Fashion Notebook

Financial Desk: Sales Down, But Earnings Up 40% for Gap, as Retailer Cuts Marketing Budget

We hate to see this, because it means less creative, but cutting its marketing expenses was one tactic that helped Gap bolster its bottom line, even as sales continued their slide into the red.

In addition to other cost cutting measures that included reduced remodeling efforts for Old Navy stores, and a $15 million pre-tax earnings benefit, Sabrina Simmons, Gap Inc.’s EVP/CFO, said in an earnings call late Thursday that “lower marketing expenses” also helped lift earnings 40% to $249 million, for the quarter ended May 3.

So where was the blood spilled in the marketing department?

Well, ad spend dropped almost 18% from the year-earlier period, closing at $93 million for the quarter. The $21 million reduction was due in large part to the absence of TV spots for the Gap brand, Simmons said. However, she added that shareholders and analysts shouldn’t expect such cuts to continue.

“Unlike this first quarter, we expect our marketing expenses in the second quarter to be fairly similar to last year’s level of $88 million,” she said.

Yay! Maybe we'll have some more fun creative to look forward to this summer, when we're all staying indoors and running the air conditioners to escape from global warming. That is, though of us who have TV. (We're luddites, y'all, except when we visit our wife to watch rounds and rounds of Lifetime Movies.)

While earnings might have been a bright spot, and showed the beleaguered firm capable of trimming costs for the benefit of its investors, sales trends showed signs of trouble amid an economic slowdown that has the whole retail industry reeling. Comp store sales at Gap North America dropped 7% for the quarter to $976 million, and Old Navy posted an 18% decrease, dropping to $1.2 billion in sales.

If you don't have your financial party hat on, folks, that means, pretty much, "things sucked  over the past three months." Which is too bad for Old Navy, because we, (and the wife), LOVE those new ads. It's like Gossip Girl meets Fred Flare's Crafternoon Delights. Seriously, some fierce-ass dresses that might have the retailer beating Forever 21 at its own game. Seriously, if you haven't seen these ads (also screen-grabbed, above, right), they just might change the way you view Old Navy. They did for us.

Meanwhile, on the richer side of things, Banana Republic's comp store sales dropped 4% to $538 million and Glenn Murphy, chairman and CEO,  said that the brand had been affected by challenging traffic trends, and an “uncharacteristically promotional” environment at the apparel chain’s direct competitors. Thus far, Banana Republic has avoided playing the promotional card to drive sales.

“We’re watching the competitive landscape very closely,” added Murphy. “And [we] are prepared to make the necessary adjustments to drive traffic if this promotional level that we are seeing currently was to continue.”

Yay SALES that are sure to come. Because, honey, that's a brand for the aspirational rich, not the real rich, and we ain't getting any more money any time soon. That is, until Obama is in the White House, but we don't want to get political. We just want good health care, education, and leadership that will get us out of this war, y'know, in less than 100 years. But we digress.

Net sales for the company dropped about 5% to $3.38 billion for the first quarter. The company has maintained its guidance for fiscal 2008 earnings per share to fall in the range of $1.20 to $1.27.

Lessons in Branding: Levi's 2.0

If you haven't already, check out this story about Levi's "Jumpin' In" online viral campaign.

Now, I'm sure a lot of your out there at the apparel companies are salivating over the whole online thing, but you're probably pretty uncertain how to go about doing it. After all, you're already beset with fickle consumers whose whims seem to change with the season and who are constantly pounding on the  castle door with cries of "More! More! More!" so why move into the web where EVERYONE is fickle and decisions are made in less than a nanosecond?

Well, consider this example.

That "Jumpin' In" campaign—which features online videos of teens, well, jumping into their jeans through a mélange of backflips, roof dives, etc., and launched May 5 to build buzz for the "Live Unbuttoned" global campaign for the brand's flagship 501 collection—snatched some 3.5 million hits in 10 days. And if that doesn't factor into your media membranes, here's some more traditional fodder: The spots got play on "Good Morning America" and coverage from the Grey Lady's new style challenger Wall Street Journal.

Here's our comic-strip style flip book of a scene from one of the viral videos, which by the way, we think are totally stunning in an "I can't believe he freakin' did that" kind of way.

"[Jumpin' In] was supposed to be a small seeding activity," Robert Cameron, vp-marketing at Levi Strauss, San Francisco, told journo Gregory Solman at our sister-pub Adweek. "We didn't know it was going to blow up. So we're meeting with BBH on how to chase this. What do we do to adjust the strategy and ride the wave?"

Listen, you've heard this from us and our friends a million times already. The online space, and viral videos in particular, don't necessarily guarantee the kind of success that you can see here with Levi's version. But they do allow you to experiment, without the expense of a real test market, with some creative that just might pique consumer interest in a similar way. And you know who can explain this better than we can? Kevin Kells, the CPG sales head over at Google. Kells might be more in the niche of beauty and, well, packaged goods marketing, but what he has to say about the online thought process for ad creatives is, in our humble estimation, universally applicable.

Here's an exerpt from our convo with him a while back:

          Brandweek: What do you tell CPG marketers who still rely on traditional print and TV buys?                  Kevin Kells: I tell them that online advertising is more efficient, but that they have to look at               sponsored links as doorways that take your consumer where they want to go, where you can add
          value to their life. The problem is that traditional media is ingrained for many of those CMOs and
          marketers. They have 30 years of data on TV and magazines. So even though it's easier to get ROI
          figures from online ads, you’re up against 30 years of market data.

 
BW: Would you revolutionize those departments to have them doing it all online?
KK: No. It’s not to say that they should stop doing that stuff, but there’s a way to go a little deeper online around consumer insights. Instead of focusing on a small amount of creative, they should be making more. They should be making 1,000 digital assets a year as opposed to three television assets.
 
BW: Does what you’re suggesting require multiple times the amount of creative?
KK: Yes. That’s an obstacle and that’s paralyzing to them. Conceptually now we’re beginning to get them to know that they need to be online with different stories and they have the infrastructure. But in order to put all of those assets in the right place, someone does have to make them. That can be solved by more efficiency. There’s a clunky system right now between the client and their multiple agencies. That’s why you see the emergence of agency networks like WPP.

OK, class dismissed for now. Next time, we'll take a look at those other web items that are probably giving you both a surge of excitement and perhaps some sweaty palms: widgets, the online applications that you've no doubt seen on your kids (or hey, maybe even your own) Facebook and MySpace profiles, or, if you're chic tech nerds like us, those wonderful things that pop up when you hit F12 on your Apple computer.

Lessons in Branding: How Diesel Fuel For Life Rocketed the Brand to the Top of the Fragrance Market, With Just One Launch

So no doubt you've all seen the ads for Diesel's first foray into
the fragrance category, Fuel For Life, right? (If not, check out these trés sexy photos, at right and below, left). Well, what you probably didn't know is that this one fragrance has shot the Diesel name up to the top of the men's cologne business.

According to figures from NPD Group, the fragrance was the No. 3 overall launch (across men's and women's fragrances) for 2007, despite the fact that Diesel had no history in the category. What's more, through February 2008, the fragrance is solidly within the Top 10 Men's Colognes, ranked by sales.

So how'd they do it? With an ad campaign that didn't only win over consumers, but also won awards, picking up the Fragrance Advertising of the Year via the Fragrance Foundation, in both the men's and women's category. So when we're drooling over the eye candy in both of these shots, it's for a reason. This stuff really IS solid gold.

Wanna hear more? Well, you can ready all about it in our article "Filling It Up With Premium." If you're link-a-phobic, here's a taste:

It's no secret that most every fashion brand wants to break into the fragrance business. And with good reason. While the market is fickle, materials can be found on the cheap, the bottles have a long shelf life and their contents are less prone to the more dramatic trend overhauls that characterize luxury apparel. Because customers will actually pay up to $80 for a little bottle of the stuff, the profit margins smell loveliest of all. But Diesel knew it was facing an uphill battle as an unknown in the space, which was presumably behind its decision to partner with L'Oréal, Paris, for its first foray into the category.

It's also why the introductory support broke many of the traditional rules L'Oréal applies to marketing and launching its ever-expanding portfolio of fragrances. First there was the aforementioned antimarketing viral campaign in the weeks leading up to the August 2007 launch. (Some subsequent print ads announced that the fragrance was "finally legalised.")

Next, when it came to traditional brand advertising (chiefly print and TV), the campaign took a more-is-more approach. Rather than one TV spot, the company created six, via agency FFL Paris. Instead of two, static print ads, one for men and one for women, that feature either a celebrity or single model, FFL created four executions, each of them utilizing a new model to express the individuality of the fragrance. The tag read simply: "Are You Alive?"

"For us, this was an ambitious project," said Ulli Lindauer, vp-marketing of L'Oréal European designer fragrances. "There is a moment captured in the photography that is a universal moment of feeling alive. It was about the brand giving each of us the opportunity to be an individual."

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.

Puma Pumps Up Its Hollywood Jam

Looks like Puma's going Hollywood. 

The fashion athletic company said that it's opening a new office dedicated to entertainment marketing in Los Angeles next month. The West Coast operation will be geared to increasing corporate partnerships and product interaction with music and film celebrities. Can we get a "Sexy Back Speedcat"??!!

Anyways, you know what new offices mean! More staff! Puma USA is adding new roles to fill up the cubes the L.A. office (hey, it might be fashion, but it's all work-a-day office aesthetics, or so we have to believe as we stretch beyond the limits of our three walled container). Ryan Babenzien joins as head of U.S. marketing operations. He was formerly the business development and strategy consultant for Oddcast, New York, a company that does web authoring tools or some other such beep-boop-beep. Ryan Ayanian, who previously worked as a consultant for marketing agency Antenna, Ontario, Canada, has been hired as music marketing manager. And last, but not least (though we admit we have no knowledge of how Puma's hierarchy works) Ed Choi, who joined Puma in 2006 following at stint at ID Agency, Manhattan Beach, Calif., has been named entertainment marketing manager.

For Barney Waters, Puma North America's vp-marketing, the new office is a move to go "fish where the fish are," though he did note that the brand has had a smaller marketing presence on the West Coast for some time.

"These moves represent a recommitment to entertainment marketing as a real driver for the Puma brand," Waters told us over email. "We're also evolving our approach, as there are so many more opportunities beyond product placement. Hollywood is a great place to develop relationships and brand driven content, which can help reach the people that may not be spending as much time looking at traditional media outlets."

Puma has been making inroads with celebrities over the past several years, working on design and advertising projects with rapper Ludacris and socialite-heiress Lydia Hearst-Shaw (we're not saying she's 100%, but she's definitely not like the other socialite-heiresses we can think of. Barf Tinsley Mortimer and Paris Hilton!), among others. This month, Puma unveiled its new TV campaign, featuring cute-but-disposable Scottish singer/songwriter Paolo Nutini (pictured, right, smoking something). Nutini's single, "New Shoes," is being used in Puma’s lifestyle campaign. We were wondering how long it would take for that to get snatched up by the commercial world.

In May, the company will begin promotional tie-ins with the film Speed Racer, which will include a signature shoe, product placement in the movie and worldwide in-store promotional campaigns. BTW... Does anyone remember what exactly Speed Racer, the show, was about, you know besides a boy racing, like, fast? We're trying to recall, but just can't seem to do it. Somehow, this didn't seem like a movie idea to us. But 'tevs, we're not filmmakers. But why not a He-Man movie? Hey, we're just sayin'.

No notes on what they'll be spending this year to pull off these tie-ins and tie-ons. In 2006, Puma spent $13 million on advertising in the U.S., excluding online, down 23% from $17 million in 2006, per Nielsen Monitor-Plus.

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.

Breaking News: Commes Des Garcons' Rei Kawakubo To Design Next Guest Collection for H&M

Now this is one that actually has us a little hot under the collar.   

Lagerfeld, sure. Viktor & Rolf, cute. Cavalli, sexy. Stella McCartney, feh. Rei Kawakubo, what?!

That's right, empress of whimsical Japanese luxe label Comme des Garcons, Rei Kawakubo, has announced that she will be the featured artiste on H&M's next designer collaboration. The collection launches first in early November, to coincide with the opening of H&M's second Tokyo store. In the following days, it will roll out to doors in the rest of H&M's global markets.

The collection will include apparel for men, women and children, as well as accessories and a unisex fragrance. This certainly is a much more expanded program than the fast fashion retailer has done in the past, and it would seem that the growth of product offering owes everything to the freshness that Kawakubo can bring to the brand.

Much like the Japanese designers Issey Miyake and Yohji Yamamoto, with whom she formed the Japanese triumvirate that defined much of the new wave fashion of 1980s American culture, Kawakubo's designs are structurally intense, and often include popular cultural references in a rather Pop Art motif (such as a series of men's suits she rolled out a in spring 2006 back that featured the iconic Rolling Stone's lips n' tongue logo splayed across the fabric). She was also the mentor for another fashion avant-gartist whose star appears to be ascending these days, Junya Wantanabe. For a look at some of her work, check the photo above.

That said, we're so interested to see what she turns out when she's not using high-tech fabrics or restrained by price points that might tie in some of her more flights of fantasy designs. As we see it, this could be a love it or hate it collection, and we just hope that the quality matches up to the buzz that will no doubt follow this collection's launch. We remember hearing that there were some issues with the clothes that Cavalli put out on the racks, not to mention those of the McCartney collection (said one of our friends, at the time: "I walked out with a cute dress that turned into a pile of buttons and thread after two weeks.").

Anyways, as always, here's the mutual lovefest that always follows these kinds of announcements.

"I have always been interested in the balance between creation and business," said Kawakubo, in a statement. "It is a dilemma, although creation for me has always been the first priority. It is a fascinating challenge to work with H&M since it is a chance to take the dilemma to its extreme and try to solve it."

See what we mean? Seems like old Kawakubo might be prepping us for the design vs. quality vs. price issue we outlined above. Less avant garde, but better quality, or more envelope pushing and delicate? Again, will be so interesting to see her "solution" as she calls it.

And now from H&M's creative advisor Margareta van den Bosch (great name, non?!):

"Rei Kawakubo has been at the top of our wish list for a long time and we are thrilled that she has chosen to collaborate with us," said van den Bosch, in a statement. "We have tremendous respect for Kawakubo's fashion philosophy of questioning fashion's ingrained patterns, and admire her artistic approach to design. We are particularly excited that the collection will be launched in Japan, Kawakubo's native country, at the same time as the launch of our new store there."

Ok, so we'll have to stay tuned, but we think this could be good news. It will drive some buzz—as these collections have done in past incarnations—for both the designer and the retailer, exposing the younger, less monied set to Kawakubo's work and perhaps building brand affinity there, while probably giving H&M a much fresher and more high-concept street reputation for the risk they're taking in bringing her in.

We'll be checking back in November to see what the product looks like!

Breaking News: Reebok Names New CMO

Less than a month after former Reebok CMO Uli Becker took over as the brand's president and CEO, the top marketing spot has been filled at the Canton, Mass.-based athletic company.

And, much to our surprise, it's from someone inside Reebok and not an Adi ex-patriot, like Mr. Becker was.

The new CMO will be Matt O’Toole, former (and brief) President of Reebok North America, pictured, below, left. He gets most of his accolades (via Becker) for the work he did in growing the business at the Reebok-CCM Hockey division, where he had been president and CEO, prior to assuming his Reebok NA duties.

In his new role, O’Toole will lead the brand’s global marketing efforts, including product and design, sports marketing, brand marketing, and public relations. In addition to those duties, he will continue to direct the hockey business.

And now, the lovefest from Becker.

“Matt was appointed to lead our U.S. organization on the strength of his exceptional track-record in building Reebok-CCM Hockey’s brand and business, as well as his outstanding strategic marketing expertise,” said Becker, in a statement. “These are the skills that make him a natural choice for the role of CMO. In his short time as president of Reebok North America, Matt made a huge impact on the brand, leading our restructuring efforts for the U.S. market.”

Taking over O’Toole’s old post, will be Jim Gabel, who has been tapped as President of Reebok North America. Gabel was formerly svp at Adidas America, where he managed the U.S. Adidas brand business as well as its TaylorMade and Adidas Golf Canada divisions.

O’Toole will be officially installed April 1, with Gabel’s appointment effective mid-April.

It's not news that the brand is in troubling times. In an earnings statement released earlier this month by adidas, Reebok, which reports in euros, posted sales of $3.55 billion (at current exchange rates) for the fourth quarter of fiscal year 2007, down 6% from the year earlier.

The company slashed its advertising budget nearly in half last year, spending only $17 million on measured media, excluding online, for 2007, per Nielsen Monitor-Plus. That's down from $28 million in 2006. Maybe they'll pump the tank back to "Full" this year.

Here's hoping that the new team will be able to turn things around.

And now, in case you've missed it, a brief recap of stuff Reebok's been cooking up:

-Forthcoming, casual athletic-themed "Your Move" campaign, that we saw last year.
-A new line of Kool-Aid scented footwear.
-Oh yeah, and that "Freestyle World Tour" collection that's supposed to appeal to chicks across the globe. 

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.

Lessons in Branding: Why Isn't Missoni Playing Up Green Aspect of Collector's Edition "Aqua" Bottle?

We talk a lot about "green" these days, so much so that we have to be careful that we're not misusing the buzzword, and that we suss out the veracity of its usage in the numerous releases that  come across our desk each day.

But today, in a notice about a new collector's bottle for Missoni's land- mark "Missoni Acqua" fragrance, we also have to watch out for when we don't see the term used when it could so readily apply.

The bottle, which Angela Missoni sez was inspired by "the colors and textures of the Missoni scarf," is meant to be a  collector's bottle that will "bring a touch of color to every woman's day."

OK, well, wee see those inspirations, the multi-hued tassle and the iconic zig-zags cut into the metal ball that adorns the atomizer cap. The bottle is rather classic looking, if not bowling us over with design, and we could definitely see it fitting easily and comfortably on a vanity table, in a purse, or in checked luggage (mind those ounces, ladies!).

But what seems to be downplayed here is that, as a collector's bottle that the customer would allegedly wish to keep around longer than the life of the liquid fragrance it contains, the thing is refillable.  Which means of course less waste given that consumers would actually go to get the bottle refilled rather than just buying a new box.

This is the stuff of green people! The kind of thing that marketers everywhere are desperate to communicate about their brand. So why isn't Missoni doing it? Well, perhaps it's because they don't want to invite further scrutiny of the rest of their line, which likely isn't comprised of eco-friendly materials or manufacturing processes. After all, there is definitely a movement to have more investigation on green claims these days and who wants to be investigated by consumer advocacy groups pining for a bloody production story or a disproof of claims?

(Disclaimer: We don't actually know how Missoni operates its factories, but are operating under the assumption that the luxury Italian brand, like most other high-end labels, can't really operate in the green production world, at least not just yet.)

Anyhow, we feel this is a missed opportunity. Check out this latest Top of Mind from our print sister, Brandweek's, Robert Klara, a funny riff on green initiatives that actually save companies money and, more importantly, help build some good will with consumers.

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. 

UPDATED: The Freestyle World Tour and Reebok's Search for Female Consumers

UPDATE!: Reebok flacks reassure us that "Framed" is full speed ahead. And, what's more, it's now available on Yahoo!Sports and behind-the-scenes footage has been, er, Flickr'd. Congrats! Now, what about that whole "Your Move" campaign?

For those new readers who walked into this convo like a child wandering into the middle of a movie ("You're out of your element Donny!"), check the rhymes below. Note: There won't be any more Big Lebowski references from here on out, for better or for worse...

Been around the world and I, I, I... I can't find my
Reeboks?

Forgive the indulgence of a song we've had stuck in our heads this morning (sometimes shower song sessions can drag into the work world, even for business-minded journos like us!), but it kinda, sorta ties into Reebok's new Freestyle World Tour launch that kicks off Feb. 21. Once again, it's a puzzler. But first, the deets.

Again going after the women's market, Reebok is taking a Nylon-style tour de monde with a new collection of apparel and footwear that will incorporate the particular modes of fashion capitals including Tokyo, Paris, New Delhi (huh?), Madrid, London and New York. Starting tomorrow, the first style, a send up of Tokyo street style with inspiration taken from the city's subway map hits stores. Future releases for each city will roll out as follows:

March 2008—Freestyle Paris, which references the "Can Can" in red, pink and black
May 2008— Freestyle New Delhi, featuring embossed satin and Bollywood-style vibrant color patterns
July 2008—Freestyle Madrid, which references flamenco dancers
Setpember 2008—Freestyle London, featuring an embroidered raven on the heel
November 2008—Freestyle New York, which references our city's unmistakable taxi cabs

All shoes will retail for $85, and the apparel collections that accompany them, which include hoodies, tees, and track jackets, will retail for $28-$75.

The global ad campaign, for which spend was not revealed, will include print, in-store and digital efforts. Somehow "global" just doesn't ring right without the  "TV  spots" tag, but hey, we're traditionalists. Reebok spent $27.5 million on measured media advertising in 2006, and for the first 11 months of 2007, has spent $16.6 million. Below is a list of the pitch women the brand has signed  for the campaign. Full disclosure: We had to look them all up too, so feel free to click the names if you're unfamiliar!

Tokyo—Ai Yasuda                                Madrid—Bimba Bose
Paris—Yelle                                         London—Nikki Beatnik
New Delhi—Sagarika Ghatge                New York—Sheetal Sheth (above, in a spot for the NYC collection)
 
 Since none of the girls here are names that we've heard of—and we'd like to think we're pretty up on things—the campaign is a bit of a puzzler unless they're going for super underground authenticity appeal. But isn't that the kind of marketing that a big brand like Reebok should avoid? Shouldn't Reebok be looking for bigger sales, to grab a larger share of the market and turn around their banking books?

What happened to Scarlett Johannson? And what about that IFC film series, "Framed," that they launched not too long ago.  

And what about the "Your Move" campaign we heard about back in September, when CMO Uli Becker (a straight-talking Adidas alum), told us the following:

"We need our marketing to appreciate where the consumer comes from and make them king of the whole thing as well," Uli Becker, head of global marketing, explained of the brand's "Your Move"  campaign. "It brings the message into one campaign context. Whether we're talking about running or women, we're playing into one equity image of the brand with that single slogan."

For a brand that said it was going to focus on a single, streamlined marketing approach, it doesn't seem to be delivering. "Framed", the "Kool-Aid" collection and, now, the Freestyle World Tour seem diametrically opposed to Becker's statement about a unified message. In fact, it seems like the same kind of mixed messaging that he said, at the time, had been detrimental to Reebok in the past.

Speaking of "Your Move" campaign, why haven't we seen it anywhere yet? Has "Your Move" moved on? Trust that we're on the hunt to find some answers here.

 

The Big Bang: J.C. Penney's Biggest Launch Ever for "American Living," (And Why It's Smarter Than You Skeptics Might Think!)

J.C. Penney is really going whole hog with the
marketing push behind its new "American Living" collection!

While we hear a lot of "biggest push ever" b.s. from marketers, this one's the real deal:

-First TV spot hits Univision, in Spanish, for the "Premio Lo Nuestro a la Musica Latina" Awards, on Feb. 21
-Mass-market TV spot to make full debut during the Oscars, on Feb. 24
-Month-long run on prime-time TV slots
-A 60-second in-cinema spot at an estimated 14,000 theaters for all PG and PG-13 features
-Print campaign in the usual barrage of consumer pubs (see example, right).
-Direct mail with 12 different specialty catalogs
-In-store promotions, including fixtures and themed uniforms for employees
-AmericanLiving.com dedicated Web site.
-Creative shot by Bruce Weber (sufficeth to say, ain't cheap people!)

The brand and the campaign, both by Polo Ralph Lauren's Global Brand Concepts group, will be the biggest in the company's history, according to CMO Mike Boylson. The imaging is meant as an emotional play that connects consumers with images of Americana and family.

While some may doubt the strategy of going big during a time when consumers feel like they're going bust—and Boylson said he's heard more than a few naysayers—the strategy actually works in their favor, according to Patricia Pao, of The Pao Principle, New York, who told me that J.C. Penney could potentially triple their media spend value given that they will be one of the few people making a real push.

And even though she felt the price points for the collection—a broad swath covering $24-$500 goods—might be a bit too aspirational for the times, WSL Strategic Retail's Candace Cortlett told me that the big campaign is still a good investment in the brand.

"[This effort] will live beyond the hard times," she said. "The worst thing to do is to put all of the energy into developing a brand like this and then just letting it sit on the shelf. That was Sears’ mistake when they got the Land’s End franchise."

Check out the full story here.

John Varvatos Goes Back to His Record Collection For Spring 2008 Campaign

It's always been clear where designer John Varvatos
gets his inspiration: his record collection.

Growing up in Detroit, Varvatos became infatuated with the slew of 1970s-era rockers that defined the music scene of the time (and, obvs, continued to influence for many years to come), and that infatuation has become the flashpoint of influence across not only his collections, but also his advertising creative. Recent spots have included Alice Cooper, Iggy Pop and Aerosmith's Joe Perry, alongside more modernist rock figures such as Chris Cornell, and the Scott Weiland-fronted and Slash-anchored Velvet Revolver.

So another season, another rocker and this time from the vinyl bin, Varvatos, and the team over at Yard, New York, have unearthed another vintage treat: Cheap Trick. Check out one of the spots above (click to enlarge), which feature members Bun E. Carlos, Rick Nielsen, Tom Petersson and Robin Zander (can you believe they're all still alive!) racing along on, what else, 1970s-era vintage two-seaters.

The creative, steered by Stephen Niedzwiecki, the creative director over at Yard, was inspired by boardwalk and carnival imagery (why do we always think Diane Arbus when we hear these words?) from the 1940s and 1950s.

"The Cheap Trick guys have an almost uncontainable energy," said Varvatos, in a statement. "This season is one that embodies a freewheeling style that is so quintessentially America. The campaign continues to be about iconic rock n ' rollers caught in real moments."

Real moments? I'd definitely classify this as stylized fantasy. I mean, honestly, when's the last time you saw a bunch of guys pushing into the stretches of old age racing around on bikes in full evening wear? (And if you have seen such a phenomenon, frequently, let me know where you live because it sounds like an interesting vacation spot!)

We also have to wonder if this campaign doesn't make Varvatos' brand feel too old. While we loved the campaign with Iggy Pop (who, let's face it, is no spring chicken himself, with wrinkles that recall Varvatos' own pricey, aged leather carry-alls), that campaign had a youthful exuberance that we just don't feel from the shock-white heads of the Cheap Trick-ers. This could also be a function of the fact that our eyes automatically gravitate to Rick Nielsen in the spot above; his bandmates do look more youthful on second consideration.

Regardless, the aging rocker-as-posterboy works for Varvatos, solidifying his brand's musical heritage, and, here's the big bonus: he'll never get accused of just tapping somebody because they of-the-moment (looking at you Versace with your robotic Jonathan Rhys Meyers ads). And double bonus: these guys probably come pretty cheap.

  You know what would make our day, though? If Varvatos' next campaign featured T. Rex's Marc Bolan (pictured, left). C'mon John, you know you love him too! This guy is the original unicorn... Just imagine that sex bomb in a Varvatos suit!

Financial Desk: Under Armour Heralds Its Milestone Year in Q4 Earnings

It would seem as though that New Prototype shoe is 
the lynch pin upon which Under Armour's future
growth rests.

Even as the latest earnings reveal strong upswings for the brand—fourth quarter sales climbed 29% to $174.8 million, while income grew 42% to $16.9 million, or 34 cents a share, beating Wall Street estimates—the footwear category slumped by almost 27%, ticking in at $6.8 million in sales. Apparel, meanwhile, grew almost 30% to $152.7 million in sales, grabbing by far the lion's share of Under Armour's balance sheet.

The company reiterated that it will dedicate 12%-13% of 2008 revenues to marketing, shifting a substantial portion of that spend to the first half of the year, when it will roll out its New Prototype performance cross trainer shoe, kicking off with a 60-second ad during Fox's Super Bowl broadcast Feb. 3.

"2008 marks an important milestone in Under Armour's long-term strategy with the launch of our performance training footwear," said Kevin Plank, chairman and CEO, in a statement. "We are confident in delivering the proper mix of the right product positioning, a great campaign, great retail partners who are excited about the launch, and most importantly, great product that will deliver against the demands of today's new prototype athletes."

Given all the ad spend and marketing oomph they're putting behind this launch, not to mention the growth plans that rest on its success, it will be very interesting to watch what happens when Nike kicks their version out two months earlier. For more info on this, check out my recent story about the March-release of that Nike line (the name of which is still a mystery) here.

Check out previews of the upcoming Under Armour Super Bowl spot here.

Financial Desk: H&M Powers Through Another Impressive Quarter

H&M continues its charge through the fashion world
with another strong earnings season.

Per the company's quarterly, and annual, earnings report released this morning, fourth quarter sales grew 17% to $3.57 billion in domestic currency (at current exchange rates), and profits jumped 14% to roughly $975 million.

Though the company did seem to feel a similar slump in the month of December, where sales decreased by 10% over the previous year, sales through Jan. 29 (one has to marvel at the efficiency that can include sales figures from as recently as two days ago in such a report!), sales have increased 16%. Results for the U.S. market, specifically, were not provided.

Full-year results for fiscal 2006/2007 were similarly positive, with sales climbing 15% to $12.3 billion, and profits resting solidly at the $3.0 billion mark, an increase of 21%.

The company plans to control roughly 190 stores for the next fiscal year, focusing its efforts in 2008 on building up markets in Egypt, Saudi Arabia, Bahrain, and Oman. Stores are expected to open in the Russian market in 2009.

The retailer is currently gearing up for the release of its "Fashion Against AIDS" collection, which bows tomorrow. The group of t-shirts, tank tops and hooded sweaters were designed in conjunction with Designers Against AIDS (DAA) and music industry celebrities including Rihanna, Timbaland, Rufus Wainwright (pictured in the spot above), Scissor Sisters, and Ziggy Marley, and Good Charlotte, among others. Twenty-five percent of sales from the line, priced at roughly $16-$40 (at current exchange) will go to various HIV/AIDS prevention projects at non-profits worldwide.

In 2006, H&M spent $17 million on measured media advertising in the U.S. market, and through November 2007, has spent $18 million, per Nielsen Monitor-Plus.

Couture Contest: Who Will Be Wearing These On The Red Carpet?

Let's stuff those bad dreams about The Recession for a moment and take a gander at the surreality of couture week! While more film is shuttling in over at Style.com, it's been a fun romp over the past few days through the high-concept runways of Christian Dior (which I've dubbed the "Baltimore's Miss Crabs" Collection), Chanel, Christian Lacroix, and Armani Privé.

But I guess we're never too far from bad dreams, are we? After all, while the ladies attending these shows are part of that rarified market that will buy whatever they want whenever they want it (cue the "Lola" theme), the reality is that the shows are little more than a big marketing stunt to drum up interest in the storied houses, and their designers.

For the most part, the only time we'll see a couture gown will be at a Costume Institute retrospective at the Metropolitan Museum of Art, or, of course on the red carpet for big ticket events like the Oscars. But wait, the Oscars might not even happen this year, meaning that there potentially could be the elimination of millions of consumer impressions for these brands across the loads of magazines and TV stations that cover this stuff. The horror!

But let's assume that the actresses will be ticking their way across that crimson spread, and that Ryan Seacrest will be there to catch it all (with a bunch of quips sure to prompt catty "outings" across the blogosphere for the day after). Who do you think can pull off these tricky designer looks? Drop your submissions in the comments box or shoot me a plug at enewman@brandweek.com. Happy guessing!

Though I would guess Privé is a lock for Katie Holmes in her next near-comatose red carpet/"news" interview gig. If you haven't seen, check it out here. "Mad Money," indeed!

             ARMANI PRIVÉ                    CHRISTIAN LACROIX                 CHRISTIAN DIOR

Liz Claiborne Steals Isaac Mizrahi from Target!

Talk about a shake-up.

It appears that after a successful, five year marriage to Target, designer Isaac Mizrahi is setting sail for Liz Claiborne.

As the newly-tapped creative director for the Claiborne brand, Mizrahi, one of fashion's more ebullient and popular personalities, will oversee design and marketing for the brand's women's apparel, accessories and licensing businesses. His first collection under the Liz Claiborne label is slated to debut in spring 2009.

"[We] believe that [Mizrahi's] innovative design sense and widespread appeal will breathe new life into the Liz Claiborne brand," said Liz CEO William McComb, in a statement. "It is certainly no secret that the brand has been lacking a clear and cohesive vision and has languished as a result. With this appointment, we are taking a major step towards our goal of creating irresistible product that will provide today's discerning woman with a compelling reason to buy."

While no financials of the deal were disclosed, Mizrahi's own statement seems to betray, if not a fairly lucrative deal, then at least boosted branding opportunities for the designer who pioneered the high/low design ethos when he signed on to produce a women's collection for Target in 2003, paving the way for many others who followed in succession, including Karl Lagerfeld (in 2004, with a capsule collection for H&M), and most recently, Vera Wang (in 2007, with her Very Vera collection for Kohl's). For more on those partnerships, and their impact in the industry, please see my previous article, "Split Personality," here.

"I'm honored to have the opportunity to build on this fantastic legacy and excited to reestablish the label as a must have," Mizrahi said, in a statement. "And as excited as I am about developing Liz Claiborne, the collaboration also affords fantastic opportunities for growth in my own brand."

Aside from the forthcoming collection for Liz Claiborne, Mizrahi will also bow his new web-based series, "Watch Isaac," in February at WatchIsaac.com. His collections for Target will continue to be sold through the mass-retailer throughout 2008.

However, we have to say that the move seems a risky o