Russert
Playing Exclusives Game: Results Can Be Win-Win But Brands Face Pitfalls
Image: Tommy Hilfiger is becoming exclusive to Macy’s.
Putting all your eggs in one basket ? or, in apparel, your entire collection in one retailer ? is a high-stakes game that is being played more and more.
As stores rush to differentiate themselves, particularly in this difficult economy, they’re increasingly looking for product no one else has. But as often as both parties describe exclusives as a win-win, it just as often results in one side losing.
Vendors must take heed of the dangers to committing exclusively to a single store ? take the fate of O Oscar, which lasted only three seasons at Macy’s before being closed, or Liz Claiborne, which saw its space at Macy’s shrink after it created Liz & Co. for J.C. Penney.
But the rewards can be great. Macy’s Inc. chairman, chief executive officer and president Terry Lundgren pointed to Tommy Hilfiger, which will become exclusive to the retailer come August, as “a home run idea” and “the best example now” of the growing exclusive business at the largest department store in the U.S. This is a far cry from the role Hilfiger had played at Macy’s in the last few years, when the line’s space had been consistently shrinking.
“When the product is exclusive to us ? which makes it one of the most important products we carry in the store because it’s only in our stores ? we want to make sure we can do everything we can do to find success,” Lundgren said. “If we are the only customer, we have a responsibility to make sure this brand is highly successful, so we will want to give it primary space and location, and make sure the advertising is prominent.”
More than 35 percent of the $26.3 billion in sales Macy’s did last year is in brands that are exclusive to Macy’s or in limited distribution, including its private label INC line, Martha Stewart Collection, Donald Trump’s line and diffusion lines such as T Tahari.
Macy’s is not alone. Half of J.C. Penney Co. Inc.’s sales come from its private label offerings, including the new American Living launch by Polo Ralph Lauren Corp.’s Global Brand Concepts, plus exclusive diffusion lines such as Nicole by Nicole Miller, Liz & Co. and the upcoming Fabulosity by Kimora Lee Simmons. Its competitor, Kohl’s Corp., has been bulking up its exclusive offerings as well with Simply Vera Vera Wang, Dana Buchman, Abbey Dawn (a new collaboration with Avril Lavigne) and Fila Sport, in addition to its Ralph Lauren diffusion line, Chaps.
Four Fashion Headlines: March 19, 2008
Calling Amy
Could Amy Winehouse, who couldn’t make it to the Grammy Awards last month due to visa issues, be crossing the pond for the Costume Institute gala on May 5? The Mirror of London reported on Monday that Winehouse has been offered 500,000 pounds ? or about $1 million ? to perform at the benefit and, according to the tabloid, gala host Giorgio Armani asked co-chairs George Clooney and Julia Roberts to sign her on. Winehouse’s London rep declined comment, but a spokeswoman for the Metropolitan Museum of Art said, “Amy Winehouse is one of a number of artists who have been considered for the entertainment portion for the Costume Institute gala. It’s incorrect that she was offered payment. It’s a benefit, so no one is being paid.”
Despite Stock Market’s Jump, Few Mega M&A Deals Seen in ’08
Retail rode Wall Street’s roller coaster on Tuesday as the Federal Reserve Board’s interest rate cut sent the market zooming. But daily thrill rides aside, the lack of credit could dry up any major deals in the industry for the foreseeable future.
Print Dresses, Colored Trenches Top Spring Sales
Retailers may be worried about the economy and Wall Street’s woes, but the arrival of spring fashions should offer some hope.
In the Trenches: The GLAMWIRE Trench Coat Report
Reed Krakoff and Phillip Lim are out to reinvent the trenchcoat. The two met through the CFDA/Vogue Fashion Fund. In 2007 Lim won the CFDA Swarovski women’s wear award for his two-year-old contemporary label, 3.1 Phillip Lim. Krakoff is vice president of the CFDA. “He’s not only amazingly talented, but has a great personality,” said Krakoff. “He really understands great American design and the trench is an iconic piece of American outerwear.” The two concocted a long belted suede trench that will retail for $1,798 and a short leather one that will sell for $1,298. Outerwear is a growing category for Coach, which has also partnered with designers such as Lutz & Patmos for knits and Eugenia Kim for hats. “It’s part of our moving forward and staying fresh,” added Krakoff of the burgeoning categories. “We’re starting to add more clothing.” The coats will be available in Coach stores starting in August.
Other headliners today: Ralph Lauren, Gucci, Channel, Louis Vuitton, Clavin Klein, Calvin Klein, prada, Hermes, Dior, Tod’s, In Full bloom, Lisa Perry,David Yurman, General Petreus, Dolce And Gabbana. Hilfiger,Cole Haan, Genevieve Collection. Burberry,Donna KAran, Kate Moss, Botetga Veneta, Miu Miu, Lord & Taylor AND Richie From Totally Cool Magazine
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Chado Ralph Rucci
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Cashmere on Madison (Holiday Tip #2)
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