Fashion Notebook

Lessons in Branding: How Steve & Barry's Does a Lot With a Little

OK, so if you haven't read our news story (you know, that OTHER
job we have), about Steve & Barry's launching a new collection of
branded "Sex and the City" t-shirts and tank tops ahead of the year's least-anticipated and most-loathed premier (to us), check it out here. If you're link-a-phobic, here's the brief:

"Further cashing in on the stars of HBO's hit show Sex and the City, Steve and Barry's has launched a collection of branded T-shirts and tank tops designed by leading actress Sarah Jessica Parker.

The collection, with all items priced under $9, hit cheap n' chic retail stores last week, ahead of the May 30 premiere of Sex and the City: The Movie at theaters nationwide. The T-shirts and tank tops come with printed phrases including "I'm with Mr. Big" and "I (Heart) Sex and the City," as well as images of the characters from the TV series."

"Millions of women have flocked to our stores since the launch of Sarah Jessica Parker's Bitten brand last year, and Sex and the City: The Movie merchandise is a perfect complement to that collection," said Howard Schacter, chief partnership officer at Steve & Barry's, New York.

OK, so why does this matter, and why, as we contend in the headline to this post, do we see it as a brilliant example of doing "a lot with a little." Well, pretty much, it's because Steve & Barry's is likely to get a groundswell from this, selling not only these t-shirts, but also more items from the "Bitten" collection that the retailer trotted out from Sarah Jessica Parker (she of the Skeletor visage, pictured left, in that show that proffers female empowerment but really ends up, sing it with us Obama, "more of the same," in our humble opinion, and that of others) last year. And better yet, they'll do it—again—with barely a cent spent on advertising.

This isn't a groundbreaking marketing idea—big film coming up, you've already got a product tie-in to one of the characters, so plug her again and ride the film's publicity and boon in related Internet searches to see the sales needle get a lift—so why aren't more people doing it?

Well, the answer to that might be that they're just too damn rich. And that's not a slight.

Think about it. When we're flush, it's all dinners at BLT Prime and brunch at Essex, but when we're broke, it's poulet roti chez nous with rosemary and other fresh herbs, that serves two and, we dare say, tastes just as good as the same dish at either of those tony joints. Leftovers are broken down into chicken salad, the bones boiled into a chicken soup. And presto! We've got lunch for days. And for about half the cost of a porterhouse at BLT. Sure, we definitely got way more out of cooking the chicken at home and getting creative with stretching the meals, but that's because we had to. And once our coffers are full again, you'd better believe we'll redefine dinner—like retailers and apparel companies define a "launch"—as a strictly Tourondel affair. N'est ce-pas?

So what if the big agencies and brands just starved their budgets on a few projects and saw where it went? Listen, we're not saying that Nike should book Sharapova for a tennis commercial and then forego a TV spot, but maybe test out an anemic cash flow on a smaller project and see what the creatives come up with. You never know where the results might lead. Maybe even straight to sales.

Stay tuned to see how well the "Sex and the City" tops do. You know we are.

Financial Desk: Strong Gains in Q1 Portend Bright 2008 For LVMH

In the words of one Flavor-Flav, LVMH Chairman and CEO
Bernard Arnault "knows what time it is."

Remember when the luxury house's head honcho (pictured, right), whom we've always thought was like a lost member of the Rat Pack, said this, a while back?

"I believe that [the recession's] consequences on LVMH will be limited, weak, or even non-existent. In fact, the clientele that we are dealing with is far less affected than the rest of the economy by these short-term economic swings.  They have high purchasing power, located in a number of countries where the economic climate will be bouyant, even if there's a minor recession in the U.S."

Well, he wasn't just puffing his sails. First quarter revenue reports show that, with the sole exception of the wine and spirits group, all divisions of LVMH are up.

Fashion and leather goods grew 7%, led by the strength of Louis Vuitton, which received its own TV commercial this quarter, in addition to recently inking a deal to have Rolling Stones' guitarist (and, we think, animatronic wax doll) Keith Richards star in its current print campaign. On the product front, the company said that the collaboration between Marc Jacobs and Richard Prince (the artist of "Let's not and say we did, XOXO, Jennifer Aniston" fame) was particularly successful. Meanwhile, perfumes and cosmetics grew 8%, attributed to the continued momentum of the Christian Dior brand offerings, as well as the new Midnight Poison fragrance and Addict High Shine lipstick.

But the real winner of the quarter was the watches and jewelry group , which posted 12% revenue gains over the year-earlier period. Strength came from brands including TAG Heuer, Zenith and the Christal collection from Dior. The company added that Chaumet and De Beers also continued their retail expansion plans and increased revenues. New watches previewed at Art Basel in Switzerland have reportedly attracted "large increases in orders" from retailers.

And the bottom kicker of the sales release seems to only confirm what Arnault had promised earlier:

"LVMH will continue its growth in 2008 despite the challenging monetary environment and an uncertain economic climate at the beginning of this year. Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH top priorities."

If they can keep these numbers up, or better yet, best them, then we think it's fair to say that the strategy we outlined a while back, that of weathering the recession by only appealing to the top end clientele, has indeed proved not only stable, but a money maker for LVMH.

Lessons in Branding: Why the Woody Allen Vs. American Apparel Case Is Actually Kind of Funny

If you hadn't heard already, director Woody Allen is suing
American Apparel for $10 million, for using his image,
without permission, in one of its outdoor campaigns in May 2007.

The campaign features a photo of Allen, dressed as a Jewish rabbi in his 1977 Academy Award winning film Annie Hall, beside Hebrew script that translates to "The Holy Rebbe." (See photo, right.)

While the lawsuit is certainly interesting—or maybe not really, we find legalese to be somewhat tiresome and who isn't suing anyone else these days?—the whole situation has us kind of perplexed, then chortling, then perplexed again.

So first, you take an ego-maniac like Allen (Full disclosure: we love Allen's work; Annie Hall makes our top 10 movies of all time, though our boyfriend pulled a gifting gaff for our last anniversary by getting Manhattan, still a good movie, but it no Annie, and, for the record, we don't care if it's the deluxe edition and we once mentioned it was "our real favorite Allen movie."), and you use him in branding that doesn't, well, directly promote him and his work.

We need to note here that Allen has found a way to finagle himself into nearly all of his movie scripts, and, in the aforementioned was, indeed the main character, so this guy is no stranger to an über-level of self-promo. So we have to imagine that Allen's real beef here not that there's a promotional image of himself out there, but rather than the said image isn't promoting him in a way that he totally controls. That's totally fair, and who would want their mug on an American Apparel ad, especially without their permission? (Though some of our friends have appeared in the ads, with their all-too-eager permission.)

According to press reports concerning the lawsuit, the case argues that the use of Allen's image in the billboards in Hollywood and New York were "especially egregious and damaging," and that Allen does not endorse products or services in the United States. Hmmm... We can think of a couple things Allen has done to himself that were more "egregious and damaging" than a few billboards with a still from one of his movies, but we'll get to that later. 

Second, you take a company that has made its name with 1970s porn-style ads that feature either moist looking hipsters or their rather sleazy looking bearded brethren. We're all for it, and love the gay-themed advertisements that they've done in publications like BUTT (anyone remember those "Bottoms...And Tops" spots?!, WARNING: NSFW. A tamer spot is pictured, below, left.), but, in the end, it's just kind of an edgy sex-sells play for the apparel company, you know, with a little vintage sleaze thrown in for good measure.

This oddly brings us back to Allen, someone who's rather a 1970s vintage cartoon character, who scandalized himself with what some would call a sleazy, sexual relationship with Soon Yi, the adopted daughter of Allen's former flame, Mia Farrow. So we kind of see the relevance from a marketing standpoint. In fact, in response to a query from The Jewish Daily Forward, American Apparel rep defined Allen as the brand's "spiritual leader." And if you think about it, it's kind of dead on. Better in the 1970s, sexually provocative, somewhat over-thought and overwrought (thinking lamé swimsuits and Celebrity), well these concepts all seem to define both the American Apparel and Woody Allen "brands."

Anyhow, we're not so impressed by the outdoor ads, but they sure got a lot of attention, so perhaps this whole weird mélange is worth its weight in branding gold. Still, wouldn't something it have been cooler if AA had superimposed Allen's face on one of their own hipster-hot models? Like this. So what's the lesson here folks? Well, it remains to be seen if these ads and the lawsuit move the needle any for American Apparel (as if they need it, the stores around here are always hopping with pretty, and some not-so-pretty, young things) and if that movement outweighs any legal costs, but if so, the lesson seems to be find someone both scandalous and (considered) brilliant in their field, someone who kind of relates to your own brand values, and then slap their image up on your billboards. Without all the hassle of asking.

We're not in favor of breaking the laws, per se, or abusing someone else's likeness, but do marketers really care about such meddling things as this, you know, provided it's still selling products?

Also, it's not like American Apparel hasn't ever been on the receiving end of image misappropriation issues, but for them, it actually turned out to be kind of a good thing. They were one of the faux sponsors in a Youtube spoof dubbed "The Hipster Olympics," in which contestants from Williamsburg, Brooklyn (our nabe, coincidentally, so the satire here does sting a bit) snort cocaine to get in the game, take MySpace photos, pick out ironic album covers, and dis normals.

When we asked what they thought about it, American Apparel director of corporate finance and development Adrian Kowalewski told us that since the spot wasn't "grossly defamatory" it wasn't such a big deal.

"It's quite flattering to us that our marketing would inspire someone to do a mock ad," Kowalewski added. "We think this is a reflection of how impactful our advertising has been to our audience."

So c'mon Woody, what's the big deal, man? Can't we all just, like, brand along? Anyways, I'll let you readers sort it out.

Check out the "Hipster Olympics" video, below.

Breaking News: Elle Macpherson Signs On As Global Face of Revlon Brand

First, the news: Elle Macpherson, (photo, right) the 44-year old Tasmanian-born supermodel best known for her glossy appearances on the covers of Elle and Sports Illustrated, as well as her numerous engagements as the face of Victoria's Secret, has been tapped as the "global brand ambassador" for Revlon.

She'll join the current roster of the cosmetic firm's brand faces, which include actresses Halle Berry, Jessica Alba, and Beau Garrett, in a move that the company says "continues the long-standing tradition [Revlon] started of partnering with the most beautiful and iconic women of the time to represent the brand."

She'll be featured in upcoming global campaigns, none of which have been revealed, and will also be involved in the company's various sponsored philanthropic activities.

Now, the air kisses between Revlon prez and CEO David Kennedy and Ms. Macpherson:

"Elle's special qualities as a businesswoman, beautiful and talented model, actress and mother represent the essence of the Revlon brand," said Kennedy in a statement.

"Revlon is an iconic brand, bringing high quality products to women around the world and is complementary to my values," said Macpherson, also in a statement. "I am proud to join Revlon in its celebration of women and in its long term commitment and support for education and research to advance women's health and particularly, to fight women's cancers."

Alright, yadda yadda yadda. But what does this mean?

First of all, they're not saying it, but we have to think that there's at least two things going on here.

First is a cheap purchase of a marketable name that's a little past it's prime. Think about it: what's the last hot campaign, like big big spend campaign, that you can remember featuring Elle Macpherson? Still scratching your head? Question answered. She prolly came pretty cheap, which isn't a bad thing when marketing budgets at even the biggest spenders look like they're getting crunched. (For more on that, check out our regular news story, here.) But do you remember the name Elle Macpherson? Yeah, we thought you might. Bingo!

SIDE THEORY: One of our friends thinks Elle might actually be the face of the brand's anti-aging product line, dubbed "Age Defying," which has featured celebs including Melanie Griffith, and Julianne Moore, in the past. Revlon hasn't yet revealed exactly which campaigns Elle will be appearing in, just that they'll be global.

Second, it would seem, is a play at attracting the older consumer set, the ladies about our mom's age, maybe a little younger or a little older, who probably remember idolizing Macpherson when she was hot, and they were also her age. Like Elle, they're around 44 years old, and want to feel that you can still be glamorous at any age. And from a sales perspective, it makes sense if you consider that the size of the boomer generation.

UPDATE: No Calvin TV Campaign For Eva Mendes

So we had some questions regarding that Eva Mendes story we posted yesterday.

Turns out that there won't be a TV push for the launch of "Seductive Comfort." Rather, it will be a global print and outdoor campaign, just like the stuff she'll be doing for the Fall 2008 skivvies ads, and we imagine that will likely also be the plan for the forthcoming fall fragrance launch.

Also, no color, so to speak, on Eva's ability to appeal to the Hispanic shopper demographic. A rep told us that Eva was picked for her "universal appeal" and general hotness. Sometimes, we guess, there is no angle when a company picks a mass-culture celebrity.

Breaking News: Eva Mendes Will Be the Face of Calvin Klein Underwear for Fall 2008 Campaign

Calvin Klein announced today that it has tapped Eva Mendes (pictured, right) for its forthcoming Fall 2008 underwear campaign.

The actress, best known for her performances in Ghost Rider, Hitch, and Training Day, will appear in the global print and outdoor campaign, and will be used to help launch the brand's "Seductive Comfort" line. She will also be the face of a new Calvin Klein fragrance that also launches this fall. Details concerning the
fragrance were not available, but if the campaign's anything like the one for ckIN2u, then don't hold your breath. We thought the creative looked like a sex-sells job that was phoned in from the brand's edgier heritage, though we will say the mobile marketing for that launch, in Canada at least, was noteworthy and inventive.

The deal, the terms of which were not revealed, builds on a longstanding relationship between the actress and the brand. Mendes has appeared in Calvin Klein Collection gowns at various events including the CFDA Fashion Awards, Condé Nast's celeb-heavy "Fashion Rocks" parties, and most recently, last month's Independent Spirit Awards.

Here's the lovefest quote from CK prez and COO Tom Murry:

"We're very pleased that Calvin Klein will be able to capitalize on the benefits of having a beautiful and talented actress like Eva Mendes featured in two campaigns running this fall," he said, in a statement."She really embodies the essence of the Calvin Klein brand and we look forward to seeing that carried through in the creative."

We're trying to figure out if the brand will use Mendes to leverage market share with Hispanic consumers, as well as whether or not "Seductive Comfort" will feature TV spots as part of its launch push. Check back later for more details.

What the 2008 CFDA Nominations Tell Us About American Fashion

Another spring, another awards season for the Council of Fashion Designers of America. We always look forward to this announcement, and yet we always walk away from the press release disappointed. Why? Well, because year after year, it all just feels the same and it's gotten to the point where we feel we could pick out the nominees, blindfolded and drunk, and probably get them right about 90% of the time. But first, the nominees.

In case you haven't heard, the group, whose prez is none other than that lullaby-talking Diane Von Furstenberg, has announced the following nominations for 2008: [Note: The Swarovski awards recognize emerging design talent.]

Womenswear Designer of the Year                                   Swarovski Award for Womenswear
Francisco Costa (Calvin Klein)                                            Kate & Laura Mulleavy (Rodarte)
Lazaro Hernandez & Jack McCollough (Proenza Schouler)     Thakoon Panichgul (Thakoon)
Marc Jacobs                                                                      Alexander Wang

Menswear Designer of the Year                                        Swarovski Award for Menswear
Thom Browne                                                                   Patrik Ervell
Michael Bastian                                                                Tim Hamilton
Tom Ford                                                                         Scott Sternberg (Band of Outsiders)

Accessory Designer of the Year                                        Swarovski Award for Accessory Design   Tory Burch                                                                       Philip Crangi
Marc Jacobs                                                                      Justin Giunta (Subversive Jewelry)
Michael Kors                                                                     Joy Gryson

Well, congratulations to all the winners. Then again, we're sure they've heard it all before. Actually, they have. Let's take a quick, two-year trip down memory lane, just with the marquee awards.

CFDA Nominees 2007                                                     CFDA Nominees 2006     

Womenswear:                                                                  Womenswear:
Oscar de  la Renta                                                            Francisco Costa (Calvin Klein)
L. Hernandez and J. McCollough (Proenza Schouler)            L. Hernandez and J. McCollough (PS)
Marc Jacobs                                                                     Marc Jacobs

Menswear:                                                                       Menswear:
Steven Cox and Daniel Silver (Duckie Brown)                      Thom Browne
Ralph Lauren                                                                    Ralph Lauren
Italo Zucchelli (Calvin Klein)                                              Alexandre Plokhov (Cloak)

Accessory Designer of the Year:                                          Accessory Designer of the Year:
Marc Jacobs                                                                      Marc Jacobs    
Michael Kors                                                                     Michael Kors
Derek Lam                                                                        Tom Binns

Notice anything? Like maybe the fact that the nominees in the
womenswear category have remained virtually unchanged (with the
exception of Oscar de la Renta) for the past three years? Or that Michael Kors (pictured, right, doing his Project Runway duties) and Marc Jacobs have been the accessory designer of the year nominees for three years running, as well? The only thing that seems to have changed much at all is the men's category.

In his statement regarding this year's nominees, CFDA executive director Steven Kolb lauds the way in which "this year's nominees and honorees reflect the strength and vitality of the American fashion industry."

Really? It seems to us that it suggests the industry is rather stagnant, with only the same three names worthy of distinction in each of the categories. And let's not forget that chief among those names, Mr. Marc Jacobs, seemed poised, only a season ago, to take his whole operation to Paris. But we digress.

In essence, it would seem that the CFDA nominations this year, and as we've demonstrated above, the past several years, prove that American fashion is a pretty rarified echelon in which only a standard round of top names compete for industry prizes. For an industry where the bread and butter is creativity, the stagnancy (why does that word keep coming to us?) of the nominations list seems to imply a less thoughtful approach. That said, if asked which designers we thought were tops in American design, we'd be hard pressed to come up with a different list. Perhaps the fault then, dear readers, is not within the CFDA nominating committee but within our American fashion selves.

It's hard for American designers—hell, for ANY designers—to become established like these award winners anymore, given the difficulties of getting funding and the fact that we live in a world that no longer seems to care about the development of talent as much as they do about constantly having something new, something chic, and something with a name that others will recognize. To that end, CFDA (and Vogue) are to be commended for their work to bring notoriety to new design labels, as they have with Proenza Schouler, who now top the ranks of their regular awards, having graduated from the Swarovski Award for Womenswear. But it's hard to see any kind of sea change in American fashion coming—and perhaps no one wants it—given that these guys are always at the top of the list for women's design.

Here's hoping that maybe Christian Siriano, recent Project Runway winner (whom we can't help ourselves but to shill for), will liven up those ranks in the coming years.

And full disclaimer: This post is not a statement, by Fashion Notebook, that we think any of the nominated designers aren't talented, or are not worthy of awards. Rather, it is a statement that we've seen these same people getting awards and nominations for years, and we're wondering why there's no one else in the American fashion ring worthy of such distinction by the CFDA.

Week in Review Pt. 2: In Which Gap Rethinks Marketing Spend, Reebok's CMO Moves Into the Driver's Seat, and Airwalk Taps MySpace Celebrities

Once again, we're sorry that we've been silent for so long! But we've been writing a lot for that dying industry: the print book. Hey, you gotta eat!

Anyhow, here's a brief recap of our stories from last week, and this week, along with that snarky commentary that you guys seem to love. So here's a few things that you might have missed.

And now... back to the recap. (We promise some new stories very, very soon!)

Gap Brand Forgoes Spring TV Spot, Amid Tightening Following Rough Quarter
After Gap reported fourth quarter sales of $4.67 billion, a 5% drop from last year, the company had some interesting news on the marketing front.

The company is actively looking to trim costs as it weathers a “volatile economic environment,” said CEO Glenn Murphy, in a conference call to analysts on Feb. 28.

The struggling retailer will reexamine its marketing plans for the second half of 2008, once it has a better understanding of its holiday efforts, said Murphy. “We’re very aware of the environment in which we’re operating in 2008, but not all of our marketing money is being revisited," he said. "Some portion is being re-looked at to make sure it’s being used appropriately, given that consumer sentiment is where it is, and that particularly applies at Old Navy.”

The immediate marketing plans for Old Navy and Banana Republic would remain similar in scope to last year’s, while the company has decided to forgo a spring TV campaign for the Gap brand, said evp/CFO Sabrina Simmons.

The primary focus of spring marketing for the namesake division will be print and in-store efforts for the retailer’s footwear collaboration with designer Pierre Hardy, due out in March. Additionally, Gap will launch a capsule T-shirt collection, a design collaboration with the Council of Fashion Designers of America, which will hit retail stores in April.

Hmm... Doesn't sound good. And add that to the fact that, according to Nielsen Monitor-Plus, Gap already cut its ad spend in half for last year, spending an estimated $55 million (down from $117 million in 2006), per Nielsen Monitor-Plus. Old Navy spent an estimated $173 million on U.S. ads in 2007, down slightly from $200 million in 2006.

For the full story, click here.

Reebok CMO Uli Becker Moves Into the Driver's Seat as Prez/CEO Harrington Exits
Uli Becker got a jump last week, when the Reebok CMO was named president and CEO of the ailing brand, following the resignation (forced?) of top dog Paul Harrington, who had been with the company for 12 years.

This is actually something of a growing trend across industries, one that we've been keeping track of. In fact, wouldn't you know, we wrote something about it today. Check out that story, about CMOs migrating to the CEO and presidential roles, here.

Back to the relevance, Becker (photo, left) joined Reebok back in May 2006, following his duties as the head of global brand marketing for Adidas (Reebok's parent company) and managing director of Adidas International in Amsterdam. When he joined Reebok, Becker announced his intent to streamline marketing operations and to unify brand messaging, as the athletic footwear and apparel maker sought to turn its business around and reposition itself in the marketplace.

We like him. He's a straight shooting guy who's looking to get all of those mixed messages cleaned up and get the brand on the track to profitability, all with the kind of efficiency you'd expect from a German executive. So we expect good things, hopefully, and, it would appear, so does Adidas jefe principal Herbert Hainer.

"[Paul Harrington] played an instrumental role in managing the integration of Reebok into our group and laid the foundations for the repositioning of the Reebok brand worldwide," said Hainer, chairman and CEO of Adidas, in a statement. "Uli Becker's proven leadership and global marketing expertise make him uniquely qualified to take the revitalization of the Reebok brand to the next level, both internationally and in the US."

Reebok's marketing for 2008 would be focused on women's running and "American major league sports," underscored in the brand's forthcoming "Your Move" campaign, said Hainer. The campaign, previewed last year, aims to cast Reebok as the brand for individuals rather than hardcore athletes and is part of a larger effort for Reebok to capture the sport lifestyle market.

Details regarding a CMO replacement were not available.

McGarryBowen, New York, is the lead ad agency for Reebok. The company's latest ad campaign launched two weeks ago in conjunction with the release of its first "Freestyle World Tour" collection (but, of course, our readers already knew about that). The product line will include five new sneaker and apparel editions, which will roll out during the course of this year. "Freestyle Tokyo," which launched Feb. 21, will be followed by other editions that derive their name and design inspiration from cities like Paris, London, and New York.

For the full story, click here. For all of our Reebok-related posts, check here. 

Airwalk Looks at MySpace for Brand Models
In its spring 2008 campaign, which hits a variety of alterna- lifestyle titles in June (and it's not the 1990s anymore honey, so we're not talking about gay pubs, but rather the skate/surf/
snowboard glossies), Airwalk went to MySpace for part of its casting call.

In addition to leveraging images of its athletes, including Rodney Jones, the brand cast Lorene Drive, a band that creative director Jeff Buice found on MySpace, to be featured in their ads (check outtake spot, right). Even more interesting is that the ads feature mini-anecdotes from the talent, and directs readers to log onto Airwalk.com to see the full story, and then write in some stories of their own.

Buice told me that the idea is basically to make a social network around ad campaign creative. Yeah, it made us do a double take too. But Airwalk has been on the online game for sometime now, and this is just the latest way that they're engaging with the online market.

"We always do print ads because it still reaches tons of the demo that we’re going after. But the online component is growing massively, out of control, for our [consumers]," Buice told me. "The hook was finding a way to get people to correlate between the two, while still maintaining a focused, singular strategy."

Intrigued? Check out the full story, here. 

Week in Review Pt. 1: Louis Vuitton Rocks Out, Kohl's Gets Punked, and More Rumbles for the Luxury Market

OK, so we've kinda been bad lovers the past two weeks. Yeah, we admit it;
we haven't been updating as often as we, or you, would like. But our offline
job got a bit crazed last week and that prevented us from posting. So, in effect, it's not you, it's us.

Also, we were, like, on pins and needles waiting for the finale of Project Runway. And, hopefully you'll agree, we're so, so, so, fiercely happy that Christian Siriano won we can barely contain ourselves. Kid has some serious talent, and we're sure that we'll be hearing from him sometime soon. Is he adoptable  by the way? We might just forego that Boston Terrier we'd been planning on bringing home and swap it for that adorable pocket-gay (though he'll have to sleep in a closet, as we're still living in a New York state of reality folks!).

But let's leave all this relationship drama to the Spitzers! It's time to take a look at what's happened, what it means, and where we see things going... So without further ado...

Louis Vuitton's New Bag
Unless you've been hiding out under a mountain of paperwork (like us), you've probably already heard that Rolling Stones guitarist Keith Richards is the new, wrinkly face of Louis Vuitton (SEE PHOTO, BELOW, LEFT). (Insert "Vuitton's new, iconic wrinkled bag" joke here, hell, everyone else has. For SHAME Saturday Night Live! You, like fashion, were more inventive in the 1980s.) If you haven't seen the spot already, check the photo at right.

We have to say to say that this is an interesting choice, and it's already done its job many times over in terms of exposure (more than we'd imagine placing, say, Katherine Heigl, or some other, safer choice, in front of the camera). But hasn't Vuitton really missed the rebel-rock-me boat by like, say, 40 years? We would prefer to see the ads featuring this Keith.

Also, how does John Varvatos feel about all of this. Certainly, the Stones trump Cheap Trick, not to mention the fact that the campaign pretty much cribs from Varvatos' own advertising mantra: Bring back old rockers and consumers will come. Of  course, Varvatos seems to have more credibility here and we're still not sure what a great cover boy Richards is for the brand. After all, while he's definitely rich beyond words—and amazingly still alive—we're just not sold on him as a real luxury guy. Then again, maybe that's what rehab and old age will do to you. I'm sure that he has a wonderful assortment of organic teas backstage, but is he really throwing those outfits in a Vuitton steamer?

Love to hear your thoughts on this. Drop us a line, here.

Kohls Pumps Up Its Juniors Jam with Avril Lavigne
Yeah, the girl ain't punk kids. Then again, Richards sold his ass to Louis Vuitton, so what does define the legitimate rocker persona? Anyways, Avril Lavigne maybe didn't steal your boyfriend, but she did ink a deal with Kohl's to produce "Abbey Dawn," a collection of apparel (priced $24 to $48) and accessories (read: jewelry, for now) that will hit the mass merchant's doors nationwide in July.

The move obviously means that Lavigne will get some dollars in her coffers—seriously, is she even that hot anymore?—but it also seems to really define her audience in a way that could be limiting for the popstar. Launching just in time for back-to-school shopping, the line is allegedly for the "broad group of shoppers" that Lavigne attracts, according to SVP Don Brennan, but we're calling bullshit. If it's B-T-S, the tricks are for kids, and that's fine, after all, those are the types that will pay retail for her album "The Best Damn Thing," which came out last year and for which the star began touring to support last week.

According to spokeswoman Vicki Shamian, the line shouldn't cannibalize any of the retailer's other exclusive brands, like Candies given Avril (and by proxy, her collection's) "feminine yet rock n' roll attitude." [Side note: Meanwhile, no notes on how the Simply Vera collection is doing. If you've got deets, or reactions, or if you've tried on the products, send a note here]. Advertising, on which details aren't yet available, will be handled by the Kohl's in-house team, in conjunction with lead agency McCann Erickson, New York. Stayed tuned.

 

Financial Desk: Luxury Retail's Mixed Bag
Ok, so we've probably hammered this to death, but there might be trouble with the luxury market.

Saks Fifth Avenue announced last week that it had approached roughly $1 billion in sales for the quarter ended Feb. 2, up almost 5% from the year-earlier period, but with comp store sales increasing by 9%. Meanwhile, net income rose dramatically, some 83% drama, to $39.5 million, or 26 cents a diluted share. However, gross margin slipped about 50 basis points to 37.4% of sales.

But there's trouble ahead. According to a statement by chairman and CEO Steven Sadove, January and February comp store sales grew by only 4.1% and 3.4%, respectively, and "previously high-growth rate businesses such as handbags, footwear and men's have slowed."

"As expected, the more challenging promotional and overall macroeconomic environment that we began to experience in the third quarter continued throughout the fourth quarter and put pressure on our merchandise margins," Sadove continued. "Our outsized comparable store sales growth indicates that we significantly improved our competitive positioning by market, driven by our merchandise, service marketing and capital investments."

And then  came the wahn-wahn moment.

"Nothwithstanding our improved performance and the longer-term outlook for the luxury channel, we expect to continue to face an increasingly challenging macroeconomic and promotional environment in 2008, and are taking a more conservative approach to planning the business this year," Sadove said, adding that the company expects to see comp store sales growth in the mid-single digits for 2008, with low-to-mid single digit growth in the first half of the year.

Meanwhile, at Neiman Marcus, positive earnings were also overcast by ominous notes. Revenues at the luxury department store grew almost 6% to $1.37 billion in the second quarter ended Jan. 26, while net earnings grew 8% to $44.3 million. However, February comp stores sales posted a 7.3% decrease.

In a conference call, Neiman Marcus chairman and CEO Burt Tansky seemed to feel, well, pretty much like every other luxury retailer these days. He's playing a cautious game as the news of a buckling economy and decreased consumer spending prophecies an even rougher year.

"As we all know, the entire U.S. retail sector has seen sales growth diminish somewhat, and this slowdown has affected some parts of the luxury market," he said in the call. "Our sense is that the aspirational customer has pulled back somewhat in response to concerns about the U.S. economy in stock and housing markets. However, this aspirational customer appreciates quality and can be expected to buy more as the economy improves. Nevertheless, we feel confident that the pure luxury customer, the affluent to the very affluent, will continue to demand only the finest."

Seems plausible, of course, except that we're not getting at raw numbers here. What's the proportion of aspirational consumers to pure luxury consumers? Wethinks it be disproportionate and that Neiman's might have a few, hopefully not too many, pricey dresses that are staying on the racks as Sex and the City fangirls start closing up their upper-middle class purses.

Breaking News: Halle Berry Inks Fragrance Deal With Coty, But Is the Timing Right?

According to a WWD report, actress Halle Berry has signed a
fragrance deal with Paris-based Coty, that will include
several scents, as well as the actress playing an (obvious) role in the forthcoming ad campaign.

"Halle is an iconic actress and symbolizes beauty to many generations," Steve Mormoris, senior vice president of global marketing at Coty Beauty US, told WWD. "She adds another dimension to the celebrity fragrance market. Halle has always been a little more mysterious, not quite as open with her personal life as some other stars. Her fragrances will allow her to present another facet of her personality to her fans."

Um, ok. I guess we'll buy it. Except for the fact that senior NPD beauty analyst Karen Grant told us a short while ago that the celeb fragrance industry was not such a hot spot, and definitely taking a back seat to the designer business. And we quote:

"We have not seen any increases in the women's celebrity business, which had double-digit declines in 2006, and, while not as much, declined somewhat in 2007," Grant told us. "It's hard to say whether [that trend] is over yet or not—it depends on who the celebrity is. There are still celebs with a lot of power, for example, in our apparel studies, we see tremendous success for Sarah Jessica Parker's "Bitten" [collection for Steve & Barry's] and Jessica Simpson's [eponymous] footwear line. Right now it's soft in the fragrance industry, but that doesn't mean it can't pick up."

So it sounds like developers should be less than bullish, and we have to wonder what kind of buzz factor Halle Berry actually offers to the fragrance counter. On the plus side, she's an Oscar nominated and awarded (for Monster's Ball, 2001) actress, but we don't get the sense that consumers see her as much of a style-leader or trend-setter, versus contemporaries such as Angelina Jolie (currently repping St. John), Scarlett Johannson (who repped for Louis Vuitton), or even Queen Latifah (who repped CoverGirl before—Why God? Why!?—switching duties to become the new celeb face of Jenny Craig).

WWD said that the scent is will debut in spring 2009.

Financial Desk: Target Treads Water With Q4 Sales, Earnings Fall 8%

Another retailer, another disappointing earnings release. Seriously
folks,  we might just have to turn off our stock ticker for the rest of the day.

Target reports flat sales for the quarter ended Feb. 2, at $19.34 billion, though year-end sales grew 6.2% to $61.5 billion. What?! No sales losses!? This is great news!!

Well, it would be if Target hadn't also posted earnings of $1.03 billion, pr $1.23 per share, down 8.2% from last year. For the full year, the brand only moved the needle 2.2%, growing income to $2.85 billion, or $3.33 a share.

Below, the most obvious conclusions from Target's top dog.

"Our  financial performance in 2007 fell short of our expectations as the pace of sales and earnings slowed considerably in the second half of the year," said Bob Ulrich, chairman and CEO, in a statement. "As we enter 2008, we remain keenly focused on the disciplined execution of our core strategy, positioning Target to deliver improved financial results, even in the face of continue challenges in the current economic environment."

Unfortunately, Bob doesn't elaborate (and we're still waiting for the conference call where, you know, he actually might give us more color on this bland statement) so we don't know what kinds of tricks he's got up his corporate sleeves.

The report also makes no mention of the loss of designer Isaac Mizrahi to Liz Claiborne. Of course, Les Mizrahi's goods will still be sold through the retailer until the end of 2008, but nonetheless, his defection to Liz Claiborne was a major hit.

The designer's namesake collection for the brand brought in a reported $300 million in annual sales, in addition to have a sales-halo effect on the other brands in the store. Given his name and popularity, we get the feeling that it's going to be rather hard to replace him, and certainly the one-offs for the Go International collections which have featured up-and-coming designers probably won't make up the sales loss. Moreover, the collection might not pull in as much this year, given that Target isn't likely to promote it since they won't have the goods after the holidays.

For more on the Mizrahi switcheroo, check out our previous post, here.

Financial Desk: On Q4 and FY07 Losses, Macy's To Investors: "Hey, We're Not Doing As Badly As The Others!"

It's not a good day for retailers, with many reporting sales
and earnings slumps.

In its report this morning, Macy's appears to be hoping that they might at least look better than the competition.

"While a weakened economic environment led our industry to softer financial results than initially expected, Macy's, Inc. did outperform most of our primary competitors in the fourth quarter," said Terry Lundgren, chairman, president and CEO, in a statement. "We also generated significant cash flow despite weaker-than-expected sales trends. Going  forward, we are aggressively pursuing our recently announced market localization initiative to drive future sales and earnings."

What's he talking about? Well, earlier this month, the brand announced that they would be consolidating their various Macy's regional divisions into three primary groups: Macy's East, Macy's West, and Macy's South. Within each of those divisions will be 20 "districts," each consisting of about 10 stores, governed by a new workforce of about 250 managers. The thought is that by having more management in more localized markets, the company will be able to make much more specific marketing appeals to its consumers, tailoring everything to their particularly tastes, whims, or geographic proclivities. Of course, that consolidation also includes the downsizing of some 2,550 jobs across the previous geo-divisions. More on that, here.

 

Oh, and also, Macy's announced that it will no longer be reporting same-store monthly sales figures, which, you know, are the clearest indicator of a retailer's performance inbetween earnings reports. Oh, and another thing, they're not going to be giving anymore estimates about sales and earnings for the future. That certainly sounds like an underwhelming vote of confidence in the company's ability to perform.

"In total, 2007 was a year of significant strategic progress," added Lundgren, in a statement. "We successfully launched exclusive new brands such as Martha Stewart Collection, invested for continued growth in the direct-to-consumer business, expanded Bloomingdale's, changed our corporate name, and launched a breakthrough new marketing approach under the umbrella of 'The Magic of Macy's'."

You probably remember that particular campaign from the holiday season, when you were besieged by a commercial with a melee of images of Donald Trump, Sean Combs, Martha Stewart (who almost seemed warm and whom we were also relieved to see unshackled from KMart), and mental eyesore Jessica Simpson hawking their products sold through the mega-retailer.

Lay your chips down, folks, we're betting on Martha as the sales driving leader in the full collection category this year. Hopefully, for Macy's she'll be "a good thing."

Oscar Wrap-Up: Why Marketing Was the Night's Most Interesting Star

So if last night's ceremony, presenter banter, and Jon Stewart had us yawning in our
seats, at least the marketing plugs were there to wake us up! In fact, we might go so
far as to say that marketing was the real star of the show.

Things kicked off with some good designer plugs in the women's dress category. Headline news: Cotillard up, Kidman down. For a more comprehensive breakdown, check out our previous Oscar post, here. (Or, er, scroll below!)

But we left one of those ladies out of the line-up, because she was just such a good piece of marketing collateral that we thought her more appropriate for this part of the wrap-up. Drum roll please: Heidi Klum in that gorgeous red dress by John Galliano, a philanthropic tie-in for Coca-Cola, which ran its Red Dress campaign spots during the event. The dress (pictured, with Klum, below) will be auctioned off on MyCokeRewards.com, with proceeds going to the charity Heart Truth, which raises awareness about heart disease in women.

Then there were the commercials, and I have to say that the fashion set more than represented. The new J.C. Penney ads for the "American Living" collection seemed to translate well (at least, among our viewing audience last night in a cramped Brooklyn apartment), and everyone seemed pleasantly surprised by the American Express ads with Diane von Furstenberg. Both ads got some prominent sponsorship play before the commercial break had even commenced.

So for the fashion marketers, it seemed like the night sailed on smoothly, unlike Cameron Diaz's attempt to pronounce such difficult words as "cinematography" (again, we still don't understand why she gets Galliano's Dior dresses!).

And then there were these weird product plugs.

Here's Jon Stewart bemusedly futzing with his iPhone. If ever there were a completely smooth pitchman, Stewart's not one of 'em. In a lame segue, he talked about getting to catch up on all of the year's great films right there at the podium. (Because, you know, the square inches of the iPhone really help to communicate the Old West grandeur of "There Will Be Blood." Seriously, has Stewart even used this device?). Then of course, he announces that they're better viewed in widescreen. He turns the phone horizontally and the camera pans in for a great shot of the iPhone and Apple logo. In the end, it's not a bad plug, it's just, well, kinda shameless and we're sure that even those who aren't marketers recognized this little bit for the sham it is. Kind of like the Bluefly.com "Accessories Wall" in Project Runway or the numerous mentions Coke gets during American Idol.

And then there was this COMPLETELY SHAMELESS PLUG for the Nintendo Wii. Coming back from commercial, Stewart and the little girl from that Gospel choir, were engaged in a heated game of Wii Tennis, projected on enormous screens for the whole audience to see. No joke followed, no setup really introduced the plug. It was suddenly just there.  Check out the video below.

Do marketers seriously think the American public is this stupid that they wouldn't know a complete corporate shill when they see it? Why not give away sponsorship titles for the awards at this point? And the Oscar for the Coca-Cola Best Actress goes to... Marion Cotillard! Just think of it! She could thank Diet Coke, of course, for all of those days on set when she needed a fizzy drink that calmed her stomach but didn't contribute to any stress-induced weight gain. Well, that's if San Pelligrino doesn't get the award sponsorship first.

Now that we're mulling it, is this a bad idea? Everyone knows these shows are rigged shams anyways, I don't care how many staged videos I have to see of Frank Pierson being denied at the doors of Price Waterhouse Cooper.

Oscar Wrap-Up: Which Actresses Repped Their Brands the Best on the Red Carpet

So we're back after a late night staying up for that tired annual awards show: The  Oscars. (We know the show ended just after 11:40 our time, but we stayed up late bitching to our bicoastal friends about lame montages, good/bad dresses, and, like everyone else apparently, Diablo Cody).

Seriously, if it weren't our job to stay up  until the wee hours tracking who was wearing what, how they wore it, and how brands made their way onto the stage or in the commercial slots, we would have wrapped this up by 9:00 pm EST and sailed off to bed on a few DVR'ed episodes of "Paula's Home Cooking."

But, for better or worse, we stayed up, enduring less-than-pithy commentary by John Stewart, and some heartbreaking losses ("Surf's Up" losing out to "Ratatouille" for Best Animated Feature and "There Will Be Blood" losing out to "No Country For Old Men" for Best Picture). And it's a good thing we did, because the marketing, as far as we're concerned was the star of this year's drag-along show. But let's kick it off chronologically, with some of the more notable carpet dress-vertisements. (Note: All pictures per WWD. "Fierce Factor"s, our own judgment of how well the star wore her particular dress, set against how likely the placement is to boost the brand, are awarded on a 1.0-5.0 scale.)

Name: Amy Adams
Film: Enchanted
Dress: Proenza Schouler
Fierce Factor: 4.0
Our Take: Aesthetically, this is the perfect pairing. Adams' red hair and ivory white skin work wonders against the emerald gown. The edgy, classic appeal evokes a more colorful version of John Singer Sargent's "Madame X" or the femme fatale of H. Anglada- Camarasa's "Retrato de Sonia Klamery." Unfortunately, points off for that eye-gouging performance, though the girl did have to pimp her movie. Also, she's not that high-profile. 

Name: Penélope Cruz
Film: No noms this year, most recent was "Volver"
Dress: Chanel
Fierce Factor: 4.5
Our Take: Even so-so dresses look amazing on Penélope Cruz. Not only does the girl have extracurriculars to add to her hotness (Cruz speaks four languages! Name one of her American contempos that can claim that), but she can pull off designs that would look perhaps silly on a lesser body. Straight up: she's a stunner every time with no bad publicity to drag her down. With her small frame and captivating gaze really pronouncing this dress, Karl gets the most out of a rather ho-hum haute couture look.

Name: Cameron Diaz
Film: No noms this year, er, like every other year. Most recently, "Shrek The Third"
Dress: Dior by John Galliano
Fierce Factor: 3.0
Our Take: We will never understand why Diaz always gets Mr. Galliano's best. Don't get us wrong, the girl has a great frame, an established bold-faced name, and she photographs well. That, in and of itself, is worth the plug. But c'mon! Certainly the upper crust clientele doesn't want to share threads with Hollywood's leading empress of the Ditzy Dame shtick, right? And we're not going to hate on the pleats, like E! did. But, at the end of the day, it's a rather dull dress, on a very dull girl.

Name: Marion Cotillard
Film: "La Vie En Rose," WON: Best Actress
Dress: Jean Paul Gaultier
Fierce Factor: 5.0
Our Take: Perfect storm here, folks! Not was this fish-scale detailed mermaid dress equal parts daring and stunning for the red carpet debut, but its wearer walked away with the Best Actress award. And did so with one of the most genuine speeches we've seen in some time from the Oscars! As an added bonus for Mr. Gaultier, she's been the talk of the papers this morning, with pictures abounding. What she'll also likely add to that nice stew is that her figure looks like a real woman (admittedly, a thin woman) and she fills out the dress in a wonderfully tasteful way. This is as good as it gets!

Name: Nicole Kidman
Film: "The Golden Compass"
Dress: Balenciaga
Fierce Factor: 2.5
Our Take: What goes up must also come down, and the real low point (ok, with some obvious exceptions that we'll note later, we're lookin' at YOU, Diablo) came with this unfortunate placement on Nicole Kidman. Even preggers, she has the kind of body (read: alien model-esque) that could really show off some of Nicolas Ghesquiere's more ambitious designs, easily clinching the press coverage for the next day. Instead, she walked the carpet as a pretty, pregnant girl in a pretty boring black dress. And that diamond necklace just looked like a sad, glittery trapeze.

In summation, these were just a few of those that stood out to us last night. But we would be remiss if we didn't mention that, while Keri Russell looked great (as we imagine all women do) in the Nina Ricci gown, we were stunned that the label couldn't get more of an A-lister to work a look, especially following that stunning little yellow dress that worked so well on Reese Witherspoon last year! Also, all of our friends were screaming (screaming!) about Diablo Cody, and not in a good way. The dress was terrible, no wonder the maker has not appeared in any credits we've seen, and she looked like so many tired Betty Page-hipster-wannabes that we see most nights at Beauty Bar. (But we'd like to submit, for the record, that we liked "Juno".) Also, Tilda Swinton didn't do much for that Lanvin dress and that really makes us sad, because we love both of those names! We'll have to chalk that up, like the Kidman debacle mentioned above, to a stylist just making a poor choice, one for which the brand will suffer, or at best, not get any brownie points for.

But hey, we're not bitching in a vacuum people. Drop us a line and let us know what you think, either here, or in the comments below!

AmEx Continues Its Fashion Push, With Diane von Furstenberg Starring in New Campaign

Off the heels of the New York Fashion Week initiative
where it offered streaming runway shows among other goodies, and a $500,000 donation to the CFDA/Vogue
Fashion Fund, American Express is continuing to deepen its fashion industry connection.

The credit card company announced that designer Diane von Furstenberg (she old the large dots and wrap dresses) will star in the latest "Are You a Cardmember" campaign, per Ogilvy & Mather, New York, which breaks during the Oscars on Feb. 24. See a still from the TV spot, right.

No doubt the campaign seeks to create more brand affinity among female consumers (also the general goal of the company's effort within the fashion industry, according to Jessica Igoe, director of sponsorship and event marketing at American Express, New York), and given von Furstenberg's longevity in the industry and reputation as a fiercely independent designer and businesswoman, it should resonate fairly well.

Indeed, von Furstenberg's own statement seems to play right into that angle.

"Women inspire me and I inspire them to be independent and free, which is how I feel when I use my American Express card," said Von Furstenberg. "American Express represents a sign of independence and freedom and if you have your card, you can do anything."

See what we mean? Though we must admit, that the feeling of freedom that our credit cards (of all stripes) have given us only resulted in vast numbers of consumers in our age group (let's say 20-30 years old) entering into not-insignificant personal debt. After all, we just had to have that Vuitton throw rug and somewhere along the way, trips to Sephora seemed, well, like a necessity no matter how much they squeezed the budget.

Directed by "Capote" chief Bennett Miller, the TV spot follows Von Furstenberg from the inspirational Winter Wonderland of her backyard, through the design process in her studio. The print ads were shot by—who else?—Annie Leibovitz.