CONSUMERS’ HOLIDAY BLUES/2 LEVI’S $85K JEANS/2 Women’s Wear Daily • The Retailers’ Daily Newspaper • January 2, 2003 Vol. 185, No. 1 $1.75 PHOTO BY GEORGE CHINSEE; MODEL: SHARON/ID; MAKEUP BY KAREN PANOCH FOR ARTISTS; HAIR BY MANABU UNNO FOR SALON ISHI; ACCESSORIES FROM AMICI ACCESSORIES; SHOES BY DONALD J PLINER; STYLED BY ROXANNE ROBINSON-ESCRIOUT On Track On Track NEW YORK — Designers are drawing influences from the sports arena for spring, using such details as racing stripes and baseball sleeves. Sports looks have always been staples for the streetwear label Lady Enyce, with tracksuits part of their core business. Here, their latest version: a numbered cotton T and striped cotton pants. For more on the trend, see pages 4 and 5. NEW YORK — Designers are drawing influences from the sports arena for spring, using such details as racing stripes and baseball sleeves. Sports looks have always been staples for the streetwear label Lady Enyce, with tracksuits part of their core business. Here, their latest version: a numbered cotton T and striped cotton pants. For more on the trend, see pages 4 and 5. WWD THURSDAY Sportswear See Luxe, Page 3 Shaking Sameness: Luxury Goes Custom To Rev Up Consumers By Miles Socha PARIS — Luxury brands are out of control. That is, they are breaking out of the direct-control mantra that defined the Nineties. As companies rushed over the last five years to roll out their signature store concepts worldwide and increase direct control over every aspect of their labels, a worrisome side effect was a sameness in luxury shopping streets from Beijing to Beverly Hills. This coincided with the global luxury downturn that started just before the Sept. 11 World Economic Outlook Inside: Pg. 10 TheWWDList
Shaking Sameness:Luxury Goes CustomTo Rev Up ConsumersBy Miles Socha
PARIS — Luxury brands are out ofcontrol. That is, they are breakingout of the direct-control mantra thatdefined the Nineties.
As companies rushed over the lastfive years to roll out their signaturestore concepts worldwide andincrease direct control over everyaspect of their labels, a worrisomeside effect was a sameness in luxuryshopping streets from Beijing toBeverly Hills. This coincided withthe global luxury downturn thatstarted just before the Sept. 11
World Economic Outlook
Inside:Pg. 10
TheWWDList
WW
D, T
HURS
DAY,
JANU
ARY
2, 2
003
David Katz of the law firm of Wachtell, Lipton, Rosen & Katz isU.S. counsel for Pinault-Printemps-Redoute SA. He was incor-rectly identified as representing Gucci Group NV in a story onpage 2, Dec. 27, 2002.
Correction
By Evan Clark
NEW YORK — The year endedon a down note in the minds ofconsumers.
The Conference Board’sConsumer Confidence Index fell4.6 points to 80.3 in December,down from a revised 84.9 inNovember, when the index re-bounded some.
Preceding November, themeasure of consumer sentiment,which is based on a representa-tive sample of 5,000 U.S. house-holds, faltered for five consecu-tive months. Economists aren’tlooking for a strengthening inconsumer attitude until jobs be-come more readily available.
The Present Situation Index,which measures ongoing condi-tions and makes up half of theoverall index, sank 8.4 points inDecember to 69.9. Gauging theoutlook for the next six months,the Expectations Index, whichmakes up the other half of theoverall measure, declined amore modest 2.1 points to 87.2.
“Latest signals from con-sumers are in keeping with acontinuing mixed bag of eco-nomic news,” Lynn Franco, di-rector of The ConferenceBoard’s Consumer ResearchCenter, said in a statement.
In spite of dropping con-sumer confidence, the equitymarkets managed to inch up inthe final trading session of theyear. The Dow Jones IndustrialAverage rose 8.78 points to8,341.63. The Standard & Poor’s500 stocks slid 0.43 points toend at 879.82, while the S&PRetail Index rose 0.01 points to267.36.
Both the Dow and the S&P500 topped off their third straightyear of losses, the first time thathas happened since 1939-41.
“The major factor dampeningconsumers’ spirits has been therising unemployment rate andthe discouraging job outlook,”Franco said. “Until there is animprovement in the labor mar-ket conditions, there is not like-ly to be a significant upturn inconsumer confidence.”
The Department of Labor re-ported that, with 8.5 millionpeople unemployed in Nov-ember, the unemployment raterose to 6 percent, a level lastreached in April. From Maythrough October, the jobless rateranged from 5.6 to 5.9 percent.
Franco said, “What we’re re-ally seeing is oftentimes whatwe see during a recovery.” Thatis a diminished view by con-sumers of their present situa-tion and a view of the futurethat indicates growth, althoughslow growth, in this case.
“Jobs are really the primarysource of income,” she added.“Nothing will make the con-sumer close their wallet morequickly than job insecurity.”
Franco said there hasn’tbeen a big shift in consumermood and that played outthrough a “lackluster” holidayseason, adding, “With such deepdiscounting already at hand, it’sput a squeeze on the profit mar-gins of retailers.…We’ve been inthese murky waters for threemonths now.”
Accessing their current situ-ations, only 14.6 percent of theconsumers taking part in thesurvey rated the current busi-
ness conditions as “good,”down from 16.1 percent inNovember. Those holding theopposite view stood unchangedat 25.8 percent.
The number of consumersfinding jobs “hard to get” rose to29.8 percent of those surveyed,up from 27.3 percent inNovember. Those seeing a“plentiful” job market dipped to12.4 percent from 14.2 percent.
Respondents looking forbusiness conditions to improveover the next six months inchedup to 20.8 percent from 20.3 per-cent. Those expecting condi-tions to worsen decreased to 11percent from 11.3 percent.
The survey also found thatconsumers in December becameless bullish on the job outlookand their own income expecta-tions. Consumers anticipatingfewer jobs in the coming monthsrose to 20.2 percent, up from18.8 percent in November.Respondents expecting morejobs declined to 15.1 percentfrom 15.4 percent. Likewise, thesurvey found that 18.7 percentof consumers expect an in-crease in their incomes, downfrom 19.4 percent in November.
Kamalesh Rao, an economistwith Moody’s Investors Service,said the reading of consumersentiment was “indicative of aconsumer that’s a lot more con-servative because they’re reallyconcerned with the job outlook.That’s going to put a dent in thepart of the economy that’s driv-en by the consumer.”
However, the business out-look was more upbeat, suggest-ing firms will start spending and
Consumers Remain Wary
NEW YORK — Levi Strauss &Co. is no stranger to expensiveblue jeans.
The San Francisco-basedcompany sells some styles thatretail for up to $250 and, a fewyears back, shelled out $46,352for a pair of jeans it had pro-duced in the 1880s that is nowthe oldest pair of jeans inLevi’s extensive archive.
But topping even that, thecompany has produced a pairof jeans that it said are worthabout $85,000 — and it plans togive it away.
In a bid to build publicity forthe company’s new Type Onestyle of jeans, due to hit storesthis spring, the company is run-ning a contest inviting con-sumers to guess what town thejeans, decorated with a 2.5karat diamond and 112 rubies,are hidden. People who correct-ly guess can enter a drawing towin the jeans, which have a 32-inch waist and 32-inch inseam.A Levi’s spokeswoman said thepockets of the jeans will befilled with enough cash andgold to raise the prize’s value to$150,000, in honor of the firm’s150th anniversary.
The jewels are intended toaccentuate the classic icons ofLevi’s jeans, with four dia-monds decorating the fly but-tons and the rubies surround-ing the gold two-horse patch.The red tab label is paintedwith white gold.
The Type One styles alsoexaggerate the design ele-ments, but with emphasizedstitching and oversized but-tons, at a more modest pricepoint. The launch will alsomark the first major test ofLevi’s market segmentationstrategy, through which it willtry to sell jeans with the samebasic design — but differentfabrics and fits — at retailprices from $35 to $95.
In what the spokeswomandescribed as a “viral” market-ing campaign, the company willbegin offering clues to the jeanswhereabouts on its Web site,levis.com. The final clue is toappear in a TV ad during theSuper Bowl on Jan. 26.
The 60-second spot, to ap-pear during the second quar-ter of the game, will be anhomage to the firm’s history,with a 21st-century feel, ac-cording to the spokeswoman.The ads were created byBartle Bogle Hegarty.
Playing off of a gold rushtheme, the campaign will de-scribe the jeans as beingburied in a U.S. town that fig-ures in Levi’s history. Whilethe company has been based inSan Francisco since its found-ing 150 years ago, Bavarian im-migrant Strauss first came tothe U.S. via New York in 1847and worked his way across thecountry as a peddler of drygoods. That leaves a lot of op-
tions for cities connected tothe company.
The spokeswoman saidthat the jeans will be kept inthe town, but will be secureand will not actually beburied underground. The firmis discouraging consumerswho think they’ve figured outthe clue from trying to actual-ly find the jeans.
“We don’t want people dig-ging up other people’s back-yards,” she said. “They willneed to enter their guess on-line.”
— Scott Malone
Levi’s Major Markup: $85K Jeans
FASHIONThe teen scene is getting sporty this season, with big numerals and meshfabrics, bold stripes and the neat shapes of tennis whites.
GENERALDENIM: François Girbaud philosophizes about his new SoHo store set toopen next month, his firm’s expansion and nature in general.
ACTIVE: Seven new firms are rolling the dice with specialty products not likelyto be found at the big brands, while chasing drastically diverse customers.
Luxury goods firms are letting loose, layering on initiatives to create a morediverse shopping experience and range of products.
After rebounding in November, the Consumer Confidence Index fell 4.6points to 80.3 in December, down from a revised 84.9 last month.
To e-mail reporters and editors at WWD, the address is [email protected], using the individual's name.SUBSCRIPTION RATES
U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. All others U.S.,daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595.
Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273;outside U.S. (856) 786-2140; group subscription information (856) 786-0963.
Postmaster: Send address changes to WWD, P.O. Box 10531, Riverton, N.J. 08076-0531.WWD® (ISSN#0149-5380) is published daily except Saturdays, Sundays and holidays with additional issuesevery first Friday of every month and one Saturday edition in April and November by Fairchild Publications Inc.,
a subsidiary of Advance Publications Inc. All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical,
including photocopying or recording, or by any information storage or retrieval system, except as may beexpressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595
Periodicals postage paid at New York, NY and other offices.Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9
GST # 88654-9096-RM 0001Printed in the U.S.A.
All signed articles published in the paper represent solely the individual opinion of the writer and not those ofWOMEN’S WEAR DAILY.
Index base of 100 is keyed to closing prices of Dec. 31, 1993.
WWDTHURSDAYSportswear
● ISAACS STOCK CONVERSION: I.C. Isaacs & Co. said Tuesdaythat an investment vehicle controlled by Marithé and FrançoisGirbaud last month converted 3.3 million shares of Isaacs pre-ferred stock into common stock. As reported in May, the vehicle,Textile Investment International SA, took a 36.8 percent stakein Baltimore-based Isaacs, which holds the license for Marithé& François Girbaud jeans and associated sportswear in the U.S.As part of the deal, the Girbauds agreed to change the terms ofthe preferred stock so that it could only be converted into com-mon shares. Previously, the stock could also be converted intodebt. Isaacs also said it had finalized an agreement withCongress Financial Corp. to extend its $20 million revolving lineof credit through the end of 2004.
In BriefFor Web site access, log on to www.WWD.com
Levi’s is giving away a pair of jeans
featuring diamonds on the buttons
and rivets. It’s valued at $85,000,
2
Continued on page 7
Bongo has turned up
the heat with its new
ad campaign.
For more, see page 6.
Continued from page oneterrorist attacks, and has continuedthrough the latest holiday shopping sea-son. Luxury brands, and retailers, arenow scrambling to fight consumer ennuiand excite them with product differentia-tion and specialization.
So, the mantra of the luxury world haschanged, from “all for one and one forall” to “one for one and just for you.”
Luxury players are layering on initia-tives to create a more diverse shoppingexperience. These include made-to-order products, from Gucci handbags toBurberry trenchcoats, special merchan-dise that is shipped to only a single loca-tion, and increasingly personalized serv-ice and styles. Gucci, for example, hasseven styles of limited-edition, numberedhandbags.
Perhaps the most common strategy iscustomizing the look and architecture ofnew stores, particularly flagships. Prada,for example, keen to break the monotonyof its well-known lime green store for-mat, enlisted architect Rem Koolhaus forits SoHo New York store and forthcomingSan Francisco unit, and Herzog & DeMeuron for its Tokyo flagship, bowingthis year.
“At the beginning, many criticized us,”said Prada chief executive PatrizioBertelli. “They said that to differentiatethe image of the stores would destabilizethe concept of the label, but now manyare following the same path. The brandcan be expressed in different ways.”
Not everyone agrees on which strate-gy is best, but many observers cite a needfor diversity.
“In the Nineties, having a uniformimage across the world was a key way inwhich brands built recognition and en-abled consumers to understand what thebrand lifestyle was all about,” said ClaireKent, luxury analyst at Morgan Stanley inLondon. “But today, consumers some-times complain that there’s not enoughdifferentiation across cities to makeshopping interesting.”
And how.“It’s really terrible. It’s very boring,”
Diego Della Valle, chief executive of Tod’sSpA, recently told The InternationalHerald Tribune fashion conference here.“Whether you’re in Milan, Paris, Londonor Düsseldorf, all the luxury streets arebasically the same. You see the sameproducts, the same windows and all thesame brands.”
Sir Paul Smith is also outspoken onwhat he considers luxury overload.
“The very nature of a rollout means thatit’s very formulaic and that’s very hard togo against,” he said. “Unfortunately, there’sjust too much of the same thing. In somecases, you could take the name sign downfrom the city and you wouldn’t know whereyou are.”
Della Valle said his solution is simple:Half of the decor and furniture and half ofthe merchandise must be unique in eachTod’s and Hogan location. Della Valle setno timetable for achieving that goal, butstressed that “we want to have shops thatare unique.” He also noted that the firm isexperimenting with boutiques that houseall of its brands under one roof.
Asked about made-to-order luxury, anew push for some of his competitors,Della Valle said that tactic is “not mod-ern” because customers don’t want towait for an item to be produced. “A moremodern idea is to have different prod-ucts in different stores,” he said.
“The luxury customer has no pa-tience,” agreed retailer Majed Al-Sabah,owner of the giant Villa Moda designercomplex in Kuwait. “We have to get themade-to-order product to the customer nolater than four-to-six weeks maximum.”
Al-Sabah said having exclusive mer-chandise in his branded boutiques, whichinclude Gucci, Prada, Ferragamo andYves Saint Laurent, best drives traffic andsales. He recently commissioned Miuccia
Prada to design caftans for his store,which he said boosted brand awarenessand sales, achieving 50 percent sell-through in two weeks.
“It brought more traffic to the Pradastore and people bought even more piecesfrom the main collection,” he said. What’smore, “the feeling of the customers was sogreat as they were very pleased, and[they] appreciated the fact that Miucciahas feelings for their lifestyle and gavethem what they wanted. It made such ahuge impact.”
“Having exclusive merchandise seemslike a good strategy because it offers con-sumers the chance of getting a productthey wouldn’t find in another city anddoes not have the same price constraintsas made-to-order,” said Kent at MorganStanley. “We think the concept of made-to-order is a good one. However, it willprobably have limited appeal because ofprice considerations.”
Gucci’s made-to-order handbags forexample, start at $1,750 and run up to$15,000, while a custom Burberry trenchcan run up to $2,150.
Smith, who has long sprinkled toys andvintage clothes among his collections inhis stores as a way of customizing them,said one of his favorite stores in the worldis Tokyu Hands, a seven-story emporiumin Tokyo devoted to anything one mightneed for the home and beyond, from hard-ware and electronics to party supplies,camping equipment and stationery.
“I think most human beings love theact of discovering things,” he said.“[Tokyu Hands] has every penknife,every backpack, every staple gun or penyou could ever imagine. Shops like that Ifind really amazing because you don’tfind them anywhere else in the world.”
Smith said luxury boutiques mightfind it necessary to add other brands as a
way of spicing up their shops. “There arethings that can be done,” he said.
Chanel president Françoise Montenaysaid its 130 boutiques have subtly differ-ent architecture, a customized merchan-dise mix and exclusive and/or ephemeralproducts. “We always try to surprise thecustomer,” she said. “When you see twoof our boutiques, they really are differ-ent, even if it was the same architect andinterior designer.”
In terms of what’s on sale, about 60percent of merchandise is common to allChanel boutiques, with the balance se-lected by the boutique manager to bestmeet local needs and tastes. “The mer-chandise is more and more customized tothe spirit of the country,” she said.
In addition, Chanel offers “ephemeral”products, produced in limited quantitiesand offered for a short time, to spur sales.“It’s really a pleasure for the customer,”Montenay said. “[Our customer] values thefamiliarity of our makeup, for example,but the idea is to offer a new look, too.”
In Japan, Chanel has created limited-edition products, including a diamond-studded ring and lipstick and eye shadowcollections in special colors, which havecreated lusty demand. A photo album doc-umenting the March launch of ephemeralbeauty products in Tokyo is testimony tothe success: lines of women snaking out-side the shop.
Sometimes, sleights of hand are em-ployed to give a store a more individualfeeling.
Montenay said a Chanel store manag-er may deliberately delay displaying newdeliveries, or stagger them, to cater tocustomers who may come in weekly oreven twice a week.
Al-Sabah confessed that he sometimescreates “pretend” waiting lists. “This toolhelps us sell three to four times as much
quantities, without having any customerupset,” he said.
Al-Sabah said his customers, who travela great deal, balk at spending up to $1,500for a handbag that is sold everywhere.
“It’s going to be a long-term problem ifthe brands continue in such a directionin producing masses of certain expensiveproducts and not give them exclusivity orhave them made-to-order,” he contended.
Bertelli said initiatives such as made-to-order and exclusive merchandise reflect amature market. “This is an enrichment ofthe brand,” he said, stressing that “exclu-sive has to really mean exclusive, and not aproduct masked as such.”
Of course, not everyone agrees eclecti-cism and variety are the way to go. “Weare running contrary to what Diego DellaValle was saying,” said Robert Triefus, ex-ecutive vice president for worldwide com-munications at Giorgio Armani. “We spentabout $543.8 million over the past fouryears in developing our infrastructures, inacquisitions and renovating our stores toconvey a consistent image because we be-lieve it’s important for each of our brandsand each lifestyle they represent.”
Triefus said Armani, unlike brandslike Tod’s or Prada, does not rely ontourist business. “With our Milan, ViaManzoni and Hong Kong Charter Houseflagship stores, we’ve demonstrated ourconcept of retail destination as a multilay-ered experience — where there’s book-stores, cafés and flower shops — so thatcustomers are invited to spend a couple ofhours there. It’s a rational answer to alarge space,” he said. “We are more con-cerned with cultivating our loyal and localcustomers, who want a consistent image, afeeling of entering the Armani world in amodern, contemporary rendering.”
— With contributions from Luisa Zargani, Milan
Luxe Brands Take Custom RouteW
WD, THURSDAY, JANUARY 2, 2003
3
One of Gucci’s
made-to-order
handbags.
One of Chanel’s
ephemeral
makeup products.
A look inside SoHo’s new Prada store.A look inside SoHo’s new Prada store.
Team SpiritTeam SpiritNEW YORK — Go, team! Sports-inspired styles have been favorites in the junior market of late, and this season is
no exception. The new looks borrow touches, such as the big numerals and mesh materials from football jerseys,
the bold stripes of track suits and the neat shapes of tennis whites, to create great-looking basics. Here, a sampling.
NEW YORK — Go, team! Sports-inspired styles have been favorites in the junior market of late, and this season is
no exception. The new looks borrow touches, such as the big numerals and mesh materials from football jerseys,
the bold stripes of track suits and the neat shapes of tennis whites, to create great-looking basics. Here, a sampling.
WW
D, T
HURS
DAY,
JANU
ARY
2, 2
003
4
Cotton T-shirt and cotton mesh skirt, both from DKNY Active.
WW
D, THURSDAY, JANUARY 2, 20035
PHOT
OS B
Y GE
ORGE
CHI
NSEE
; MOD
ELS:
SHA
RON/
ID A
ND E
KATE
RINA
/MAD
ISON
; MAK
EUP
BY K
AREN
PAN
OCH/
ARTI
STS;
HAI
R BY
MAN
ABU
UNNO
FOR
SAL
ON IS
HI; S
HOES
BYDO
NALD
JPL
INER
; ACC
ESSO
RIES
BY
AMIC
I ACC
ESSO
RIES
; FAS
HION
ASS
ISTA
NT:Y
INGJ
IA P
AK; S
TYLE
D BY
ROX
ANNE
ROB
INSO
N-ES
CRIO
UT
Cotton
sweatshirt
and pants,
both from
Built by
Wendy.
Cotton
sweatshirt
and pants,
both from
Built by
Wendy.
Dollhouse’s cotton
and spandex T with
a cotton and Lycra
denim miniskirt
from Tractor Jeans.
Dollhouse’s cotton
and spandex T with
a cotton and Lycra
denim miniskirt
from Tractor Jeans.
Coolwear’s cotton
T-shirt and Guess’
cotton fleece skirt.
Coolwear’s cotton
T-shirt and Guess’
cotton fleece skirt.
Cotton and polyester
polo shirt and cotton and
Lycra denim miniskirt,
both from Tommy Jeans.
Cotton and polyester
polo shirt and cotton and
Lycra denim miniskirt,
both from Tommy Jeans.
By Julee Greenberg
NEW YORK — Bongo is preparing to step upthe beat in 2003.
The company, which became wholly ownedby Candie’s Inc. in April, has various plans forgrowth in 2003, including a new ad campaignconcept, a fresh merchandising scheme and along list of new licenses.
Neil Cole, Candie’s Inc.’s chief executive officerand president, said Bongo is on the fast track tobecoming a megabrand 20 years after its launch.
“The Bongo brand is one of the fastest-grow-ing names in the industry due to the success ofthe jeanswear business, and we believe thatthis is an ideal time to be moving forward withproduct expansions,” Cole said of Bongo’splans for more licensing. “We believe that ourstrategy of continuing to pursue licensing op-portunities for key categories for both brands will translate into growth and profitability for our company and shareholders.”
According to Gary Bader, president of Bongo, the company has doubled its annual volume in 2002 to reach $100 million, notincluding revenue from licensed products. Bader said during the course of 2002, Bongo became a true department store brand,while still keeping it in specialty stores such as Wet Seal, Charlotte Russe and Gadzooks.
Bader said he expects to reach about $180 million in volume for the year ahead. While thelabel has been known as a jeans brand since its start, Bader said the company’s biggest chal-lenge has been how to translate the denim trend into the next big thing on the denim floor.
“Denim really isn’t doing so well anymore, it’s not selling the way it was,” Bader said.“I think that for the next back-to-school season we are going to see other items in thedenim departments. We are starting to offer denim washes and fits in non-denim fabrics. Ireally think that this is going to be the answer, since the customers are already going intothe junior departments and picking up numerous bottoms in nondenim fabrics.”
That’s exactly the way Bader wants the new Bongo to grow in the next year. While it of-fers these nondenim bottoms in stores now, Bader said he has begun to see other vendorsbeginning to offer the same types of products that Bongo has. In the past, Bader said Bongowas more of a follower in the junior apparel business and now it is preparing to be a leader.
“We are keeping the same edge that Bongo has always had, but working really hard tostay one step ahead,” he said.
In the licensing arena, the brand signed several deals in 2002 and plans to launch a se-ries of others next year. Its existing licenses include knit tops, handbags, infant’s and chil-dren’s wear, belts, socks, small leather goods, eyewear, cold weather accessories, fashionhats and rainwear. Bader said he is close to signing an intimate apparel license andhopes to sign one for young men’s wear in 2003.
The newest ad campaign to launch in the spring features a much different look than inthe past. Styled by Hayley Hill and photographed by Michael Muller, the campaign is sex-ier and more sophisticated than in the past. Bader said the company decided to go with amodel rather than a celebrity, since they were looking for “the face of Bongo,” somethingthey didn’t see in pop star Willa Ford, who modeled for the ads last year.
Bader said he is attempting to reach an audience between the ages of 15 and 18, so adsare planned for the larger teen publications such as Seventeen and Teen People. He thatsince Candie’s purchased the company, it has made business run smoother and allow it toreact more quickly.
“It used to be that the Candie’s people only paid attention to the brand when they hadthe time,” he said. “When it was owned by Azteca and Candie’s it was hard because it wasunclear of who was responsible for what. Now that we are fully owned by Candie’s, it’stheir baby, too, so we get more attention.”
Junior Report
NEW YORK — The boys havebeen able to wear sports jer-seys for years — now it’s thegirls’ turn.
In a collaboration withG-III Apparel Group andformer National FootballLeague player Carl Banks,a line of Hardwood Classicsand Cooperstown Vintagejunior apparel lines will hitthe stores in time for spring2003 selling.
Inspired by uniforms worn by the NationalBasketball Association and Major LeagueBaseball players, the sporty but sleek collectionfeatures studded satin baseball jackets, low-waist-ed boot-cut sweat suits, off-the-shoulder tops,perforated leather motocross jackets, boy-cutshorts, hoodies and tube and halter tops. Allpieces are branded with vintage team logos, suchas the Los Angeles Lakers, New York Yankees,Brooklyn Dodgers, New York Knicks, ChicagoCubs, New York Mets and Boston Red Sox.
“The whole throwback thing is on fire. We tookit from an outerwear perspective to when Starterwas hot,” said Banks, the company’s vice presi-dent. “The demands from women all over is out ofcontrol. Female celebs were cutting and tailoringmen’s jerseys to get the look. They still didn’t fitand the cost would come to around $200. Withthis new craze going on with all the throwbackstuff, it was natural that we extend our brand intothe women’s market.”
The collection’s wholesale price range is from$17.50 to $250.00. G-III plans to participate incoop advertising with several retailers and workclosely with the NBA and MLB to host in-storeevents. It will place strong emphasis on public re-lations and marketing strategies, celebrity affilia-tions and corporate alliances with youth-drivenbrands to veer and heighten the HardwoodClassics and Cooperstown name.
So far, Banks said specialty and departmentstores have booked about $3.5 million in mer-chandise.
G-III, which had sales of $155 million for thenine months ended Oct. 31, already holds licensingagreements with the NFL, National Hockey League,NBA, MLB and more than 50 universities nationwide.It is a manufacturer and distributor of leather andnonleather outerwear apparel under several propri-etary brands and private labels. It also has licensingdeals with Kenneth Cole Productions, Timberland,Cole Haan, Jones Apparel Group and Sean John.
— J.G.
seasonless luxury from our exclusive selection of cashmeres, sarongs, bags and footwear inexotic colors by appointment
Last year Bongo featured pop star Willa Ford in its ads. While Bongo is moving away
from celebrity representation, Candie’s plans to continue with it. Here, Kelly
Osbourne behind the scenes at the Candie’s ad campaign shoot.
OSBO
URNE
PHO
TO B
Y TA
LAYA
CEN
TENO
WW
D, THURSDAY, JANUARY 2, 20037
Continued from page 2hiring more, he said.
Overall, Rao said the index’sdrop was “discouraging,” butmost likely doesn’t signal a re-cession in the long run.
“What has been a little frus-trating to most people is that theexpectations have been highand the economy hasn’t reallypicked up,” he said. “That’sbeen a real disappointment.”
J.P. Morgan Chase & Co. econo-mist James Glassman said, “Thedrama in the economy is not goingto come from the consumer thiscoming year, it’s going to comemore from the business sector.”
The economist expects con-sumer spending in 2003 to rise by 2
to 3 percent, keeping pace with thegrowth rate of the last two years.
“For an economy that’s strug-gling out of a recession, it’s not abad performance,” Glassmansaid. “The body language of theconsumer is all very cautiousand that makes people in the re-tail business very nervous.”
Caution among businesses isat an all-time high and this hasheld inventories, as related tosales, at record lows, he said.
“When people gain a little con-fidence, there’s room for the busi-ness sector to do a lot better, bothin terms of their capital spendingand inventory rebuilding, withouta whole lot of prodding from thegovernment,” he added.
Depressed Job MarketPulls Confidence Down NEW YORK — Taubman Centers
Inc. on Tuesday disputed allega-tions made by hostile takeoversuitor Simon Property Groupthat it is attempting to denyshareholders the power to call aspecial meeting.
In an amended filing with theMichigan court that is hearingthe case, Indianapolis-basedSimon alleged Taubman is try-ing to block its $1.5 billion bidby improperly changing the by-laws of the company.
Taubman, based in Bloomfield,Mich., rebutted the charges andsaid that it only “clarified” its po-sition that if shareholders vote tohold a meeting, the company’sboard would decide the date.
“Given what Simon’s attempt-ing to do, we just wanted tomake sure that the rules of the
road for the special meeting arein place and that there’s no con-fusion,” a Taubman spokesmansaid in published reports.
In December, Simon calledfor the proxies of Taubmanstockholders to convene a spe-cial meeting. It takes 25 percentof the voting shares to pass.
In a statement, Taubman saidit changed its bylaws “to specifyin more detail the timing and pro-cedures that would apply” to theconvening of a special meeting.
The lawsuit stems from a 1998allegation by Simon againstTaubman that claimed the com-pany violated Michigan anti-takeover statutes when Taubmanfamily members increased theircontrol of the company to 30 per-cent of shares from 1 percentwithout shareholder approval.
Taubman Centers RetortsSIR SORRY: As Queen Elizabeth IIannounced a new batch ofknighthoods in the New Year’sHonours List this week, she mayhave noticed that last year’sweren’t done and dusted just yet.Although Mick Jagger was granteda knighthood six months ago, hestill hasn’t found the time to collectit and is unlikely to visit BuckinghamPalace before October. His absenceis blamed on The Rolling Stones’latest world tour, not to mention thoseall-important tax considerations. Thetax rules mean Jagger literally is like arolling stone — he can spend only90 nights in the U.K. each year ifhe wants to maintain his status asan overseas earner. But the singerstill managed to squeeze in a spot ofChristmas shopping on Bond Street afew weeks ago — although he didn’tmanage to send Happy New Year’swishes to Her Majesty.
Fashion Scoop
NEW YORK — Everlast World-wide Inc. won a technicalknockout in New York Su-preme Court, as the judgedismissed on summary judge-ment a lawsuit brought byJoan Hansen and Co., whichfiled an appeal on Tuesday.
Hansen, a nonexclusive li-censing consultant to Ever-last, sought $49 million indamages, alleging the NewYork-based activewear makerwas in breach of contract andthat chief executive officerGeorge Horowitz engaged intortious interference.
In a 12-page decisiondated Dec. 17 and reported byEverlast on Tuesday, the courtruled that Hansen’s “com-plaint fails to identify an ex-isting contractual obligationthat [Everlast’s subsidiary]has failed to perform.” Thecourt also dismissed the tor-tious interference claim asbeing without merit.
The complaint stemmedfrom the October 2000 pur-chase by Active ApparelGroup of Everlast World’sBoxing Headquarters Corp.The company then becameknown as Everlast World-wide. Hansen had made com-missions on royalties fromthe use of the Everlast brandname by Everlast World’sBoxing Headquarters Corp.
After the merger, the ac-quired licensee stopped pay-ing royalties to its new sub-sidiary. In turn, Everlaststopped paying consultingand commission fees to Han-sen. Active Apparel had beenEverlast World’s Boxing’schief licensee when it boughtthe company for $60 millionin cash and stock.
Hansen’s attorney, GeorgeBerger of Phillips Nizer, saidthe plaintiff filed an appealTuesday regarding the con-tractual obligation complaint,but has dropped the allega-tions against Horowitz of“tortious interference.”
“We’re only appealing thepart of the complaint wherewe think we have the bestshot,” Berger said.
— Dan Burrows
Everlast ScoresRound in Court,An Appeal Filed
By Rebecca Kleinman
MIAMI — Snowbirds who head down to SouthBeach from the brisk North, as well as LatinAmericans who make the trip up, will find a widerchoice of denim on their shopping trips.
Two new specialty denim stores, from EarlJean and Miss Sixty, in the fall joined the crowd ofindigenous specialty stores that offer tight, low-waisted Brazilian cuts, as well as chains that offerless extreme fare. The newcomers opened onLincoln Road, an outdoor pedestrian mall dottedwith shops, cafes and galleries.
They’re following on the heels of Lucky BrandDungarees, which opened a freestanding store to-ward the west end of the promenade in early 2002.
“Our decision to come to Miami was really con-sumer-led. Our customersthere are young, fashionableand trendy,” Earl Jean presi-dent Bonnie Takhar said.The Los Angeles-based con-temporary denim and cloth-ing firm chose a 2,200-square-foot South Beach lo-cation, according to Takhar,“because it’s cool and fits thebrand’s image.”
There also is a strong con-nection between Miami andLos Angeles, style-wise, sinceboth promote laid-back, yetfashionable looks with anemphasis on denim.
The store’s decor reflectsthe brand’s casual vibe.Natural materials like lime-stone floor tiles are mixedwith warm earth tones, aswell as antique armoires,chairs and picture frames indark woods. Lighting is rusticand effective with a ware-house feel.
Women’s collections account for 75 percent of thestore’s merchandise and range from $45 for a T-shirtto $650 for a leather jacket. Takhar said she didn’texpect the store to cannibalize sales at Earl’s whole-sale accounts in the area.
“We think a freestanding store will only en-hance our wholesale business here,” she said.
The store’s assortment focuses on low-rise styles.“The trend is beginning to go back to higher
waists, but the demand isn’t there yet,” Takharsaid. She added that Miami locals seem to be look-ing for cleaner washes and straighter legs: “Theflared leg is still strong, but now it’s moving to-ward a straight fit.”
She added that she expects white denim togain on blue in popularity this spring, withHawaiian prints and other floral looks catchingMiami shoppers’ attention.
Other spring elements are pink twill, light-weight denim, and cargo pants either cropped orleft long with zippers.
“The zipper can make the pants tighter ormore flared. It’s a nice detail,” she said.
The company’s balance of trendy and basiclooks put the company on course for $30 millionin sales last year. The brand has had more re-sources behind it since its acquisition by NauticaEnterprises Inc. in 2001.
“We added other collections in 1998, but denimwill always be the core of our business,” saidTakhar of the seven-year-old company.
Founded in the mid-Nineties, Miss Sixty hasbuilt its business on denim as well. Vicenzo Depau,director of the South America and Netherlands ter-ritories for the Italian contemporary line, estimat-ed 50 percent of the collection is devoted to denim.Reporting sales of more than $600 million in 2002,54 freestanding stores and distribution in approxi-
mately 62 countries, he jokedthat even the cows inSwitzerland wear Miss Sixtyjeans.
Having conquered Europe,North America is the next ter-ritory. In addition to two storesin New York, one in LosAngeles and the latest inMiami, the company plans toopen a second location in LosAngeles and new stores inWashington, San Franciscoand Montreal by the end ofnext year. The company is alsoconsidering units in Dallas,Chicago and Las Vegas.
“We hope to open three tofive stores each year over thenext five years,” said StefanoTesta, export area manager.“An aggressive expansion isthe only way to establish alifestyle brand and reach thetarget audience.”
At 3,000 square feet, theMiami space depicts thebrand’s name and messagethrough bold colors on white,vinyl columns and psychedel-ic decor.
Because of its Latin American customer baseand proximity to South America, the branch won’tfall under the U.S., but the South American divi-sion instead.
“There are differences between Miami and therest of the U.S.,” Depau said. “Miami, like SouthAmerica, wears lower-rise jeans and sexier tops.We’ll have more lightweight fabrics too.”
Miss Sixty also plans to stick with low-risestyles for the Miami market.
“Ours are going as low as is legally possible,”he said.
He said that winter trends would focus oncleaner styles, looser cuts and straighter legs.Since the firm produces 900 pieces for collectionsand 300 styles for denim per season, the Miamistore offers a broad assortment, from pinstripes todark washes to reconstructed vintage denim.
“Lincoln Road is so cosmopolitan and con-stantly changing,” he said. “This store will be likean international window for us.”
Denim Report
NEW YORK — Sittingin a limousine headeddowntown, FrançoisGirbaud gesticulatedwildly: “All the fabricswe create, in polyesterand polyamide, theywill not be destroyed.”
Girbaud was talkingabout the centerpieceof his under-construc-tion Manhattan flag-ship, which will be awall of plants and poly-ester. It’s an idea thedesigner is importingfrom France, wherehorticulturist PatrickBlanc told him aboutepiphytes, a variety ofplants that derive theirmoisture and nutrientsfrom the air and rain,but don’t need soil.They live on the barkof trees, in cracks onrock walls and in thiscase, in little pocketsof a three-millimeter-thick sheet of polyesterthat will hang downfrom the roughly 20-foot-high ceiling at 47Wooster Street in the SoHo neighborhood of Manhattan.
Girbaud took this piece of information, added it to his obser-vation that many major cities are rich in vertical space — atri-ums in tall buildings, exterior walls — but are lacking unoccu-pied ground space and concluded that planting epiphytes couldbe a way to improve urban air quality.
“Even as you take something synthetic, the nature is stillgoing to come through,” he said.
But Girbaud’s reasoning didn’t stop there. He mentioned thetons of synthetic-fiber garments that are discarded every yearand envisioned a day when the world’s garbage dumps could becovered in blooming, oxygen-generating plants.
“I know it’s not a good solution,” he said. “But it’s something.”In Paris, one wall of the Girbaud store has a fabric screen
covered in epiphytes, a group that incorporates several speciesof plants, including some orchids and cacti. At the SoHo flag-ship, due to open next month in time for fashion week, a two-sided screen in the center of the store will bloom with them.
“I was surprised at the effect in Paris,” he said. “It made it adestination store. People would walk in to look at it. Maybethey’re not buying the clothes, but they’re looking.”
Girbaud also thinks the wall of plants should communicate amessage to shoppers — that they should think more about theenvironment. That’s something the fashion industry would dowell to think more about, too, he said.
Girbaud said he had seen acid-washed jeans — a finishingtechnique he developed in the Eighties — returning to thestreets and couldn’t avoid a twinge of guilt.
“My God, it’s dangerous working with the permanganate, theacid. I know,” he said. “I remember when my technician gotleukemia, the year we worked with that, because he was breathingthe fumes all day.…We said, ‘My God, what are we doing here?’”
Girbaud got out of the limo and walked into the store, which onthis December day was still at an early stage of construction. Thedesigner said when he first scouted the location, the store wasselling Asian-themed gift items. That was a selling point to him.
“It was kind of good karma, this place,” he said.The 3,180-square-foot unit features a single selling floor. The store
will feature the full Marithé & François Girbaud sportswear line, includ-ing Spqrcity dressier looks and Actliv active looks, as well as footwear,which Girbaud complained is little seen in the U.S. It may stock asmall selection of goods made by U.S. licensee I.C. Isaacs & Co.
“We want to show the different product,” he said. “Not justjeans and T-shirts.”
The company also hopes the store will sell a substantial vol-ume of goods — officials are expecting $2.5 million in sales thefirst year. Total wholesale sales of Girbaud products worldwide,including sales by licensees, came to $220 million in 2002.
There are 45 franchised Girbaud stores around the world, withlocations in France, Japan, the Philippines, Spain, Turkey, Brusselsand Colombia, and two in the U.S., in Chicago and Los Angeles. Butthe designer said he is ready to start building his own retail chainand has opened five company stores in Paris. The SoHo locationwill be Girbaud’s first company-owned store in the U.S.
Olivier Bachellerie, Marithé’s 42-year-old son, is running theretail expansion.
“We don’t want to open 100 stores,” said Girbaud.But more are on the way, he added. The company is looking
for locations in London and elsewhere around the world.“Now, it’s time for us to take seriously the retail,” he said.
“We want to show who we are.”— Scott Malone
WW
D, T
HURS
DAY,
JANU
ARY
2, 2
003
8
Girbaud’s Green Moment
Miami Jeans Scene Grows
Miss Sixty considers its Miami store part of
its Latin American division.
Earl Jean executives found a parallel between
shoppers’ preferences in the brand’s Los Angeles
home at at its new Miami store, shown here.
Earl Jean executives found a parallel between
shoppers’ preferences in the brand’s Los Angeles
home at at its new Miami store, shown here.
François Girbaud in December checked up
on construction at his SoHo flagship, due to
open next month.
MIA
MI P
HOTO
S BY
ROB
ERT
SADL
ER C
LARK
; GIR
BAUD
PHO
TO B
Y RO
BERT
MIT
RA
NEW YORK — Seven newcomers are jumping into theactivewear zone with specialty products not likely to befound at the big brands, while chasing drastically di-verse customers.
FAL Active features athletic-inspired sportswear forurban gymgoers, Dosty sweatshirts is aimed at boyishhipsters, Gallaz appeals to stylish skateboarders, BumiSirotka focuses on chic tennis players, Counterpoint T-shirts is for the politically minded, Raising a Racquet isconstructed for fitness-minded pregnant women andNeighborhoodies is for those proud of their residences.
Instead of shooting for mass distribution, thesebrands are being highly selective in terms of wheretheir labels are offered. Should that strategy work, theywill broaden into new categories.
FAL Active was launched in November exclusively atEquinox Energywear stores. During an interview at thefirm’s Seventh Avenue showroom, designer Jeffrey Grubsaid he had long wanted to design something for hisfriend, Fran Errico, who runs Energywear stores, a 13-unit operation known for its mix of versatile activewearand contemporary sportswear.
“She sets the pace for gym boutiques,”he said. “She mixes in contemporary T-shirts with activewear. She is ahead oftrends. We feel the Equinox customer hasthe same aesthetic as our designer cus-tomer. They like a little bit of fun, butthey’re pretty sophisticated.”
Grub befriended Errico and her sister,Terry, in the early Nineties, when “gym re-tail consisted of selling padlocks and sportsbras on wire forms.” His new line has ahoodie; yoga pants; a short-sleeve, zip-fronttop with a pocket; capri pants; dance pants,and bra tops — with everything retailingfor less than $100. This year, FAL Activewill also be offered to other specialty storesincluding units in luxury spas. The company expects togenerate $5 million in wholesale volume this year.
Legwear designer Dorothy Lanier is now offeringfleece pieces and zip-front jackets under her Dostylabel and will continue to offer legwarmers. This year,Dosty apparel sales are expected to double to $1 millionwith the new group, said Eileen Ward, president of theProphet showroom, which reps the line.
“I knew I needed to move into the next thing. I don’twant to design socks for the rest of my life, obviously,”Lanier said. “I think it is better to do one thing, do itright and people will know what to come to you for.”
To create some buzz around the fleece jackets lastyear, Lanier went to Los Angeles for a pre-Emmy party togive away samples to stylists, fashion editors and risingstars like Gretchen Mol. Her 12-style collection whole-sales from $45 to $60 and is offered at better specialtystores such as Barneys New York and Fred Segal Flair.
In November, Gallaz, a women’s skateboard shoecompany, showed off its new skateboard-inspired appar-el here at Idlewild, a downtown bar designed to look
like the interior of an airplane, an appropriate am-biance since the bar was named for the former monikerof John F. Kennedy International Airport.
Gallaz is owned by Globe, an Australian skateboardcompany that also makes Mooks, a popular label withalternative sports athletes. Gallaz-sponsored skate-boarders Jaime Reyes, Lauren Mollica, Amy Caron andVanessa Torres turned up for the bash.
Aimed at girls and women between the ages of 12 and24, Gallaz apparel has unfinished touches, like raw edges,burned-out logos, reversible prints and scissor-cut neck-lines, to appeal to women who like to customize theirclothes. Each item retails for $50 or less and ships to skate-board and surf specialty stores beginning this month. First-year projected wholesale volume is less than $2 million.
Bumi Sirotka, a Wilhelmina model and former design-er store saleswoman, launched a 25-piece tennis line lastspring. Her brand got a lift last summer after LaurenBush was photographed between sets in the Hamptonswearing one of Sirotka’s outfits with the signaturepineapple logo. The shot appeared in various publica-
tions, including Gotham, Tennis Week and Avenue.Sold at pro shops at resorts like The Breakers, the
Atlantis Club on Paradise Island, the collection includespleated skirts, racer-back tops and stretch A-line skirts.Wholesale prices range from $22 for a V-neck top to $50for a tennis dress.
First-year projected wholesale volume is $400,000,Sirotka said. She makes a point of visiting the clubs shesells and is using trunk shows as a way to get to knowher customers better. Her aim is to offer sophisticatedtenniswear with a dash of fashion.
Sirotka now plans to develop a children’s line to belaunched later this year, since many stores have re-quested one.
Paul Gnu, founder of Counterpoint, used last month’sfirst Hip-Hop Film Festival to drum up interest in hisactivewear, imprinted with such messages as “MothersNeed Sons Not Killed by Guns” and “Phone Tap.” Salesof women’s apparel are expected to account for 10 per-cent of Counterpoint’s volume this year. The brand aimsto sell a few hundred units of the women’s apparel in
the next 12 months.The 10-year-old Brooklyn-based company is offering
more women’s T-shirts and tops like a baby T-shirt im-printed with “Lo-res Revolution” and an image of HueyP. Newton, Mao Tse-Tung and Malcom X on the front andan Atari-type logo on the back.
In the past, the company bought children’s T-shirtsfor its women’s line and had to cut the necklines andarmbands to fit the adults.
Raising a Racquet is another eclectic label that willbe sold to such specialty stores as Pickles and IceCream, a maternity chain with headquarters in Atlanta.Rebecca Cutler and Jennifer Krane, two Darien, Conn.,neighbors who left their legal careers to raise children,started Raising a Racquet, which shipped last month tospecialty stores in 25 states.
Raising a Racquet’s kit consists of a fuchsia hatboxwith a reversible skirt, V-neck polo shirt, a sleeveless V-neck shell and black athletic shorts, with a suggested re-tail price of $132. Cutler and Krane said they aim to sell5,000 kits in the first year.
In a phone interview, they said theyalso wanted to promote the importance ofexercise during pregnancy. Next up: aRaising a Racquet golf kit to be unveiledwithin the next six months.
For the first time, Neighborhoodies islooking to broaden its distribution beyondits online store. The Brooklyn-based com-pany started off in an unlikely way. Somany people complimented companyfounder Michael de Zayas about his self-made Fort Greene sweatshirt that he start-ed making for friends, carrying the namesof their respective neighborhoods.
Interest was so strong this fall that he gaveup his copy editing job to set upNeighborhoodies.com, an online store, and to
devote all his time to the company. The company expects tosell at least 5,000 units in the next year. With the exceptionof a small ad in a December issue of The New Yorker, alladvertising has been word-of-mouth. San Francisco, LosAngeles, Seattle, Philadelphia and Washington are amongthe cities being targeted in January and February.
Visitors to Neighborhoodies.com can choose fromneighborhoods surrounding 14 cities for their $49sweatshirts or customize their own. But the names areopen to interpretation, as evidenced by the Boston sec-tion, which includes “Big Dig” and “Brahmin Boston.”The first refers to the $14.6 billion project by theMassachusetts Turnpike Authority and the second refer-ences the nickname Oliver Wendell Holmes bestowedon 19th-century bluebloods.
Regardless of the moniker, Neighborhoodies sweat-shirts are offered in three different colors with 11 dif-ferent letter colors. Each of the four styles has a money-back guarantee. If all goes according to plan, de Zayassaid he won’t ever have to go back to another desk job.
— Rosemary Feitelberg
Active Lifestyle
The New Brands in Town
WW
D, THURSDAY, JANUARY 2, 20039
An image from FAL Active’s
advertising campaign.
Gretchen Mol in a
Dosty zip-front jacket.
Neighborhoodies
is targeting
new cities.
Lauren Bush was
photographed last
summer in Bumi
Sirotka tenniswear.
Here, a shot from
Avenue magazine.
Lauren Bush was
photographed last
summer in Bumi
Sirotka tenniswear.
Here, a shot from
Avenue magazine.
Gallaz showed off
its new skatewear
at Idlewild.
World OutlookTheWWDList
EUROPE AND CENTRAL ASIA3.4 percentAs a whole, Europe and Central Asia have weathered the recent global economic downturn relatively well, largely because of fairly strong domestic demand throughout most countries. Still, the slack external environment, especially inWestern Europe, has been contributing to a general slowdown of growth, the World Bank report said. Germany, Europe’slargest economy, and the third-largest in the world, is struggling with widening budget deficits.
*EURO AREA1.8 percentIn Europe, investment was concentrated in the over-indebted telecommunications sector and the financial sector.Continued tension in financial markets made any recovery less uniform than it would have been under normal circumstances. Deteriorated government deficits combined with low interest rates have left little room for further economic stimulus.
SUB-SAHARAN AFRICA3.2 percentSub-Saharan Africa was vulnerable to the economic difficulties throughout the world, especially since many countries inthe region have limited options to absorb adverse shocks. Growth in the area remains restrained by unfavorable domesticconditions including civil unrest and drought. However, a robust recovery for African trade is predicted by the WorldBank, with growth ratcheting towards 6 percent by 2004.
MIDDLE EAST AND NORTH AFRICA3.5 percentThe Middle East and North Africa face an economic slowdown, with short-term growth prospects contingent uponwhether military actions are taken in the region. This, despite a continuation of high oil prices. “The bleak growthprospects in the Middle East and North Africa have made an already difficult social situation critical, as ever more newcomers to the labor market join the ranks of the unemployed,” said the World Bank’s chief economist for the region.
OECD COUNTRIES2.1 percentOrganization for Economic Cooperation and Development countries include Canada, France, United Kingdom, UnitedStates, Germany, Italy and Japan. OECD output growth dampened by 1 percent.
UNITED STATES2.6 percentThe World Bank concluded that the economic effects of the terrorist attacks of Sept. 11, 2001 were most severe in theUnited States. But the organization said that the steep decline in tourism and the increase in risk perceptions did not occur,which bodes well for consumer spending in the future, although that surge certainly did not materialize this past holidayseason.
SOUTH ASIA5.4 percentThe recent global economic slowdown, adverse weather conditions, and security concerns reduced economic growth forthe South Asia region in 2002. Future prospects appear brighter, however. South Asia should achieve an average of 5.4percent growth in 2003, and 5.8 percent in 2004, according to the World Bank. This assumes improved political stability inplaces such as Nepal and Sri Lanka.
*LATIN AMERICA AND THE CARIBBEAN1.8 percentEconomic activity in Latin America and the Caribbean has fallen behind production trends in other developing countries.The crises in Argentina and Venezuela clearly contributed the most to the decline in regional output. In Brazil, acombination of rising public debt and declining export revenues contributed to the weakening.
EAST ASIA AND PACIFIC6.1 percentThe recent terrorist attacks in Bali will depress tourism in East Asia. But since world trade and output growth in the developed world is still expected to be stronger in 2003 than 2002, any slowdown in East Asia should be limited, especiallyas growth continues to be strong in China, whose economy grew 8 percent last year.
JAPAN0.8 percentAfter Japan suffered steep output declines for three quarters, it broke away from negative growth rates. Still, Japanremains encumbered by massive fiscal imbalance and Japan’s strong export performance is at risk if demand for its goodsweakens. The luxury market’s most enthusiastic customer has been hampered for some time and may have to sit on thesidelines for a while longer.
WW
D, T
HURS
DAY,
JANU
ARY
2, 2
003
10
GNP estimated growth by region of the world for 2003, in descending order.
SOURCE: WORLD BANK’S GLOBAL ECONOMIC PROSPECTS 2003*SAME GDP FOR TWO REGIONS IN NO PARTICULAR ORDER
The World Bank doesn’t have much good news for the new year. InDecember, the organization sharply cut its outlook for world economicgrowth in 2003 by more than a percentage point to 2.5 percent.Retailers sourcing private label goods and manufacturers will have tonavigate the world’s hot spots where there is growing economic andpolitical instability.
1
2
3
4
5
6
7
8
9
1010
1
2
3
4
5
6
7
8
9
WW
D, THURSDAY, JANUARY 2, 200311
226 W. 37th5600 SqFt
GREAT LIGHT * FULL FLOORSIDEAL FOR SHWRM/OFC/DESIGNFASHION CORE BERNSTEIN RRichard Price 594-1414 Ex265
For Space in Garment Center
Helmsley-Spear, Inc.212-880-0414
Closeouts WantedWE BUY CLOSEOUTS OF GENERALMERCHANDISE FOR OUR STORESAND ALSO STORE INVENTORIES.
IMMEDIATE PAYMENTS212-564-3606 WEBERS
FAX: 212-564-3236
PATTERNS, SAMPLES,PRODUCTIONS
All lines,Any styles.Fine Fast Service.Call Sherry 212-719-0622.
PATTERNS/SAMPLESPRODUCTION
Specializing in small productions. Sam-ples, duplicates, patterns. Full serviceshop to the trade. Fine fast work.
212-869-2699
RESUMES THAT WORK! SINCE 1970Updating/Phone Interviews
PROFESSIONAL RESUMES, INC.60 E 42nd Street, NYC 10165(212)697-1282/(800)221-4425
www.resumesforfashion.com
Admin AssistantFast-growing Jr jeanswear co needsadministrative help. Organized, hard-working, college grad should fax resumesattn: Carl: 212-719-4074
DESIGN ASSISTANTMajor apparel company seeksindividual to act as a liaison b/t designand production. Responsibilitiesinclude assisting designers with concepts/layouts, pricing inquiries and maintain-ing fabric room. Must have knowledgeof Photoshop and/or Illustrator.
Please fax resume to 212-239-2766
DESIGNER $$$$$BOYS/MENS
Great company. License, LifestyleActive. Room for growth!
JOBS JOBS JOBS*Artists: Boys or Girls or Missy*Designers - Assists - Assoc - Boy or Girl*Fit Technician*Patternmaker Head - Electra/Gerber*Production: Mgrs - Coords - Assists*Prod’n Sourcing Coords-bilingual Chinese*Quality Control Assistant*Sales Assistant - Retail experience*Technical Designers & Spec TechsCall (212)643-8090; fax (212)643-8127 (agcy)
PATTERNMAKER3+ years experience with brassieres.Create patterns and samples in accord-ance with technical drawing specifica-tions. Freelance job. Work from home.Must be reliable. $ negotiable.
Well estab girls’ dress Co. seeks exp’dHead Patternmaker to managepatternmaking 1st through productionpatterns, as well as sample room. Workdirectly w/design & Tech to interpretstyling, fit, etc. Expertise in Gerber &Lactra sys req’d, as well as strongmanagerial skills. Send resume toLL/HP, 71 5th Ave, 5th Fl, NYC 10003
PAYROLL/BENEFITS MGRN.J. Apparel Co. needs temp to permperson for multi cos. 401k, Insurance& Benefits Admin; ADP PC Payroll forWindows; Hand Punch & E-TimeSoftware for ADP; Mas 200 A/P andGen’l. Ledger a plus; knowledge ofLotus & Excel. Fax resume and salaryreq. to 212-730-8032
SALES ASSISTANTEntry level position available to workw/ Account Executive on maintainingWalmart account. Must be detail orient-ed & have good communication skills.Excellent computer skills necessary.
Thriving Sales Analysis and ProductManagement company looking forexperienced merchandiser, buyer, orsalesperson. Strong skills in productplanning and forecasting a must. Ener-getic and well traveled. Deep under-standing of the information a buyerneeds from a supplier to optimizesales and profitability. Salary com-mensurate with exp. Please contact:
For more information contact Melissa Post, associate publisher, at 212/630-4903, or your WWD sales representative.
One major trade show.
Two high-impact opportunities.
WWDMAGIC Preview Coated Stock Supplement: February 4 Close: January 6
• The ultimate fashion preview • Used as a planning tool by retail buyers and decision makers • On-site bonus distribution to attendees
WWDMAGIC First Day Section II: February 18 Close: February 3
• The latest business and trend news from the show, covering Contemporary, Junior/Young Contemporary, Better, Moderate, Junior Accessories, Casual Lifestyle, Swim and Streetwear.
• Drive buyer traffic directly to your booth • On-site bonus distribution to attendees
