for the statements, claims made by either advertisers or contributing authors. FFR magazine is not responsible in whole or any part of advertisement or typographical errors.

Editor’s letterFall/Winter 2012-13 Fashion Trends10 Top Things To Think About And Do To Open A StoreTrashy Fashion Show Winners Vs Glamorous HighlightTop 5 Lessons From J. C. PenneyTrends in Colors & Materials For Spring/ Summer 2013Trade Shows Calendar (June- July 2012)The Demonstration: Secret For SuccessEmpowering Women Through The International Fashion IndustrySales Celebrities and FashionRetail Truths That Stand The Rest Of TimeSubscriptionYour Opinion Counts Survey

46

14

16

1822

24

26

30

3438

4344

FOCUS ON FASHION RETAIL25924 Viana Avenue, Suite 19

Lomita, CA 90717 USATel. (310) 784-0790 fax (310) 202-6027

General E-Mail: [email protected]: www.focusonshoes.com

EDITOR’S LETTER

Business of Fashion is tough. Since Focus’ launch in 2002, I’ve witnessed countless new brands and companies popping up, making some noise, making some sales and disappearing soon after. The same may, and does, happen with well-established brands also. There are numerous reasons why businesses crash, but I want to focus on only one issue, which surely plays a role in failure and that bothers me, and I want to shout about it- FASHION is about PASSION, damn it!

It is my job and personal pleasure to meet and to communicate with the designers and their offices. Interestingly, the guys responsible for building successful companies are approachable, respectful, nice people. Kenneth Cole, Steve Madden, Donald J. Pliner, Robert Greenberg to name a few, are always kind and friendly

with me and I appreciate that. We share the same passion. No, it’s not about the money. It’s about that we love what we do. However, I cannot say the same about (some) people who work for Big Guys, people with Diva attitude and employee mentality- they don’t care, they never would be/ will be successful on their own. They bring their companies down. Once at the trade show, Pliner said this to me: “Alex, I always enjoy seeing you so happy and cheerful at work, you clearly love what you do. Such a pleasant contrast with most other people here, whose faces read “I work from 9 to 5”, it’s so sad… bad for business.”

I take his words as an encouragement and suggest you do too. The way of life we’ve chosen requires passion and perseverance to be successful. And the Focus on Fashion Retail is here to help you to better yourself in this business. The Fashion editorials highlighted in this issue present you the trends in fashion clothes, shoes and accessories for the upcoming Fall/ Winter season. And the Forecast of trends in colors and materials for the following Spring/ Summer 2013 will extend your awareness of the styles to come. If FASHION is your passion (and I hope, it is!), you will like the Fashion one of a kind, featuring wonderful creations of talented designers with great fearless imagination. Get your private Top 5 lessons from J. C. Penney and if you’re interested in attending the trade or fashion events soon, please review the Trade shows calendar with FFR’s star ratings, to find the most appropriate show for your needs. These and other editorials in this issue are for you to learn, to use and to enjoy, as fashion business is and better be your PASSION!

“It’s hard to tell with these Internet startups if they’re really interested in building companies or if they’re just interested in the money. I can tell you, though: If they don’t really want to build a company, they won’t luck into it. That’s because it’s so hard that if you don’t have a passion, you’ll give up.” -Steve Jobs

And, as always, I’d love to hear your thoughts. Please feel free to contact me at

[email protected] with questions, comments, suggestions or topics you’d like to see covered in future issues. Serving you better is our goal and privilege.

Sincerely,

Alex GeymanEditor

BUSINESS MAGAZINE FOR SHOE, APPAREL & ACCESSORIES STORES

FASHION RETAIL

COVER PHOTO: Fashion by Hannibal Laguna at the

Mercedes-Benz Madrid Fashion Week Spring-Summer 2012

table of contents:

Fashion is Passion!

F76602.indd 5 5/21/12 9:25 PM

creo

DKNY

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

ColorsDark nocturnal tones of blue, green, gray, burgundy. Bright colors of orange, green, cobalt blue, gold, copper, red or neutral shades, like ecru.

FabricsSilk and wool, satin, lace, jacquards with reliefs, velvet, hairy and furry materials, oxidized coatings, lacquer, leather, embroideries with foil and mirror effects, sequins. Double sided hairy wool, colorful combinations of various materials at once, crêpe de chine, dense jersey and double knits, piques, geometric embroideries, crochet and optical patchwork.

DesignsStardust designs with mirror, light and foils effects; feather, paisleys and tapestries patterns. Coarse stripes, tweed checkers, dots, geometric patterns, color blocks, colorful stains.

FASHION TRENDS

6 June 2012 © FFR- Focus On Fashion Retail

dots, geometric patterns, color blocks, colorful stains.

© FFR- Focus On Fashion Retail

Betsey Johnson

Giovanni Fabiani

Trend

Marc By Marc Jacobs

© FFR- Focus On Fashion Retail June 2012 7

Fall/ Winter2 0 1 2 2 0 1 3

Betsey Johnson

Gardenia

Taccetti

DKNY Lacoste Michael Kors Custo Barcelona

Casadei

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DKNY

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

ColorsDark nocturnal tones of blue, green, gray, burgundy. Bright colors of orange, green, cobalt blue, gold, copper, red or neutral shades, like ecru.

FabricsSilk and wool, satin, lace, jacquards with reliefs, velvet, hairy and furry materials, oxidized coatings, lacquer, leather, embroideries with foil and mirror effects, sequins. Double sided hairy wool, colorful combinations of various materials at once, crêpe de chine, dense jersey and double knits, piques, geometric embroideries, crochet and optical patchwork.

DesignsStardust designs with mirror, light and foils effects; feather, paisleys and tapestries patterns. Coarse stripes, tweed checkers, dots, geometric patterns, color blocks, colorful stains.

FASHION TRENDS


Betsey Johnson

Giovanni Fabiani

Trend

Marc By Marc Jacobs


Fall/ Winter2 0 1 2 2 0 1 3

FFR- Focus On Fashion Retail June 2012 7

Betsey Johnson

Gardenia

Taccetti

DKNY Lacoste Michael Kors Custo Barcelona

© FFR- Focus On Fashion Retail June

Casadei

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


Jessica Grant

Fossil

Pure Insanity

Fossil

Meira T

Clara KasavinaTiret


Herve Leger By Max Azria

Ralph LaurenNicole Miller

BCBG Max AzriaVera Wang

Invitto

Jeannot’s

Mario Fabiani

G & G

Marros

Tommy Hilfiger

2012

Tiret

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creo

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


Jessica Grant

Fossil

Pure Insanity

Fossil

Meira T

Clara KasavinaTiret


Herve Leger By Max Azria

Ralph LaurenNicole Miller

BCBG Max AzriaVera Wang

Invitto

Jeannot’s

Mario Fabiani

G & G

Marros

Tommy Hilfiger

Tiret

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creo


Tom Ford

10 June 2012 2012 © FFR- Focus On Fashion Retail 2012

Diesel

Diesel

Roberto Cavalli

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

© FFR- Focus On Fashion Retail June 2012 1 1

Tom Ford

DSquared2 Tom Ford

Diesel(featured on previous page)

Roberto Cavalli(featured on previous page)


Fall/ Winter2 0 1 2 2 0 1 3

DSquared2

Diesel

Tom Ford

DSquared2

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Tom Ford

Diesel

Diesel

Roberto Cavalli


© FFR- Focus On Fashion Retail June 2012 1 1FFR- Focus On Fashion Retail JuneFFR- Focus On Fashion Retail June 2012 1 1

Tom Ford

DSquared2 Tom Ford


© FFR- Focus On Fashion Retail JuneFFR- Focus On Fashion Retail June

Roberto Cavalli(featured on previous page)


Fall/ Winter2 0 1 2 2 0 1 3

DSquared2

• Cat eye/ Butterfly shapes• Neon/ Fluorescent Colors• Oversized round/ Wide square shapes

Diesel

Tom Ford


DSquared2

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creo

Miguel Marinero

DesignsThe theme thrives on single-colors and material mixes, complemented by masculine wool and needle stripes, checks, micro and tie designs, digitalized baroque patterns, ornaments and kaleidoscope designs. At the top we find masculine wool fabrics, grainy leather, structures, fur, micro patterns. Needle and regiment stripes, shadow and blanket checks, dark tartans, graphic prints and color blocks.

Styles

Print shirts, boot-cut trousers, and denim combinations. Bright-colored parkas, zipped lumbers, duffle coats, coats with stand-up collars, leather coats in blazer styles, blousons with materials’ mixtures, slim wool vests, tuxedo types with contrasting lapels, double-breasted designs; checkered jackets worn with slim short trousers, wide trousers, checkered leather pants; shirts with color blocks, bright spots, T-shirts with baroque prints. Knits in bright single colors with structured color blocks, checkers; cardigans with contrasting colors, round and V-necks.

ColorsDark colors: black, sepia and brown shades with red and honey accents, various light effects. Other popular colors: red, pumpkin, maize, pea, oil, purple, cobalt blue, sand, brown, gray, black, cement and white.

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

Fossil

Barracuda

The theme thrives on single-colors and material mixes, complemented by masculine

Brecos

MontblancVintage Tachydate

Fall/ Winter2 0 1 2 2 0 1 3

12 June 2012 © FFR- Focus On Fashion RetailFFR- Focus On Fashion Retail

brown, gray, black, cement and white.

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

2012 2012

Madaf


Joseph Abboud Marc By Marc Jacobs

General Idea Rock & Republic For Kohl’s


Fossil

Soldini

Nero Giardini

Mac Dugan

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creo

Miguel Marinero

DesignsThe theme thrives on single-colors and material mixes, complemented by masculine wool and needle stripes, checks, micro and tie designs, digitalized baroque patterns, ornaments and kaleidoscope designs. At the top we find masculine wool fabrics, grainy leather, structures, fur, micro patterns. Needle and regiment stripes, shadow and blanket checks, dark tartans, graphic prints and color blocks.

Styles

Print shirts, boot-cut trousers, and denim combinations. Bright-colored parkas, zipped lumbers, duffle coats, coats with stand-up collars, leather coats in blazer styles, blousons with materials’ mixtures, slim wool vests, tuxedo types with contrasting lapels, double-breasted designs; checkered jackets worn with slim short trousers, wide trousers, checkered leather pants; shirts with color blocks, bright spots, T-shirts with baroque prints. Knits in bright single colors with structured color blocks, checkers; cardigans with contrasting colors, round and V-necks.

ColorsDark colors: black, sepia and brown shades with red and honey accents, various light effects. Other popular colors: red, pumpkin, maize, pea, oil, purple, cobalt blue, sand, brown, gray, black, cement and white.

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

Fossil

Barracuda

Brecos


Fall/ Winter2 0 1 2 2 0 1 3


Madaf


Joseph Abboud Marc By Marc Jacobs

General Idea Rock & Republic For Kohl’s


Fossil

Soldini

Nero Giardini

Mac Dugan

© FFR- Focus On Fashion Retail JuneFFR- Focus On Fashion Retail JuneFFR- Focus On Fashion Retail June

Mac Dugan

FFR- Focus On Fashion Retail June

F76602.indd 13 5/21/12 9:26 PM

creo


Tips For Beginners

By Mercedes Gonzales for Focus on Fashion retail, excerpt from a 6hrs class

10 Top things to think about and do to open a store

About the Author:

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

1. Choose your location very carefullyYou want to be in an area where there is shopping traffic. It is too dif-

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

2. Study your target marketBefore you start anything, you need to know who your target customer

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

3. Be aware of your friends and familyThey are the first to encourage you and the first to ask for discounts.

Consult with an industry professional and get a different point of view.

4. Know your retail mathThis business is 90% math, 5% fashion and 5% good luck. Know your

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

5. When and where to buyThere are certain times of the year that you should be attending shows

and placing orders for goods. Set your OTB and stick to it. Know the lingo and bring a concept book to show the new brand who you are and what your plans are.

6. Put together the ultimate sales teamYour sales team is the backbone of your store. Recruit your sales team

carefully and train them to be affective salespeople. Don’t think about per-sonally working on the sales floor. Not having staff is not an option.

7. Floor planDraw out the floor plan of your store so that you know which displays

and merchandise will go where. This will also help you create your shopping list for fixtures. Remember to organize your floor space according to how merchandise will be sold, and not just how to make it pretty.

8. TechnologyDo your homework on technology. POS systems and loss prevention are

the two major areas to do your research in.

9. Market YourselfThe power of social media cannot be ignored! Set up your Facebook and

Twitter accounts. Even if you are not selling through your website, you need to have one for online presence. Make sure everything is linked together. Though social media has cut the cost of marketing significantly, traditional print ads every now and then are also important. Once you build up your customer database, you’ll need to get involved with email marketing as well. Don’t forget having nice reusable shopping bags. They act as mini billboards when people are walking around.

10. Think of the big pictureThe mantra of any business owner should be: how do I work as little

as possible for the most amount of money. Set your operations procedures when you are planning the store. The business must run without you in-volved in every tiny detail.

1701 FOS June 20120520-2327.indd 14 5/20/12 11:41 PM

F76602.indd 14 5/21/12 9:26 PM

creo


Tips For Beginners

By Mercedes Gonzales for Focus on Fashion retail, excerpt from a 6hrs class

10 Top things to think about and do to open a store

About the Author:

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

1. Choose your location very carefullyYou want to be in an area where there is shopping traffic. It is too dif-

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

2. Study your target marketBefore you start anything, you need to know who your target customer

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

3. Be aware of your friends and familyThey are the first to encourage you and the first to ask for discounts.

Consult with an industry professional and get a different point of view.

4. Know your retail mathThis business is 90% math, 5% fashion and 5% good luck. Know your

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

5. When and where to buyThere are certain times of the year that you should be attending shows

and placing orders for goods. Set your OTB and stick to it. Know the lingo and bring a concept book to show the new brand who you are and what your plans are.

6. Put together the ultimate sales teamYour sales team is the backbone of your store. Recruit your sales team

carefully and train them to be affective salespeople. Don’t think about per-sonally working on the sales floor. Not having staff is not an option.

7. Floor planDraw out the floor plan of your store so that you know which displays

and merchandise will go where. This will also help you create your shopping list for fixtures. Remember to organize your floor space according to how merchandise will be sold, and not just how to make it pretty.

8. TechnologyDo your homework on technology. POS systems and loss prevention are

the two major areas to do your research in.

9. Market YourselfThe power of social media cannot be ignored! Set up your Facebook and

Twitter accounts. Even if you are not selling through your website, you need to have one for online presence. Make sure everything is linked together. Though social media has cut the cost of marketing significantly, traditional print ads every now and then are also important. Once you build up your customer database, you’ll need to get involved with email marketing as well. Don’t forget having nice reusable shopping bags. They act as mini billboards when people are walking around.

10. Think of the big pictureThe mantra of any business owner should be: how do I work as little

as possible for the most amount of money. Set your operations procedures when you are planning the store. The business must run without you in-volved in every tiny detail.

1701 FOS June 20120520-2327.indd 14 5/20/12 11:41 PM

F76602.indd 15 5/21/12 9:26 PM

16 June 2012 © FFR- Focus On Fashion Retail © FFR- Focus On Fashion Retail June 2012 17

Mercedes-Benz and ELLE present IrIS Van HErpEn

The Dutch designer, already a rising star in her native land and one of the most celebrated performers at the Paris haute couture fashion shows, presented a true firework of originality and avant-garde beauty.

Iris van Herpen’s style is inspired by the combination of craftsmanship and innovative materials. Metallic silk, polyamidic powder and smoked leather are the ingredients of her sculptural and futuristic silhouettes which are start-ingly rich in contrast. The Spring/Summer collection 2012 seems to defy grav-ity in its play with amorphous shapes, which truly seem to originate from another planet.

V S Glamorous Highlight:

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

1701 FOS June 20120520-2327.indd 17 5/20/12 11:41 PM


Analise Barnard and co-designer Am-ani Grant won first prize in the twelve and under division for their dress entitled “High Energy.” The party dress and head-band were created entirely from coffee filters. The over-the-shoulder mini dress model entered the catwalk partially concealing the gown with a cape made of trash bags.

The cape was shed and the amazing dress revealed. The two won $100 for their efforts

and Ripley’s paid them another $100 to acquire the dress.

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

The 17 and up category was won by Ma-

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

Other entries included dresses made from magazines, bottle caps, grocery bags, paper cups, snack wrappers, trading cards and magazines.

FASHION ONE OF A KIND

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

Teen and “tween” designers swept the competition, winning all three categories.

V S

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

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

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

1701 FOS June 20120520-2327.indd 16 5/20/12 11:41 PM

F76602.indd 16 5/21/12 9:26 PM

creo


Mercedes-Benz and ELLE present IrIS Van HErpEn

The Dutch designer, already a rising star in her native land and one of the most celebrated performers at the Paris haute couture fashion shows, presented a true firework of originality and avant-garde beauty.

Iris van Herpen’s style is inspired by the combination of craftsmanship and innovative materials. Metallic silk, polyamidic powder and smoked leather are the ingredients of her sculptural and futuristic silhouettes which are start-ingly rich in contrast. The Spring/Summer collection 2012 seems to defy grav-ity in its play with amorphous shapes, which truly seem to originate from another planet.

V S Glamorous Highlight:

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

1701 FOS June 20120520-2327.indd 17 5/20/12 11:41 PM


Analise Barnard and co-designer Am-ani Grant won first prize in the twelve and under division for their dress entitled “High Energy.” The party dress and head-band were created entirely from coffee filters. The over-the-shoulder mini dress model entered the catwalk partially concealing the gown with a cape made of trash bags.

The cape was shed and the amazing dress revealed. The two won $100 for their efforts

and Ripley’s paid them another $100 to acquire the dress.

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

The 17 and up category was won by Ma-

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

Other entries included dresses made from magazines, bottle caps, grocery bags, paper cups, snack wrappers, trading cards and magazines.

FASHION ONE OF A KIND

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

Teen and “tween” designers swept the competition, winning all three categories.

V S

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

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

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

1701 FOS June 20120520-2327.indd 16 5/20/12 11:41 PM

F76602.indd 17 5/21/12 9:26 PM


Lesson 2:

Business Is Not All

About The Profits“Business is not longer

a matter of profits alone,” Penney said. “Profits must come through public con-fidence, and public confi-dence is given to any mer-chant in proportion to the service which he gives to the public.” As much as he fo-cused on providing superior customer service in all of his stores, Penney also un-derstood that service meant more than in-store courtesy. He believed that organiza-tions such as his should be used for the betterment of society, not only because it could but because it made sense from a business point of view as well.

As he approached his later years, Penney be-came one of the most generous philanthropists of his time. In 1923, he established a 120,000-acre experimental faming community in Florida, which was divided into plots for down on their luck farmers. Two years later, Penney created the J.C. Penney Foundation to help fund such groups as adoption agencies, homeless shelters, youth clubs, and health clinics. He also established the $1 mil-lion Memorial Home Community, a 60-acre resi-dential community for retired ministers and mis-sionaries and their families.

It was not only in the company’s stores that Penney sought to increase his ability to serve the public. He dedicated much of his time and energy to giving back to his communities and encouraged store managers and associates to do the same. He wanted his employees to take an active role in their communities and participate in all of their worth-while activities. “Business never was and never is anything but a public service,” said Penney. “We told store managers that, unless they knew their communities and unless they were prepared to enter sympathetically into community life, they could not make a success of their stores.”

The goodwill of Penney and his associates boosted the company’s reputation in the public’s eye. J.C. Penney stores were becoming known not only for their friendly and personal service, but now for their active participation in their com-munities. J.C. Penney stores were often so highly regarded that it was not uncommon for towns to actually petition the company to open a store in their community – a tradition that continues to live on to this day.

Penney had created such a positive image of the company in the public mind that he had in fact

created a market for his products before they were even on the market. The J.C. Penney Foundation went under with the stock market crash and the depression of the 1930s, but Penney’s dedication to charity did not. After rebuilding part of his for-tune, he opened the James C. Penney Foundation in 1954, which continues to address issues of com-munity revival, world peace, and the environment today.

“A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition,” Penney once said. Serving the public for Penney meant more than providing quality in-store customer service; it meant going out on the streets, into the schools, onto the fields and lending a helping hand. For it was there that the company would make the big-gest difference in the lives of its customers, and there were they would be noticed the most.

Lesson 3:

Hire Good People and

Take Good Care of ThemIt was not only Penney’s focus on the custom-

er that drove his success. With the same amount of energy and dedication he gave to each and ev-ery visitor that entered one of his stores, so too did Penney give to his employees. Penney was a visionary; he wanted his store to have a national reach, which he knew meant ensuring long-term growth. Superior customer service alone would not be enough to achieve that. Instead, Penney under-stood that it would be the people behind his com-pany that would help push it to the top.

It was to this end that Penney took the time to choose his staff shrewdly. He understood that the future of his business rested in the hands of his associates, and thus spent much time and energy devoted to finding and training them. In 1903,

after the success of his first Golden Rule store in Kem-merer, Penney was placed in charge of a second store in Rock Springs, Wyoming. It was here that Penney’s managerial skills were large-ly tested. After discovering the clerk would often close the store early so he could perform an instrument in local dances, Penney imme-diately fired him. A replace-ment with a much stronger work ethic was subsequent-ly hired.

Penney did not take the hiring process lightly. He placed advertisements

in newspapers across the American Midwest and personally interviewed all of the prospective train-ees. He wanted his stores to be staffed by the best. But Penney was astute enough to recognize that it took more than a strict hiring regime to ensure a strong team. Once people were brought on board, he knew he had to take good care of them.

To this end, Penney established an employ-ment department, which immediately set out to create a company newsletter. In 1917, “The Dy-namo” was launched, to which Penney himself regularly contributed articles about his own life and personal experiences. Initially, the newsletter was meant to train and educate its readers, but it would quickly become a uniting force that instilled loyalty and pride amongst the associates.

Penney understood that many of his employ-ees came from the same humble beginnings as he did, and thus established an Education Depart-ment within the company. In 1921, the company’s first free Business Training Course was shipped to all of its stores, offering a free correspondence course for up-to-date business training. Over 90 percent of the company’s 2,500 employees had en-rolled within the first year.

Penney also made sure his staff was motivated. When any of his store managers had saved enough money, he would offer him one-third ownership in a new store. The manager was responsible for rais-ing one-third of the necessary startup capital, while Penney would supply the remaining two-thirds. The manager would also agree to help train some-one to take his place at the existing store. This not only helped motivate younger trainees, but also helped facilitate the company’s early expansion.

When he was 85 years old, Penney traveled more than 80,000 miles to visit 67 stores and con-tinue giving the pep talks for which he had become famous over the years. He encouraged his workers with phrases such as “No man can climb the lad-

1701 FOS June 20120520-2327.indd 19 5/20/12 11:41 PM


ENTREPRENEUR OF THE MONTH

Lesson 1:

A Happy Customer Is Your

Walking Advertisement“When this business was founded, it

sought to win public confidence through service, for it was my conviction then, as it is now, that nothing else than right service to the public results in mutual understanding and satisfaction between customer and mer-chant,” said Penney. “It was for this reason that our business was founded upon the eternal principle of the Golden Rule.”

When Penney started his first business with the butcher shop, it was a fast flop. But, it was not because Penney had bad business sense. Rather, it was because of his conscience. Penney’s big-gest customer at the time was the local hotel. When the hotel’s meat cutter demanded a bottle of whiskey weekly as a bribe, Penney at first gave in. However, he forever regretted it and from then on, refused to give the bribe. As a result, the ho-tel withdrew its business and the butcher shop folded.

It was with this attitude of doing the right thing that Penney was able to create one of the largest retail chains in America. Penney’s parents had always preached to him the Golden Rule: Do unto others what you would have them do unto you. It was a lesson Penney would apply well in the business world.

When Penney first took over total owner-ship of the Golden Rule Stores, he operated in a completely different environment than that which we know today. Back then, store owners paid little attention to their customers. They were often treated rudely and sold poor-quality goods. Store managers would also routinely change their prices according to each customer, charging more to poorer people because they might not have known better.

Penney decided to change all of that. “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstan-tial,” he said. “You can’t take them with you. But they work for good beyond your power to mea-sure their influence. It is the service we are not obliged to give that people value most.” He took the store’s slogan – that of practicing the Golden Rule – with strict literalness. Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.

“In setting up a business under the name and meaning of the Golden Rule, I was publicly bind-ing myself, in my business relations, to a principle which had been a real and intimate part of my family upbringing,” said Penney. “Our idea was to make money and build business through serv-ing the community with fair dealing and honest value.” To this end, Penney himself would often stop to help a customer on many of his random store checks. Penney’s strategy worked as word of mouth helped the company earn a profit margin of 29 percent in its first year.

“The store that sells its wares for less but pays little attention to the service it renders does not meet with the success of the store with courteous employees,” said Penny in 1954. “The public is not greatly interested in saving a little money on a purchase at the expense of service. Courteous treatment will make a customer a walking adver-tisement.”

5BusinesslessonsfromJ.C.Penney

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

1701 FOS June 20120520-2327.indd 18 5/20/12 11:41 PM

F76602.indd 18 5/21/12 9:26 PM

creo


Lesson 2:

Business Is Not All

About The Profits“Business is not longer

a matter of profits alone,” Penney said. “Profits must come through public con-fidence, and public confi-dence is given to any mer-chant in proportion to the service which he gives to the public.” As much as he fo-cused on providing superior customer service in all of his stores, Penney also un-derstood that service meant more than in-store courtesy. He believed that organiza-tions such as his should be used for the betterment of society, not only because it could but because it made sense from a business point of view as well.

As he approached his later years, Penney be-came one of the most generous philanthropists of his time. In 1923, he established a 120,000-acre experimental faming community in Florida, which was divided into plots for down on their luck farmers. Two years later, Penney created the J.C. Penney Foundation to help fund such groups as adoption agencies, homeless shelters, youth clubs, and health clinics. He also established the $1 mil-lion Memorial Home Community, a 60-acre resi-dential community for retired ministers and mis-sionaries and their families.

It was not only in the company’s stores that Penney sought to increase his ability to serve the public. He dedicated much of his time and energy to giving back to his communities and encouraged store managers and associates to do the same. He wanted his employees to take an active role in their communities and participate in all of their worth-while activities. “Business never was and never is anything but a public service,” said Penney. “We told store managers that, unless they knew their communities and unless they were prepared to enter sympathetically into community life, they could not make a success of their stores.”

The goodwill of Penney and his associates boosted the company’s reputation in the public’s eye. J.C. Penney stores were becoming known not only for their friendly and personal service, but now for their active participation in their com-munities. J.C. Penney stores were often so highly regarded that it was not uncommon for towns to actually petition the company to open a store in their community – a tradition that continues to live on to this day.

Penney had created such a positive image of the company in the public mind that he had in fact

created a market for his products before they were even on the market. The J.C. Penney Foundation went under with the stock market crash and the depression of the 1930s, but Penney’s dedication to charity did not. After rebuilding part of his for-tune, he opened the James C. Penney Foundation in 1954, which continues to address issues of com-munity revival, world peace, and the environment today.

“A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition,” Penney once said. Serving the public for Penney meant more than providing quality in-store customer service; it meant going out on the streets, into the schools, onto the fields and lending a helping hand. For it was there that the company would make the big-gest difference in the lives of its customers, and there were they would be noticed the most.

Lesson 3:

Hire Good People and

Take Good Care of ThemIt was not only Penney’s focus on the custom-

er that drove his success. With the same amount of energy and dedication he gave to each and ev-ery visitor that entered one of his stores, so too did Penney give to his employees. Penney was a visionary; he wanted his store to have a national reach, which he knew meant ensuring long-term growth. Superior customer service alone would not be enough to achieve that. Instead, Penney under-stood that it would be the people behind his com-pany that would help push it to the top.

It was to this end that Penney took the time to choose his staff shrewdly. He understood that the future of his business rested in the hands of his associates, and thus spent much time and energy devoted to finding and training them. In 1903,

after the success of his first Golden Rule store in Kem-merer, Penney was placed in charge of a second store in Rock Springs, Wyoming. It was here that Penney’s managerial skills were large-ly tested. After discovering the clerk would often close the store early so he could perform an instrument in local dances, Penney imme-diately fired him. A replace-ment with a much stronger work ethic was subsequent-ly hired.

Penney did not take the hiring process lightly. He placed advertisements

in newspapers across the American Midwest and personally interviewed all of the prospective train-ees. He wanted his stores to be staffed by the best. But Penney was astute enough to recognize that it took more than a strict hiring regime to ensure a strong team. Once people were brought on board, he knew he had to take good care of them.

To this end, Penney established an employ-ment department, which immediately set out to create a company newsletter. In 1917, “The Dy-namo” was launched, to which Penney himself regularly contributed articles about his own life and personal experiences. Initially, the newsletter was meant to train and educate its readers, but it would quickly become a uniting force that instilled loyalty and pride amongst the associates.

Penney understood that many of his employ-ees came from the same humble beginnings as he did, and thus established an Education Depart-ment within the company. In 1921, the company’s first free Business Training Course was shipped to all of its stores, offering a free correspondence course for up-to-date business training. Over 90 percent of the company’s 2,500 employees had en-rolled within the first year.

Penney also made sure his staff was motivated. When any of his store managers had saved enough money, he would offer him one-third ownership in a new store. The manager was responsible for rais-ing one-third of the necessary startup capital, while Penney would supply the remaining two-thirds. The manager would also agree to help train some-one to take his place at the existing store. This not only helped motivate younger trainees, but also helped facilitate the company’s early expansion.

When he was 85 years old, Penney traveled more than 80,000 miles to visit 67 stores and con-tinue giving the pep talks for which he had become famous over the years. He encouraged his workers with phrases such as “No man can climb the lad-

1701 FOS June 20120520-2327.indd 19 5/20/12 11:41 PM



Lesson 1:

A Happy Customer Is Your

Walking Advertisement“When this business was founded, it

sought to win public confidence through service, for it was my conviction then, as it is now, that nothing else than right service to the public results in mutual understanding and satisfaction between customer and mer-chant,” said Penney. “It was for this reason that our business was founded upon the eternal principle of the Golden Rule.”

When Penney started his first business with the butcher shop, it was a fast flop. But, it was not because Penney had bad business sense. Rather, it was because of his conscience. Penney’s big-gest customer at the time was the local hotel. When the hotel’s meat cutter demanded a bottle of whiskey weekly as a bribe, Penney at first gave in. However, he forever regretted it and from then on, refused to give the bribe. As a result, the ho-tel withdrew its business and the butcher shop folded.

It was with this attitude of doing the right thing that Penney was able to create one of the largest retail chains in America. Penney’s parents had always preached to him the Golden Rule: Do unto others what you would have them do unto you. It was a lesson Penney would apply well in the business world.

When Penney first took over total owner-ship of the Golden Rule Stores, he operated in a completely different environment than that which we know today. Back then, store owners paid little attention to their customers. They were often treated rudely and sold poor-quality goods. Store managers would also routinely change their prices according to each customer, charging more to poorer people because they might not have known better.

Penney decided to change all of that. “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstan-tial,” he said. “You can’t take them with you. But they work for good beyond your power to mea-sure their influence. It is the service we are not obliged to give that people value most.” He took the store’s slogan – that of practicing the Golden Rule – with strict literalness. Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.

“In setting up a business under the name and meaning of the Golden Rule, I was publicly bind-ing myself, in my business relations, to a principle which had been a real and intimate part of my family upbringing,” said Penney. “Our idea was to make money and build business through serv-ing the community with fair dealing and honest value.” To this end, Penney himself would often stop to help a customer on many of his random store checks. Penney’s strategy worked as word of mouth helped the company earn a profit margin of 29 percent in its first year.

“The store that sells its wares for less but pays little attention to the service it renders does not meet with the success of the store with courteous employees,” said Penny in 1954. “The public is not greatly interested in saving a little money on a purchase at the expense of service. Courteous treatment will make a customer a walking adver-tisement.”

5BusinesslessonsfromJ.C.Penney

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

1701 FOS June 20120520-2327.indd 18 5/20/12 11:41 PM

F76602.indd 19 5/21/12 9:26 PM

creo


der of success without first placing his foot on the bottom rung,” and “The profit is in the last shirt in the box.”

Penney was so devoted to his associates that he even turned down two major merger offerings from Montgomery Ward and Sears Roebuck in the 1920s. If it meant laying off some of his personnel, Penney just could not see how such a deal would be worth it.

Lesson 4:

Cutting Costs Can Save Your CompanyPenney was born and raised on a small Mis-

souri farm. His father, a Baptist minister, was a well-respected member of the community. But, as it was an unsalaried position, the family rarely had the wealth to accompany that status. As a re-sult, Penney grew up in a household that stressed the importance of self-reliance and self-discipline, especially when it came to financial matters. Pen-ney took that attitude with him into the business world. Indeed, much of Penney’s success can be attributed to his willingness to penny pinch wher-ever he needed to.

To begin with, Penney always made sure his stores were all located in inexpensive areas of small communities. He took the time to scout out vari-ous locations and determine which was the most cost effective. Penney had no use for elaborate fix-tures or displays, and thus saved money by focus-ing on creating simple store interiors. He also went to great efforts to determine precisely which mer-chandise his customers wanted, carrying only that much so as to ensure a rapid inventory turnover.

No detail was too small for Penney to ex-amine in his effort to reduce operating costs and

thus increase the amount of savings that could be passed on to customers. “Basically the stores were places where the folks of a town and its outlying re-gions could buy needed goods,” said Penney. “For us to stay in a position to sell always at the lowest possible prices, we had to work constantly. We had to save, not only in prices paid in the wholesale markets, but on costs all along the line, right to shelves and over the counter. Stocks must turn over down to the last paper of pins a given number of times a year.”

Penney wanted to do whatever it took to keep his costs low in order that his customers did not have to bear the burden of higher prices. To this end, Penney also did such minor things as using the blank side of envelopes as scrap paper. In the early days, he also used old packing crates as shelves and counters in many of his J.C. Penney stores.

While Penney might have been completely focused on cutting costs where he could, he re-fused to do so at the cost of quality or service. To this end, Penney would frequently pop up in one of his many stores to do a spot check. In one par-ticular Milwaukee outlet of J.C. Penney, Penney

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

Penney’s number one focus was always on sav-

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

Lesson 5:

Set Goals No Matter How Unreachable

They May Seem“Give me a stock clerk with a goal and I’ll give

you a man who will make history,” said Penney. “Give me a man with no goals and I’ll give you a stock clerk.” Penney understood the importance of deciding where he wanted to go, and striving to get there no matter how difficult it may have seemed at the time. His career is characterized by his ambi-tion, his focus, and his refusal to give up in the face of difficulty.

Penney’s strategy for success may seem all too obvious today, but at the time, he was facing an uphill battle. Kemmerer, the town where Penney opened his first Golden Rule store, was a min-ing town, where workers were paid by the mining company in coupons instead of cash. They would then use their coupons to shop at the local store, which was also owned by the mining company. For the most part, miners tended to spend their income immediately and later rely on credit from the mining company. Because of this system and the loans they received, miners would usually stay put in the town.

Penney wanted his store to operate on a cash only basis and that was exactly why many people thought he would fail. When he sought out the ad-vice of others, he was told that such a store would close in little time. After all, three other cash-and-carry stores, similar to that which Penney wanted to open, had folded in the same city just some time before. Even the local bank cashier had strongly warned Penney against opening a cash only store because no one before him had been able to com-pete with the strongly rooted credit based mining companies.

He knew that in order to achieve his goal, defy his critics, and make his cash only store profitable, he would have to differentiate himself from the store of the mining company. He did not care that people did not believe in his dreams; he just knew he had to prove them wrong. Penney began open-ing his store at sunrise as part of the promotion for the store as being different from the competi-tion. Penney’s regular hours were from 7 am until the streets were empty. On Saturday nights, that would often mean working until past midnight.

“No business can succeed in any great degree without being properly organized,” said Penney. He had a clear focus on his goals, organized him-self accordingly, ignored the naysayers, and set out on his to achieve his dream.

Reprinted with permission from www.evancarmichael.com


1701 FOS June 20120520-2327.indd 20 5/20/12 11:41 PM

S T E P U P T O S T Y L EOur shoes are the perfect

combination of vintage inspiration and of-the-moment design.

D i s c o v e r o u r e n t i r e c o l l e c t i o n a t F O S S I L . C O M

FSL-WS3133_AD_EG.indd 1 5/18/12 4:05 PMF76602.indd 20 5/21/12 9:26 PM


der of success without first placing his foot on the bottom rung,” and “The profit is in the last shirt in the box.”

Penney was so devoted to his associates that he even turned down two major merger offerings from Montgomery Ward and Sears Roebuck in the 1920s. If it meant laying off some of his personnel, Penney just could not see how such a deal would be worth it.

Lesson 4:

Cutting Costs Can Save Your CompanyPenney was born and raised on a small Mis-

souri farm. His father, a Baptist minister, was a well-respected member of the community. But, as it was an unsalaried position, the family rarely had the wealth to accompany that status. As a re-sult, Penney grew up in a household that stressed the importance of self-reliance and self-discipline, especially when it came to financial matters. Pen-ney took that attitude with him into the business world. Indeed, much of Penney’s success can be attributed to his willingness to penny pinch wher-ever he needed to.

To begin with, Penney always made sure his stores were all located in inexpensive areas of small communities. He took the time to scout out vari-ous locations and determine which was the most cost effective. Penney had no use for elaborate fix-tures or displays, and thus saved money by focus-ing on creating simple store interiors. He also went to great efforts to determine precisely which mer-chandise his customers wanted, carrying only that much so as to ensure a rapid inventory turnover.

No detail was too small for Penney to ex-amine in his effort to reduce operating costs and

thus increase the amount of savings that could be passed on to customers. “Basically the stores were places where the folks of a town and its outlying re-gions could buy needed goods,” said Penney. “For us to stay in a position to sell always at the lowest possible prices, we had to work constantly. We had to save, not only in prices paid in the wholesale markets, but on costs all along the line, right to shelves and over the counter. Stocks must turn over down to the last paper of pins a given number of times a year.”

Penney wanted to do whatever it took to keep his costs low in order that his customers did not have to bear the burden of higher prices. To this end, Penney also did such minor things as using the blank side of envelopes as scrap paper. In the early days, he also used old packing crates as shelves and counters in many of his J.C. Penney stores.

While Penney might have been completely focused on cutting costs where he could, he re-fused to do so at the cost of quality or service. To this end, Penney would frequently pop up in one of his many stores to do a spot check. In one par-ticular Milwaukee outlet of J.C. Penney, Penney

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

Penney’s number one focus was always on sav-

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

Lesson 5:

Set Goals No Matter How Unreachable

They May Seem“Give me a stock clerk with a goal and I’ll give

you a man who will make history,” said Penney. “Give me a man with no goals and I’ll give you a stock clerk.” Penney understood the importance of deciding where he wanted to go, and striving to get there no matter how difficult it may have seemed at the time. His career is characterized by his ambi-tion, his focus, and his refusal to give up in the face of difficulty.

Penney’s strategy for success may seem all too obvious today, but at the time, he was facing an uphill battle. Kemmerer, the town where Penney opened his first Golden Rule store, was a min-ing town, where workers were paid by the mining company in coupons instead of cash. They would then use their coupons to shop at the local store, which was also owned by the mining company. For the most part, miners tended to spend their income immediately and later rely on credit from the mining company. Because of this system and the loans they received, miners would usually stay put in the town.

Penney wanted his store to operate on a cash only basis and that was exactly why many people thought he would fail. When he sought out the ad-vice of others, he was told that such a store would close in little time. After all, three other cash-and-carry stores, similar to that which Penney wanted to open, had folded in the same city just some time before. Even the local bank cashier had strongly warned Penney against opening a cash only store because no one before him had been able to com-pete with the strongly rooted credit based mining companies.

He knew that in order to achieve his goal, defy his critics, and make his cash only store profitable, he would have to differentiate himself from the store of the mining company. He did not care that people did not believe in his dreams; he just knew he had to prove them wrong. Penney began open-ing his store at sunrise as part of the promotion for the store as being different from the competi-tion. Penney’s regular hours were from 7 am until the streets were empty. On Saturday nights, that would often mean working until past midnight.

“No business can succeed in any great degree without being properly organized,” said Penney. He had a clear focus on his goals, organized him-self accordingly, ignored the naysayers, and set out on his to achieve his dream.

Reprinted with permission from www.evancarmichael.com


1701 FOS June 20120520-2327.indd 20 5/20/12 11:41 PM

S T E P U P T O S T Y L EOur shoes are the perfect

combination of vintage inspiration and of-the-moment design.

D i s c o v e r o u r e n t i r e c o l l e c t i o n a t F O S S I L . C O M

FSL-WS3133_AD_EG.indd 1 5/18/12 4:05 PMF76602.indd 21 5/21/12 9:26 PM

creo


TRENDS FORECAST

Report from Lineapelle:Prepared for FOCUS ON FASHION RETAIL

by Ellen Campusanopresident of the Committee for Colour and Trends

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

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

TRENDS inColors & Materials

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

Pale Shimmer

©

glossed over croco. Subtle floral scroll patterns on white leathers seemed the right feminine look for more than just brides.

22 June 2012

for 2013 Spring/Summer

© FFR- Focus On Fashion Retail © © FFR- Focus On Fashion Retail June 2012 23

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

Another Touch of the Flu

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

Neutral Core

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

Added Benefits

Committee for Colour & Trends - The complete forecasting source for shoes and accessories - www.colourandtrends.com

F76602.indd 22 5/21/12 9:26 PM


TRENDS FORECAST

Report from Lineapelle:Prepared for FOCUS ON FASHION RETAIL

by Ellen Campusanopresident of the Committee for Colour and Trends

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

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

TRENDS inColors & Materials

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

Pale Shimmer

for 2013 Spring/Summer


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

Another Touch of the Flu

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

Neutral Core

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

Added Benefits

These vegetable tanned and washed leathers had a soft, supple hand ideal for unlined summer casuals and bags. hand ideal for unlined summer casuals and bags. hand ideal for unlined summer casuals and bags.

FFR- Focus On Fashion Retail JuneFFR- Focus On Fashion Retail June

resurfaced in updated patterns. Reversible leathers, either from neutral to bright or from pearlized to matte were summer material suggestions for unlined shoes and bags alike.

Committee for Colour & Trends - The complete forecasting source for shoes and accessories - www.colourandtrends.com

F76602.indd 23 5/21/12 9:26 PM

creo

24 June 2012 © FFR- Focus On Fashion RetailUNEU © FFR- Focus On Fashion Retail June 2012 25

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

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

LEGEND

★ Awful

★ ★ OK

★ ★ ★ GOOD

★ ★ ★ ★ Awesome

This issue is broughT To you by:TRADE SHOWS CALENDAR JUNE - JULY 2012DATE EVENT LOCATION M W C PHONE WEB SITE

FOCUS' RATING

Jun

e

May 31-June 3rd Dallas Apparel & Accessories Market Dallas, TX • • • • • • (214) 655-6100 www.dallasmarketcenter.com ★ ★

3-5 Denver Apparel & Accessory Market Denver, CO • • • • • • (303) 292-6278 www.denvermart.com ★ ★

6-8 The New York Shoe Expo (FFANY) New York, NY • • • • • (212) 751-6422 www.ffany.org ★ ★ ★

7-10 Atlanta Apparel Market Atlanta, GA • • • • • • (404) 220-3000 www.americasmart.com ★ ★ ★

11-13 SeLeCT- The Contemporary Trade Show Los Angeles, CA • • • • • (213) 630-3616 www.californiamarketcenter.com n/A

11-13 Focus- Apparel & Accessories Show Los Angeles, CA • • • • (213) 630-3616 www.californiamarketcenter.com ★

11-13 Transit- The Los Angeles Shoe Show Los Angeles, CA • • • • • (213) 630-3616 www.californiamarketcenter.com ★

11-14 LA KIDS MARKeT Los Angeles, CA • • • • (213) 630-3616 www.californiamarketcenter.com n/A

11-12The Metropolitan new York Shoe, Apparel & Accessories Market (B&STA) Secaucus, nJ • • • • • (212) 564-1069 www.marketplaceny.com ★ ★

16-16 expo Riva Schuh Riva del Garda, Italy • • • • n/a www.rivadelgardafierecongressi.it ★ ★

27-29 BIFF & BIL Bangkok International Fashion Fair Bangkok, Thailand • • • • • • 66 (0) 2507 8363 www.biffandbil.com n/A

19-22 Pitti Imagine uomo Florence, Italy • • • 39 05536931 www.pittimmagine.com ★ ★ ★

19-22 Pitti W Woman Florence, Italy • • 39 05536931 www.pittimmagine.com ★ ★ ★

13-15 The Atlanta Fashion Shoe & Accessory Market Atlanta, GA • • • • • (706) 923-0580 www.atlantashoemarket.com ★ ★

23-27 Milano Moda uomo Milan, Italy Fashion Show +39.02.7771081 www.cameramoda.it ★ ★

21-24 Hong Kong Jewellery & Gem Hong Kong, China • • • (852) 2516-2158 www.ubm.com n/A

28-30 Pitti Immagine Bimbo Florence, Italy • • • • 39 05536931 www.pittimmagine.com ★ ★ ★

26-29 Francal Sao Paulo, Brazil • • • • • 55 11 2226-3100 www.feirafrancal.com.br n/A

24-26 Shoe Market of the Americas (SMOTA) Fort Lauderdale, FL • • • • • (786) 331-9000 www.smota.com ★ ★

30- July 3rd Premiere Classe Paris, France • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd FAMe Paris, France • • • n/a www.whosnext.com ★ ★

30- July 3rd Mr. Brown Paris, France • • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd Private Paris, France • • n/a www.whosnext.com ★ ★

30- July 3rd Le Cube Paris, France • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd Mess Around Paris, France • • • • • n/a www.whosnext.com ★ ★

JuLY

2-5 Mode à Paris- Haute Couture Paris, France Fashion Show 0142 66 64 44 www.modeaparis.com n/A

3-6 Hong Kong Fashion Week Hong Kong, China • • • • • • (852) 2240-4323 www.hktdc.com n/A

4-6 Premium Men Berlin, Germany • • • • +49 (0)30-629-085-78 www.premiumexhibitions.com n/A

4-6 Bread & Butter Berlin, Germany • • • • • 49 (0)30 400 44 160 www.breadandbutter.com ★ ★ ★ ★

4-7 Mercedes-Benz Fashion Week Berlin, Germany Fashion Show (212) 489-8300 www.mbfashionweek.com ★ ★ ★

22-24 enKnYC new York, nY • • • • (212) 759-8055 www.enkshows.com ★ ★

22-24 MRket new York new York, nY • • • • (212) 686-4412 www.mrketshow.com ★ ★

28-31 Premium Dusseldorf Dusseldorf, Germany • • • • • +49 (0)30-629-085-78 www.premiumexhibitions.com n/A

22-24 Project new York, nY • • • • • (877) 554-4834 www.projectshow.com ★ ★ ★

19-23 Mercedes-Benz Fashion Week Swim Miami, FL Fashion Show (212) 489-8300 www.mbfashionweek.com ★ ★ ★

21-24 SwimShow Miami, FL • • (305) 596- 7889 www.swimshow.com n/A

24 June 2012 © FFR- Focus On Fashion RetailUNEU

1701 FOS June 20120520-2327.indd 24-25 5/20/12 11:48 PM

F76602.indd 24 5/21/12 9:26 PM

creo

24 June 2012 © FFR- Focus On Fashion RetailUNEU © FFR- Focus On Fashion Retail June 2012 25

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

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

LEGEND

★ Awful

★ ★ OK

★ ★ ★ GOOD

★ ★ ★ ★ Awesome

This issue is broughT To you by:TRADE SHOWS CALENDAR JUNE - JULY 2012DATE EVENT LOCATION M W C PHONE WEB SITE

FOCUS' RATING

Jun

e

May 31-June 3rd Dallas Apparel & Accessories Market Dallas, TX • • • • • • (214) 655-6100 www.dallasmarketcenter.com ★ ★

3-5 Denver Apparel & Accessory Market Denver, CO • • • • • • (303) 292-6278 www.denvermart.com ★ ★

6-8 The New York Shoe Expo (FFANY) New York, NY • • • • • (212) 751-6422 www.ffany.org ★ ★ ★

7-10 Atlanta Apparel Market Atlanta, GA • • • • • • (404) 220-3000 www.americasmart.com ★ ★ ★

11-13 SeLeCT- The Contemporary Trade Show Los Angeles, CA • • • • • (213) 630-3616 www.californiamarketcenter.com n/A

11-13 Focus- Apparel & Accessories Show Los Angeles, CA • • • • (213) 630-3616 www.californiamarketcenter.com ★

11-13 Transit- The Los Angeles Shoe Show Los Angeles, CA • • • • • (213) 630-3616 www.californiamarketcenter.com ★

11-14 LA KIDS MARKeT Los Angeles, CA • • • • (213) 630-3616 www.californiamarketcenter.com n/A

11-12The Metropolitan new York Shoe, Apparel & Accessories Market (B&STA) Secaucus, nJ • • • • • (212) 564-1069 www.marketplaceny.com ★ ★

16-16 expo Riva Schuh Riva del Garda, Italy • • • • n/a www.rivadelgardafierecongressi.it ★ ★

27-29 BIFF & BIL Bangkok International Fashion Fair Bangkok, Thailand • • • • • • 66 (0) 2507 8363 www.biffandbil.com n/A

19-22 Pitti Imagine uomo Florence, Italy • • • 39 05536931 www.pittimmagine.com ★ ★ ★

19-22 Pitti W Woman Florence, Italy • • 39 05536931 www.pittimmagine.com ★ ★ ★

13-15 The Atlanta Fashion Shoe & Accessory Market Atlanta, GA • • • • • (706) 923-0580 www.atlantashoemarket.com ★ ★

23-27 Milano Moda uomo Milan, Italy Fashion Show +39.02.7771081 www.cameramoda.it ★ ★

21-24 Hong Kong Jewellery & Gem Hong Kong, China • • • (852) 2516-2158 www.ubm.com n/A

28-30 Pitti Immagine Bimbo Florence, Italy • • • • 39 05536931 www.pittimmagine.com ★ ★ ★

26-29 Francal Sao Paulo, Brazil • • • • • 55 11 2226-3100 www.feirafrancal.com.br n/A

24-26 Shoe Market of the Americas (SMOTA) Fort Lauderdale, FL • • • • • (786) 331-9000 www.smota.com ★ ★

30- July 3rd Premiere Classe Paris, France • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd FAMe Paris, France • • • n/a www.whosnext.com ★ ★

30- July 3rd Mr. Brown Paris, France • • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd Private Paris, France • • n/a www.whosnext.com ★ ★

30- July 3rd Le Cube Paris, France • • • n/a www.whosnext.com ★ ★ ★

30- July 3rd Mess Around Paris, France • • • • • n/a www.whosnext.com ★ ★

JuLY

2-5 Mode à Paris- Haute Couture Paris, France Fashion Show 0142 66 64 44 www.modeaparis.com n/A

3-6 Hong Kong Fashion Week Hong Kong, China • • • • • • (852) 2240-4323 www.hktdc.com n/A

4-6 Premium Men Berlin, Germany • • • • +49 (0)30-629-085-78 www.premiumexhibitions.com n/A

4-6 Bread & Butter Berlin, Germany • • • • • 49 (0)30 400 44 160 www.breadandbutter.com ★ ★ ★ ★

4-7 Mercedes-Benz Fashion Week Berlin, Germany Fashion Show (212) 489-8300 www.mbfashionweek.com ★ ★ ★

22-24 enKnYC new York, nY • • • • (212) 759-8055 www.enkshows.com ★ ★

22-24 MRket new York new York, nY • • • • (212) 686-4412 www.mrketshow.com ★ ★

28-31 Premium Dusseldorf Dusseldorf, Germany • • • • • +49 (0)30-629-085-78 www.premiumexhibitions.com n/A

22-24 Project new York, nY • • • • • (877) 554-4834 www.projectshow.com ★ ★ ★

19-23 Mercedes-Benz Fashion Week Swim Miami, FL Fashion Show (212) 489-8300 www.mbfashionweek.com ★ ★ ★

21-24 SwimShow Miami, FL • • (305) 596- 7889 www.swimshow.com n/A


1701 FOS June 20120520-2327.indd 24-25 5/20/12 11:48 PM

F76602.indd 25 5/21/12 9:26 PM

creo


Retail Selling

he demonstration: that’s when it really all happens. It’s your opportunity to show your customer that you’re truly the expert they expect you to be. The demonstration is the crucial step that gets custom-ers to say, “I’ll take it!” It’s the moment of truth.

Customers buy for two reasons: trust and value. Trust is established during the probing process, but the demonstration is where you

establish value. Value can be defined as the total benefit the customer derives from making the purchase. Prestige, comfort, economy, durability, style, etc., are all types of value. Keep in mind, that what is of value to one customer may hold no value to another.

Regardless of whether the customer likes or dislikes you as a salesperson, value is the key in-gredient to making the sale. Even if you have the customer’s trust, and they love you, they still have to see the value an item brings them before they will buy it.

So, it is in your presentation that you estab-lish the value of an item. You must match your customer’s wants, needs and desires that you learned through probing, with the features, ad-vantages and benefits of the item. People don’t buy what the item has, they buy what the item will do for them.

For this reason, during your demonstra-tion you must be able to explain not only the features of an item but how those features will benefit the customer. We use a tool called the Feature-Advantage-Benefit-Grabber when de-scribing mer¬chandise. This technique involves

translating the item’s features into reasons for the customer to buy.

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

“One of the nice things about this hula hoop

By Harry J. Friedman, Founder/CEO, The Friedman Group

The Demonstration: Secrets for Success

1701 FOS June 20120520-2327.indd 26 5/20/12 11:43 PM


is that it’s perfectly round, so it’s easier to spin and you’ll have lots more fun. And you do like to have fun, don’t you?”

FABGs are very effective, and with some practice, simple to create and adapt to any indus-try. The following examples will help to illustrate this point:

“One of the nice things about this shoe is that the upper is made from genuine kidskin leather, which molds to the shape of your foot giving you a custom-made feel. It would be nice to walk around in custom-made shoes at half the price, wouldn’t it?”

“One of the terrific things about this pearl necklace is that it’s opera length, so it can be worn long or as a double choker, giving you two differ-ent looks with one piece of jewelry. And, that kind of versatility is nice, isn’t it?”

“Another nice thing about this video camera is that it has a fade option. This means that when you’re taping, you can fade to black gradually in-stead of just chopping it off, giving you a much more professional final product. And, making your audience ooh and aah over your video would be great, wouldn’t it?”

There are also some very subtle points to take note of to make sure you succeed in the demonstration. Besides showing the value of an item, you may need to inspire the customer to want to own it. It’s an essential part of any dem-

onstration in any industry. For example, a woman might appreciate the value of a mink coat, but not necessarily want it...until she tries it on, that is. A person might appreciate the value of a Mercedes, but not really want one until they drive it. Your merchandise isn’t any different. Looking at it is one thing, wearing, holding, experiencing it is another, which leads into another important part of your demonstration.

Each industry has its own ways to make the demonstration more effec¬tive. For example, in the shoe industry, measuring feet has become a lost art. Veterans in the shoe industry know, how-ever, that measuring does little to help you actually fit a customer better. We still advocate offering to do it. Why? Well, number one, it gets the custom-ers’ shoes off so they are less likely to run off while you’re in the backroom! But more importantly, it is perceived by the customer as great customer ser-vice and an example of professionalism. Customers are pleasantly surprised and impressed ev¬ery time.

Shoes should also never be put immediately on the customer’s foot, but instead pre¬sented to the customer with both hands. An FABG on the shoe prior to trying it on creates value immedi-ately. Remember, present the shoe to the customer, not the customer’s feet. Feet don’t make the deci-sion to buy, the mind does.

This same theory applies to the apparel indus-try in a big way. A woman may try on a garment

in the fitting room and after having it on about two seconds, takes it right off. Her first impression isn’t good, and she doesn’t even give it a chance. And what’s worse is that she never comes out of the dressing room to give the salesperson the chance to give it some value. If you give an FABG on the item before she takes it into the dressing room, the value established may be just enough for her to take a second look and make it work because she may already want it.

There’s another trick for the apparel business, especially in menswear. I call it the nine-point frump! When a man is standing in front of a three-way mirror with a suit on, the salesperson does my nine-point frump fit test. He tugs, adjusts buttons, unbuttons, smoothes the shoulders, pulls on the sleeves, etc., giving the impression that he’s “Sam the Tailor.” The salesperson is now perceived as a professional who is con¬cerned about how the cus-tomer looks and feels in the suit. In effect, every salesperson becomes a tailor! Walking around with a tape measure around your neck would only en-hance that image.

In the jewelry business, I’ve always liked to create some mystery to enhance the value of a piece of jewelry. For instance, before I put a ring on the customer’s finger or a chain around her neck, I pull it out of the case and lay a polishing or svelte cloth over it. Then, as I am polishing away, I give an FABG on it. Meanwhile, the customer is go¬ing crazy wanting to try on the piece.

1701 FOS June 20120520-2327.indd 27 5/20/12 11:43 PM

F76602.indd 26 5/21/12 9:26 PM


Retail Selling

he demonstration: that’s when it really all happens. It’s your opportunity to show your customer that you’re truly the expert they expect you to be. The demonstration is the crucial step that gets custom-ers to say, “I’ll take it!” It’s the moment of truth.

Customers buy for two reasons: trust and value. Trust is established during the probing process, but the demonstration is where you

establish value. Value can be defined as the total benefit the customer derives from making the purchase. Prestige, comfort, economy, durability, style, etc., are all types of value. Keep in mind, that what is of value to one customer may hold no value to another.

Regardless of whether the customer likes or dislikes you as a salesperson, value is the key in-gredient to making the sale. Even if you have the customer’s trust, and they love you, they still have to see the value an item brings them before they will buy it.

So, it is in your presentation that you estab-lish the value of an item. You must match your customer’s wants, needs and desires that you learned through probing, with the features, ad-vantages and benefits of the item. People don’t buy what the item has, they buy what the item will do for them.

For this reason, during your demonstra-tion you must be able to explain not only the features of an item but how those features will benefit the customer. We use a tool called the Feature-Advantage-Benefit-Grabber when de-scribing mer¬chandise. This technique involves

translating the item’s features into reasons for the customer to buy.

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

“One of the nice things about this hula hoop

By Harry J. Friedman, Founder/CEO, The Friedman Group

The Demonstration: Secrets for Success

1701 FOS June 20120520-2327.indd 26 5/20/12 11:43 PM


is that it’s perfectly round, so it’s easier to spin and you’ll have lots more fun. And you do like to have fun, don’t you?”

FABGs are very effective, and with some practice, simple to create and adapt to any indus-try. The following examples will help to illustrate this point:

“One of the nice things about this shoe is that the upper is made from genuine kidskin leather, which molds to the shape of your foot giving you a custom-made feel. It would be nice to walk around in custom-made shoes at half the price, wouldn’t it?”

“One of the terrific things about this pearl necklace is that it’s opera length, so it can be worn long or as a double choker, giving you two differ-ent looks with one piece of jewelry. And, that kind of versatility is nice, isn’t it?”

“Another nice thing about this video camera is that it has a fade option. This means that when you’re taping, you can fade to black gradually in-stead of just chopping it off, giving you a much more professional final product. And, making your audience ooh and aah over your video would be great, wouldn’t it?”

There are also some very subtle points to take note of to make sure you succeed in the demonstration. Besides showing the value of an item, you may need to inspire the customer to want to own it. It’s an essential part of any dem-

onstration in any industry. For example, a woman might appreciate the value of a mink coat, but not necessarily want it...until she tries it on, that is. A person might appreciate the value of a Mercedes, but not really want one until they drive it. Your merchandise isn’t any different. Looking at it is one thing, wearing, holding, experiencing it is another, which leads into another important part of your demonstration.

Each industry has its own ways to make the demonstration more effec¬tive. For example, in the shoe industry, measuring feet has become a lost art. Veterans in the shoe industry know, how-ever, that measuring does little to help you actually fit a customer better. We still advocate offering to do it. Why? Well, number one, it gets the custom-ers’ shoes off so they are less likely to run off while you’re in the backroom! But more importantly, it is perceived by the customer as great customer ser-vice and an example of professionalism. Customers are pleasantly surprised and impressed ev¬ery time.

Shoes should also never be put immediately on the customer’s foot, but instead pre¬sented to the customer with both hands. An FABG on the shoe prior to trying it on creates value immedi-ately. Remember, present the shoe to the customer, not the customer’s feet. Feet don’t make the deci-sion to buy, the mind does.

This same theory applies to the apparel indus-try in a big way. A woman may try on a garment

in the fitting room and after having it on about two seconds, takes it right off. Her first impression isn’t good, and she doesn’t even give it a chance. And what’s worse is that she never comes out of the dressing room to give the salesperson the chance to give it some value. If you give an FABG on the item before she takes it into the dressing room, the value established may be just enough for her to take a second look and make it work because she may already want it.

There’s another trick for the apparel business, especially in menswear. I call it the nine-point frump! When a man is standing in front of a three-way mirror with a suit on, the salesperson does my nine-point frump fit test. He tugs, adjusts buttons, unbuttons, smoothes the shoulders, pulls on the sleeves, etc., giving the impression that he’s “Sam the Tailor.” The salesperson is now perceived as a professional who is con¬cerned about how the cus-tomer looks and feels in the suit. In effect, every salesperson becomes a tailor! Walking around with a tape measure around your neck would only en-hance that image.

In the jewelry business, I’ve always liked to create some mystery to enhance the value of a piece of jewelry. For instance, before I put a ring on the customer’s finger or a chain around her neck, I pull it out of the case and lay a polishing or svelte cloth over it. Then, as I am polishing away, I give an FABG on it. Meanwhile, the customer is go¬ing crazy wanting to try on the piece.

1701 FOS June 20120520-2327.indd 27 5/20/12 11:43 PM

F76602.indd 27 5/21/12 9:26 PM


About the Author:

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

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

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

As one last example, let’s look at the electronics industry. Al-ways let the customers push the buttons and turn on the knobs. For example, if you are making a presentation on a television, let the customer work the remote con¬trol instead of you. Just tell them which buttons to push. It gets the customer involved and alleviates their intimi-dation about being able to operate the item once they get it home.

As you get further along in your demonstration, one situation to watch out for is cus¬tomers asking you to compare two different items. Don’t let yourself get trapped. The rule in this case is: sell each item on its own merit; never compare. If you describe one item to be better than another, you’re likely to lose the sale when the customer realizes they can only afford the one you just beat up.

If the customer presses you for comparisons, simply explain that it’s not a matter of one be-ing better than the other, but a matter of each having different features. Answer by saying, “this item is terrific because it has...” and “this other one is great because of...” Naturally, to fill in the

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

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

A similar dilemma occurs when the cus-tomer is asking you to justify the price differ-ence between two items. Again, don’t get your-self in trouble. The thing you don’t want to do

is insinuate that the more expensive item is better because it has better fea¬tures. You’ll only succeed in convincing the customer that they don’t want the item if they can’t af-ford those better features.

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

If necessary, you could draw a parallel to get the point across. For example, you might look at two sweaters that on the surface appear very similar, yet one is $100 more than the other. The higher-priced sweater might be hand-knitted ver-sus the other, which is woven by a machine. That doesn’t mean the lower-priced sweater isn’t any good. Or, think of the difference in price between a Mercedes and a Honda. If the Honda was no good based on the price difference, everyone would be driving a Mercedes or riding the bus. No one would be driving a Honda! And, let’s face it, of course you’d rather sell the Mercedes of merchandise, but you would also rather sell the Honda than sell nothing at all! So, don’t kill the customer’s enthusiasm for either item if you get caught in two different price ranges.

There’s a lot to think about during the dem-onstration. Remain in control, attach benefits to all of those great features, and add some creativity to your presentations. And remember, you’re not there because you love all the merchandise; you’re there to sell it!

1701 FOS June 20120520-2327.indd 28 5/20/12 11:43 PM

F76602.indd 28 5/21/12 9:26 PM

creo


About the Author:

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

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

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

As one last example, let’s look at the electronics industry. Al-ways let the customers push the buttons and turn on the knobs. For example, if you are making a presentation on a television, let the customer work the remote con¬trol instead of you. Just tell them which buttons to push. It gets the customer involved and alleviates their intimi-dation about being able to operate the item once they get it home.

As you get further along in your demonstration, one situation to watch out for is cus¬tomers asking you to compare two different items. Don’t let yourself get trapped. The rule in this case is: sell each item on its own merit; never compare. If you describe one item to be better than another, you’re likely to lose the sale when the customer realizes they can only afford the one you just beat up.

If the customer presses you for comparisons, simply explain that it’s not a matter of one be-ing better than the other, but a matter of each having different features. Answer by saying, “this item is terrific because it has...” and “this other one is great because of...” Naturally, to fill in the

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

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

A similar dilemma occurs when the cus-tomer is asking you to justify the price differ-ence between two items. Again, don’t get your-self in trouble. The thing you don’t want to do

is insinuate that the more expensive item is better because it has better fea¬tures. You’ll only succeed in convincing the customer that they don’t want the item if they can’t af-ford those better features.

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

If necessary, you could draw a parallel to get the point across. For example, you might look at two sweaters that on the surface appear very similar, yet one is $100 more than the other. The higher-priced sweater might be hand-knitted ver-sus the other, which is woven by a machine. That doesn’t mean the lower-priced sweater isn’t any good. Or, think of the difference in price between a Mercedes and a Honda. If the Honda was no good based on the price difference, everyone would be driving a Mercedes or riding the bus. No one would be driving a Honda! And, let’s face it, of course you’d rather sell the Mercedes of merchandise, but you would also rather sell the Honda than sell nothing at all! So, don’t kill the customer’s enthusiasm for either item if you get caught in two different price ranges.

There’s a lot to think about during the dem-onstration. Remain in control, attach benefits to all of those great features, and add some creativity to your presentations. And remember, you’re not there because you love all the merchandise; you’re there to sell it!

1701 FOS June 20120520-2327.indd 28 5/20/12 11:43 PM

F76602.indd 29 5/21/12 9:26 PM

creo


Social Issues

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

Creating Sustainable Futures: Empowering Women through the International Fashion Industry

eet Shondhya Rani. Until re-cently, Shondhya had spent her entire life living in poverty, without education, and with barely the ability to read and write. Shondya is married, has two children, and for most of her marriage, was abused by her

husband. Five years ago, everything changed for Shondhya. She started working for Aarong where she learned how to weave textiles. Aarong is the manufacturing arm of of the largest social enter-prise of BRAC, an international development or-ganization founded in 1972 in Bangladesh, whose mission is to alleviate poverty by empowering the poor to bring about change in their own lives.

Richa Agarwal, project leader for Aarong, tells the story of how, with the assistance of Aar-ong, Shondhya gained market access, working capital, fair market prices for her goods, and was able to take advantage of social services, such as healthcare and legal aid for herself and for her family. Shondhya is now a successful and respected member of her community and her story is the embodiment of a holistic approach to poverty alleviation. Through investment and the development of new production techniques, Aarong is helping women like Shondhya create market-driven crafts that are appealing to the modern consumer taste.

Shondhya’s story repre-sents one of the many examples shared by panelists during the guest lecture on Creating Sus-tainable Futures: Empowering Women through the Interna-tional Fashion Industry held February 23, 2012 at the Fash-ion Institute of Technology (FIT). The program launched the 16th season of the Talking Trade @ FIT series, whose mission is to serve as an out-reach program for students of international trade and marketing and to pro-mote the Department of International Trade and Marketing as the premier source of talent and academic leadership in the industry. The occasion brought together an impres-sive roster of industry lead-ers and C-suite executives to further the understanding of social impact models within the international fashion industry and their role in alleviating poverty.

The event was moderated by Chrissie Lam, senior concept designer of American Eagle Outfitters and founder of The Supply Change and Fashion Designers Without Bor-ders, organizations that foster closer relation-ships and collaborations between the design community and artisan social enterprises around the world. The panel was comprised of leaders from the for-profit and develop-ment sectors, including Agarwal, Mary Ellen Iskenderian, president and CEO of Women’s World Banking; Craig A. Leavitt, CEO of Kate Spade New York; Deborah Lloyd, presi-dent and chief creative officer of Kate spade New York; and Benjamin Stone, president and CEO of Indego Africa.

The panelists discussed the business opportunities and challenges associated with alleviating poverty for women in developing and emerging markets through the lens of the international fashion industry. Through a critical examina-tion of social impact programs target-ing women, the panelists highlighted ways in which the international fash-ion industry could take the lead in building sustainable, innovative busi-ness models that help to solve key social issues and achieve long-term business success.

1701 FOS June 20120520-2327.indd 30 5/20/12 11:41 PM


Fashion is Big Business Fashion businesses typically require relatively

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

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

Why Focus on WomenLed by Iskenderian of Women’s World

Banking , Leavitt of Kate spade New York, and Stone of Indego Africa, the panel championed the importance of focusing on women as an ef-fective means of poverty alleviation as they con-stitute a majority of the world’s 1.3 billion poor. Women are also more likely to focus their earn-ings on improving the health, education, and nutritional status of their households. Targeting women can improve a company’s financial per-formance and can strengthen consumer loyalty and brand trust. Iskenderian said, “…by invest-ing in women, companies are able to play a criti-cal role in creating a long-term, multiplier effect on the lives and well-being of poor families and their communities.”

While the fashion industry has been a power-ful force in helping to reduce poverty and to cre-ate sustainable livelihoods for some disadvantaged communities, more must be done to ensure that the impact is scalable and sustainable, and that em-ployment opportunities bring about greater eco-nomic independence for women and take strides toward gender equality.

Financial Inclusion A majority of garment workers in develop-

ing and emerging markets are young women with little to no work experience; who have emigrated from rural areas, and whose propensity for finan-

cial exclusion typically exceeds that of men’s. Women’s economic po-tential and their unequal access to capital to create and expand their busi-nesses are two fundamen-tal reasons Iskenderian argued for the need to increase women’s access to finance. Greater ac-cess to financial services, including loans, savings accounts, and insurance services, complemented by products that address social needs, will allow women to develop and scale fashion businesses that are both sustain-able and profitable and improve the well-being of their families and communities.

Trade, not AidMany fashion brands have

taken the lead in creating cause marketing initiatives that are designed to solicit charitable giving from consumers in order to address a social issue. How-ever, the panelists stressed the need for the fashion industry to be at the forefront of changing the status quo by creating in-novative business models that are designed to solve systemic development issues, like pover-ty using the whole of the busi-ness—from supply chains, to alternative sourcing strategies to market penetration—in order to make a long-term, sustain-able, and profitable impact.

It is trade, not aid, which is essential to building econo-mies that economically empower disadvantaged populations and communities. Stone of Indego Africa warned that trade can inadvertently become a form of aid unless it is executed in a transpar-ent and ethical manner, and artisans are taught the skills necessary to become independent suppliers. Ultimately, having a social impact is more about running a successful, profitable business than it

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

Expanding the Supply ChainThe nature of the industry makes it possible

for fashion companies to work with community organizations that directly benefit the poor, while at the same time influence the community ben-efits of larger scale and factory production. For fashion businesses that are social enterprises, sourc-ing from Fair Trade or smaller scale cooperatives to design and sell handicraft collections can help to overcome some of the operational complexities that many larger brands face with sourcing from less developed markets. Minimum order require-ments that can limit production opportunities for small to large scale fashion brands are not an is-sue for these types of organizations. Such is the case with Indego Africa, a social enterprise that provides women with access to markets, fair trade prices for their products, and skills and capacity building to ensure the growth and expansion of their businesses.

Stone stated that his company partners with some 400 women artisans in Rwanda on a fair trade basis and exports, markets, and sells its part-ners’ contemporary accessories and home decor

products at major high-end retailers across the U.S., such as J.Crew, Nicole Miller, Anthropolo-gie, Stevan Alan, shopbop.com, and Madewell; on its online store, shop.indegoafrica.org; and in 70 boutiques and museum shops in the U.S. and Europe.

Indego Africa then pools 100% of its profits with dona-tions to fund long-term skills training programs for its artisan partners in areas such as finan-

cial management, entrepreneurship, and financial education. By fair trade, Stone means that Indego Africa complies with strict criteria set by the Fair Trade Association to create a more equitable and sustainable trade system for producers.

Indego Africa’s long-term goal is to transi-tion out of the role of intermediary to that of

1701 FOS June 20120520-2327.indd 31 5/20/12 11:41 PM

F76602.indd 30 5/21/12 9:26 PM


Social Issues

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

Creating Sustainable Futures: Empowering Women through the International Fashion Industry

eet Shondhya Rani. Until re-cently, Shondhya had spent her entire life living in poverty, without education, and with barely the ability to read and write. Shondya is married, has two children, and for most of her marriage, was abused by her

husband. Five years ago, everything changed for Shondhya. She started working for Aarong where she learned how to weave textiles. Aarong is the manufacturing arm of of the largest social enter-prise of BRAC, an international development or-ganization founded in 1972 in Bangladesh, whose mission is to alleviate poverty by empowering the poor to bring about change in their own lives.

Richa Agarwal, project leader for Aarong, tells the story of how, with the assistance of Aar-ong, Shondhya gained market access, working capital, fair market prices for her goods, and was able to take advantage of social services, such as healthcare and legal aid for herself and for her family. Shondhya is now a successful and respected member of her community and her story is the embodiment of a holistic approach to poverty alleviation. Through investment and the development of new production techniques, Aarong is helping women like Shondhya create market-driven crafts that are appealing to the modern consumer taste.

Shondhya’s story repre-sents one of the many examples shared by panelists during the guest lecture on Creating Sus-tainable Futures: Empowering Women through the Interna-tional Fashion Industry held February 23, 2012 at the Fash-ion Institute of Technology (FIT). The program launched the 16th season of the Talking Trade @ FIT series, whose mission is to serve as an out-reach program for students of international trade and marketing and to pro-mote the Department of International Trade and Marketing as the premier source of talent and academic leadership in the industry. The occasion brought together an impres-sive roster of industry lead-ers and C-suite executives to further the understanding of social impact models within the international fashion industry and their role in alleviating poverty.

The event was moderated by Chrissie Lam, senior concept designer of American Eagle Outfitters and founder of The Supply Change and Fashion Designers Without Bor-ders, organizations that foster closer relation-ships and collaborations between the design community and artisan social enterprises around the world. The panel was comprised of leaders from the for-profit and develop-ment sectors, including Agarwal, Mary Ellen Iskenderian, president and CEO of Women’s World Banking; Craig A. Leavitt, CEO of Kate Spade New York; Deborah Lloyd, presi-dent and chief creative officer of Kate spade New York; and Benjamin Stone, president and CEO of Indego Africa.

The panelists discussed the business opportunities and challenges associated with alleviating poverty for women in developing and emerging markets through the lens of the international fashion industry. Through a critical examina-tion of social impact programs target-ing women, the panelists highlighted ways in which the international fash-ion industry could take the lead in building sustainable, innovative busi-ness models that help to solve key social issues and achieve long-term business success.

1701 FOS June 20120520-2327.indd 30 5/20/12 11:41 PM


Fashion is Big Business Fashion businesses typically require relatively

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

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

Why Focus on WomenLed by Iskenderian of Women’s World

Banking , Leavitt of Kate spade New York, and Stone of Indego Africa, the panel championed the importance of focusing on women as an ef-fective means of poverty alleviation as they con-stitute a majority of the world’s 1.3 billion poor. Women are also more likely to focus their earn-ings on improving the health, education, and nutritional status of their households. Targeting women can improve a company’s financial per-formance and can strengthen consumer loyalty and brand trust. Iskenderian said, “…by invest-ing in women, companies are able to play a criti-cal role in creating a long-term, multiplier effect on the lives and well-being of poor families and their communities.”

While the fashion industry has been a power-ful force in helping to reduce poverty and to cre-ate sustainable livelihoods for some disadvantaged communities, more must be done to ensure that the impact is scalable and sustainable, and that em-ployment opportunities bring about greater eco-nomic independence for women and take strides toward gender equality.

Financial Inclusion A majority of garment workers in develop-

ing and emerging markets are young women with little to no work experience; who have emigrated from rural areas, and whose propensity for finan-

cial exclusion typically exceeds that of men’s. Women’s economic po-tential and their unequal access to capital to create and expand their busi-nesses are two fundamen-tal reasons Iskenderian argued for the need to increase women’s access to finance. Greater ac-cess to financial services, including loans, savings accounts, and insurance services, complemented by products that address social needs, will allow women to develop and scale fashion businesses that are both sustain-able and profitable and improve the well-being of their families and communities.

Trade, not AidMany fashion brands have

taken the lead in creating cause marketing initiatives that are designed to solicit charitable giving from consumers in order to address a social issue. How-ever, the panelists stressed the need for the fashion industry to be at the forefront of changing the status quo by creating in-novative business models that are designed to solve systemic development issues, like pover-ty using the whole of the busi-ness—from supply chains, to alternative sourcing strategies to market penetration—in order to make a long-term, sustain-able, and profitable impact.

It is trade, not aid, which is essential to building econo-mies that economically empower disadvantaged populations and communities. Stone of Indego Africa warned that trade can inadvertently become a form of aid unless it is executed in a transpar-ent and ethical manner, and artisans are taught the skills necessary to become independent suppliers. Ultimately, having a social impact is more about running a successful, profitable business than it

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

Expanding the Supply ChainThe nature of the industry makes it possible

for fashion companies to work with community organizations that directly benefit the poor, while at the same time influence the community ben-efits of larger scale and factory production. For fashion businesses that are social enterprises, sourc-ing from Fair Trade or smaller scale cooperatives to design and sell handicraft collections can help to overcome some of the operational complexities that many larger brands face with sourcing from less developed markets. Minimum order require-ments that can limit production opportunities for small to large scale fashion brands are not an is-sue for these types of organizations. Such is the case with Indego Africa, a social enterprise that provides women with access to markets, fair trade prices for their products, and skills and capacity building to ensure the growth and expansion of their businesses.

Stone stated that his company partners with some 400 women artisans in Rwanda on a fair trade basis and exports, markets, and sells its part-ners’ contemporary accessories and home decor

products at major high-end retailers across the U.S., such as J.Crew, Nicole Miller, Anthropolo-gie, Stevan Alan, shopbop.com, and Madewell; on its online store, shop.indegoafrica.org; and in 70 boutiques and museum shops in the U.S. and Europe.

Indego Africa then pools 100% of its profits with dona-tions to fund long-term skills training programs for its artisan partners in areas such as finan-

cial management, entrepreneurship, and financial education. By fair trade, Stone means that Indego Africa complies with strict criteria set by the Fair Trade Association to create a more equitable and sustainable trade system for producers.

Indego Africa’s long-term goal is to transi-tion out of the role of intermediary to that of

1701 FOS June 20120520-2327.indd 31 5/20/12 11:41 PM

F76602.indd 31 5/21/12 9:26 PM


advisor, allowing for artisan cooperatives to directly engage with the global market. It is an ambitious goal, but one that has come to frui-tion more quickly than the team imagined. In October 2011, designer Nicole Miller visited Rwanda and executed a purchase order with one of Indego Africa’s artisan partners, marking the first purchase order ever made between a Rwan-dan cooperative and a major U.S. brand. In-dego Africa helps to fur-ther its artisan partners’ independence through a commitment to “ex-treme transparency” as noted by Stone. This means measuring the impact of its work on the lives of its artisan partners, pub-lishing the study and each financial document on its website, and ensuring that its artisan partners are kept abreast of everything impacting a prod-uct’s journey through the supply chain--from the cooperative to the customer.

Because of its products and unique business model, Indego Africa was the subject of a Harvard Business school case study and has garnered a great deal of media attention in industry and news pub-lications like Vogue, The New York Times, WWD, InStyle, and Elle magazine.

In the case of Aarong, the company’s mar-keting savvy and its large number of retail outlets has made indigenous products fashionable and spawned a massive cottage industry in Bangladesh, helping to position the handicraft sector on the world stage. What began in 1978 as a fair trade organization to provide livelihood development opportunities for rural artisans, has now become the largest retail chain in Bangladesh, generating roughly $10 million in profits last year, with 12 outlets throughout the country employing approx-imately 65,000 rural Bangladeshi artisans, most of whom are women.

A Socially Conscious “High-end” Labelkate spade New York (“kate spade”) has

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

Rwanda, and Afghan-istan where women are usually hit the hardest. Through the personal involvement of Leavitt and Lloyd, who themselves have sponsored WFWI sisters, these commu-nities are being trans-formed into thriving economies.

Rather than write a check for a charitable donation, kate spade is actively engaged in integrating its social innovation strategy into its core business strategy, which helps to improve the lives of poor women by

providing them with steady employment and a consistent income. For example, in Bosnia kate spade has employed 350 women who complete a year-long jobs skills and rights awareness training course from WFWI. Once the training is com-plete, under the creative direction of Lloyd’s team in New York, the women in Bosnia create cold weather goods, such as crocheted hats, scarves, and mittens; artisans in Rwanda make jewelry, hand-woven baskets and bags; and in Afghani-stan, hand-knitted cash-mere pieces.

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

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

Entering New Markets, Strengthening Customer Loyalty, and Eradicating Poverty: A Win-Win StrategyFashion is a business whose focus is on the bot-tom line. Yet, despite the fact that profitability is king, the fashion industry has an extraordinary ability to engage consumers with shared values on the issue of poverty while at the same time achiev-ing core business goals.

Such were the sentiments of the presenters summed up by Leavitt, who called for the indus-try to take the lead in developing profitable social impact models integrated into a company’s core business; investing in women as a means to revive economies and build stronger markets; and build-ing fair profit distribution models to ensure work-ers at the end of the supply chain are able to share in the success of the products sold.

Think Globally, Act LocallyThere are many ways for the public to play

an active role in the fight against poverty. In addi-tion to donating funds or arranging for corporate matching, one can participate by volunteering, in-terning, sponsoring a sister, becoming a member of these organizations, attending events, or by simply signing up for newsletters.

W o m e n ’ s World Banking, a global network of microfinance insti-tutions and banks, has a Young Profes-sionals Network and offers immersion trips so that par-ticipants can see the work of the WWB network. At Indego Africa, one can join a regional board to promote the organi-zation’s mission and model and help plan events

These initia-tives show that there are bound-less ways to inter-lace fashion with transforming the

lives of communities by providing steady em-ployment to the neediest of mankind and by recognizing that the women, who benefit from these humanitarian undertakings, also have the creative skills to enrich the fashion industry. It is up to us to take advantage of this remarkable opportunity.

Social Issues

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F76602.indd 32 5/21/12 9:26 PM


advisor, allowing for artisan cooperatives to directly engage with the global market. It is an ambitious goal, but one that has come to frui-tion more quickly than the team imagined. In October 2011, designer Nicole Miller visited Rwanda and executed a purchase order with one of Indego Africa’s artisan partners, marking the first purchase order ever made between a Rwan-dan cooperative and a major U.S. brand. In-dego Africa helps to fur-ther its artisan partners’ independence through a commitment to “ex-treme transparency” as noted by Stone. This means measuring the impact of its work on the lives of its artisan partners, pub-lishing the study and each financial document on its website, and ensuring that its artisan partners are kept abreast of everything impacting a prod-uct’s journey through the supply chain--from the cooperative to the customer.

Because of its products and unique business model, Indego Africa was the subject of a Harvard Business school case study and has garnered a great deal of media attention in industry and news pub-lications like Vogue, The New York Times, WWD, InStyle, and Elle magazine.

In the case of Aarong, the company’s mar-keting savvy and its large number of retail outlets has made indigenous products fashionable and spawned a massive cottage industry in Bangladesh, helping to position the handicraft sector on the world stage. What began in 1978 as a fair trade organization to provide livelihood development opportunities for rural artisans, has now become the largest retail chain in Bangladesh, generating roughly $10 million in profits last year, with 12 outlets throughout the country employing approx-imately 65,000 rural Bangladeshi artisans, most of whom are women.

A Socially Conscious “High-end” Labelkate spade New York (“kate spade”) has

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

Rwanda, and Afghan-istan where women are usually hit the hardest. Through the personal involvement of Leavitt and Lloyd, who themselves have sponsored WFWI sisters, these commu-nities are being trans-formed into thriving economies.

Rather than write a check for a charitable donation, kate spade is actively engaged in integrating its social innovation strategy into its core business strategy, which helps to improve the lives of poor women by

providing them with steady employment and a consistent income. For example, in Bosnia kate spade has employed 350 women who complete a year-long jobs skills and rights awareness training course from WFWI. Once the training is com-plete, under the creative direction of Lloyd’s team in New York, the women in Bosnia create cold weather goods, such as crocheted hats, scarves, and mittens; artisans in Rwanda make jewelry, hand-woven baskets and bags; and in Afghani-stan, hand-knitted cash-mere pieces.

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

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

Entering New Markets, Strengthening Customer Loyalty, and Eradicating Poverty: A Win-Win StrategyFashion is a business whose focus is on the bot-tom line. Yet, despite the fact that profitability is king, the fashion industry has an extraordinary ability to engage consumers with shared values on the issue of poverty while at the same time achiev-ing core business goals.

Such were the sentiments of the presenters summed up by Leavitt, who called for the indus-try to take the lead in developing profitable social impact models integrated into a company’s core business; investing in women as a means to revive economies and build stronger markets; and build-ing fair profit distribution models to ensure work-ers at the end of the supply chain are able to share in the success of the products sold.

Think Globally, Act LocallyThere are many ways for the public to play

an active role in the fight against poverty. In addi-tion to donating funds or arranging for corporate matching, one can participate by volunteering, in-terning, sponsoring a sister, becoming a member of these organizations, attending events, or by simply signing up for newsletters.

W o m e n ’ s World Banking, a global network of microfinance insti-tutions and banks, has a Young Profes-sionals Network and offers immersion trips so that par-ticipants can see the work of the WWB network. At Indego Africa, one can join a regional board to promote the organi-zation’s mission and model and help plan events

These initia-tives show that there are bound-less ways to inter-lace fashion with transforming the

lives of communities by providing steady em-ployment to the neediest of mankind and by recognizing that the women, who benefit from these humanitarian undertakings, also have the creative skills to enrich the fashion industry. It is up to us to take advantage of this remarkable opportunity.

Social Issues

1701 FOS June 20120520-2327.indd 32 5/20/12 11:41 PM

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34 June 2012 © FFR- Focus On Fashion Retail34 June 2012 © FFR- Focus On Fashion Retail

Supermodel Eva Herzigova wearing Montblanc

“Collection Princesse Grace de Monaco”

Petales de Rose motif ring, earrings, bracelet, necklace

and a unique Haute Joaillerie timepiece.

Director James Cameron, wife Suzy Amis Cameronand actress Kate Winslet attend the world premiere of TITANIC in 3D.

Suzy Amis Cameron is wearing100% sustainably designed gown by Prophetik.

Top: Singer Lionel Richie and boxer Muhammad Ali atthe Muhammad Ali’s Celebrity Fight Night XIII.

Top right: IWC’s limited edition white gold the Big Pilot’s Watchto honor the Muhammad Ali.

Bottom left: Boxer Evander Holyfield presentingThe Big Pilot Edition Muhammad Ali in white gold IWC watch.

Bottom right: Actor Tom Hanks and wife actress Rita Wilson atthe Muhammad Ali’s Celebrity Fight Night XIII.

CELEBRITIESFashion&

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

Actress Melissa McCarthywearing diamond Paccioni “Fantasia” watch

at the 2012 Oscars GBK gifting suites.

Top: Carmen Chaplin and Dolores Chaplinattend a celebration for

the 40th anniversary of Sir Charlie Chaplin’shonorary Academy Award in Los Angeles.

Both are wearing watches by Jaeger-LeCoultre.

Left: Actress Katherine Heigl wearingSutra earrings and Maria Lucia Hohan gownto the Paris Premiere of One For The Money

Bottom left: Singer Taylor Swiftwearing a Maria Lucia Hohan dress

to the 2012 Nickelodeon Kids’ Choice Awards

Bottom right: TV Personality Kelly Osbourne wearing a Tony Ward Couture dress and Arunashi Jewels

to the Nickelodeon 25th Annual Kids’ Choice Awards

Singer Katy Perry at the 2012 MusiCares benefit gala,

honoring Paul McCartney, is wearing the maxi ring in

white gold with diamonds and rock crystalby Carrera y Carrera.

F76602.indd 34 5/21/12 9:26 PM

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34 June 2012 © FFR- Focus On Fashion Retail34 June 2012 © FFR- Focus On Fashion Retail





Director James Cameron, wife Suzy Amis Cameronand actress Kate Winslet attend the world premiere of TITANIC in 3D.

Suzy Amis Cameron is wearing100% sustainably designed gown by Prophetik.

Top: Singer Lionel Richie and boxer Muhammad Ali atthe Muhammad Ali’s Celebrity Fight Night XIII.

Top right: IWC’s limited edition white gold the Big Pilot’s Watchto honor the Muhammad Ali.

Bottom left: Boxer Evander Holyfield presentingThe Big Pilot Edition Muhammad Ali in white gold IWC watch.

Bottom right: Actor Tom Hanks and wife actress Rita Wilson atthe Muhammad Ali’s Celebrity Fight Night XIII.

CELEBRITIESFashion&

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© FFR- Focus On Fashion Retail June 2012 35© FFR- Focus On Fashion Retail June 2012 35





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

Actress Melissa McCarthywearing diamond Paccioni “Fantasia” watch

at the 2012 Oscars GBK gifting suites.

Top: Carmen Chaplin and Dolores Chaplinattend a celebration for

the 40th anniversary of Sir Charlie Chaplin’shonorary Academy Award in Los Angeles.

Both are wearing watches by Jaeger-LeCoultre.

Left: Actress Katherine Heigl wearingSutra earrings and Maria Lucia Hohan gownto the Paris Premiere of One For The Money

Bottom left: Singer Taylor Swiftwearing a Maria Lucia Hohan dress

to the 2012 Nickelodeon Kids’ Choice Awards

Bottom right: TV Personality Kelly Osbourne wearing a Tony Ward Couture dress and Arunashi Jewels

to the Nickelodeon 25th Annual Kids’ Choice Awards

Singer Katy Perry at the 2012 MusiCares benefit gala,

honoring Paul McCartney, is wearing the maxi ring in

white gold with diamonds and rock crystalby Carrera y Carrera.

F76602.indd 35 5/21/12 9:26 PM

creo

WE


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

Top: Actress Penelope Cruz wearing acustom Giorgio Armani organza evening gown

at the 84th Annual Academy Awards.The color of the dress is an ethereal combination of blue

and grey that blends like a stormy sky.The look features dramatic off-the-shoulder straps and

a fitted bodice. The waist is enveloped by a drape of fabric that cascades into gathered pleats, causing an

understated, luminescent liquid effect.

Bottom left: Actress/Model Olivia Palermo wears ablack Emporio Armani jacket with

Mongolian lamb’s wool trim atthe London Fashion week 20.

Bottom middle: Actor Keanu Reeves wearsa Giorgio Armani classic suit for the

premiere of ‘Side by Side’, atthe 62nd Berlin International Film Festival.

Bottom right: Actress Jessica Alba is wearing Armani at the opening the new Armani Hotel Milano party in Milan.


Top: Actress Glenn Close wore a custom designed navy blue velvet

Giorgio Armani Privé evening gown at the Golden Globe 2012. The strapless

dress features a crystal-embedded bust detail and falls into front and

back velvet panels. The gown is cushioned by a flowing pleated chiffon

underskirt that peeks out at the hem and through dramatic side slits. The look is completed with a matching velvet bolero, that outlines the shoulders and

features oversized satin cuffs onthree-quarter length sleeves.

Left: Roberta Armani and Clive Owen in Armaniat the opening the Armani boutique in Berlin.

Bottom left: Singer Lana del Rey wore a sky blueGiorgio Armani silk satin bustier dress

to the ECHO Awards in Berlin.

Bottom middle: Actor Tom Cruise wears a custom designed Giorgio Armani midnight blue one button wool

and cashmere peak lapel tuxedo witha classic white evening shirt and a navy blue neck tie

at the 84th Annual Academy Awards.

Bottom right: Supermodel Karolina Kurkova wearing an Armani Prive long-sleeved champagne-colored jumpsuit, featuring a plunging V-neck and open back at the Oscar 2012 after-party. The entire look is made with delicate netting and embroidered with silver detail, creating the

illusion that the outfit is tailored onto the body.

!

F76602.indd 36 5/21/12 9:26 PM

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WE


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

Top: Actress Penelope Cruz wearing acustom Giorgio Armani organza evening gown

at the 84th Annual Academy Awards.The color of the dress is an ethereal combination of blue

and grey that blends like a stormy sky.The look features dramatic off-the-shoulder straps and

a fitted bodice. The waist is enveloped by a drape of fabric that cascades into gathered pleats, causing an

understated, luminescent liquid effect.

Bottom left: Actress/Model Olivia Palermo wears ablack Emporio Armani jacket with

Mongolian lamb’s wool trim atthe London Fashion week 20.

Bottom middle: Actor Keanu Reeves wearsa Giorgio Armani classic suit for the

premiere of ‘Side by Side’, atthe 62nd Berlin International Film Festival.

Bottom right: Actress Jessica Alba is wearing Armani at the opening the new Armani Hotel Milano party in Milan.


Top: Actress Glenn Close wore a custom designed navy blue velvet

Giorgio Armani Privé evening gown at the Golden Globe 2012. The strapless

dress features a crystal-embedded bust detail and falls into front and

back velvet panels. The gown is cushioned by a flowing pleated chiffon

underskirt that peeks out at the hem and through dramatic side slits. The look is completed with a matching velvet bolero, that outlines the shoulders and

features oversized satin cuffs onthree-quarter length sleeves.

Left: Roberta Armani and Clive Owen in Armaniat the opening the Armani boutique in Berlin.

Bottom left: Singer Lana del Rey wore a sky blueGiorgio Armani silk satin bustier dress

to the ECHO Awards in Berlin.

Bottom middle: Actor Tom Cruise wears a custom designed Giorgio Armani midnight blue one button wool

and cashmere peak lapel tuxedo witha classic white evening shirt and a navy blue neck tie

at the 84th Annual Academy Awards.

Bottom right: Supermodel Karolina Kurkova wearing an Armani Prive long-sleeved champagne-colored jumpsuit, featuring a plunging V-neck and open back at the Oscar 2012 after-party. The entire look is made with delicate netting and embroidered with silver detail, creating the

illusion that the outfit is tailored onto the body.

!

F76602.indd 37 5/21/12 9:26 PM

creo


Retail 101

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

1Good isn’t good enough;only best gets the sale.

Second-best among competitors isn’t a consolation, it’s a catastrophe. Our customers never choose the second-best value for their money; they choose the best (in their eyes) every time. No matter how close the contest, when we’re deemed second-best we get nothing.

Customers evaluate many criteria in each sale—product quality, price, store convenience, location, sales help, hours, displays …. And each customer weighs each factor slightly differently (creating an opportunity for perceptive retailers to exploit the niches). But ultimately only the store the customer judges best overall gets the sale.

Coach Lombardi had it right, “Winning isn’t everything, it’s the only thing.”

When you stop trying to be better, you stop being good.

2It looks so easyto be so hard.

Rent a space, order some merchandise, run an ad, and operate the cash register. Anybody can do that!

Apparently not. Estimates of the retailing failure rate range as high as 95 percent. And for those who fail, not only are their hard work and long hours unrewarded but, in most cases, their precious bets—usually their life savings—are lost.

Easy work and guaranteed returns are not in the description of retail.

3A company is known

by the people it keeps.Lots of components make up a retail store: a building, inventory,

products, policies, systems, décor, organization, marketing, and a thousand more details. But none of these is as important or as defining as its people.

A great store can only be built with great people. Their quality is visible in every aspect of the store’s facilities, methods, and operation—indeed the store is the product of the people.

No other element is as critical and no other element can make up for a store’s people.

4Profit is not immoral.

Some people feel that selling something for more than was paid for it is somehow dishonest—that a company can be profitable only by ripping off its customers.

They view every transaction as a zero-sum game: one party wins only when the other loses. They don’t recognize that in a good transaction both parties benefit—both get something they would rather have than what

they gave to get it. A shopper chooses the best value available to him to meet his particular

need. The store that anticipated the need and met it more attractively than its competitors gets the sale. The store’s profit isn’t due to ripping the customer off; it’s the store’s payment (and incentive) for anticipating and meeting the customer’s need.

Profit is far from immoral. It’s the most effective and efficient economic incentive yet devised and has created for all of us the highest standards of living the world has ever known.

“Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handfulsee it for what it really is—the strong horse that pulls the whole cart.”

—Winston Churchill

5Décor is marketing too.

The message our décor sends isn’t just about organization and cleanliness; it should be a strong statement about selection, quality, pricing, friendliness, dependability, trustworthiness, and professionalism. The message should be consistent with and reinforce the image we’re working so hard and spending so much to build.

If the image we want is low prices, perhaps we need sparse décor with simple fixtures, open fluorescent lighting, piled-high displays, plenty of sale signs, and bustle and commotion. But that design works hard against us if the image we want is almost anything else—fashion, leisure fun, trustworthy expertise ….

We tend to ignore the message our décor sends because we see it every day, but our customers cannot. They have trouble imagining fashion as the latest when our wallpaper is twenty years old, carpet is worn, and our fixtures are dilapidated.

Design and décor should be a careful and emphatic expression of our marketing message. Straddling the fence or being non-committal not only misses a valuable opportunity, it muddles customers’ understanding.

6Low wages aren’t a bargain,

good people are.A low payroll is virtually always more than offset by low production,

poor performance, mistakes, inefficiencies, lack of motivation, and poor retention.

Retail has no jobs for which the quality of the employee is unimportant. Top salespeople create high sales; poor salespeople waste opportunities. Good managers develop long-term employees; bad managers create turnover. Smart buyers find saleable products; poor buyers waste resources and accumulate dead stock. Skilled office workers provide timely and accurate information; less competent workers make mistakes that require hours to unravel and render information useless. Even a parking lot guard must be dependable, vigilant, and honest—hardly universal traits.

The bargain is not in paying less, but in employing better people.

7Love your products,

but only for their sales.We should get to know our products well, use or wear

them whenever we can, recognize and appreciate their quality and benefits, believe in them, and talk them up. But we should love them only as merchandise.

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

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

1701 FOS June 20120520-2327.indd 38 5/20/12 11:43 PM

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

View exhibiting brands and plan your appointments at FFANY.ORG

FFANY Launches iPad App• Reference the show directory in digital format prior to the show

• FREE at the App Store, easily downloadable

• Use at the show instead of paper directory

• Links to websites and email addresses with a simple tap on the screen

• Plan buying appointments in advance

• Reminders for new directory editions prior to FFANY shows

• Bookmark FFANY.ORG on your iPad today!

F76602.indd 38 5/21/12 9:26 PM

creo


Retail 101

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

1Good isn’t good enough;only best gets the sale.

Second-best among competitors isn’t a consolation, it’s a catastrophe. Our customers never choose the second-best value for their money; they choose the best (in their eyes) every time. No matter how close the contest, when we’re deemed second-best we get nothing.

Customers evaluate many criteria in each sale—product quality, price, store convenience, location, sales help, hours, displays …. And each customer weighs each factor slightly differently (creating an opportunity for perceptive retailers to exploit the niches). But ultimately only the store the customer judges best overall gets the sale.

Coach Lombardi had it right, “Winning isn’t everything, it’s the only thing.”

When you stop trying to be better, you stop being good.

2It looks so easyto be so hard.

Rent a space, order some merchandise, run an ad, and operate the cash register. Anybody can do that!

Apparently not. Estimates of the retailing failure rate range as high as 95 percent. And for those who fail, not only are their hard work and long hours unrewarded but, in most cases, their precious bets—usually their life savings—are lost.

Easy work and guaranteed returns are not in the description of retail.

3A company is known

by the people it keeps.Lots of components make up a retail store: a building, inventory,

products, policies, systems, décor, organization, marketing, and a thousand more details. But none of these is as important or as defining as its people.

A great store can only be built with great people. Their quality is visible in every aspect of the store’s facilities, methods, and operation—indeed the store is the product of the people.

No other element is as critical and no other element can make up for a store’s people.

4Profit is not immoral.

Some people feel that selling something for more than was paid for it is somehow dishonest—that a company can be profitable only by ripping off its customers.

They view every transaction as a zero-sum game: one party wins only when the other loses. They don’t recognize that in a good transaction both parties benefit—both get something they would rather have than what

they gave to get it. A shopper chooses the best value available to him to meet his particular

need. The store that anticipated the need and met it more attractively than its competitors gets the sale. The store’s profit isn’t due to ripping the customer off; it’s the store’s payment (and incentive) for anticipating and meeting the customer’s need.

Profit is far from immoral. It’s the most effective and efficient economic incentive yet devised and has created for all of us the highest standards of living the world has ever known.

“Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handfulsee it for what it really is—the strong horse that pulls the whole cart.”

—Winston Churchill

5Décor is marketing too.

The message our décor sends isn’t just about organization and cleanliness; it should be a strong statement about selection, quality, pricing, friendliness, dependability, trustworthiness, and professionalism. The message should be consistent with and reinforce the image we’re working so hard and spending so much to build.

If the image we want is low prices, perhaps we need sparse décor with simple fixtures, open fluorescent lighting, piled-high displays, plenty of sale signs, and bustle and commotion. But that design works hard against us if the image we want is almost anything else—fashion, leisure fun, trustworthy expertise ….

We tend to ignore the message our décor sends because we see it every day, but our customers cannot. They have trouble imagining fashion as the latest when our wallpaper is twenty years old, carpet is worn, and our fixtures are dilapidated.

Design and décor should be a careful and emphatic expression of our marketing message. Straddling the fence or being non-committal not only misses a valuable opportunity, it muddles customers’ understanding.

6Low wages aren’t a bargain,

good people are.A low payroll is virtually always more than offset by low production,

poor performance, mistakes, inefficiencies, lack of motivation, and poor retention.

Retail has no jobs for which the quality of the employee is unimportant. Top salespeople create high sales; poor salespeople waste opportunities. Good managers develop long-term employees; bad managers create turnover. Smart buyers find saleable products; poor buyers waste resources and accumulate dead stock. Skilled office workers provide timely and accurate information; less competent workers make mistakes that require hours to unravel and render information useless. Even a parking lot guard must be dependable, vigilant, and honest—hardly universal traits.

The bargain is not in paying less, but in employing better people.

7Love your products,

but only for their sales.We should get to know our products well, use or wear

them whenever we can, recognize and appreciate their quality and benefits, believe in them, and talk them up. But we should love them only as merchandise.

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

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

1701 FOS June 20120520-2327.indd 38 5/20/12 11:43 PM

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

View exhibiting brands and plan your appointments at FFANY.ORG

FFANY Launches iPad App• Reference the show directory in digital format prior to the show

• FREE at the App Store, easily downloadable

• Use at the show instead of paper directory

• Links to websites and email addresses with a simple tap on the screen

• Plan buying appointments in advance

• Reminders for new directory editions prior to FFANY shows

• Bookmark FFANY.ORG on your iPad today!

F76602.indd 39 5/21/12 9:26 PM

creo


Many of us were attracted to our areas of retail by the products, but we can’t let our personal attractions influence our merchandise selection. We’re stocking a store, not a trophy case or museum.

Best is seldom best seller. Our customers are rarely as infatuated with the product as we are.

8Customer experiences

are the product of people skills.Good people skills can turn difficult situations into compliments; poor

people skills can turn agreeable situations into complaints.Pleasant experiences are most often the result of making the customer

feel welcome and important, even if products and services are less than they should be. Bad experiences, despite what the customer cites as the problem, are usually the result of making him feel slighted and unimportant.

The concept is simple, but its implementation is easy only to those with innate people skills.

9You’re not in business

if you’re not in show business.Potential customers who aren’t aware we have what they’re looking for

drive right by us to a store they believe does. As a result we can’t afford to waste any opportunity to show our product in its best light and impress upon customers the breadth and depth of our selection.

Superstores have proven the value of showing a lot of product. Most shoppers are willing to put up with crowds, distant parking, impersonal service, and long lines in exchange for the improved odds of finding what they’re looking for.

The essential of good display is making strong, well-planned and favorable impressions of what our stores stock.

10Employee training is

retailing’s easiest competitive advantage.Retail employees are notoriously untrained. Who hasn’t encountered a

retail employee who knew almost nothing about his products and didn’t seem to care? Many shoppers would say they’re more rule than exception.

And that makes training one of the greatest opportunities in retailing. Standing above our competitors is easy; we simply have to train our people—on products, salesmanship, systems, methods, customer interaction, display, merchandising, and anything else that matters in the operation of our businesses.

11Salespeople sell what they know.

Salespeople like to show products they understand and appreciate. They enjoy sharing their knowledge, and they demonstrate enthusiasm for products they believe in.

Their attraction to a product is not so much its superiority but rather their understanding of its features and how they can benefit the user.

One of the most effective ways to enhance sales of a product is to teach the salespeople about it. Smart retailers (and smart manufacturers) understand this and provide training at every opportunity.

12If it’s important to know,certify that it’s known.

Salesmanship and product knowledge are essential training, but many other aspects of retailing can benefit from training and certification as well—display, security, handling complaints, accounting, inventory control, computer software, telephones, purchasing, management, delivery, etc. Whatever is important for smooth operation of the store can and should be certified.

Certification can be as simple as a written test, or it can include an oral exam, role-playing, videotaping, a written assignment, etc.

13Good people management is an attitude,

not a technique.The difference between good and bad managers is really one simple

perception: good managers understand that people are not only willing to work, but want to be on the team and contribute to its goals.

That attitude more than any other characteristic or ability defines the world’s inspirational and effective managers. They treat their people like willing, capable, and valuable team members, and they help them get involved and contribute.

In an adult recreational basketball league, players run and jump as long as their lungs and legs allow, fight for rebounds and loose balls, cover themselves in sweat, and exert themselves to the point of exhaustion. They yell, cheer, and exchange highfives, celebrate their wins, and mourn their losses.

Why? The game pays nothing—in most cases they have to pay to play. All they get is sore muscles and dirty clothes. Yet they replay the games in their minds, relive (and brag about) their good plays, and eagerly await the next game.

Because they want to be on a team, work toward a goal, participate in the challenges, and enjoy the respect and recognition of a job well done. That’s enough to generate extraordinary effort.

14Employees treat customers

as managers treat employees.Attitude and tone emanate from the top. They filter down gradually and

often imperceptibly, but their ultimate effect is undeniable: people treat others as they are treated.

If we’re tough, cold, rule-bound, and uncaring with our employees, our customers will get the same treatment. And our employees will believe they have done exactly as we expect—indeed as we would have done ourselves.

15The measure of a manager is

the situations he can handle amiably.Getting things done is the basic requirement of management; getting

things done willingly and enthusiastically is the high art of management. The difference is significant—it determines how much and how well work is done, as well as the quality and longevity of employees.

Impatience and frustration are in the definition of manager, but they should never show a public face. A good manager can deliver even the most difficult messages with respect and consideration.

16A manager is not a referee.

A manager can’t resolve disputes between employees. Whatever solution he imposes will inevitably be resented by at least one side, and hard feelings not only remain but are ratcheted up by his involvement. The battle continues, only clandestinely, where damage runs deeper and is harder to resolve.

A dispute is over not when we say it is, but when the two parties decide they want to get along.

The solution is often in “asking” them to work it out: “It’s not good for the company for the two of you to be fighting. Please get together and resolve this.”

(Such a request includes implications that need no elaboration.)

17Growth doesn’t produce cash,

it consumes it.Retailers love growth. When we ask, “How’s business?”

we mean, “Are sales up or down?” Up a little is good; up a lot is better. Like gluttons and addicts, we crave all the sales we can get. Turning sales away is irrefutable

Retail 101

1701 FOS June 20120520-2327.indd 40 5/20/12 11:43 PM


evidence of retail insanity.Ironically we’d be in deep trouble if we got all the sales we wanted—

helpless victims of compulsive suicide.Retail growth is expensive. Additional inventory must be purchased, sales

and office facilities expanded, fixtures added, leasehold improvements made, employees hired and trained, receivables expanded ….

Cash rarely flows in with retail growth—it flows out. Added sales seldom repay their investments quickly; growing is a long-term investment. Meanwhile leverage creeps up, making the expanding retailer increasingly vulnerable.

More than a few profitable retailers have been victims of their own success, growing themselves into financial trouble and occasionally even extinction.

18Managers don’t create motivation

—employees bring it. New employees are excited about their jobs. They’re eager to learn their

parts, hone their knowledge and skills, make their contributions, and become valuable team members.

We don’t create that motivation; employees have it on their first day. Our role is simply not to kill it.

We explain the objectives to them, assure that they get the necessary training and tools, provide ongoing information and feedback, and recognize and respect their efforts and contributions. When we do that well, their enthusiasm and commitment build with their abilities, and they’re able to play increasingly important roles.

19Bankers want you most

when you need them least.According to Mark Twain, “A banker is a fellow who lends you his

umbrella when the sun is shining and wants it back the minute it begins to rain.”

We have to make a convincing case that the sun is shining, we can easily pay back, with interest, what we propose to borrow, and that we have financing alternatives. Confidence and an air of independence (along with a realistic plan) go a long way.

We don’t tell a banker we “need a loan;” we say we’re “considering our financing options.” We don’t say another bank turned our loan down; we say we’re “talking to other banks, too.” And we don’t say we need a new banking relationship; we say we already have a bank “but it never hurts to talk.”

20Two stores don’t make twice as much.

Opening more stores is just in the DNA of retailers. It’s irresistibly logical that a successful store—a proven and profitable retail concept—could be easily replicated. The same products, methods, and operating systems should yield similar results in another location, only with enhanced economies of scale.

It makes so much apparent sense that the question “How many stores do you have?” is almost equivalent to “How successful is your company?” or even “How profitable is your company?”

Ironically they often have the opposite meaning. Second and third stores are rarely as profitable as the original, and often they’re losers.

Many store owners with adequate profit breakdowns recognize the source of their reduced profitability and retreat in a few years. Unfortunately most don’t have the necessary numbers or aren’t willing to swallow their pride; they drag their mistakes behind them like a ball and chain.

Only a few come to grips with the specific differences and added challenges of operating multiple stores, expand their management abilities, and devise methods and formats that will work across multiple locations.

In one of our business sharing groups, those with high profits are sometimes jokingly advised, “You’re making too much—you need to open another store.”

21A little success creates a lot of overhead.

When times are good we tend to add people, give raises, lease more space, add more inventory, upgrade equipment, create new bonuses, and increase benefits. The moves make sense when sales are growing.

But they are also long-term commitments to continuing expenses that are hard to shed if necessary later. And they set precedents and establish an operational philosophy that becomes entrenched.

When we hire more people, work expands and we soon wonder how we ever got it done without them—indeed we often can’t again. Making leasehold improvements, replacing computers and software, and buying new equipment are paid for with today’s cash, but the depreciation expenses drag down profitability for some years into the future.

Good results also allow us to overlook weak departments and locations, excuse poor performance, and put off needed but unpleasant changes.

Fat and happy is often dangerous and temporary; many retailers prefer lean and mean as both safer and more efficient.

22Leadership is a role

but not a job description.

A leader chooses the direction and goals for his company, then organizes the company to best pursue them. Organization entails structuring jobs and functions to fit the abilities and personalities available to him. And such job design includes his own; he must shape his job to make use of his own special skills and abilities, and delegate wherever he perceives as his weaknesses.

Retailers who are charismatic often serve as the public faces of their stores; many others shun the spotlight and appoint staffers to public roles.

Some retailers like formulating detailed plans; others prefer broad strokes and strategies, relying on staff to work out the details.

Some enjoy making deals and working out compromises; others lack the patience and diplomacy for negotiation and assign it to more social personalities.

The essential of leadership is choosing what’s to be done and organizing the company to do it—not necessarily doing it ourselves.

Neither Benjamin Franklin nor Thomas Jefferson was a good publicspeaker. Franklin rarely gave speeches at all, often asking colleagues toread what he had written; the few speeches he gave were memorable

mostly for his weak delivery. Virtually all the influence he exerted was

with a pen or printers’ ink. Jefferson seldom uttered more than a few sentences in public meetings.

Despite doing most of the writing of the Declaration of Independence, he hardly spoke while the Continental Congress debated and mangled his work. His inaugural address could barely be heard beyond the first few rows.Yet the leadership of these two giants guided the U.S. through its most

tentative and vulnerable period, shaping not only the U.S. government but subsequent democracies around the world.

23If at first you do succeed,

try not to believe you’re infallible.

Success is not a good teacher. Failure provides more useful lessons.When success comes easily, we tend to underestimate

future challenges and risks. We mistake good fortune for intelligence and invincibility; we forget that our time is limited and luck occasionally turns against us.

Periodic failures keep us realistic and help us appreciate our victories.

1701 FOS June 20120520-2327.indd 41 5/20/12 11:43 PM

F76602.indd 40 5/21/12 9:26 PM

© FFR- Focus On Fashion Retail December 2011 43

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

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

sUBsCrIpTIoNSend a check/money order ($30 for USA subscribers) along with your address and contact information to our office. International orders- please contact office for rates. To pay online using your credit card, please send your payment via www.paypal.com to [email protected]

Advice for a FREE SUBSCRIPTION: Ask our advertisers or your vendors to pay for your subscription! If your business is important to them, they may agree to by pay for your subscription from their marketing funds.

Business Name: _______________________________________________________________________________________________Mailing Address: _______________________________________________________________________________________________City: ___________________________________________________ State:______ Zip: _____________________________________Phone: _________________________________________________ Fax: _______________________________________________Name: _________________________________________________ E-Mail: _____________________________________________

MARKETING SURVEYPlease fill out this form completely, answering ALL questions. Incomplete or inaccurate entries will not be considered.

I certify that I am: oA Retailer__________________(signature) / oNot a RetailerIf a retailer, please tell about your store:Specialty: oMen oWomen oChildren Age Group: oInfants And Kids oTeens o20-30 o30-45 o45+Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+)Store Type: oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations Merchandise: oShoes Only oApparel Only oAccessories Only oAll Lifestyle: oDress oCasual oAthletic oComfort oSpecial Occasions oWestern oDance oUrban oEthic oBeach oGothic/Alternative/Other __________________________________________________________________Best Selling Brands _____________________________________________________________________________________Notes About Your Store __________________________________________________________________________________

• Your Primary Business Sources (describe): o Trade Magazines __________________________________________________________________________________ o Consumer Magazines _______________________________________________________________________________ o Trade Shows ______________________________________________________________________________________ o Internet oCatalogs • How Do You Find New Merchandise?: oAt Trade Shows oResponding To Ads oSellers Contact You• At Trade Shows You: o Know Exactly What You Need And Who Sells It o Know Exactly What You Need But Don’t Know Who Sells It o Just Looking• How Frequently Do You Purchase Merchandise For Your Store?: o Every Month oEvery 3 Months oEvery 6 Months• Your Average Purchase Is: oLess Than $1,000 o$1-5k o$5-10k o$10k+ • Your Priorities Are (Please RATE, 1 is most important): oPrice oFashion oBrand oQuality oOther _____________

• RETAILER: Please name your 3 biggest headaches to which you want to find a solution: 1. ________________________________________________________________________________________________ 2. ________________________________________________________________________________________________ 3. ________________________________________________________________________________________________

• Any Suggestions/ Comments to help FFR to become more helpful to your business? __________________________ __________________________________________________________________________________________________

__________________________________________________________________________________________________

__________________________________________________________________________________________________

SUB

SCR

IPTI

ON

✄

F76602.indd 42 5/21/12 9:26 PM

RegisteR now AUgUst 21, 22, 23 2012

LAs VegAs & mAndALAy bAy ConVention CenteRs mAgiConLine.Com (877) 554 4834

the shoe show at

SHOP OVER 1600 bRandS Of fOOtwEaR at tHE induStRy’S PREmiER faSHiOn EVEnt.

creo


Many of us were attracted to our areas of retail by the products, but we can’t let our personal attractions influence our merchandise selection. We’re stocking a store, not a trophy case or museum.

Best is seldom best seller. Our customers are rarely as infatuated with the product as we are.

8Customer experiences

are the product of people skills.Good people skills can turn difficult situations into compliments; poor

people skills can turn agreeable situations into complaints.Pleasant experiences are most often the result of making the customer

feel welcome and important, even if products and services are less than they should be. Bad experiences, despite what the customer cites as the problem, are usually the result of making him feel slighted and unimportant.

The concept is simple, but its implementation is easy only to those with innate people skills.

9You’re not in business

if you’re not in show business.Potential customers who aren’t aware we have what they’re looking for

drive right by us to a store they believe does. As a result we can’t afford to waste any opportunity to show our product in its best light and impress upon customers the breadth and depth of our selection.

Superstores have proven the value of showing a lot of product. Most shoppers are willing to put up with crowds, distant parking, impersonal service, and long lines in exchange for the improved odds of finding what they’re looking for.

The essential of good display is making strong, well-planned and favorable impressions of what our stores stock.

10Employee training is

retailing’s easiest competitive advantage.Retail employees are notoriously untrained. Who hasn’t encountered a

retail employee who knew almost nothing about his products and didn’t seem to care? Many shoppers would say they’re more rule than exception.

And that makes training one of the greatest opportunities in retailing. Standing above our competitors is easy; we simply have to train our people—on products, salesmanship, systems, methods, customer interaction, display, merchandising, and anything else that matters in the operation of our businesses.

11Salespeople sell what they know.

Salespeople like to show products they understand and appreciate. They enjoy sharing their knowledge, and they demonstrate enthusiasm for products they believe in.

Their attraction to a product is not so much its superiority but rather their understanding of its features and how they can benefit the user.

One of the most effective ways to enhance sales of a product is to teach the salespeople about it. Smart retailers (and smart manufacturers) understand this and provide training at every opportunity.

12If it’s important to know,certify that it’s known.

Salesmanship and product knowledge are essential training, but many other aspects of retailing can benefit from training and certification as well—display, security, handling complaints, accounting, inventory control, computer software, telephones, purchasing, management, delivery, etc. Whatever is important for smooth operation of the store can and should be certified.

Certification can be as simple as a written test, or it can include an oral exam, role-playing, videotaping, a written assignment, etc.

13Good people management is an attitude,

not a technique.The difference between good and bad managers is really one simple

perception: good managers understand that people are not only willing to work, but want to be on the team and contribute to its goals.

That attitude more than any other characteristic or ability defines the world’s inspirational and effective managers. They treat their people like willing, capable, and valuable team members, and they help them get involved and contribute.

In an adult recreational basketball league, players run and jump as long as their lungs and legs allow, fight for rebounds and loose balls, cover themselves in sweat, and exert themselves to the point of exhaustion. They yell, cheer, and exchange highfives, celebrate their wins, and mourn their losses.

Why? The game pays nothing—in most cases they have to pay to play. All they get is sore muscles and dirty clothes. Yet they replay the games in their minds, relive (and brag about) their good plays, and eagerly await the next game.

Because they want to be on a team, work toward a goal, participate in the challenges, and enjoy the respect and recognition of a job well done. That’s enough to generate extraordinary effort.

14Employees treat customers

as managers treat employees.Attitude and tone emanate from the top. They filter down gradually and

often imperceptibly, but their ultimate effect is undeniable: people treat others as they are treated.

If we’re tough, cold, rule-bound, and uncaring with our employees, our customers will get the same treatment. And our employees will believe they have done exactly as we expect—indeed as we would have done ourselves.

15The measure of a manager is

the situations he can handle amiably.Getting things done is the basic requirement of management; getting

things done willingly and enthusiastically is the high art of management. The difference is significant—it determines how much and how well work is done, as well as the quality and longevity of employees.

Impatience and frustration are in the definition of manager, but they should never show a public face. A good manager can deliver even the most difficult messages with respect and consideration.

16A manager is not a referee.

A manager can’t resolve disputes between employees. Whatever solution he imposes will inevitably be resented by at least one side, and hard feelings not only remain but are ratcheted up by his involvement. The battle continues, only clandestinely, where damage runs deeper and is harder to resolve.

A dispute is over not when we say it is, but when the two parties decide they want to get along.

The solution is often in “asking” them to work it out: “It’s not good for the company for the two of you to be fighting. Please get together and resolve this.”

(Such a request includes implications that need no elaboration.)

17Growth doesn’t produce cash,

it consumes it.Retailers love growth. When we ask, “How’s business?”

we mean, “Are sales up or down?” Up a little is good; up a lot is better. Like gluttons and addicts, we crave all the sales we can get. Turning sales away is irrefutable

Retail 101

1701 FOS June 20120520-2327.indd 40 5/20/12 11:43 PM


evidence of retail insanity.Ironically we’d be in deep trouble if we got all the sales we wanted—

helpless victims of compulsive suicide.Retail growth is expensive. Additional inventory must be purchased, sales

and office facilities expanded, fixtures added, leasehold improvements made, employees hired and trained, receivables expanded ….

Cash rarely flows in with retail growth—it flows out. Added sales seldom repay their investments quickly; growing is a long-term investment. Meanwhile leverage creeps up, making the expanding retailer increasingly vulnerable.

More than a few profitable retailers have been victims of their own success, growing themselves into financial trouble and occasionally even extinction.

18Managers don’t create motivation

—employees bring it. New employees are excited about their jobs. They’re eager to learn their

parts, hone their knowledge and skills, make their contributions, and become valuable team members.

We don’t create that motivation; employees have it on their first day. Our role is simply not to kill it.

We explain the objectives to them, assure that they get the necessary training and tools, provide ongoing information and feedback, and recognize and respect their efforts and contributions. When we do that well, their enthusiasm and commitment build with their abilities, and they’re able to play increasingly important roles.

19Bankers want you most

when you need them least.According to Mark Twain, “A banker is a fellow who lends you his

umbrella when the sun is shining and wants it back the minute it begins to rain.”

We have to make a convincing case that the sun is shining, we can easily pay back, with interest, what we propose to borrow, and that we have financing alternatives. Confidence and an air of independence (along with a realistic plan) go a long way.

We don’t tell a banker we “need a loan;” we say we’re “considering our financing options.” We don’t say another bank turned our loan down; we say we’re “talking to other banks, too.” And we don’t say we need a new banking relationship; we say we already have a bank “but it never hurts to talk.”

20Two stores don’t make twice as much.

Opening more stores is just in the DNA of retailers. It’s irresistibly logical that a successful store—a proven and profitable retail concept—could be easily replicated. The same products, methods, and operating systems should yield similar results in another location, only with enhanced economies of scale.

It makes so much apparent sense that the question “How many stores do you have?” is almost equivalent to “How successful is your company?” or even “How profitable is your company?”

Ironically they often have the opposite meaning. Second and third stores are rarely as profitable as the original, and often they’re losers.

Many store owners with adequate profit breakdowns recognize the source of their reduced profitability and retreat in a few years. Unfortunately most don’t have the necessary numbers or aren’t willing to swallow their pride; they drag their mistakes behind them like a ball and chain.

Only a few come to grips with the specific differences and added challenges of operating multiple stores, expand their management abilities, and devise methods and formats that will work across multiple locations.

In one of our business sharing groups, those with high profits are sometimes jokingly advised, “You’re making too much—you need to open another store.”

21A little success creates a lot of overhead.

When times are good we tend to add people, give raises, lease more space, add more inventory, upgrade equipment, create new bonuses, and increase benefits. The moves make sense when sales are growing.

But they are also long-term commitments to continuing expenses that are hard to shed if necessary later. And they set precedents and establish an operational philosophy that becomes entrenched.

When we hire more people, work expands and we soon wonder how we ever got it done without them—indeed we often can’t again. Making leasehold improvements, replacing computers and software, and buying new equipment are paid for with today’s cash, but the depreciation expenses drag down profitability for some years into the future.

Good results also allow us to overlook weak departments and locations, excuse poor performance, and put off needed but unpleasant changes.

Fat and happy is often dangerous and temporary; many retailers prefer lean and mean as both safer and more efficient.

22Leadership is a role

but not a job description.

A leader chooses the direction and goals for his company, then organizes the company to best pursue them. Organization entails structuring jobs and functions to fit the abilities and personalities available to him. And such job design includes his own; he must shape his job to make use of his own special skills and abilities, and delegate wherever he perceives as his weaknesses.

Retailers who are charismatic often serve as the public faces of their stores; many others shun the spotlight and appoint staffers to public roles.

Some retailers like formulating detailed plans; others prefer broad strokes and strategies, relying on staff to work out the details.

Some enjoy making deals and working out compromises; others lack the patience and diplomacy for negotiation and assign it to more social personalities.

The essential of leadership is choosing what’s to be done and organizing the company to do it—not necessarily doing it ourselves.

Neither Benjamin Franklin nor Thomas Jefferson was a good publicspeaker. Franklin rarely gave speeches at all, often asking colleagues toread what he had written; the few speeches he gave were memorable

mostly for his weak delivery. Virtually all the influence he exerted was

with a pen or printers’ ink. Jefferson seldom uttered more than a few sentences in public meetings.

Despite doing most of the writing of the Declaration of Independence, he hardly spoke while the Continental Congress debated and mangled his work. His inaugural address could barely be heard beyond the first few rows.Yet the leadership of these two giants guided the U.S. through its most

tentative and vulnerable period, shaping not only the U.S. government but subsequent democracies around the world.

23If at first you do succeed,

try not to believe you’re infallible.

Success is not a good teacher. Failure provides more useful lessons.When success comes easily, we tend to underestimate

future challenges and risks. We mistake good fortune for intelligence and invincibility; we forget that our time is limited and luck occasionally turns against us.

Periodic failures keep us realistic and help us appreciate our victories.

1701 FOS June 20120520-2327.indd 41 5/20/12 11:43 PM

F76602.indd 41 5/21/12 9:26 PM


Retail 101

June 2012 © FFR- Focus On Fashion Retail24

© FFR- Focus On Fashion Retail December 2011 4342 December 2011 © FFR- Focus On Fashion Retail

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

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

sUBsCrIpTIoNSend a check/money order ($30 for USA subscribers) along with your address and contact information to our office. International orders- please contact office for rates. To pay online using your credit card, please send your payment via www.paypal.com to [email protected]

Advice for a FREE SUBSCRIPTION: Ask our advertisers or your vendors to pay for your subscription! If your business is important to them, they may agree to by pay for your subscription from their marketing funds.

Business Name: _______________________________________________________________________________________________Mailing Address: _______________________________________________________________________________________________City: ___________________________________________________ State:______ Zip: _____________________________________Phone: _________________________________________________ Fax: _______________________________________________Name: _________________________________________________ E-Mail: _____________________________________________

MARKETING SURVEYPlease fill out this form completely, answering ALL questions. Incomplete or inaccurate entries will not be considered.

I certify that I am: oA Retailer__________________(signature) / oNot a RetailerIf a retailer, please tell about your store:Specialty: oMen oWomen oChildren Age Group: oInfants And Kids oTeens o20-30 o30-45 o45+Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+)Store Type: oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations Merchandise: oShoes Only oApparel Only oAccessories Only oAll Lifestyle: oDress oCasual oAthletic oComfort oSpecial Occasions oWestern oDance oUrban oEthic oBeach oGothic/Alternative/Other __________________________________________________________________Best Selling Brands _____________________________________________________________________________________Notes About Your Store __________________________________________________________________________________

• Your Primary Business Sources (describe): o Trade Magazines __________________________________________________________________________________ o Consumer Magazines _______________________________________________________________________________ o Trade Shows ______________________________________________________________________________________ o Internet oCatalogs • How Do You Find New Merchandise?: oAt Trade Shows oResponding To Ads oSellers Contact You• At Trade Shows You: o Know Exactly What You Need And Who Sells It o Know Exactly What You Need But Don’t Know Who Sells It o Just Looking• How Frequently Do You Purchase Merchandise For Your Store?: o Every Month oEvery 3 Months oEvery 6 Months• Your Average Purchase Is: oLess Than $1,000 o$1-5k o$5-10k o$10k+ • Your Priorities Are (Please RATE, 1 is most important): oPrice oFashion oBrand oQuality oOther _____________

• RETAILER: Please name your 3 biggest headaches to which you want to find a solution: 1. ________________________________________________________________________________________________ 2. ________________________________________________________________________________________________ 3. ________________________________________________________________________________________________

• Any Suggestions/ Comments to help FFR to become more helpful to your business? __________________________ __________________________________________________________________________________________________

__________________________________________________________________________________________________

__________________________________________________________________________________________________

SUB

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ON

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RIP

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N S

UB

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IPTI

ON

SU

BSC

RIP

TIO

N S

UB

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IPTI

ON

SU

BSC

RIP

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N ✄

RegisteR now AUgUst 21, 22, 23 2012

LAs VegAs & mAndALAy bAy ConVention CenteRs mAgiConLine.Com (877) 554 4834

the shoe show at

SHOP OVER 1600 bRandS Of fOOtwEaR at tHE induStRy’S PREmiER faSHiOn EVEnt.

F76602.indd 43 5/21/12 9:26 PM

creo


ShowOrganization,

Planning, Promotion

Attendance, Traffic Convenience

Services offered at the show

Cost of attending/ exhibiting

Value for your

business

Atlanta Apparel Market

BIFF & BIL Bangkok International Fashion Fair

Bread & Butter

Dallas Apparel & Accessories Market

Denver Apparel & Accessory Market

ENKNYC

Expo Riva Schuh

FAME

Focus- Apparel & Accessories Show

Francal

Hong Kong Fashion Week

Hong Kong Jewellery & Gem

LA KIDS MARKET

Le Cube

Mercedes-Benz Fashion Week

Mercedes-Benz Fashion Week Swim

Mess Around

Milano Moda Uomo

Mode à Paris- Haute Couture

Mr. Brown

MRket New York

Pitti Imagine Uomo

Pitti Immagine Bimbo

Pitti W Woman

Premiere Classe

Premium Dusseldorf

Premium Men

Private

Project

SELECT- The Contemporary Trade Show

Shoe Market of the Americas (SMOTA)

SwimShow

The Atlanta Fashion Shoe & Accessory Market

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

The New York Shoe Expo (FFANY)

Transit- The Los Angeles Shoe Show

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

As always, in the closing issue of the year (November) we will be announcing and reviewing the TOP 10 TRADE SHOWS of 2011. For that purpose, we will be conducting this survey throughout the year, offering to rate performance of various shows. Events collected the maximum score will make it to the final list.

If you have attended any of the shows listedbelow and would like to submit your opinion, please do so according to these rules:• Rate the shows you have attended on the scale of 1

through 10, where 1 is awful and 10 is awesome;• You must identify yourself (see opposite side);• Your opinion must be fair and objective;• You must be an independent observer, not employed

by not affiliated with any trade show;• Please rate only those events that you have attended

within last 6 months.Upon completion, please send this form to FFR. Your personal information will not be disclosed, nor shared with anybody.

1701 FOS June 20120520-2327.indd 44 5/20/12 11:41 PM

F76602.indd 44 5/21/12 9:27 PM

creo


ShowOrganization,

Planning, Promotion

Attendance, Traffic Convenience

Services offered at the show

Cost of attending/ exhibiting

Value for your

business

Atlanta Apparel Market

BIFF & BIL Bangkok International Fashion Fair

Bread & Butter

Dallas Apparel & Accessories Market

Denver Apparel & Accessory Market

ENKNYC

Expo Riva Schuh

FAME

Focus- Apparel & Accessories Show

Francal

Hong Kong Fashion Week

Hong Kong Jewellery & Gem

LA KIDS MARKET

Le Cube

Mercedes-Benz Fashion Week

Mercedes-Benz Fashion Week Swim

Mess Around

Milano Moda Uomo

Mode à Paris- Haute Couture

Mr. Brown

MRket New York

Pitti Imagine Uomo

Pitti Immagine Bimbo

Pitti W Woman

Premiere Classe

Premium Dusseldorf

Premium Men

Private

Project

SELECT- The Contemporary Trade Show

Shoe Market of the Americas (SMOTA)

SwimShow

The Atlanta Fashion Shoe & Accessory Market

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

The New York Shoe Expo (FFANY)

Transit- The Los Angeles Shoe Show

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

As always, in the closing issue of the year (November) we will be announcing and reviewing the TOP 10 TRADE SHOWS of 2011. For that purpose, we will be conducting this survey throughout the year, offering to rate performance of various shows. Events collected the maximum score will make it to the final list.

If you have attended any of the shows listedbelow and would like to submit your opinion, please do so according to these rules:• Rate the shows you have attended on the scale of 1

through 10, where 1 is awful and 10 is awesome;• You must identify yourself (see opposite side);• Your opinion must be fair and objective;• You must be an independent observer, not employed

by not affiliated with any trade show;• Please rate only those events that you have attended

within last 6 months.Upon completion, please send this form to FFR. Your personal information will not be disclosed, nor shared with anybody.

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Documents

June 2012